BILL NUMBER: SB 191	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 14, 2009

INTRODUCED BY   Senator Wright

                        FEBRUARY 18, 2009

   An act to amend Section 47660 of the Education Code, relating to
charter schools.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 191, as amended, Wright. Charter schools: funding.
   Existing law requires the Superintendent of Public Instruction
annually to compute a general-purpose entitlement for each charter
school, as specified. Existing law prescribes calculations to modify
that general-purpose entitlement with regard to specified pupils who
attend a charter school that is established through the conversion of
an existing public school within a unified school district on or
after July 1, 2005.
   This bill instead would require that those modified calculations
for  charter  schools that convert to charter
schools on or after July 1, 2005, only be made  for the first
three fiscal years subsequent to the conversion of the school
  until the end of the 2009-10   fiscal year
 .  The bill would require, following this three fiscal
year period, that the general-purpose entitlement for schools that
convert to charter schools on or after July 1, 2005, be no greater
than the amount calculated by the Superintendent for charter schools
generally. The bill would provide that a unified school district that
is the sponsoring local educational agency, as defined, of a charter
school is not required to make the modified calculations for a
converted charter school in any fiscal year if the unified school
district certifies an entitlement to an apportionment amount, as
determined pursuant to a specified statute, that is lower than the
apportionment amount the unified school district certified in the
prior fiscal year. The bill would declare that its provisions do not
preclude a charter school or unified school district from agreeing to
an alternative funding formula.  
   For schools that convert to charter schools on or after July 1,
2010, the bill would modify those calculations to include both funds
expended for the schoolsite and a pro rata per pupil share of total
unrestricted revenues spent for district support and administration,
except that this modification would not apply to a charter school
that is independently governed and operated by a nonprofit public
benefit corporation.  
   The bill would declare that its provisions do not prelude a
charter school or unified school district from agreeing to an
alternative funding formula. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 47660 of the Education Code is amended to read:

   47660.  (a) For purposes of computing eligibility for, and
entitlements to, general purpose funding and operational funding for
categorical programs, the enrollment and average daily attendance of
a sponsoring local educational agency shall exclude the enrollment
and attendance of pupils in its charter schools funded pursuant to
this chapter.
   (b) (1) Notwithstanding subdivision (a), and commencing with the
2005-06 fiscal year, for purposes of computing eligibility for, and
entitlements to, revenue limit funding, the average daily attendance
of a unified school district, other than a unified school district
that has converted all of its schools to charter status pursuant to
Section 47606, shall include all attendance of pupils who reside in
the unified school district and who would otherwise have been
eligible to attend a noncharter school of the school district, if the
school district was a basic aid school district in the prior fiscal
year, or if the pupils reside in the unified school district and
attended a charter school of that school district that converted to
charter status on or after July 1, 2005. Only the attendance of the
pupils described by this paragraph shall be included in the
calculation made pursuant to paragraph (7) of subdivision (h) of
Section 42238.
   (2) Notwithstanding subdivision (a), for the 2005-06 fiscal year
only, for purposes of computing eligibility for, and entitlements to,
revenue limit funding, the average daily attendance of a unified
school district, other than a unified school district that has
converted all of its schools to charter status pursuant to Section
47606 and is operating them as charter schools, shall include all
attendance of pupils who reside in the unified school district and
who would otherwise have been eligible to attend a noncharter school
of the unified school district if the pupils attended a charter
school operating in the unified school district prior to July 1,
2005. Only the attendance of pupils described by this paragraph shall
be included in the calculation made pursuant to Section 42241.3. The
attendance of the pupils described by this paragraph shall be
included in the calculation made pursuant to paragraph (7) of
subdivision (h) of Section 42238.
   (c)  Commencing with the 2005-06 fiscal year 
 (1)    From July 1, 2005, to June 30, 2010,
inclusive  , for the attendance of pupils specified in
subdivision (b), the general-purpose entitlement for a charter school
that is established through the conversion of an existing public
school within a unified school district on or after July 1, 2005,
 but before July 1, 2010,  shall be determined using the
following amount of general-purpose funding per unit of average daily
attendance, in lieu of the amount calculated pursuant to subdivision
(a) of Section 47633: 
   (1) 
    (A)  The amount of the actual unrestricted revenues
expended per unit of average daily attendance for that school in the
year prior to its conversion to, and operation as, a charter school,
adjusted for the base revenue limit per pupil inflation increase
adjustment set forth in Section 42238.1, if this adjustment is
provided, and also adjusted for equalization, deficit reduction, and
other state general-purpose increases, if any, provided for the
unified school district in the year of conversion to, and operation
as a charter school. 
   (2) 
    (B)  For a subsequent fiscal year, the general-purpose
entitlement shall be determined based on the amount per unit of
average daily attendance allocated in the prior fiscal year adjusted
for the base revenue limit per pupil inflation increase adjustment
set forth in Section 42238.1, if this adjustment is provided, and
also adjusted for equalization, deficit reduction, and other state
general-purpose increases, if any, provided for the unified school
district in that fiscal year. 
   (3) The calculations set forth in this subdivision shall only be
made for the first three fiscal years subsequent to the conversion of
the school to a charter school on or after July 1, 2005, pursuant to
Section 47606. Following this three fiscal year period, the
general-purpose entitlement for schools that convert to charter
schools on or after July 1, 2005, shall be no greater than the amount
calculated pursuant to Section 47633. A unified school district that
is the sponsoring local educational agency, as defined in
subdivision (j) of Section 47632, of a charter school shall not be
required to make the calculations set forth in this subdivision in
any fiscal year if the unified school district certifies an
entitlement to an apportionment amount, as determined pursuant to
Section 42238, that is lower than the apportionment amount the
unified school district certified in the prior fiscal year. This
paragraph does not preclude a charter school or unified school
district from agreeing to an alternative funding formula. 

   (2) (A) Commencing with the 2010-11 fiscal year, for the
attendance of pupils specified in subdivision (b), the
general-purpose entitlement for a charter school that is established
through the conversion of an existing public school within a unified
school district, on or after July 1, 2010, shall be determined using
the following amount of general-purpose funding per unit of average
daily attendance, in lieu of the amount calculated pursuant to
subdivision (a) of Section 47633:  
   (i) The amount of the actual unrestricted revenues expended per
unit of average daily attendance for that school in the year prior to
its conversion to, and operation as, a charter school, adjusted for
the base revenue limit per pupil inflation increase adjustment set
forth in Section 42238.1, if this adjustment is provided, and also
adjusted for equalization, deficit reduction, and other state
general-purpose increases, if any, provided for the unified school
district in the year of conversion to, and operation as, a charter
school. The amount calculated under this clause shall include both
funds expended for the schoolsite and a pro rata per pupil share of
total unrestricted revenues spent for district support and
administration.  
   (ii) For a subsequent fiscal year, the general-purpose entitlement
shall be determined based on the amount per unit of average daily
attendance allocated in the prior fiscal year adjusted for the base
revenue limit per pupil inflation increase adjustment set forth in
Section 42238.1, if this adjustment is provided, and also adjusted
for equalization, deficit reduction, and other state general-purpose
increases, if any, provided for the unified school district in that
fiscal year.  
   (B) This paragraph shall not apply to a charter school that is
independently governed and operated by a nonprofit public benefit
corporation, which shall instead receive general-purpose funding
pursuant to Section 47633.  
   (C) This paragraph does not preclude a charter school or unified
school district from agreeing to an alternative funding formula.

   (d) Commencing with the 2005-06 fiscal year, the general-purpose
funding per unit of average daily attendance specified for a unified
school district for purposes of paragraph (7) of subdivision (h) of
Section 42238 for a school within the unified school district that
converted to charter status on or after July 1, 2005, shall be deemed
to be the amount computed pursuant to subdivision (c).
   (e) A unified school district that is the sponsoring local
educational agency as defined in subdivision (j) of Section 47632 of
a charter school that is subject to the provisions 
 paragraphs (1) and (2)  of subdivision (c) shall certify to
the Superintendent the amount specified in paragraph (1) of
subdivision (c) prior to the approval of the charter petition by the
governing board of the school district. This amount may be based on
estimates of the unrestricted revenues expended in the fiscal year
prior to the school's conversion to charter status and the school's
operation as a charter school, provided that the amount is
recertified when the actual data becomes available.
   (f) For the purposes of this section, "basic aid school district"
means a school district that does not receive from the state an
apportionment of state funds pursuant to subdivision (h) of Section
42238.
   (g) A school district may use the existing Standardized Account
Code Structure and cost allocation methods, if appropriate, for an
accounting of the actual unrestricted revenues expended in support of
a school pursuant to subdivision (c).
   (h) For purposes of this section and Section 42241.3, "operating"
means that pupils are attending, and receiving instruction at the
charter school.