Bill Text: CA AB200 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Education finance: categorical programs.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-03 - From committee without further action pursuant to Joint Rule 62(a). [AB200 Detail]

Download: California-2013-AB200-Amended.html

---

BILL NUMBER: AB 200	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Hagman

                        JANUARY 29, 2013

   An act to amend  Section 42238.1   Sections
42605 and 42606  of the Education Code, relating to education
finance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 200, as amended, Hagman. Education finance:  inflation
adjustment to revenue limits.   categorical programs.
 
   Existing 
    (1)     Existing  law establishes
 the public elementary and secondary school system in this
state and further establishes a funding system under which the state
apportions funds to local educational agencies in accordance with
school district revenue limits that are calculated as specified.
Existing law requires the Superintendent of Public Instruction to
annually calculate an inflation adjustment, as specified, that is
then used in calculating school district revenue limits 
 various categorical education programs and appropriates the
funding for those programs in the annual Budget Act. Existing law
requires the Superintendent of Public Instruction, for the 2008-09 to
2014-15 fiscal years, inclusive, to apportion from the amounts
provided in the annual Budget Act for specified categorical education
programs an amount based on the relative proportion that the local
educational agency received in the 2008-09 fiscal year for those
programs and authorizes local educational agencies, for those fiscal
years, to use these funds, with specified exceptions, for any
educational purpose, to the extent permitted by federal law. Existing
law requires a school district that receives funding on behalf of a
charter school pursuant to certain provisions, for the 2008-09 
 to 2014-15 fiscal years, inclusive, to continue to distribute
the funds to those charter schools based on the same relative
proportion that the school district distributed in the 2007-08 fiscal
year, as adjusted by the   school district to reflect
changes in charter school attendance in the school district. Existing
law requires a local educational agency to report expenditures of
these funds to the State Department of Education. Existing law also
requires the Superintendent, for the 2010-11 to 2014-15 fiscal years,
inclusive, to allocate a supplemental categorical block grant to a
charter school that began operation on or after the 2008-09 fiscal
year, as specified  .
   This bill would  make nonsubstantive changes to the
provision requiring the annual calculation of the inflation
adjustment   delete the 2014-15 fiscal year termination
dates and would require, commencing with the 2014-15 fiscal year, the
apportionments from the categorical education programs, as described
above, to be apportioned to recipients by multiplying the recipient'
s per-pupil rate, calculated as specified, by the recipient's current
fiscal year average daily attendance. The bill would also require
the department to adopt uniform definitions for reporting the
expenditure of the funds and would require a local educational
agency, as a condition of receiving the funds, to (A) report the
expenditure of those funds to the department, and (B) post
information on the expenditure of the funds on the Internet Web site
of the local educational agency. By requiring school districts to
continue to distribute funds to charter schools, as discussed above,
beyond the 2014-15 fiscal year, the bill would impose a
state-mandated local program  . 
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
 yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 42605 of the  
Education Code   is amended to read: 
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e),  for  
commencing with  the 2008-09 fiscal year  to the 2014-15
fiscal year, inclusive  , recipients of funds from the
items listed in paragraph (2) may use funding received, pursuant to
subdivision (b), from any of these items listed in paragraph (2) that
are contained in Section 2.00 of the annual Budget Act, for any
educational purpose.
   (2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section 2.00.
   (b) (1)  (A)    For the 2009-10 fiscal year to
the  2014-15   2013-14  fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a). 
   (B) (i) Commencing with the 2014-15 fiscal year, the
Superintendent or other administering state agency, as appropriate,
shall, for the items enumerated in paragraph (2) of subdivision (a),
apportion an amount to a recipient by multiplying the per-pupil rate,
as determined in clause (ii), by the recipients current fiscal year
average daily attendance.  
   (ii) For purposes of this subparagraph, the per-pupil rate shall
be determined by dividing the amount a recipient received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a) by the recipient's
2008-09 fiscal year average daily attendance. 
   (2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
Notwithstanding paragraph (1),  for   commencing
with  the 2008-09 fiscal year  to the 2014-15 fiscal
year, inclusive , a school district that receives funding on
behalf of a charter school pursuant to Sections 47634.1 and 47651
shall continue to distribute the funds to those charter schools based
on the relative proportion that the school district distributed in
the 2007-08 fiscal year, and shall adjust those amounts to reflect
changes in charter school attendance in the  school 
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a). For a charter school that began operation in the
2008-09 fiscal year, if a school district received funding on behalf
of that charter school pursuant to Sections 47634.1 and 47651, the
school district shall continue to distribute the funds to that
charter school based on the relative proportion that the school
district distributed in the 2008-09 fiscal year and shall adjust the
amount of those funds to reflect changes in charter school attendance
in the  school  district. The amounts allocated shall be
adjusted for any greater or lesser amount appropriated for the items
enumerated in paragraph (2) of subdivision (a).
   (3) Notwithstanding paragraph (1),  for  
commencing with  the 2008-09 fiscal year  to the 2014-15
fiscal year, inclusive  , the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
   (4) Notwithstanding paragraph (1),  for  
commencing with  the 2008-09 fiscal year  to the 2014-15
fiscal year, inclusive  , the Superintendent shall
apportion from the amounts provided in the annual Budget Act an
amount to a school district, charter school, and county office of
education based on the same relative proportion that the local
educational agency received in the 2007-08 fiscal year for the
programs funded through the following items contained in Section 2.00
of the annual Budget Act: 6110-104-0001, 6110-105-0001,
6110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
6110-198-0001, 6110-232-0001, and Schedule (2) of 6110-240-0001.
   (5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) (A) As a condition of receipt of funds, the governing board of
the school district or governing board of the county office of
education, as appropriate, at a regularly scheduled open public
hearing shall take testimony from the public, discuss, approve or
disapprove the proposed use of funding, and make explicit for each of
the budget items in paragraph (2) of subdivision (a) the purposes
for which the funds will be used.
   (B) The regularly scheduled open public hearing held pursuant to
subparagraph (A) shall be held before and independent of a meeting
where the governing board of the school district or governing board
of the county office of education adopts a budget. If the governing
board intends to close a program funded by the items listed in
paragraph (2) of subdivision (a), the governing board shall identify,
in the notice of the agenda of the public hearing or at another
public hearing, the program or programs proposed to be closed.
   (3)  Using   (A)     As a
condition of receipt of funds, using  the Standardized Account
Code Structure reporting process, a local educational agency shall
report  to the department  expenditures of funds pursuant to
the authority of this section by using the appropriate function
codes to indicate the activities for which these funds are expended.
The department shall collect and provide this information to the
Department of Finance and the appropriate policy and budget
committees of the Legislature by April 15, 2010, and annually
thereafter on April 15  until, and including, April 15, 2016
 . 
   (B) The department shall adopt uniform definitions for the
Standardized Account Code Structure reporting process.  
   (4) As a condition of receipt of funds, a local educational agency
shall post information on the expenditures of funds pursuant to the
authority of this section on its Internet Web site. 
   (d)  For   Commencing   with 
the 2008-09 fiscal year  to the 2014-15 fiscal year,
inclusive,  local educational agencies that use the
flexibility provision of this section shall be deemed to be in
compliance with the program and funding requirements contained in
statutory, regulatory, and provisional language, associated with the
items enumerated in subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Item 6110-105-0001 of Section 2.00 of the annual Budget
Act, the amount authorized for flexibility shall exclude the funding
provided to fund remedial educational services pursuant to Provision
4. For Item 6110-156-0001 of Section 2.00 of the annual Budget Act,
the amount authorized for flexibility shall exclude the funding
provided for instruction of CalWORKs-eligible  students
  pupils  pursuant to Schedules (2) and (3) and
Provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local
educational agency for kindergarten and grades 1 to 8, inclusive, and
for grades 9 to 12, inclusive, shall be aligned with the state
standards adopted pursuant to Section 60605 or 60605.8, and shall
also meet the reporting and sufficiency requirements contained in
Section 60119.
   (B) For purposes of this section,  "sufficiency" means
  "sufficiency   requirements" are the
requirements  that each pupil has sufficient textbooks and
instructional materials in the four core areas as defined by Section
60119 and that all pupils within the local educational agency who are
enrolled in the same course shall have identical textbooks and
instructional materials, as specified in Section 1240.3.
   (3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
   (5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
   (f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.
   SEC. 2.    Section 42606 of the   Education
Code   is amended to read: 
   42606.  (a) To the extent funds are provided,  for
  commencing with  the 2010-11  to the
2014-15  fiscal  years, inclusive  
year  , the Superintendent shall allocate a supplemental
categorical block grant to a charter school that began operation
during or after the 2008-09 fiscal year. These supplemental
categorical block grant funds may be used for any educational
purpose. Commencing in the 2011-12 fiscal year, a locally or direct
funded charter school that converted from a preexisting school
 between   on or after  the 2008-09
 and 2014-15 fiscal  years, inclusive
  year  , is not eligible for funding specified in
this section. A charter school that receives funding pursuant to this
subdivision shall not receive additional funding for programs
specified in paragraph (2) of subdivision (a) of Section 42605, with
the exception of the program funded pursuant to Item 6110-211-0001 of
Section 2.00 of the annual Budget Act.
   (b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127) per
unit of charter school average daily attendance as determined at the
2010-11 second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. A locally funded
charter school that converted from a preexisting school during or
after the 2008-09 fiscal year is not eligible for funding specified
in this section.
   (2)  For   Commencing with  the 2011-12
 to the 2014-15  fiscal  years, inclusive
  year  , the supplemental categorical block grant
shall equal one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the current
year second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. In lieu of this
supplemental grant, a school district shall provide new conversion
charter schools that commenced operations within the district during
or after the 2008-09 fiscal year, one hundred twenty-seven dollars
($127) per unit of charter school average daily attendance as
determined at the current year second principal apportionment. This
paragraph does not preclude a school district and a new conversion
charter school from negotiating an alternative funding rate. Absent
agreement from both parties on an alternative rate, the school
district shall be obligated to provide funding at the one hundred
twenty-seven dollars ($127) per average daily attendance rate.
   SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    Section 42238.1 of the Education
Code is amended to read:
   42238.1.  (a) For the 1986-87 fiscal year and each fiscal year up
to and including the 1998-99 fiscal year, the Superintendent shall
compute an inflation adjustment equal to the product of paragraphs
(1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for school districts of
similar type.
   (B) The amount, if any, per unit of average daily attendance
received by the school district pursuant to Article 8 (commencing
with Section 46200) of Chapter 2 of Part 26 of Division 4 for the
prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 1 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 1 of the second preceding fiscal year, as reported by the
Department of Finance.
   (b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an inflation adjustment equal to
the product of paragraphs (1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for school districts of
similar type.
   (B) The amount, if any, per unit of average daily attendance
received by the school district pursuant to Article 8 (commencing
with Section 46200) of Chapter 2 of Part 26 of Division 4 for the
prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as reported by the Department
of Finance.
   (c) This section shall become operative July 1, 1986.