BILL ANALYSIS �
SB 1137
Page 1
Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1137 (Torres) - As Amended: July 2, 2014
Policy Committee: EducationVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill creates a new transportation funding formula,
beginning in the 2015-16 fiscal year, to provide specified local
education agencies (LEAs) with a minimum of 50% of approved
transportation costs, thereby providing equalization funding for
LEAs that are reimbursed at less than 50% through Home-to-School
Transportation (HTST) funding.
This bill also provides an annual cost-of-living adjustment for
school transportation funding and requires the Superintendent of
Public Instruction (SPI) to establish a process to provide
start-up transportation funding to LEAs not currently providing
transportation services. Specifically, this bill:
1)Requires the Superintendent of Public Instruction (SPI),
beginning in the 2015-16 fiscal year, to apportion state
transportation funding equal to the greater of 100% the LEAs
transportation apportionment for the 2013-14 fiscal year or
its apportionment computed pursuant to the following schedule.
a) For the 2015-16 fiscal year, 41% of its approved costs
for the prior fiscal year.
b) For the 2016-17 fiscal year, 42.5% of its approved costs
for the prior fiscal year.
c) For the 2017-18 fiscal year, 44% of its approved costs
for the prior fiscal year.
d) For the 2018-19 fiscal year, 45.5% of its approved costs
for the prior fiscal year.
e) For the 2019-20 fiscal year, 47% of its approved costs
for the prior fiscal year.
f) For the 2020-21 fiscal year, 48.5% of its approved costs
for the prior fiscal year.
SB 1137
Page 2
g) For the 2021-22 fiscal year, 50% of its approved costs
for the prior fiscal year.
2)Requires the 2013-14 transportation apportionment be adjusted
annually by the percentage change in the annual average value
of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services, thereby providing an annual
cost-of-living adjustment (COLA).
3)Requires the SPI to establish a process to provide startup
school transportation apportionments to school districts that
did not provide pupil transportation services in the 2014-15
fiscal year, as specified. Limits the amount provided for
start-up apportionments to no more than 5% of the annual COLA.
Provides startup school transportation apportionments only to
school district employee-operated home-to-school
transportation programs.
4)Makes the provisions of this bill operative only to the extent
that funding is provided in the annual Budget Act or other
statute.
FISCAL EFFECT
1)General Fund/Proposition 98 costs of approximately $165
million beginning in 2015-16. These costs would increase to
approximately $200 million to $270 million annually by
2021-22. Exact costs will depend on actual funding spent by
school districts on transportation, increased by COLA.
2)Annual General Fund/ Proposition 98 costs in the range of
$500,000 to provide start-up transportation apportionments
beginning in 2015-16. This bill limits start-up funding to
5% of the annual COLA. Actual costs will depend on the actual
COLA provided each year. The Legislative Analyst's Office
forecasts a COLA of 2.17% for 2015-16. The state provides
$495 million for the home-to-school transportation add-on
under the Local Control Funding Formula. For illustration, a
2.17% COLA applied to this amount would result in a $10.7
million COLA. Five percent of this COLA is $537,000.
COMMENTS
1)Purpose. The California Association of School Transportation
SB 1137
Page 3
Officials supports this bill as an attempt to correct
disparities in transportation funding that has occurred over
the last two decades. School transportation funding was
frozen at 80% of each LEA expenditure as reported in the
1982-83 school year. Any school that was not providing school
transportation at that time cannot access funds. Demographics
have changed and districts needs have changed but funding has
not responded to these changes. This bill is modeled after a
recent LAO recommendation to provide school districts with up
to 50% of approved transportation costs, phased in over time.
2)Background . Existing law authorizes school districts and
county offices of education (COEs) to provide transportation
services to regular education students attending their schools
at the discretion of their governing boards. State law
requires school districts to provide transportation services
for special education students whose individualized education
programs require such services.
In 2013, the Local Control Funding Formula (LCFF) was enacted.
The LCFF replaces almost all sources of state funding,
including most categorical programs. However, Home-to-School
Transportation (HTST) funding remained as a separate funding
stream, or "add-on" to the LCFF. State law also continues to
require districts to spend HTST funding on pupil
transportation. Any district that received HTST funding in
2012-13 continues to receive that same amount of funding in
addition to its LCFF allocation each year. The HTST funding is
not currently eligible for future COLAs.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081