BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 679
                                                          Page  1

Date of Hearing:   July 14, 1999

                ASSEMBLY COMMITTEE ON EDUCATION 
                      Kerry Mazzoni, Chair
          SB 679 (Johnston) - As Amended:  June 2, 1999

  SENATE VOTE  :   25-9
  
SUBJECT  :   Desegregation

  SUMMARY  :   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.  Specifically,  this bill  :  

1)Expresses legislative intent to reimburse school districts for  
  the full 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 appropriately reimburse school districts for the  
  costs of court-ordered desegregation magnet programs that were  
  previously reimbursed by federal grant. Further specifies that  
  the proposed method should optimize the continued delivery of  
  the educational program with the least disruption possible.


  EXISTING LAW  authorizes the reimbursement of a school district  
for the amount necessary to pay any costs mandated by the  
courts. Existing law also authorizes the governing board of any  
school district that maintains a program designed to remedy the  
harmful effects of racial segregation that originated under a  
court mandate to submit a claim for reimbursement to the  
Controller for costs of the program.

  FISCAL EFFECT  :   According to the Senate Appropriations  
Committee, this bill would incur General Fund (Proposition 98)  
costs of $600,000.

  COMMENTS  :   

  Need for Bill  . According to the author, Stockton Unified School  
District is one of 13 districts in the state to receive state  








                                                          SB 679
                                                          Page  2

reimbursement for the costs of court-ordered desegregation.  
(Another 60+ districts receive funding for voluntary  
desegregation programs.) Under its 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.

  Why the Controller's Office and Not the Department of Education  ?  
According to an analysis of the bill by the State Controller's  
Office (SCO), "[T]he SCO does not determine the appropriation or  
the amounts due each school district. Rather, the Department of  
Education provides the amount of money appropriated for each  
school district in the Court Ordered Desegregation Program. The  
Department of Finance then sets up the appropriation and the  
Legislature approves it." The SCO accordingly recommends  
replacing "Controller" in the bill with the "Department of  
Education".

  REGISTERED SUPPORT / OPPOSITION  :  (as of 7/9/99)

  Support  

None received.
  
Opposition  

None received.

  Analysis Prepared by  :    Alva Johnson / ED. / (916) 319-2087