BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 63 (Wolk) - School Attendance: High Schools
          
          Amended: As introduced          Policy Vote: Education 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE.


          Bill Summary: SB 63 provides funding to a basic aid school  
          district that enrolls students who do not reside in an area that  
          includes either a unified or high school district. This bill  
          specifically provides 70% of the statewide revenue limit for  
          high schools for each unit of average daily attendance (ADA)  
          generated.

          Fiscal Impact: 
              2013-14: Increasing funding to St. Helena Unified School  
              District (SHUSD) by approximately $4,100 per pupil, (70% of  
              the statewide average deficited revenue limit minus the $120  
              per pupil SHUSD currently receives) for each of the  
              approximately 77 pupils residing in an area that is not in a  
              high school or unified school district, will result in new  
              state Proposition 98 costs of approximately $315,000.
              Future costs: Significant ongoing costs, likely in the  
              hundreds of thousands of dollars, depending on the number of  
              students who enroll in SHUSD because they do not reside in a  
              high school or unified school district, as well as future  
              fluctuations of the statewide high school revenue limit and  
              the deficit factor.

          Background: Existing law states that any person who is eligible  
          to attend high school and who does not reside in a high school  
          district or in a unified school district may attend high school  
          in any high school district or unified school district in the  
          county where he/she resides or in another county. (Education  
          Code � 48031).

          Existing law authorizes inter-district transfers known as the  
          "school districts of choice" authorization in which the  
          governing board of a school district may declare the district to  








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          be a "district of choice" willing to accept a specified number  
          of inter-district transfers. A "district of choice" is not  
          required to admit pupils but those pupils that it does elect to  
          admit must be selected largely through a random process. (EC �  
          48300 et seq.)

          For any school district of choice that is a basic aid district,  
          the apportionment for any ADA credited as a result of district  
          of choice, is 70% of the district revenue limit that would have  
          been apportioned to the district of residence. (EC � 48310(c)).

          Proposed Law: SB 63 provides additional funding to a basic aid  
          school district that enrolls students who do not reside in an  
          area that includes either a unified or high school district. The  
          level of funding provided would be set at the equivalent of 70%  
          of the statewide revenue limit for high schools for each unit of  
          ADA generated. More specifically, this bill:

          1)   Requires the State Superintendent of Public Instruction  
               (SPI) to compute an allowance, for a basic aid school, that  
               provides 70% of the statewide average high school revenue  
               limit per unit of average daily attendance, as specified.
           
          2)   Specifies for the purpose of this measure, a basic aid  
               school district means a school district that does not  
               receive revenue limit funding from the state, for any  
               fiscal year in which the measure is applied. 

          3)   Requires the apportionment allowance computed under this  
               measure, to be computed only for school districts that  
               accept pupils residing in the territory, or within an  
               elementary school district, that was not within the  
               territory of either a high school district or a unified  
               school district during the 2012-13 fiscal year. 

          Staff Comments: This narrowly tailored bill would apply to high  
          school apportionment funding for students residing within two  
          basic aid school districts in Napa County, Howell Mountain  
          Elementary and Pope Valley Elementary school districts. These  
          districts are not incorporated into the boundaries of a high  
          school or unified school district. Under existing law, those  
          students are authorized to enroll in any district (with a high  
          school) of their choice. At present, most pupils matriculate  
          from the two elementary school districts to SHUSD, another basic  








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          aid school district, for high school. Under existing state law,  
          SHUSD (or any district these students choose to enroll is) is  
          required to accept them.

          As a basic aid school district, SHUSD receives only $120 per  
          student in state funding, and that applies to students it is  
          required to admit under state law because they do not live in a  
          high school or unified school district - students from Howell  
          Mountain Elementary and Pope Valley Elementary school districts  
          If those same students chose to attend another high school that  
          was not in a basic aid school district, the receiving school  
          district would be apportioned its full revenue limit funding for  
          each of those students.

          Under this measure, a student wishing to attend SHUSD would  
          generate 70% of the statewide average high school revenue limit:  
          approximately $4,215 per student. 70% of the statewide average  
          is significantly less than either a unified or high school  
          revenue limit (which the state would pay if those students  
          choose the attend school in a non-basic aid district) but over  
          $4,000 more than SHUSD receives under existing law. This bill  
          links ongoing funding for this category of students to the  
          statewide average revenue limit; as the average revenue limit  
          rises in the future, the apportionment to SHUSD would also rise.

          Staff notes that as part of the 2013-14 Governor's Budget, the  
          Administration proposes to restructure the existing K-12 finance  
          system and to primarily fund schools using a new formula known  
          as the Local Control Funding Formula (LCFF). The LCFF proposal  
          repeals revenue limit funding from statute and replaces it with  
          a new formula that seeks to fund school districts up to a target  
          funding level over a 7-year "roll out" period. School districts  
          (including SHUSD) that are already funded above their projected  
          LCFF target will be held harmless, but will not receive  
          additional funding until other school districts have met their  
          targets. It is unclear whether SHUSD could receive the  
          additional funding proposed in the bill is the LCFF is  
          implemented.














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