BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

                                SB 679  (Johnston)

Hearing Date:5/17/89            Amended:4/5/99         
Consultant: Karen French        Policy Vote:Education  11-2
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BILL SUMMARY: 

SB 679, an urgency measure, requires the State Controller  
to propose, by November 1, 1999, a method for reimbursing  
school districts for the cost of court-ordered  
desegregation programs that previously were supported with  
federal funds.

                         Fiscal Impact (in thousands)
  
Major Provisions        1999-2000             2000-01               2001-02   Fund  

Deseg. Increase                 $600                      $600                  
$600                            General*

*Costs count toward meeting the Proposition 98 minimum guarantee.

STAFF COMMENTS:  

This bill meets the criteria to be placed on the Suspense  
file.

Stockton Unified School District is one of 13 districts in  
the state to receive reimbursement of the costs of  
court-ordered desegregation.  Because the magnet school  
component was supported with federal funds, the district  
never received state reimbursement for it.  Now that  
federal funding has ended, the district is seeking state  
reimbursement for the total cost of the program (about $3  
million per year).

Under current law, the district could receive state  
reimbursement for 80% of the magnet costs.  As an expense  
that was not recognized in the first program year, current  
law would not allow the district to receive 100%  
reimbursement.  The cost noted as a fiscal impact above  
represents the difference between 80% funding and 100%.   
While this bill neither contains an appropriation nor  










authorizes payment, sponsors intend that the state  
reimburse  this additional amount.  For this reason staff  
has identified a cost for this bill.