BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 679|
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THIRD READING
Bill No: SB 679
Author: Johnston (D)
Amended: 6/2/99
Vote: 21
SENATE EDUCATION COMMITTEE : 11-2, 4/21/99
AYES: Alpert, McPherson, Alarcon, Chesbro, Dunn, Hayden,
Hughes, O'Connell, Ortiz, Sher, Vasconcellos
NOES: Haynes, Knight
NOT VOTING: Monteith
SENATE APPROPRIATIONS COMMITTEE : 8-4, 5/27/99
AYES: Johnston, Alpert, Bowen, Burton, Escutia, Karnette,
McPherson, Perata
NOES: Johnson, Kelley, Leslie, Mountjoy
NOT VOTING: Vasconcellos
SENATE FLOOR : 25-12, 6/1/99
AYES: Alarcon, Alpert, Baca, Bowen, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Hughes, Johnston,
McPherson, Murray, O'Connell, Ortiz, Peace, Perata,
Polanco, Schiff, Sher, Solis, Speier, Vasconcellos
NOES: Brulte, Haynes, Johannessen, Johnson, Kelley,
Knight, Leslie, Morrow, Mountjoy, Poochigian, Rainey,
Wright
NOT VOTING: Karnette, Lewis, Monteith
SUBJECT : Elementary and secondary education:
desegregation costs
SOURCE : Stockton Unified School District
CONTINUED
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DIGEST : This bill requires the State Controller to
propose, by March 1, 2000, a method for reimbursing school
districts for the cost of desegregation magnet school
programs that were previously supported with federal funds.
Senate Floor Amendments of 6/2/99 (a) revise a study due
date from November 1, 1999 to March 1, 2000, and (b) remove
the urgency clause.
ANALYSIS : Under current law, the state partially
reimburses school districts for audited and State
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.
This bill:
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 March 1, 2000, 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.
Comments
What is the issue ? Stockton Unified School District (SUSD)
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, SUSD has operated a magnet school program since
its first program year (1985).
Because the magnet school component was supported with
federal funds, SUSD never received state reimbursement for
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it. Now the federal funding is ending and SUSD would like
the state to pick up the cost of the magnet program (about
$3 million per year).
Under current law, SUSD 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 SUSD to
receive 100% reimbursement from the state. Giving SUSD
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 1999-2000 2000-01
2001-02 Fund
Desegregation Increase $600 $600
$600 General*
*Costs count toward meeting the Proposition 98 minimum
guarantee.
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.
SUPPORT : (Verified 6/2/99)
Stockton Unified School District (source)
NC:sl 6/2/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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