Bill Text: CA SB223 | 2013-2014 | Regular Session | Amended


Bill Title: Education finance: Maximum Categorical Funding

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB223 Detail]

Download: California-2013-SB223-Amended.html
BILL NUMBER: SB 223	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 15, 2013

INTRODUCED BY   Senator Liu

                        FEBRUARY 11, 2013

   An act to amend, repeal, and add Section 42605 of, and to add and
repeal Chapter 3 (commencing with Section 63060) of Part 35 of
Division 4 of Title 2 of, the Education Code, relating to education
finance, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 223, as amended, Liu. Education finance: Maximum Categorical
Funding Flexibility and Accountability Program.
   Existing law establishes 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 2009-10 to the 2014-15 fiscal year, inclusive, to apportion
from the amount provided in the annual Budget Act for specified
categorical education programs an amount based on the same relative
proportion that the local educational agency received in the 2008-09
fiscal year for those programs and authorizes those 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, as a condition of receiving the categorical
education program funds that may be used for any educational purpose,
requires school districts and county offices of education, at a
regularly scheduled open public hearing, to take testimony from the
public, discuss, and approve or disapprove the proposed use of
funding. Existing law requires a local educational agency to report
expenditures, as specified, to indicate the activities for which
these funds were expended and requires the State Department of
Education annually to collect and provide this information to the
appropriate legislative policy and budget committees and the
Department of Finance. Existing law, for those fiscal years, deems
local educational agencies that use these categorical education
program funds for any educational purpose to be in compliance with
the program and funding requirements of those categorical education
programs.
   This bill would establish the Maximum Categorical Funding
Flexibility and Accountability Program, to be implemented from the
2015-16 fiscal year to the 2019-20 fiscal year, inclusive. The bill
would extend the operation of the provisions that authorize the
expenditure of funds provided for specified categorical education
programs for any educational purpose by 5 fiscal years  , bu
  t would delete funds appropriated for adult education
programs, specialized secondary education grant programs, and
regional occupational centers and programs from the scope of this
provision as of July 1, 2015, and would base the amount apportioned
under the provision on the same relative proportion that the local
educational agency received in the 2013-14 fiscal year rather than
the 2008-09 fiscal year  . The bill would thereby make an
appropriation by allowing the expenditure of appropriated funds for
additional purposes for that extended period.
    To be eligible for selection for participation in this program,
and in order to utilize the provisions allowing the expenditure of
funds appropriated for specified categorical programs for any
educational purpose for any of the fiscal years from 2015-16 to
2019-20, inclusive, a school district would be required to meet
certain preconditions, including developing a plan to accelerate
pupils' progress to proficiency that includes specified goals. A
school district selected by the Superintendent to participate in the
program would be required to agree to demonstrate significant
progress toward accelerating pupils' progress toward proficiency in
California's academic standards over a 3-year period, a narrowing of
the achievement gap in its federally recognized subgroups, fiscal
solvency, positive growth on the school district's Academic
Performance Index, an increase in its graduation rate,  and
 improvement in its college entrance rate  , and pupil
progress in passage of common core standards  .
   The bill would require the Superintendent, for the 2015-16 to
2019-20 fiscal years, inclusive, to apportion to the participating
school districts an increase or decrease of the amounts apportioned
under the provisions authorizing the expenditure of funds
appropriated for specified categorical programs for any educational
purpose in accordance with specified criteria. The bill would require
the additional funds apportioned to school districts under this
program to be expended for any purpose related to improving pupil
achievement and academic instruction, except as specified.
   The bill would require that a participating school district would
be deemed to be in compliance with the program and funding
requirements associated with the categorical education programs.
   The bill would require that a participating school district would
be required to submit an evaluative annual report and an annual
expenditure report, including prescribed information, to the State
Department of Education. The bill would require the Superintendent to
contract for an interim evaluation report and a final evaluation
report that identifies the success and failures of the program and
makes recommendations regarding improving the program and whether the
program should be continued. The provisions establishing the program
would become inoperative on July 1, 2020, and would be repealed on
January 1, 2021.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California school districts are facing immeasurable challenges
 , which include implementing the common core standards in
mathematics and English language arts and ensuring that pupils from
low-income backgrounds and pupils who a   re English
language learners are provided with supplemental instruction and
support services, while  managing reductions in state funding,
and need maximum flexibility in the ways they can utilize restricted
funding from the state.
   (b) However, the current tiers of categorical program
appropriations, coupled with lack of accountability, provide no
assurances that categorical funding will be used for purposes related
to improving pupil achievement and academic instruction.
   (c) Merging the concept of funding flexibility with locally
governed planning processes with the goal of improving pupil
achievement and academic instruction will allow state money for
categorical education programs to be managed more efficiently and
effectively by school districts to meet the academic needs of all
pupils and result in progress in closing the achievement gap.
   (d) Maximum categorical program flexibility will enhance a school
district's ability to support academic and career goals for all
pupils and provide systematic, differentiated instruction and
interventions to accelerate pupils' progress to proficiency.
   (e) Allowing the state to evaluate the benefits of maximum
categorical program flexibility, and ensuring that program
flexibility is used correctly, will result in gains in pupil
achievement.
  SEC. 2.  Section 42605 of the Education Code, as amended by Section
2 of Chapter 668 of the Statutes of 2012, is amended to read:
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for 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) For the 2009-10 fiscal year to the 2014-15 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).
   (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 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
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 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 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 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 the Standardized Account Code Structure reporting
process, a local educational agency shall report 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.

   (d) For 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 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 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.
   (g) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 3.  Section 42605 is added to the Education Code, to read:
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivisions (d) and (e), for the 2015-16
fiscal year to the 2019-20 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) For the 2015-16 fiscal year to the 2019-20 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  
2013-14  fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a).
   (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 the 2015-16 fiscal year to the
2019-20 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   2012-13 
fiscal year, and shall adjust those amounts to reflect changes in
charter school attendance in the 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 
 2013-14  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 
 2013-14  fiscal year and shall adjust the amount of those
funds to reflect changes in charter school attendance in the
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 the 2015-16 fiscal year to
the 2019-20 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 the 2015-16 fiscal year to
the 2019-20 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  
2012-13  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   2013-14
 fiscal year, the amount that the charter school was entitled
to receive from the items enumerated in paragraph (4) for the
 2008-09   2013-14  fiscal year, as
certified by the Superintendent in March  2009, 
 2014,  is deemed to have been received in the 
2007-08   2012-13  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 the Standardized Account Code Structure reporting
process, a local educational agency shall report 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, 2016, and
annually thereafter on April 15 until, and including, April 15, 2021.

   (d) For the 2015-16 fiscal year to the 2019-20 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 listed
in paragraph (2) of subdivision (a) if the Superintendent approves
the participation of the local educational agency in the Maximum
Categorical Funding Flexibility and Accountability Program pursuant
to Chapter 3 (commencing with Section 63060) of Part 35 of Division
4.
   (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 pursuant to
Schedules (2) and (3) and Provisions 2 and 4.  
   (2) 
    (1)  (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 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) 
   (2)  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) 
    (3)  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) 
    (4)  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.
   (g) This section shall become operative on July 1, 2015.
  SEC. 4.  Chapter 3 (commencing with Section 63060) is added to Part
35 of Division 4 of Title 2 of the Education Code, to read:
      CHAPTER 3.  MAXIMUM CATEGORICAL FUNDING FLEXIBILITY AND
ACCOUNTABILITY PROGRAM


   63060.  (a) The Maximum Categorical Funding Flexibility and
Accountability Program is hereby established. The program shall be
implemented from the 2015-16 fiscal year to the 2019-20 fiscal year,
inclusive. The Superintendent shall select school districts to
participate in the program that meet the preconditions of Section
63061 and agree to demonstrable goals as specified in Section 63062.
A school district may apply to the Superintendent for selection to
participate in the program.
   (b) As used in this chapter, a "participating school district" is
a school district selected by the Superintendent to participate in
the Maximum Categorical Funding Flexibility and Accountability
Program established by this chapter.
   63061.  (a) In order to be deemed in compliance with the program
and funding requirements contained in statutory, regulatory, and
provisional language associated with the items listed in paragraph
(2) of subdivision (a) of Section 42605 for any of the fiscal years
from 2015-16 to 2019-20, inclusive, a school district shall meet all
of the following preconditions:
   (1) The school district has a plan, developed in conjunction with
parents and teachers, to accelerate pupils' progress to academic
proficiency. The plan shall include both of the following:
   (A) Measurable metrics to improve pupil performance, close the
achievement gap, increase college entrance rates, and increase career
readiness.
   (B) An explanation of the manner in which the objectives of each
categorical program funded under the items listed in paragraph (2) of
subdivision (a) of Section 42605 will be met.
   (2) The governing board of the school district, at a regularly
scheduled public meeting of the board, has approved the plan and
developed corresponding policies in support of the plan.
   (3) The annual evaluation of the performance of the superintendent
of the school district is linked to the pupil performance goals
specified in paragraph (1).
   (4) The school district demonstrates a pattern of stability
between management and the bargaining units.
   (5) There is community support for the plan.
   (6) The school district has surveyed parents and legal guardians
in the district to gauge support for participation in the program. At
least one-half of the permanent teachers and one-half of the
surveyed parents or legal guardians in the school district support
participation in the program, and that support is demonstrated in
writing.
   (7) The standards-based curriculum for English learners is
cognitively complex, coherent, well articulated, and meaningful, and
will enable English learners to learn English quickly and fluently so
that they may participate fully in the grade-level curriculum. At a
minimum, the program shall provide all of the following:
   (A) Support for English learners who are new to the school
district.
   (B) An English language development program that is comprehensive
and standards aligned and that has all of the following
characteristics:
   (i) Actively develops all domains of language.
   (ii) Addresses varying levels of English fluency.
   (iii) Develops age-appropriate and context-appropriate language,
including an emphasis on academic English.
   (iv) Includes opportunities for English learners to interact with
native English speaking peers.
   (v) Creates a supportive learning environment for language
learning.
   (vi) Recognizes the role of primary language development.
   (C) Full access to a challenging curriculum.
   (D) High-quality instruction and materials.
   (E) An inclusive and affirming school climate.
   (F) Valid, reliable, comprehensive, and useful assessments.
   (G) Strong family partnerships.
   (H) A qualified educator workforce.
   (b) At a minimum, the Superintendent shall consider the quality
and rigor of the manner in which the school districts meet the
preconditions outlined in subdivision (a).
   (c) If the Superintendent determines that a school district fails
to meet the preconditions specified in subdivision (a) with respect
to some of the categorical education programs funded under the items
listed in paragraph (2) of subdivision (a) of Section 42605, the
Superintendent may select that school district as a participant, but
restrict the participation of that school district to a subset of the
categorical education programs and budget items.
   (d) Nothing in this section shall be construed as imposing new
mandates on school districts.
   63062.  A school district that participates in the Maximum
Categorical Funding Flexibility and Accountability Program shall
agree to demonstrate all of the following goals:
   (a) Significant progress toward accelerating pupils' progress
toward proficiency in California's academic standards over a
three-year period, as measured by the annual assessments administered
pursuant to Article 4 (commencing with Section 60640) of Chapter 5
of Part 33 and any other local, state, or national assessments.
   (b) A narrowing of the achievement gap in the school district's
federally recognized subgroups, as measured by the annual assessments
administered pursuant to Article 4 (commencing with Section 60640)
of Chapter 5 of Part 33 and any other local, state, or national
assessments.
   (c) Fiscal solvency, as measured by the standards and criteria
adopted by the state board pursuant to Section 33127 and implementing
regulations.
   (d) Positive growth, as measured by the school district's Academic
Performance Index score, the annual assessments administered
pursuant to Article 4 (commencing with Section 60640) of Chapter 5 of
Part 33, and any other local, state, or national assessments.
   (e) An increase in the school district's graduation rate, as
measured by the California Longitudinal Pupil Achievement Data System
and the school district level data system.
   (f) Improvement in the school district's college entrance rate, as
measured by the National Student Clearinghouse or other
state-approved pupil data tracking system.

  (g) Improvement in the number of pupils who enter technical school
after graduation, as measured by the National Student Clearinghouse
or other state-approved pupil data tracking system, or who graduate
prepared to enter high-wage, high-skill occupations. 
   (h) Pupil progress in passage of common core standards. 
   63063.  (a) For the 2015-16 fiscal year to the 2019-20 fiscal
year, inclusive, the Superintendent shall do all of the following:
   (1) Increase or decrease the amounts apportioned pursuant to
paragraph (2) of this subdivision proportional to any increase or
decrease in the amounts appropriated in Section 2.00 of the annual
Budget Act for the budget items listed in paragraph (2) of
subdivision (a) of Section 42605.
   (2) Provide an apportionment schedule to each participating school
district that separately itemizes and differentiates the amount
apportioned for each budget item listed in paragraph (2) of
subdivision (a) of Section 42605.
   (3) Allocate the amounts apportioned pursuant to paragraph (2) of
subdivision (a) of Section 42605 to the school districts selected for
participation in the program on the same timeline that
apportionments related to those budget items are apportioned to other
school districts.
   (b) Each apportionment made pursuant to subdivision (a) to the
school districts participating shall be in lieu of funding that those
school districts would have received from the same budget items if
not participating. A school district shall not receive duplicated
funding as a result of participation in the program.
   63064.  (a) Notwithstanding any other law, a participating school
district may use the funds that it receives pursuant to Section 63063
for any purpose related to improving pupil achievement and academic
instruction, except as provided in subdivision (b).
   (b) (1) With respect to funds received pursuant to Item
6110-128-0001 of Section 2.00 of the annual Budget Act, a
participating school district shall use these funds to supplement the
base program provided to English learners and economically
disadvantaged pupils, as those terms are defined in Section 54026.
   (2) With respect to funds received pursuant to Item 6110-119-0001
of Section 2.00 of the annual Budget Act, a participating school
district shall use these funds to supplement the base program
provided to foster youth.
   (3) With respect to funds received pursuant to Item 6110-196-0001
of Section 2.00 of the annual Budget Act, a participating school
district shall use these funds to ensure that child care and
development services continue to be provided to subsidized low-income
children.
   (c) It is the intent of the Legislature that the educational needs
of pupils served by the categorical programs funded by the items
listed in paragraph (2) of subdivision (a) of Section 42605 be served
by a school district selected for participation in the pilot
project.
   (d) It is not the intent of the Legislature to waive requirements
of any educational programs enacted through the initiative process.
   (e) A participating school district shall implement an open and
transparent process that allows public input at no less than two
regularly scheduled meetings of the governing board of the school
district so as to notify parents, staff, and the community of
discussions and pending decisions related to the flexible use of
funds apportioned pursuant to subdivision (a) of Section 63063. The
school district shall seek input from parents, staff, and the
community regarding the option or options most suitable for the
school district and schools in the district. The governing board of
the school district shall not take action on this item at the first
meeting at which the item appears on the agenda.
   63065.  (a) Notwithstanding any other law, a participating school
district shall be deemed to be in compliance with the program and
funding requirements contained in statutory, regulatory, and
provisional language associated with the items listed in paragraph
(2) of subdivision (a) of Section 42605.
   (b) Notwithstanding subdivision (a), a participating school
district that receives funds pursuant to Item 6110-128-0001 of
Section 2.00 of the annual Budget Act shall continue to designate
staff to coordinate services and programs, including the home
language survey, for English learners and shall continue in existence
parent advisory committees and schoolsite councils, as required
pursuant to Section 62002.5.
   63066.  (a) A participating school district shall submit an
evaluative annual report to the department that details the progress
made during the immediately prior school year toward the goals set
forth in Section 63062, including details of the academic progress
made by pupil subgroups.
   (b) As part of the annual report pursuant to subdivision (a), a
participating school district also shall submit to the department an
annual expenditure report detailing the expenditure of specific
categorical program funds and the purposes for which those funds were
expended. The report shall do all of the following:
   (1) Identify the weighting of per pupil expenditures from all
funds spent on low-socioeconomic, limited-English-proficient, and
special education pupils, as compared to other pupils in the school
district.
   (2) Compare the identified weightings of per pupil expenditures
reported pursuant to paragraph (1) to the weightings of per pupil
expenditures spent in the 2009-10 fiscal year on pupils in the pupil
subgroups listed in paragraph (1).
   (3) Be in a format designated by the Superintendent, using the
Standardized Account Code Structure and consistent with the
California School Accounting Manual, and shall provide the ability to
track each of the amounts apportioned pursuant to subdivision (a) of
Section 63063 with respect to resource, program, function, and
object.
   (4) Be submitted by the date designated as the deadline for
submission of school district annual financial statements.
   (c) The Superintendent shall provide guidance to the participating
school districts so as to ensure that the expenditure reports
submitted pursuant to subdivision (b) conform to the requirements
placed on those reports.
   (d) By June 1, 2017, the Superintendent shall contract for the
completion of an independent evaluation of the program utilizing
available federal and other nonstate funding.
   (1) The contracted independent evaluator shall provide the
Legislature, the Governor, the Superintendent, the state board, and
the participating school districts with both of the following:
   (A) An interim report no later than 18 months after the
Superintendent apportions funding pursuant to Section 63063.
   (B) By December 31, 2019, a final evaluation report that
identifies the success and failures of the program and makes
recommendations regarding improving the program and whether the
program should be continued.
   (2) The evaluation shall make use of school district expenditure
reports submitted pursuant to subdivision (b), school district plans
as described in Section 63061, and any other available financial,
programmatic, and pupil outcome data currently collected and
available.
   (3) Upon request by the evaluator, the department and the
participating school districts shall provide any available data that
the evaluator deems necessary to meaningfully evaluate the program.
   (4) This subdivision does not relieve a school district or any
other party from obligations under state or federal law to protect
pupil privacy.
   63067.  This chapter shall become inoperative on July 1, 2020,
and, as of January 1, 2021, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2021, deletes
or extends the dates on which it becomes inoperative and is
repealed.
       
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