BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON EDUCATION
                     Dede Alpert, Chair
                 1999-2000 Regular Session
                              

BILL NO:       SB 679
AUTHOR:        Johnston
AMENDED:       April 5, 1999
FISCAL COMM:   Yes            HEARING DATE:  April 21, 1999
URGENCY:       Yes            CONSULTANT:    James Wilson



  SUMMARY  

This bill, an urgency measure, requires the State  
Controller to propose, by November 1, 1999, a method for  
reimbursing school districts for the cost of desegregation  
magnet school programs that were previously supported with  
federal funds.

  BACKGROUND  

Under current law, the state partially reimburses school  
districts for audited and Controller approved actual costs  
of operating desegregation programs that are ordered by the  
courts.  The state pays 100% of the approved first year  
costs of desegregation programs that are not otherwise  
reimbursed to the district by the federal government.  In  
addition, the state pays for 80% of unreimbursed  
"expansion" costs that exceed first year costs.

 ANALYSIS  

  This bill, an urgency measure:  

1)   Expresses legislative intent to reimburse 100% of the  
     costs of magnet school programs that were operated  
     pursuant to a court-ordered desegregation program but  
     were previously paid for by federal funds.

2)   By November 1, 1999, requires the State Controller to  
     propose a method to reimburse school districts for  
     100% of the costs of desegregation magnet programs  
     that were previously reimbursed by federal grant. 





                                                      SB 679
                                                      Page 2



 STAFF COMMENTS  

  What is the issue?    Stockton Unified School District is  
one of 13 districts in the state to receive state  
reimbursement of the costs of  court-ordered  desegregation.  
(Another 60+ districts receive funding for voluntary  
desegregation programs.)  Under their court ordered  
program, Stockton has operated a magnet school program  
since its first program year (1985).   

Because the magnet school component was supported with  
federal funds, the district never received state  
reimbursement for it.   Now the federal funding is ending  
and the district would like the state to pick up the cost  
of the magnet program (about $3 million per year).  

Under current law, the district could receive state  
reimbursement for 80% of the magnet program cost ($3  
million X 80% = $2.4 million).  As an expense that was not  
recognized in the first program year, current law would not  
allow the district to receive 100% reimbursement from the  
state.  Giving the district credit for the federally  
reimbursed first year costs is not a solution since the  
magnet program only cost one million dollars in the "first"  
year. 

  SUPPORT  

Stockton Unified School District

  OPPOSITION  

None received