Bill Text: CA SB98 | 2023-2024 | Regular Session | Amended

California Senate Bill 98

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

Bill Title: Education finance: local control funding formula: enrollment-based funding report.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-22 - Chaptered by Secretary of State. Chapter 442, Statutes of 2024. [SB98 Detail]

Download: California-2023-SB98-Amended.html

Amended IN Assembly May 14, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 98

Introduced by Senator Portantino

January 18, 2023

An act to add and repeal Section ~~41338 to~~ 42238.026 of the Education Code, relating to education finance.

LEGISLATIVE COUNSEL'S DIGEST

SB 98, as amended, Portantino. Education finance: ~~additional education funding.~~ local control funding formula: enrollment-based funding report.

Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified, that includes average daily attendance as a component of that calculation for these local educational agencies. Existing law requires the Superintendent of Public Instruction, on or before February 20 of each year, to make a first principal apportionment of funds and, on or before July 2 of each year, to make a 2nd principal apportionment of funds to each local educational agency.

This bill would define “average daily membership” as the quotient of the aggregate enrollment days for all pupils in a school district, county office of education, or charter school, from transitional kindergarten to grade 12, inclusive, as applicable, divided by the total number of instructional days for the local educational agency in an academic year. The bill would require a local educational agency’s average daily membership to be calculated using data from the same fiscal year or years that the local educational agency used to calculate its average daily attendance for purposes of state apportionment, as provided. For any fiscal year before the 2023–24 fiscal year for which average daily membership data is not available, the bill would require the Superintendent to use a local educational agency’s census day enrollment count, as provided. The bill, commencing with the 2023–24 fiscal year, would require a local educational agency that submits enrollment data to the Superintendent and demonstrates a maintenance of effort to address chronic absenteeism, as provided, to receive as additional education funding the difference between what the local educational agency would have received under the local control funding formula based on average daily membership and what the local educational agency received under the local control funding formula based on average daily attendance for that fiscal year, as provided. The bill would make that maintenance of effort requirement subject to an annual audit and would provide that failure to meet the maintenance of effort requirement shall result in the loss of the additional education funding. The bill would require local educational agencies to use at least 30% of their additional education funding for local educational agency expenditures to address chronic absenteeism and habitual truancy, as provided.
This bill would, for purposes of calculating a local educational agency’s average daily membership, require the Superintendent to issue directives and guidance on determining the date of withdrawal for a pupil deemed habitually truant. The bill would require the Legislative Analyst’s Office to submit a report to the Legislature, on or before November 1, 2029, on the implementation of the average daily membership funding in local educational agencies selected by the Legislative Analyst’s Office, as provided. The bill would expressly state that funds to implement these provisions would be continuously appropriated in the annual Budget Act.
This bill would require the Legislative Analyst’s Office to submit a report to the Legislature, on or before January 1, 2026, on the effects of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment. The bill would require the report, at a minimum, to analyze specified information, including, among other things, a review of research regarding evidence-based approaches to improving pupil attendance and the extent to which a state’s method of funding affects pupil attendance rates, and the fiscal, programmatic, and administrative impacts of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment. The bill would repeal these provisions on January 1, 2027.

Vote: MAJORITY Appropriation: NO Fiscal Committee: ~~YES~~NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 42238.026 is added to the Education Code, to read:

42238.026.
(a) On or before January 1, 2026, the Legislative Analyst’s Office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, on the effects of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment. The report, at a minimum, shall analyze all of the following:
(1) The methods used by other states to count pupils for education funding purposes and the ways in which other states create incentives for local educational agencies to encourage pupil attendance.
(2) A review of research regarding both of the following:
(A) Evidence-based approaches to improving pupil attendance.
(B) The extent to which a state’s method of funding affects pupil attendance rates.
(3) The fiscal, programmatic, and administrative impacts of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment, including the effects on the state and local educational agencies.
(4) How a change to enrollment-based funding would affect local educational agencies of varying sizes, locations, and pupil demographics.
(5) Alternative methods of changing the local control funding formula that would have a similar effect on local educational agencies serving a higher percentage of English learners, low-income pupils, and foster youth.
(6) Phase-in approaches to implement the cost of an enrollment-based funding model over several years.
(7) If the pupil count methodology for the local control funding formula is changed, whether the state should continue using average daily attendance for the Proposition 98 funding calculation and other education programs, such as special education and lottery funding.
(b) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

SECTION 1.Section 41338 is added to the Education Code, to read:
41338.
~~(a)For purposes of this section, the following terms have the following meanings:~~
(1)“Average daily membership” means the quotient of the aggregate enrollment days for all pupils in a local educational agency, from transitional kindergarten to grade 12, inclusive, as applicable, divided by the total number of instructional days for the local educational agency in an academic year. A local educational agency’s average daily membership shall be calculated using data from the same fiscal year or years that the local educational agency used to calculate its average daily attendance for purposes of state apportionment under Sections 2574 and 42238.02, as applicable. For any fiscal year before the 2023–24 fiscal year for which average daily membership data is not available, the Superintendent shall use a local educational agency’s census day enrollment count, as certified in the California Longitudinal Pupil Achievement Data System.
~~(2)“Local educational agency” means a school district, county office of education, or charter school.~~
(b)Commencing with the 2023–24 fiscal year, and each fiscal year thereafter, a local educational agency that complies with the requirements of paragraph (1) of subdivision (c) shall receive as additional education funding, in addition to the amount apportioned pursuant to Section 2574 or 42238.02, as applicable, an amount equal to the difference between what the local educational agency would have received under the local control funding formula if the local funding formula were based on average daily membership instead of average daily attendance, and what the local educational agency received under the local control funding formula based on average daily attendance for that fiscal year. For the purpose of this calculation, the Superintendent shall apply the funding difference to the local control funding formula base, supplemental, and concentration grants for each local educational agency pursuant to Sections 2574 and 42238.02, as applicable. In no case shall a local educational agency’s additional education funding be less than zero dollars ($0).
~~(c)In order to be eligible for additional education funding under this section, a local educational agency shall comply with both of the following requirements:~~
(1)Submit to the Superintendent by January 15 the unduplicated primary and short-term enrollments for their first term enrollment totals. Local educational agencies shall submit final enrollment data for the entire academic year as part of end-of-year submissions under timeframes and procedures established by the Superintendent. The Superintendent shall use the second data submission to settle-up final prior year funding in the following fiscal year.
(2)Demonstrate a maintenance of effort to address chronic absenteeism and habitual truancy. To fulfill this requirement, a local educational agency shall maintain at least the same per-pupil spending level on staff who address chronic absenteeism and habitual truancy as the local educational agency did in the 2019–20 school year. The requirement of this paragraph shall be subject to the audit required pursuant to Section 41020. Failure to meet this requirement shall result in the loss of additional funding provided pursuant to this section.
(d)At least 30 percent of the funds allocated pursuant to this section shall be used for purposes of local educational agency expenditures to address chronic absenteeism and habitual truancy by providing services and supports that have been determined to improve school attendance, or addressing the root causes that contribute to pupils being chronically absent or habitually truant.
(e)Consistent with the requirements of Section 48240, local educational agencies shall continue to implement a system to accurately track pupil attendance in order to raise the awareness of the effects of truancy and chronic absenteeism, identify and address factors contributing to habitual truancy and chronic absenteeism, and ensure that pupils with attendance problems are identified as early as possible to provide applicable support services and interventions.
(f)The Superintendent shall, for purposes of calculating a local educational agency’s average daily membership pursuant to paragraph (1) of subdivision (a), issue directives and guidance on determining the date of withdrawal for a pupil deemed habitually truant pursuant to Section 48262.
~~(g)Nothing in this section shall supersede or otherwise modify Section 48240, 48260, 52060, or 60901.~~
(h)On or before November 1, 2029, the Legislative Analyst’s Office shall submit a report to the Legislature on the implementation of the funding provisions of this section that includes information from local educational agencies selected by the Legislative Analyst’s Office. The local educational agencies selected for this analysis shall provide the Legislative Analyst’s Office any information necessary, including, but not limited to, expenditure data, staffing information, and data on truancy and chronic absenteeism that is disaggregated by school and pupil subgroup.
~~(i)Funds to implement this section shall be continuously appropriated in the annual Budget Act.~~