BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 679
                                                          Page  1

Date of Hearing:   August 18, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

            SB 679 (Johnston) - As Amended: 8/16/99 

Policy Committee:                               
EducationVote:14-2

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:           No

  SUMMARY  :

This bill requires the State Controller to propose to the  
Legislature by 3/1/2000 a method for appropriately reimbursing  
school districts for the cost of magnet school programs ordered  
by a court pursuant to a desegregation plan.   This bill also  
reimburses the Stockton Unified School district for its audited  
court-ordered desegregation costs. 

  FISCAL EFFECT  :

1)Minor Absorbable cost to the State Controller to provide the  
  Legislature with a recommendation to reimburse school  
  districts for court-ordered magnet school programs.

2)Appropriates $600,000 from the GF (Prop 98) to the Stockton  
  Unified School District for its court-ordered desegregation  
  program.  The 1999 Budget Act does not include funding for  
  this proposal.

  COMMENTS  :

 1)Background  . Stockton Unified School District is one of 13  
  districts in the state to receive state funding 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 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 at about $3 million per year.  








                                                          SB 679
                                                          Page  2


  2)Related Legislation  .  AB 36 (Shelley) reimburses 13 school  
  districts for their prior-year audited desegregation costs in  
  1994-95 and 1995-96.  The DOF is opposed to such  
  reimbursements because it argues that budgetary language  
  limits such reimbursements.  AB 36 is currently in the Senate  
  Appropriations Committee.


  Analysis Prepared by  :    Jai Sookprasert / APPR. / (916)  
319-2081