AB 1449: Education finance: local control funding formula: special education grant.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-04-17
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. Existing law requires funding pursuant to the local control funding formula to include, in addition to a base grant, supplemental and concentration grant add-ons that are based on the percentage of pupils who are English learners, foster youth, or eligible for free or reduced-price meals, as specified, served by the county superintendent of schools, school district, or charter school.
This bill would require funding pursuant to the local control funding formula to include, in addition to a base, supplemental, and concentration grant, a special education grant add-on that is based on the percentage of individuals with exceptional needs, who are severely disabled, as defined, served by the county superintendent of schools, school district, or charter school, as specified. The bill would require, under procedures and timeframes established by the Superintendent of Public Instruction, county superintendents of schools, school districts, and charter schools annually to report the enrollment of individuals with exceptional needs who are severely disabled served by those local educational agencies to the Superintendent using the California Longitudinal Pupil Achievement Data System. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program. The bill also would make conforming changes.
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 the statutory provisions noted above.
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. Existing law requires funding pursuant to the local control funding formula to include, in addition to a base grant, supplemental and concentration grant add-ons that are based on the percentage of pupils who are English learners, foster youth, or eligible for free or reduced-price meals, as specified, served by the county superintendent of schools, school district, or charter school.
This bill would require funding pursuant to the local control funding formula to include, in addition to a base, supplemental, and concentration grant, a special education grant add-on that is based on the percentage of individuals with exceptional needs, as defined, served by the county superintendent of schools, school district, or charter school, as specified. The bill would require, under procedures and timeframes established by the Superintendent of Public Instruction, county superintendents of schools, school districts, and charter schools annually to report the enrollment of individuals with exceptional needs served by those local educational agencies to the Superintendent using the California Longitudinal Pupil Achievement Data System. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program. The bill also would make conforming changes.
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 the statutory provisions noted above.
For the 201314 fiscal year and for each fiscal year thereafter, the Superintendent annually shall calculate a county local control funding formula for each county superintendent of schools as follows:
(a)Compute a county office of education operations grant equal to the sum of each of the following amounts:
(1)Six hundred fifty-five thousand nine hundred twenty dollars ($655,920).
(2)One hundred nine thousand three hundred twenty dollars ($109,320) multiplied by the number of school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253.
(3)(A)Seventy dollars ($70) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units.
(B)Sixty dollars ($60) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 30,000 units, up to a maximum of 60,000 units.
(C)Fifty dollars ($50) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 60,000, up to a maximum of 140,000 units.
(D)Forty dollars ($40) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 140,000 units.
(E)For purposes of this section, countywide average daily attendance means the aggregate number of annual units of average daily attendance within the county attributable to all school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253, charter schools authorized by school districts for which the county superintendent of schools has jurisdiction, and charter schools authorized by the county superintendent of schools.
(4)For the 201415 fiscal year and each fiscal year thereafter, adjust each of the rates provided in the prior year pursuant to paragraphs (1), (2), and (3) by 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.
(b)Determine the enrollment percentage of unduplicated pupils pursuant to the following:
(1)(A)For the 201314 fiscal year, divide the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 201314 fiscal year by the total enrollment in those schools in the 201314 fiscal year.
(B)For the 201415 fiscal year, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 201314 and 201415 fiscal years by the sum of the total enrollment in those schools in the 201314 and 201415 fiscal years.
(C)For the 201516 fiscal year and each fiscal year thereafter, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in those schools in the current fiscal year and the two prior fiscal years.
(D)(i)For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a county superintendent of schools enrollment of unduplicated pupils and total pupil enrollment in the 201415 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 201314 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii)It is the intent of the Legislature to review each county office of educations enrollment of unduplicated pupils for the 201314 and 201415 fiscal years and provide one-time funding, if necessary, for a county office of education with higher enrollment of unduplicated pupils in the 201415 fiscal year as compared to the 201314 fiscal year.
(E)For purposes of determining the enrollment percentage of unduplicated pupils pursuant to this subdivision, enrollment in schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 and the enrollment of pupils other than the pupils identified in clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (5) of subdivision (c), shall be excluded from the calculation of the enrollment percentage of unduplicated pupils.
(F)The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This subparagraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.
(2)For purposes of this section, an unduplicated pupil is a pupil who is classified as an English learner, eligible for a free or reduced-price meal, or a foster youth. For purposes of this section, the definitions in Section 42238.01 of an English learner, a pupil eligible for a free or reduced-price meal, and foster youth shall apply. A pupil shall be counted only once for purposes of this section if any of the following apply:
(A)The pupil is classified as an English learner and is eligible for a free or reduced-price meal.
(B)The pupil is classified as an English learner and is a foster youth.
(C)The pupil is eligible for a free or reduced-price meal and is classified as a foster youth.
(D)The pupil is classified as an English learner, is eligible for a free or reduced-price meal, and is a foster youth.
(3)(A)Under procedures and timeframes established by the Superintendent, commencing with the 201314 fiscal year, a county superintendent of schools annually shall report the enrollment of unduplicated pupils, pupils classified as English learners, pupils eligible for free and reduced-price meals, and foster youth in schools operated by the county superintendent of schools to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(B)The Superintendent shall make the calculations pursuant to this section using the data submitted through the California Longitudinal Pupil Achievement Data System.
(C)The Controller shall include instructions, as appropriate, in the audit guide required by subdivision (a) of Section 14502.1, for determining if the data reported by a county superintendent of schools using the California Longitudinal Pupil Achievement Data System is consistent with pupil data records maintained by the county office of education.
(c)Compute an alternative education grant equal to the sum of the following:
(1)(A)For the 201314 fiscal year, a base grant equal to the 201213 per pupil undeficited statewide average juvenile court school base revenue limit calculated pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013. For purposes of this subparagraph, the 201213 statewide average juvenile court school base revenue limit shall be considered final as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(B)Commencing with the 201314 fiscal year, the per pupil base grant shall be adjusted by 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.
(2)A supplemental grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the enrollment percentage calculated in subdivision (b). The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(3)(A)A concentration grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the greater of either of the following:
(i)The enrollment percentage calculated in subdivision (b) less 50 percent.
(ii)Zero.
(B)The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(4)(A)A special education grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the percentage calculated in subparagraph (B). The special education grant shall be expended for individuals with exceptional needs who are severely disabled served by schools operated by the county superintendent of schools.
(B)The Superintendent shall determine the enrollment percentage of individuals with exceptional needs who are severely disabled by dividing the sum of the enrollment of individuals with exceptional needs who are severely disabled in all schools operated by a county superintendent of schools in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in those schools in the current fiscal year and the two prior fiscal years.
(C)Under procedures and timeframes established by the Superintendent, a county superintendent of schools annually shall report the enrollment of individuals with exceptional needs who are severely disabled served by schools operated by the county superintendent of schools to the Superintendent using the California Longitudinal Pupil Achievement Data System. The Superintendent shall make the calculations pursuant to this paragraph using the data submitted through the California Longitudinal Pupil Achievement Data System.
(D)For purposes of this paragraph, individuals with exceptional needs who are severely disabled shall have the same meaning as it is defined in Section 56026. 56030.5.
(5)(A)Multiply the sum of paragraphs (1), (2), (3), and (4) by the total number of units of average daily attendance for pupils attending schools operated by a county office of education, excluding units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are enrolled pursuant to any of the following:
(i)Probation-referred pursuant to Sections 300, 601, 602, and 654 of the Welfare and Institutions Code.
(ii)On probation or parole and not in attendance in a school.
(iii)Expelled for any of the reasons specified in subdivision (a) or (c) of Section 48915.
(B)Multiply the number of units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 by the sum of the base grant calculated pursuant to paragraph (1), a supplemental grant equal to 35 percent of the base grant calculated pursuant to paragraph (1), and a concentration grant equal to 17.5 percent of the base grant calculated pursuant to paragraph (1). Funds provided for the supplemental and concentration grants pursuant to this calculation shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(C)Add the amounts calculated in subparagraphs (A) and (B).
(d)Add the amount calculated in subdivision (a) to the amount calculated in subparagraph (C) of paragraph (5) of subdivision (c).
(e)Add all of the following to the amount calculated in subdivision (d):
(1)The amount of funding a county superintendent of schools received for the 201213 fiscal year from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read on January 1, 2013.
(2)(A)(i)The amount of funding a county superintendent of schools received for the 201213 fiscal year from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, former Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, as those articles read on January 1, 2013.
(ii)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent pursuant to Item 6110-111-0001 of Section 2.00 of the Budget Act of 2012, as identified in clause (i) of subparagraph (A) of paragraph (2) of subdivision (a) of Section 2575, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall add the reassigned amounts to the amounts calculated pursuant to this paragraph.
(B)On or before March 1, 2014, the Legislative Analysts Office shall submit recommendations to the fiscal committees of both houses of the Legislature regarding revisions to the methods of funding pupil transportation that address historical funding inequities across county offices of education and school districts and improve incentives for local educational agencies to provide efficient and effective pupil transportation services.
(3)The difference determined by subtracting the amount calculated pursuant to paragraph (1) of subdivision (c) for pupils attending a school that is eligible for funding pursuant to paragraph (2) of subdivision (b) of Section 42285 from the amount of funding that is provided to eligible schools pursuant to Section 42284, if the difference is positive.
SEC. 2.Section 2575 of the Education Code is amended to read:2575.(a)Commencing with the 201314 fiscal year and for each fiscal year thereafter, the Superintendent shall calculate a base entitlement for the transition to the county local control funding formula for each county superintendent of schools based on the sum of the amounts computed pursuant to paragraphs (1) to (3), inclusive, as adjusted pursuant to paragraph (4):
(1)Revenue limits in the 201213 fiscal year pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013, adjusted only for changes in average daily attendance claimed by the county superintendent of schools for pupils identified in clauses (i), (ii), and (iii) of subparagraph (A) of paragraph (5) of subdivision (c) of Section 2574 and for pupils attending juvenile court schools. For purposes of this paragraph, the calculation of an amount per unit of average daily attendance for pupils attending juvenile court schools shall be considered final for purposes of this section as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339. All other average daily attendance claimed by the county superintendent of schools and any other average daily attendance used for purposes of calculating revenue limits pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013, shall be considered final for purposes of this section as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(2)The sum of all of the following:
(A)(i)The amount of funding received from appropriations contained in Section 2.00 of the Budget Act of 2012, as adjusted by Section 12.42, in the following Items: 6110-104-0001, 6110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001, 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, 6110-212-0001, 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, 201213 fiscal year funding for the Class Size Reduction Program pursuant to Chapter 6.10 (commencing with Section 52120) of Part 28 of Division 4 of Title 2, as that chapter read on January 1, 2013, and 201213 fiscal year funding for pupils enrolled in community day schools who are mandatorily expelled pursuant to subdivision (d) of Section 48915. For purposes of this subparagraph, the 201213 fiscal year appropriations described in this subparagraph shall be considered final as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(ii)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent pursuant to Item 6110-111-0001 of Section 2.00 of the Budget Act of 2012, as identified in clause (i), the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall add the reassigned amounts to the amounts calculated pursuant to this paragraph. These funds shall be subject to the requirements specified in paragraph (1) of subdivision (k).
(B)The amount of local revenues used to support a regional occupational center or program established and maintained by a county superintendent of schools pursuant to Section 52301.
(3)For the 201415 fiscal year and for each fiscal year thereafter, the sum of the amounts apportioned to the county superintendent of schools pursuant to subdivision (f) in all prior years.
(4)The revenue limit amount determined pursuant to paragraph (1) shall be increased by the difference determined by subtracting the amount provided per unit of average daily attendance in paragraph (1) for pupils attending a school that is eligible for funding pursuant to paragraph (2) of subdivision (b) of Section 42285 from the amount of funding that was provided to eligible schools in the 201213 fiscal year pursuant to Sections 42284 and 42238.146, as those sections read on January 1, 2013.
(b)The Superintendent shall annually compute a county local control funding formula transition adjustment for each county superintendent of schools as follows:
(1)Subtract the amount computed pursuant to subdivision (a) from the amount computed pursuant to subdivision (e) of Section 2574. A difference of less than zero shall be deemed to be zero.
(2)Divide the difference for each county superintendent of schools calculated pursuant to paragraph (1) by the total sum of the differences for all county superintendents of schools calculated pursuant to paragraph (1).
(3)Multiply the proportion calculated for each county superintendent of schools pursuant to paragraph (2) by the amount of funding specifically appropriated for purposes of subdivision (f). The amount calculated shall not exceed the difference for the county superintendent of schools calculated pursuant to paragraph (1).
(c)The Superintendent shall subtract from the amount calculated pursuant to subdivision (a) the sum of each of the following:
(1)Local property tax revenues received pursuant to Section 2573 in the then current fiscal year.
(2)Any amounts that the county superintendent of schools was required to maintain as restricted and not available for expenditure in the 197879 fiscal year as specified in the second paragraph of subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978, as amended by Chapter 51 of the Statutes of 1979.
(3)The amount received pursuant to subparagraph (C) of paragraph (3) of subdivision (a) of Section 33607.5 of the Health and Safety Code that is considered property taxes pursuant to that section.
(4)The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(5)The amount, if any, received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(d)The Superintendent shall subtract from the amount computed pursuant to subdivision (e) of Section 2574 the sum of the amounts computed pursuant to paragraphs (1) to (5), inclusive, of subdivision (c).
(e)The Superintendent shall annually apportion to each county superintendent of schools the amount calculated pursuant to subdivision (c) unless the amount computed pursuant to subdivision (c) is negative. If the amount computed is negative, except as provided in subdivision (f), an amount of property tax of the county superintendent of schools equal to the negative amount shall be deemed restricted and not available for expenditure during the fiscal year. In the following fiscal year, that amount, excluding any amount of funds used for purposes of subdivision (f), shall be considered restricted local property tax revenue for purposes of subdivision (a) of Section 2578. State aid shall not be apportioned to the county superintendent of schools pursuant to this subdivision if the amount computed pursuant to subdivision (c) is negative.
(f)(1)The Superintendent shall apportion, from an appropriation specifically made for this purpose, the amount computed pursuant to subdivision (b), or, if the amount computed pursuant to subdivision (c) is negative, the sum of the amounts computed pursuant to subdivisions (b) and (c) if the sum if is greater than zero.
(2)The Superintendent shall apportion any portion of the appropriation made for purposes of paragraph (1) that is not apportioned pursuant to paragraph (1) pursuant to the following calculation:
(A)Add the amount calculated pursuant to subdivision (b) to the amount computed pursuant to subdivision (a) for a county superintendent of schools.
(B)Subtract the amount computed pursuant to subparagraph (A) from the amount computed pursuant to subdivision (e) of Section 2574 for the county superintendent of schools.
(C)Divide the difference for the county superintendent of schools computed pursuant to subparagraph (B) by the sum of the differences for all county superintendents of schools computed pursuant to subparagraph (B).
(D)Multiply the proportion computed pursuant to subparagraph (C) by the unapportioned balance in the appropriation. That product shall be the county superintendent of schools proportion of total need.
(E)Apportion to each county superintendent of schools the amount calculated pursuant to subparagraph (D), or if subdivision (c) is negative, apportion the sums of subdivisions (b) and (c) and subparagraph (D) of this subdivision if the sum is greater than zero.
(F)The Superintendent shall repeat the computation made pursuant to this paragraph, accounting for any additional amounts apportioned after each computation, until the appropriation made for purposes of paragraph (1) is fully apportioned.
(G)The total amount apportioned pursuant to this subdivision to a county superintendent of schools shall not exceed the difference for the county superintendent of schools calculated pursuant to paragraph (1) of subdivision (b).
(H)For purposes of this paragraph, the proportion of need that is funded from any appropriation made specifically for purposes of this subdivision in the then current fiscal year shall be considered fixed as of the second principal apportionment for that fiscal year. Adjustments to a county superintendent of schools total need computed pursuant to subparagraph (D) after the second principal apportionment for the then current fiscal year shall be funded based on the fixed proportion of need that is funded for that fiscal year pursuant to this subdivision, and shall be continuously appropriated pursuant to Section 14002.
(g)(1)For a county superintendent of schools for whom, in the 201314 fiscal year, the amount computed pursuant to subdivision (c) is less than the amount computed pursuant to subdivision (d), in the first fiscal year following the fiscal year in which the sum of the apportionments computed pursuant to subdivisions (e) and (f) is equal to, or greater than, the amount computed pursuant to subdivision (d) of this section, the Superintendent shall apportion to the county superintendent of schools the amount computed in subdivision (d) in that fiscal year and each fiscal year thereafter instead of the amounts computed pursuant to subdivisions (e) and (f).
(2)For a county superintendent of schools for whom, in the 201314 fiscal year, the amount computed pursuant to subdivision (c) is greater than the amount computed pursuant to subdivision (d), in the first fiscal year in which the amount computed pursuant to subdivision (c) would be less than the amount computed pursuant to subdivision (d), the Superintendent shall apportion to the county superintendent of schools the amount computed in subdivision (d) in that fiscal year and each fiscal year thereafter instead of the amounts computed pursuant to subdivisions (e) and (f).
(3)In each fiscal year, the Superintendent shall determine the percentage of county superintendents of schools that are apportioned funding that is less than the amount computed pursuant to subdivision (d), as of the second principal apportionment of the fiscal year. If the percentage is less than 10 percent, the Superintendent shall apportion to those county superintendents of schools funding equal to the amount computed in subdivision (d) in that fiscal year and for each fiscal year thereafter instead of the amounts calculated pursuant to subdivisions (e) and (f).
(4)Commencing with the first fiscal year after the apportionments in paragraph (3) are made, the adjustments in paragraph (4) of subdivision (a) of Section 2574 and subparagraph (B) of paragraph (1) of subdivision (c) of Section 2574 shall be made only if an appropriation for those purposes is included in the annual Budget Act.
(5)If the calculation pursuant to subdivision (d) is negative and the Superintendent apportions to a county superintendent of schools the amount computed pursuant to subdivision (d) pursuant to paragraph (1), (2), or (3) of this subdivision, an amount of property tax of the county superintendent of schools equal to the negative amount shall be deemed restricted and not available for expenditure during that fiscal year. In the following fiscal year the restricted amount shall be considered restricted local property tax revenue for purposes of subdivision (a) of Section 2578.
(h)Commencing with the 201314 fiscal year, the Superintendent shall apportion to a county superintendent of schools an amount of state aid, including any amount apportioned pursuant to subdivisions (f) and (g), that is no less than the amount calculated in subparagraph (A) of paragraph (2) of subdivision (a).
(i)(1)For the 201314 and 201415 fiscal years only, a county superintendent of schools who, in the 201213 fiscal year, from any of the funding sources identified in paragraph (1) or (2) of subdivision (a), received funds on behalf of, or provided funds to, a regional occupational center or program joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing instruction to pupils enrolled in grades 9 to 12, inclusive, shall not redirect that funding for another purpose unless otherwise authorized by law or pursuant to an agreement between the regional occupational center or program joint powers agency and the contracting county superintendent of schools.
(2)For the 201314 and 201415 fiscal years only, if a regional occupational center or program joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing instruction to pupils enrolled in grades 9 to 12, inclusive, received, in the 201213 fiscal year, an apportionment of funds directly from any of the funding sources identified in subparagraph (A) of paragraph (2) of subdivision (a), the Superintendent shall apportion that same amount to the regional occupational center or program joint powers agency.
(j)For the 201314 and 201415 fiscal years only, a county superintendent of schools who, in the 201213 fiscal year, from any of the funding sources identified in paragraph (1) or (2) of subdivision (a), received funds on behalf of, or provided funds to, a home-to-school transportation joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation shall not redirect that funding for another purpose unless otherwise authorized by law or pursuant to an agreement between the home-to-school transportation joint powers agency and the contracting county superintendent of schools.
(k)(1)In addition to subdivision (j), of the funds a county superintendent of schools receives for home-to-school transportation programs, the county superintendent of schools shall expend, pursuant to former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, former Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, as those articles read on January 1, 2013, no less for those programs than the amount of funds the county superintendent of schools expended for home-to-school transportation in the 201213 fiscal year.
(2)For the 201314 and 201415 fiscal years only, if a home-to-school transportation joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation received, in the 201213 fiscal year, an apportionment of funds directly from the Superintendent from any of the funding sources identified in subparagraph (A) of paragraph (2) of subdivision (a), the Superintendent shall apportion that same amount to the home-to-school transportation joint powers agency.
(3)For the 201314 and 201415 fiscal years only, of the funds a county superintendent of schools receives for purposes of regional occupational centers or programs, or adult education, the county superintendent of schools shall expend no less for each of those programs than the amount of funds the county superintendent of schools expended for purposes of regional occupational centers or programs, or adult education, respectively, in the 201213 fiscal year. For purposes of this paragraph, a county superintendent of schools may include expenditures made by a school district within the county for purposes of regional occupational centers or programs so long as the total amount of expenditures made by the school districts and the county superintendent of schools equals or exceeds the total amount required to be expended for purposes of regional occupational centers or programs pursuant to this paragraph and paragraph (7) of subdivision (a) of Section 42238.03.
(l)The funds apportioned pursuant to this section and Section 2574 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4 of Title 2.
SEC. 3.Section 2576 of the Education Code is amended to read:2576.(a)If a county superintendent of schools enrolls in a school operated by the county superintendent of schools a pupil not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of paragraph (5) of subdivision (c) of Section 2574, or Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, any attendance generated by that pupil shall be credited to the school district of residence. Enrollment of these pupils shall be transferred to the school district of residence for purposes of calculating the percentage of unduplicated pupils pursuant to Section 42238.02.
(b)For purposes of this section, the school district of residence for a homeless child, as defined in Section 1981.2, enrolled in a school operated by a county superintendent of schools shall be deemed to be the school district that last provided educational services to the homeless child or, if it is not possible to determine that school district, the nonbasic aid school district with the largest average daily attendance in the county that serves the grade level in which the homeless child would be enrolled.
(c)If a county superintendent of schools grants permission to a pupil to attend school in an adjoining state pursuant to Section 2000, attendance generated by that pupil shall be credited to the school district of residence.
SEC. 4.Section 42238.02 of the Education Code is amended to read:42238.02.(a)The amount computed pursuant to this section shall be known as the school district and charter school local control funding formula.
(b)(1)For purposes of this section unduplicated pupil means a pupil enrolled in a school district or a charter school who is either classified as an English learner, eligible for a free or reduced-price meal, or is a foster youth. A pupil shall be counted only once for purposes of this section if any of the following apply:
(A)The pupil is classified as an English learner and is eligible for a free or reduced-price meal.
(B)The pupil is classified as an English learner and is a foster youth.
(C)The pupil is eligible for a free or reduced-price meal and is classified as a foster youth.
(D)The pupil is classified as an English learner, is eligible for a free or reduced-price meal, and is a foster youth.
(2)Under procedures and timeframes established by the Superintendent, commencing with the 201314 fiscal year, a school district or charter school shall annually submit its enrolled free and reduced-price meal eligibility, foster youth, and English learner pupil-level records for enrolled pupils to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(3)(A)Commencing with the 201314 fiscal year, a county office of education shall review and validate certified aggregate English learner, foster youth, and free or reduced-price meal eligible pupil data for school districts and charter schools under its jurisdiction to ensure the data is reported accurately. The Superintendent shall provide each county office of education with appropriate access to school district and charter school data reports in the California Longitudinal Pupil Achievement Data System for purposes of ensuring data reporting accuracy.
(B)The Controller shall include the instructions necessary to enforce paragraph (2) in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the English learner, foster youth, and free or reduced-price meal eligible pupil counts are consistent with the school districts or charter schools English learner, foster youth, and free or reduced-price meal eligible pupil records.
(4)The Superintendent shall make the calculations pursuant to this section using the data submitted by local educational agencies, including charter schools, through the California Longitudinal Pupil Achievement Data System. Under timeframes and procedures established by the Superintendent, school districts and charter schools may review and revise their submitted data on English learner, foster youth, and free or reduced-price meal eligible pupil counts to ensure the accuracy of data reflected in the California Longitudinal Pupil Achievement Data System.
(5)The Superintendent shall annually compute the percentage of unduplicated pupils for each school district and charter school by dividing the enrollment of unduplicated pupils in a school district or charter school by the total enrollment in that school district or charter school pursuant to all of the following:
(A)For the 201314 fiscal year, divide the sum of unduplicated pupils for the 201314 fiscal year by the sum of the total pupil enrollment for the 201314 fiscal year.
(B)For the 201415 fiscal year, divide the sum of unduplicated pupils for the 201314 and 201415 fiscal years by the sum of the total pupil enrollment for the 201314 and 201415 fiscal years.
(C)For the 201516 fiscal year and each fiscal year thereafter, divide the sum of unduplicated pupils for the current fiscal year and the two prior fiscal years by the sum of the total pupil enrollment for the current fiscal year and the two prior fiscal years.
(D)(i)For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a school districts or charter schools enrollment of unduplicated pupils and total pupil enrollment in the 201415 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 201314 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii)It is the intent of the Legislature to review each school district and charter schools enrollment of unduplicated pupils for the 201314 and 201415 fiscal years and provide one-time funding, if necessary, for a school district or charter school with higher enrollment of unduplicated pupils in the 201415 fiscal year as compared to the 201314 fiscal year.
(6)The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This paragraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.
(c)Commencing with the 201314 fiscal year and each fiscal year thereafter, the Superintendent shall annually calculate a local control funding formula grant for each school district and charter school in the state pursuant to this section.
(d)The Superintendent shall compute a grade span adjusted base grant equal to the total of the following amounts:
(1)For the 201314 fiscal year, a base grant of:
(A)Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(B)Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.
(C)Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.
(D)Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.
(2)In each year the grade span adjusted base grants in paragraph (1) shall be adjusted by 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.
(3)(A)The Superintendent shall compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant as adjusted for inflation pursuant to paragraph (2) equal to 10.4 percent. The additional grant shall be calculated by multiplying the kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by paragraph (2), by 10.4 percent.
(B)Until paragraph (4) of subdivision (b) of Section 42238.03 is effective, as a condition of the receipt of funds in this paragraph, a school district shall make progress toward maintaining an average class enrollment of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative annual average class enrollment for each schoolsite in those grades is agreed to by the school district, pursuant to the following calculation:
(i)Determine a school districts average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the prior year. For the 201314 fiscal year, this amount shall be the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the 201213 fiscal year.
(ii)Determine a school districts proportion of total need pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
(iii)Determine the percentage of the need calculated in clause (ii) that is met by funding provided to the school district pursuant to paragraph (3) of subdivision (b) of Section 42238.03.
(iv)Determine the difference between the amount computed pursuant to clause (i) and an average class enrollment of not more than 24 pupils.
(v)Calculate a current year average class enrollment adjustment for each schoolsite for kindergarten and grades 1 to 3, inclusive, equal to the adjustment calculated in clause (iv) multiplied by the percentage determined pursuant to clause (iii).
(C)School districts that have an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24 pupils or less for each schoolsite in the 201213 fiscal year, shall be exempt from the requirements of subparagraph (B) so long as the school district continues to maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils, unless a collectively bargained alternative ratio is agreed to by the school district.
(D)Upon full implementation of the local control funding formula, as a condition of the receipt of funds in this paragraph, all school districts shall maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative ratio is agreed to by the school district.
(E)The average class enrollment requirement for each schoolsite for kindergarten and grades 1 to 3, inclusive, established pursuant to this paragraph shall not be subject to waiver by the state board pursuant to Section 33050 or by the Superintendent.
(F)The Controller shall include the instructions necessary to enforce this paragraph in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, exceeds 24 pupils, or an alternative average class enrollment for each schoolsite pursuant to a collectively bargained alternative ratio. The procedures for determining average class enrollment for each schoolsite shall include criteria for employing sampling.
(4)The Superintendent shall compute an additional adjustment to the base grant for grades 9 to 12, inclusive, as adjusted for inflation pursuant to paragraph (2), equal to 2.6 percent. The additional grant shall be calculated by multiplying the base grant for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6 percent.
(e)(1)The Superintendent shall compute a supplemental grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b). The supplemental grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in that school district or charter school. The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(2)(A)The Superintendent shall compute a special education grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of individuals with exceptional needs who are severely disabled served by the school district or charter school. The special education grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of individuals with exceptional needs who are severely disabled calculated pursuant to subparagraph (B) in that school district or charter school. The special education grant shall be expended for individuals with exceptional needs who are severely disabled served by the school district or charter school.
(B)The Superintendent shall determine the enrollment percentage of individuals with exceptional needs who are severely disabled by dividing the sum of the enrollment of individuals with exceptional needs who are severely disabled served by a school district or charter school in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in the school district or charter school in the current fiscal year and the two prior fiscal years.
(C)Under procedures and timeframes established by the Superintendent, school districts and charter schools annually shall report the enrollment of individuals with exceptional needs who are severely disabled served by the school district or charter school, as applicable, to the Superintendent using the California Longitudinal Pupil Achievement Data System. The Superintendent shall make the calculations pursuant to this paragraph using the data submitted through the California Longitudinal Pupil Achievement Data System.
(D)For purposes of this paragraph, individuals with exceptional needs who are severely disabled shall have the same meaning as it is defined in Section 56026. 56030.5.
(f)(1)The Superintendent shall compute a concentration grant add-on equal to 50 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school districts or charter schools total enrollment. The concentration grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 50 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the total enrollment in that school district or charter school.
(2)(A)For a charter school physically located in only one school district, the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district in which the charter school is physically located. For a charter school physically located in more than one school district, the charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed that of the school district with the highest percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school districts in which the charter school has a school facility. The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(B)For purposes of this paragraph and subparagraph (A) of paragraph (1) of subdivision (f) of Section 42238.03, a charter school shall report its physical location to the department under timeframes established by the department. For a charter school authorized by a school district, the department shall include the authorizing school district in the departments determination of physical location. For a charter school authorized on appeal pursuant to subdivision (j) of Section 47605, the department shall include the sponsoring school district in the departments determination of physical location. The reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year. For purposes of this paragraph, the percentage of unduplicated pupils of the school district associated with the charter school pursuant to subparagraph (A) shall be considered final as of the second principal apportionment for that fiscal year.
(g)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, concentration, and special education grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2, for the 201213 fiscal year, as that article read on January 1, 2013. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount of funding received by the school district or charter school from that program in the 201213 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(h)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, concentration, and special education grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former Article 10 (commencing with Section 41850) of Chapter 5, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290), as those articles read on January 1, 2013, for the 201213 fiscal year. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount received by the school district or charter school for those programs in the 201213 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(2)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent from any of the funding sources specified in paragraph (1) for the 201213 fiscal year, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, concentration, and special education grants equal to the amount of the entitlement to funding transferred by the joint powers agency to the member school district or charter school.
(i)(1)The sum of the local control funding formula rates computed pursuant to subdivisions (c) to (f), inclusive, shall be multiplied by:
(A)For school districts, the average daily attendance of the school district in the corresponding grade level ranges computed pursuant to Section 42238.05, excluding the average daily attendance computed pursuant to paragraph (2) of subdivision (a) of Section 42238.05 for purposes of the computation specified in subdivision (d).
(B)For charter schools, the total current year average daily attendance in the corresponding grade level ranges.
(2)The amount computed pursuant to Article 4 (commencing with Section 42280) shall be added to the amount computed pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied by subparagraph (A) or (B) of paragraph (1), as appropriate.
(j)The Superintendent shall adjust the sum of each school districts or charter schools amount determined in subdivisions (g) to (i), inclusive, pursuant to the calculation specified in Section 42238.03, less the sum of the following:
(1)(A)For school districts, the property tax revenue received pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code.
(B)For charter schools, the in-lieu property tax amount provided to a charter school pursuant to Section 47635.
(2)The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3)The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 of the Government Code.
(4)Prior years taxes and taxes on the unsecured roll.
(5)Fifty percent of the amount received pursuant to Section 41603.
(6)The amount, if any, received pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), less any amount received pursuant to Section 33401 or 33676 of the Health and Safety Code that is used for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance and that is not an amount received pursuant to Section 33492.15, or paragraph (4) of subdivision (a) of Section 33607.5, or Section 33607.7 of the Health and Safety Code that is allocated exclusively for educational facilities.
(7)The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(8)Revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(k)A school district shall annually transfer to each of its charter schools funding in lieu of property taxes pursuant to Section 47635.
(l)(1)Nothing in this section shall be interpreted to authorize a school district that receives funding on behalf of a charter school pursuant to Section 47651 to redirect this funding for another purpose unless otherwise authorized in law pursuant to paragraph (2) or pursuant to an agreement between the charter school and its chartering authority.
(2)A school district that received funding on behalf of a locally funded charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or a school district that was required to pass through funding to a conversion charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42606, as that section read on January 1, 2013, may annually redirect for another purpose a percentage of the amount of the funding received on behalf of that charter school. The percentage of funding that may be redirected shall be determined pursuant to the following computation:
(A)(i)Determine the sum of the need fulfilled for that charter school pursuant to paragraph (3) of subdivision (b) of Section 42238.03 in the then current fiscal year for the charter school.
(ii)Determine the sum of the need fulfilled in every fiscal year before the then current fiscal year pursuant to paragraph (3) of subdivision (b) of Section 42238.03 adjusted for changes in average daily attendance pursuant to paragraph (3) of subdivision (a) of Section 42238.03 for the charter school.
(iii)Subtract the amount computed pursuant to paragraphs (1) to (3), inclusive, of subdivision (a) of Section 42238.03 from the amount computed for that charter school under the local control funding formula entitlement computed pursuant to subdivision (i) of this section.
(iv)Compute a percentage by dividing the sum of the amounts computed to clauses (i) and (ii) by the amount computed pursuant to clause (iii).
(B)Multiply the percentage computed pursuant to subparagraph (A) by the amount of funding the school district received on behalf of the charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013.
(C)The maximum amount that may be redirected shall be the lesser of the amount of funding the school district received on behalf of the charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or the amount computed pursuant to subparagraph (B).
(3)Commencing with the 201314 fiscal year, a school district operating one or more affiliated charter schools shall provide each affiliated charter school schoolsite with no less than the amount of funding the schoolsite received pursuant to the charter school block grant in the 201213 fiscal year.
(m)Any calculations in law that are used for purposes of determining if a local educational agency is an excess tax school entity or basic aid school district, including, but not limited to, this section and Sections 42238.03, 41544, 42238.03, 47632, 47660, 47663, 48310, and 48359.5, and Section 95 of the Revenue and Taxation Code, shall be made exclusive of the revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(n)The funds apportioned pursuant to this section and Section 42238.03 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4.
(o)A school district that does not receive an apportionment of state funds pursuant to this section, as implemented pursuant to Section 42238.03, excluding funds apportioned pursuant to the requirements of subparagraph (A) of paragraph (2) of subdivision (e) of Section 42238.03, shall be considered a basic aid school district or an excess tax entity.
SEC. 5.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.
For the 201314 fiscal year and for each fiscal year thereafter, the Superintendent annually shall calculate a county local control funding formula for each county superintendent of schools as follows:
(a)Compute a county office of education operations grant equal to the sum of each of the following amounts:
(1)Six hundred fifty-five thousand nine hundred twenty dollars ($655,920).
(2)One hundred nine thousand three hundred twenty dollars ($109,320) multiplied by the number of school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253.
(3)(A)Seventy dollars ($70) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units.
(B)Sixty dollars ($60) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 30,000 units, up to a maximum of 60,000 units.
(C)Fifty dollars ($50) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 60,000, up to a maximum of 140,000 units.
(D)Forty dollars ($40) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 140,000 units.
(E)For purposes of this section, countywide average daily attendance means the aggregate number of annual units of average daily attendance within the county attributable to all school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253, charter schools authorized by school districts for which the county superintendent of schools has jurisdiction, and charter schools authorized by the county superintendent of schools.
(4)For the 201415 fiscal year and each fiscal year thereafter, adjust each of the rates provided in the prior year pursuant to paragraphs (1), (2), and (3) by 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.
(b)Determine the enrollment percentage of unduplicated pupils pursuant to the following:
(1)(A)For the 201314 fiscal year, divide the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 201314 fiscal year by the total enrollment in those schools in the 201314 fiscal year.
(B)For the 201415 fiscal year, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 201314 and 201415 fiscal years by the sum of the total enrollment in those schools in the 201314 and 201415 fiscal years.
(C)For the 201516 fiscal year and each fiscal year thereafter, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in those schools in the current fiscal year and the two prior fiscal years.
(D)(i)For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a county superintendent of schools enrollment of unduplicated pupils and total pupil enrollment in the 201415 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 201314 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii)It is the intent of the Legislature to review each county office of educations enrollment of unduplicated pupils for the 201314 and 201415 fiscal years and provide one-time funding, if necessary, for a county office of education with higher enrollment of unduplicated pupils in the 201415 fiscal year as compared to the 201314 fiscal year.
(E)For purposes of determining the enrollment percentage of unduplicated pupils pursuant to this subdivision, enrollment in schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 and the enrollment of pupils other than the pupils identified in clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4) (5) of subdivision (c), shall be excluded from the calculation of the enrollment percentage of unduplicated pupils.
(F)The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This subparagraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.
(2)For purposes of this section, an unduplicated pupil is a pupil who is classified as an English learner, eligible for a free or reduced-price meal, or a foster youth. For purposes of this section, the definitions in Section 42238.01 of an English learner, a pupil eligible for a free or reduced-price meal, and foster youth shall apply. A pupil shall be counted only once for purposes of this section if any of the following apply:
(A)The pupil is classified as an English learner and is eligible for a free or reduced-price meal.
(B)The pupil is classified as an English learner and is a foster youth.
(C)The pupil is eligible for a free or reduced-price meal and is classified as a foster youth.
(D)The pupil is classified as an English learner, is eligible for a free or reduced-price meal, and is a foster youth.
(3)(A)Under procedures and timeframes established by the Superintendent, commencing with the 201314 fiscal year, a county superintendent of schools annually shall report the enrollment of unduplicated pupils, pupils classified as English learners, pupils eligible for free and reduced-price meals, and foster youth in schools operated by the county superintendent of schools to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(B)The Superintendent shall make the calculations pursuant to this section using the data submitted through the California Longitudinal Pupil Achievement Data System.
(C)The Controller shall include instructions, as appropriate, in the audit guide required by subdivision (a) of Section 14502.1, for determining if the data reported by a county superintendent of schools using the California Longitudinal Pupil Achievement Data System is consistent with pupil data records maintained by the county office of education.
(c)Compute an alternative education grant equal to the sum of the following:
(1)(A)For the 201314 fiscal year, a base grant equal to the 201213 per pupil undeficited statewide average juvenile court school base revenue limit calculated pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013. For purposes of this subparagraph, the 201213 statewide average juvenile court school base revenue limit shall be considered final as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(B)Commencing with the 201314 fiscal year, the per pupil base grant shall be adjusted by 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.
(2)A supplemental grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the enrollment percentage calculated in subdivision (b). The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(3)(A)A concentration grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the greater of either of the following:
(i)The enrollment percentage calculated in subdivision (b) less 50 percent.
(ii)Zero.
(B)The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(4)(A)A special education grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the percentage calculated in subparagraph (B). The special education grant shall be expended for individuals with exceptional needs served by schools operated by the county superintendent of schools.
(B)The Superintendent shall determine the enrollment percentage of individuals with exceptional needs by dividing the sum of the enrollment of individuals with exceptional needs in all schools operated by a county superintendent of schools in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in those schools in the current fiscal year and the two prior fiscal years.
(C)Under procedures and timeframes established by the Superintendent, a county superintendent of schools annually shall report the enrollment of individuals with exceptional needs served by schools operated by the county superintendent of schools to the Superintendent using the California Longitudinal Pupil Achievement Data System. The Superintendent shall make the calculations pursuant to this paragraph using the data submitted through the California Longitudinal Pupil Achievement Data System.
(D)For purposes of this paragraph, individuals with exceptional needs shall have the same meaning as it is defined in Section 56026.
(4)(5)(A)Multiply the sum of paragraphs (1), (2), and (3) (3), and (4) by the total number of units of average daily attendance for pupils attending schools operated by a county office of education, excluding units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are enrolled pursuant to any of the following:
(i)Probation-referred pursuant to Sections 300, 601, 602, and 654 of the Welfare and Institutions Code.
(ii)On probation or parole and not in attendance in a school.
(iii)Expelled for any of the reasons specified in subdivision (a) or (c) of Section 48915.
(B)Multiply the number of units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 by the sum of the base grant calculated pursuant to paragraph (1), a supplemental grant equal to 35 percent of the base grant calculated pursuant to paragraph (1), and a concentration grant equal to 17.5 percent of the base grant calculated pursuant to paragraph (1). Funds provided for the supplemental and concentration grants pursuant to this calculation shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(C)Add the amounts calculated in subparagraphs (A) and (B).
(d)Add the amount calculated in subdivision (a) to the amount calculated in subparagraph (C) of paragraph (4) (5) of subdivision (c).
(e)Add all of the following to the amount calculated in subdivision (d):
(1)The amount of funding a county superintendent of schools received for the 201213 fiscal year from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read on January 1, 2013.
(2)(A)(i)The amount of funding a county superintendent of schools received for the 201213 fiscal year from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, former Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, as those articles read on January 1, 2013.
(ii)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent pursuant to Item 6110-111-0001 of Section 2.00 of the Budget Act of 2012, as identified in clause (i) of subparagraph (A) of paragraph (2) of subdivision (a) of Section 2575, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall add the reassigned amounts to the amounts calculated pursuant to this paragraph.
(B)On or before March 1, 2014, the Legislative Analysts Office shall submit recommendations to the fiscal committees of both houses of the Legislature regarding revisions to the methods of funding pupil transportation that address historical funding inequities across county offices of education and school districts and improve incentives for local educational agencies to provide efficient and effective pupil transportation services.
(3)The difference determined by subtracting the amount calculated pursuant to paragraph (1) of subdivision (c) for pupils attending a school that is eligible for funding pursuant to paragraph (2) of subdivision (b) of Section 42285 from the amount of funding that is provided to eligible schools pursuant to Section 42284, if the difference is positive.
SEC. 2.Section 2575 of the Education Code is amended to read:2575.(a)Commencing with the 201314 fiscal year and for each fiscal year thereafter, the Superintendent shall calculate a base entitlement for the transition to the county local control funding formula for each county superintendent of schools based on the sum of the amounts computed pursuant to paragraphs (1) to (3), inclusive, as adjusted pursuant to paragraph (4):
(1)Revenue limits in the 201213 fiscal year pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013, adjusted only for changes in average daily attendance claimed by the county superintendent of schools for pupils identified in clauses (i), (ii), and (iii) of subparagraph (A) of paragraph (4) (5) of subdivision (c) of Section 2574 and for pupils attending juvenile court schools. For purposes of this paragraph, the calculation of an amount per unit of average daily attendance for pupils attending juvenile court schools shall be considered final for purposes of this section as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339. All other average daily attendance claimed by the county superintendent of schools and any other average daily attendance used for purposes of calculating revenue limits pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013, shall be considered final for purposes of this section as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(2)The sum of all of the following:
(A)(i)The amount of funding received from appropriations contained in Section 2.00 of the Budget Act of 2012, as adjusted by Section 12.42, in the following Items: 6110-104-0001, 6110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001, 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, 6110-212-0001, 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, 201213 fiscal year funding for the Class Size Reduction Program pursuant to Chapter 6.10 (commencing with Section 52120) of Part 28 of Division 4 of Title 2, as that chapter read on January 1, 2013, and 201213 fiscal year funding for pupils enrolled in community day schools who are mandatorily expelled pursuant to subdivision (d) of Section 48915. For purposes of this subparagraph, the 201213 fiscal year appropriations described in this subparagraph shall be considered final as of the annual apportionment for the 201213 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(ii)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent pursuant to Item 6110-111-0001 of Section 2.00 of the Budget Act of 2012, as identified in clause (i), the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall add the reassigned amounts to the amounts calculated pursuant to this paragraph. These funds shall be subject to the requirements specified in paragraph (1) of subdivision (k).
(B)The amount of local revenues used to support a regional occupational center or program established and maintained by a county superintendent of schools pursuant to Section 52301.
(3)For the 201415 fiscal year and for each fiscal year thereafter, the sum of the amounts apportioned to the county superintendent of schools pursuant to subdivision (f) in all prior years.
(4)The revenue limit amount determined pursuant to paragraph (1) shall be increased by the difference determined by subtracting the amount provided per unit of average daily attendance in paragraph (1) for pupils attending a school that is eligible for funding pursuant to paragraph (2) of subdivision (b) of Section 42285 from the amount of funding that was provided to eligible schools in the 201213 fiscal year pursuant to Sections 42284 and 42238.146, as those sections read on January 1, 2013.
(b)The Superintendent shall annually compute a county local control funding formula transition adjustment for each county superintendent of schools as follows:
(1)Subtract the amount computed pursuant to subdivision (a) from the amount computed pursuant to subdivision (e) of Section 2574. A difference of less than zero shall be deemed to be zero.
(2)Divide the difference for each county superintendent of schools calculated pursuant to paragraph (1) by the total sum of the differences for all county superintendents of schools calculated pursuant to paragraph (1).
(3)Multiply the proportion calculated for each county superintendent of schools pursuant to paragraph (2) by the amount of funding specifically appropriated for purposes of subdivision (f). The amount calculated shall not exceed the difference for the county superintendent of schools calculated pursuant to paragraph (1).
(c)The Superintendent shall subtract from the amount calculated pursuant to subdivision (a) the sum of each of the following:
(1)Local property tax revenues received pursuant to Section 2573 in the then current fiscal year.
(2)Any amounts that the county superintendent of schools was required to maintain as restricted and not available for expenditure in the 197879 fiscal year as specified in the second paragraph of subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978, as amended by Chapter 51 of the Statutes of 1979.
(3)The amount received pursuant to subparagraph (C) of paragraph (3) of subdivision (a) of Section 33607.5 of the Health and Safety Code that is considered property taxes pursuant to that section.
(4)The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(5)The amount, if any, received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(d)The Superintendent shall subtract from the amount computed pursuant to subdivision (e) of Section 2574 the sum of the amounts computed pursuant to paragraphs (1) to (5), inclusive, of subdivision (c).
(e)The Superintendent shall annually apportion to each county superintendent of schools the amount calculated pursuant to subdivision (c) unless the amount computed pursuant to subdivision (c) is negative. If the amount computed is negative, except as provided in subdivision (f), an amount of property tax of the county superintendent of schools equal to the negative amount shall be deemed restricted and not available for expenditure during the fiscal year. In the following fiscal year, that amount, excluding any amount of funds used for purposes of subdivision (f), shall be considered restricted local property tax revenue for purposes of subdivision (a) of Section 2578. State aid shall not be apportioned to the county superintendent of schools pursuant to this subdivision if the amount computed pursuant to subdivision (c) is negative.
(f)(1)The Superintendent shall apportion, from an appropriation specifically made for this purpose, the amount computed pursuant to subdivision (b), or, if the amount computed pursuant to subdivision (c) is negative, the sum of the amounts computed pursuant to subdivisions (b) and (c) if the sum if greater than zero.
(2)The Superintendent shall apportion any portion of the appropriation made for purposes of paragraph (1) that is not apportioned pursuant to paragraph (1) pursuant to the following calculation:
(A)Add the amount calculated pursuant to subdivision (b) to the amount computed pursuant to subdivision (a) for a county superintendent of schools.
(B)Subtract the amount computed pursuant to subparagraph (A) from the amount computed pursuant to subdivision (e) of Section 2574 for the county superintendent of schools.
(C)Divide the difference for the county superintendent of schools computed pursuant to subparagraph (B) by the sum of the differences for all county superintendents of schools computed pursuant to subparagraph (B).
(D)Multiply the proportion computed pursuant to subparagraph (C) by the unapportioned balance in the appropriation. That product shall be the county superintendent of schools proportion of total need.
(E)Apportion to each county superintendent of schools the amount calculated pursuant to subparagraph (D), or if subdivision (c) is negative, apportion the sums of subdivisions (b) and (c) and subparagraph (D) of this subdivision if the sum is greater than zero.
(F)The Superintendent shall repeat the computation made pursuant to this paragraph, accounting for any additional amounts apportioned after each computation, until the appropriation made for purposes of paragraph (1) is fully apportioned.
(G)The total amount apportioned pursuant to this subdivision to a county superintendent of schools shall not exceed the difference for the county superintendent of schools calculated pursuant to paragraph (1) of subdivision (b).
(H)For purposes of this paragraph, the proportion of need that is funded from any appropriation made specifically for purposes of this subdivision in the then current fiscal year shall be considered fixed as of the second principal apportionment for that fiscal year. Adjustments to a county superintendent of schools total need computed pursuant to subparagraph (D) after the second principal apportionment for the then current fiscal year shall be funded based on the fixed proportion of need that is funded for that fiscal year pursuant to this subdivision, and shall be continuously appropriated pursuant to Section 14002.
(g)(1)For a county superintendent of schools for whom, in the 201314 fiscal year, the amount computed pursuant to subdivision (c) is less than the amount computed pursuant to subdivision (d), in the first fiscal year following the fiscal year in which the sum of the apportionments computed pursuant to subdivisions (e) and (f) is equal to, or greater than, the amount computed pursuant to subdivision (d) of this section, the Superintendent shall apportion to the county superintendent of schools the amount computed in subdivision (d) in that fiscal year and each fiscal year thereafter instead of the amounts computed pursuant to subdivisions (e) and (f).
(2)For a county superintendent of schools for whom, in the 201314 fiscal year, the amount computed pursuant to subdivision (c) is greater than the amount computed pursuant to subdivision (d), in the first fiscal year in which the amount computed pursuant to subdivision (c) would be less than the amount computed pursuant to subdivision (d), the Superintendent shall apportion to the county superintendent of schools the amount computed in subdivision (d) in that fiscal year and each fiscal year thereafter instead of the amounts computed pursuant to subdivisions (e) and (f).
(3)In each fiscal year, the Superintendent shall determine the percentage of county superintendents of schools that are apportioned funding that is less than the amount computed pursuant to subdivision (d), as of the second principal apportionment of the fiscal year. If the percentage is less than 10 percent, the Superintendent shall apportion to those county superintendents of schools funding equal to the amount computed in subdivision (d) in that fiscal year and for each fiscal year thereafter instead of the amounts calculated pursuant to subdivisions (e) and (f).
(4)Commencing with the first fiscal year after the apportionments in paragraph (3) are made, the adjustments in paragraph (4) of subdivision (a) of Section 2574 and subparagraph (B) of paragraph (1) of subdivision (c) of Section 2574 shall be made only if an appropriation for those purposes is included in the annual Budget Act.
(5)If the calculation pursuant to subdivision (d) is negative and the Superintendent apportions to a county superintendent of schools the amount computed pursuant to subdivision (d) pursuant to paragraph (1), (2), or (3) of this subdivision, an amount of property tax of the county superintendent of schools equal to the negative amount shall be deemed restricted and not available for expenditure during that fiscal year. In the following fiscal year the restricted amount shall be considered restricted local property tax revenue for purposes of subdivision (a) of Section 2578.
(h)Commencing with the 201314 fiscal year, the Superintendent shall apportion to a county superintendent of schools an amount of state aid, including any amount apportioned pursuant to subdivisions (f) and (g), that is no less than the amount calculated in subparagraph (A) of paragraph (2) of subdivision (a).
(i)(1)For the 201314 and 201415 fiscal years only, a county superintendent of schools who, in the 201213 fiscal year, from any of the funding sources identified in paragraph (1) or (2) of subdivision (a), received funds on behalf of, or provided funds to, a regional occupational center or program joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing instruction to pupils enrolled in grades 9 to 12, inclusive, shall not redirect that funding for another purpose unless otherwise authorized by law or pursuant to an agreement between the regional occupational center or program joint powers agency and the contracting county superintendent of schools.
(2)For the 201314 and 201415 fiscal years only, if a regional occupational center or program joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing instruction to pupils enrolled in grades 9 to 12, inclusive, received, in the 201213 fiscal year, an apportionment of funds directly from any of the funding sources identified in subparagraph (A) of paragraph (2) of subdivision (a), the Superintendent shall apportion that same amount to the regional occupational center or program joint powers agency.
(j)For the 201314 and 201415 fiscal years only, a county superintendent of schools who, in the 201213 fiscal year, from any of the funding sources identified in paragraph (1) or (2) of subdivision (a), received funds on behalf of, or provided funds to, a home-to-school transportation joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation shall not redirect that funding for another purpose unless otherwise authorized by law or pursuant to an agreement between the home-to-school transportation joint powers agency and the contracting county superintendent of schools.
(k)(1)In addition to subdivision (j), of the funds a county superintendent of schools receives for home-to-school transportation programs, the county superintendent of schools shall expend, pursuant to former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, former Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, as those articles read on January 1, 2013, no less for those programs than the amount of funds the county superintendent of schools expended for home-to-school transportation in the 201213 fiscal year.
(2)For the 201314 and 201415 fiscal years only, if a home-to-school transportation joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation received, in the 201213 fiscal year, an apportionment of funds directly from the Superintendent from any of the funding sources identified in subparagraph (A) of paragraph (2) of subdivision (a), the Superintendent shall apportion that same amount to the home-to-school transportation joint powers agency.
(3)For the 201314 and 201415 fiscal years only, of the funds a county superintendent of schools receives for purposes of regional occupational centers or programs, or adult education, the county superintendent of schools shall expend no less for each of those programs than the amount of funds the county superintendent of schools expended for purposes of regional occupational centers or programs, or adult education, respectively, in the 201213 fiscal year. For purposes of this paragraph, a county superintendent of schools may include expenditures made by a school district within the county for purposes of regional occupational centers or programs so long as the total amount of expenditures made by the school districts and the county superintendent of schools equals or exceeds the total amount required to be expended for purposes of regional occupational centers or programs pursuant to this paragraph and paragraph (7) of subdivision (a) of Section 42238.03.
(l)The funds apportioned pursuant to this section and Section 2574 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4 of Title 2.
SEC. 3.Section 2576 of the Education Code is amended to read:2576.(a)If a county superintendent of schools enrolls in a school operated by the county superintendent of schools a pupil not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of paragraph (4) (5) of subdivision (c) of Section 2574, or Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, any attendance generated by that pupil shall be credited to the school district of residence. Enrollment of these pupils shall be transferred to the school district of residence for purposes of calculating the percentage of unduplicated pupils pursuant to Section 42238.02.
(b)For purposes of this section, the school district of residence for a homeless child, as defined in Section 1981.2, enrolled in a school operated by a county superintendent of schools shall be deemed to be the school district that last provided educational services to the homeless child or, if it is not possible to determine that school district, the nonbasic aid school district with the largest average daily attendance in the county that serves the grade level in which the homeless child would be enrolled.
(c)If a county superintendent of schools grants permission to a pupil to attend school in an adjoining state pursuant to Section 2000, attendance generated by that pupil shall be credited to the school district of residence.
SEC. 4.Section 42238.02 of the Education Code is amended to read:42238.02.(a)The amount computed pursuant to this section shall be known as the school district and charter school local control funding formula.
(b)(1)For purposes of this section unduplicated pupil means a pupil enrolled in a school district or a charter school who is either classified as an English learner, eligible for a free or reduced-price meal, or is a foster youth. A pupil shall be counted only once for purposes of this section if any of the following apply:
(A)The pupil is classified as an English learner and is eligible for a free or reduced-price meal.
(B)The pupil is classified as an English learner and is a foster youth.
(C)The pupil is eligible for a free or reduced-price meal and is classified as a foster youth.
(D)The pupil is classified as an English learner, is eligible for a free or reduced-price meal, and is a foster youth.
(2)Under procedures and timeframes established by the Superintendent, commencing with the 201314 fiscal year, a school district or charter school shall annually submit its enrolled free and reduced-price meal eligibility, foster youth, and English learner pupil-level records for enrolled pupils to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(3)(A)Commencing with the 201314 fiscal year, a county office of education shall review and validate certified aggregate English learner, foster youth, and free or reduced-price meal eligible pupil data for school districts and charter schools under its jurisdiction to ensure the data is reported accurately. The Superintendent shall provide each county office of education with appropriate access to school district and charter school data reports in the California Longitudinal Pupil Achievement Data System for purposes of ensuring data reporting accuracy.
(B)The Controller shall include the instructions necessary to enforce paragraph (2) in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the English learner, foster youth, and free or reduced-price meal eligible pupil counts are consistent with the school districts or charter schools English learner, foster youth, and free or reduced-price meal eligible pupil records.
(4)The Superintendent shall make the calculations pursuant to this section using the data submitted by local educational agencies, including charter schools, through the California Longitudinal Pupil Achievement Data System. Under timeframes and procedures established by the Superintendent, school districts and charter schools may review and revise their submitted data on English learner, foster youth, and free or reduced-price meal eligible pupil counts to ensure the accuracy of data reflected in the California Longitudinal Pupil Achievement Data System.
(5)The Superintendent shall annually compute the percentage of unduplicated pupils for each school district and charter school by dividing the enrollment of unduplicated pupils in a school district or charter school by the total enrollment in that school district or charter school pursuant to all of the following:
(A)For the 201314 fiscal year, divide the sum of unduplicated pupils for the 201314 fiscal year by the sum of the total pupil enrollment for the 201314 fiscal year.
(B)For the 201415 fiscal year, divide the sum of unduplicated pupils for the 201314 and 201415 fiscal years by the sum of the total pupil enrollment for the 201314 and 201415 fiscal years.
(C)For the 201516 fiscal year and each fiscal year thereafter, divide the sum of unduplicated pupils for the current fiscal year and the two prior fiscal years by the sum of the total pupil enrollment for the current fiscal year and the two prior fiscal years.
(D)(i)For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a school districts or charter schools enrollment of unduplicated pupils and total pupil enrollment in the 201415 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 201314 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii)It is the intent of the Legislature to review each school district and charter schools enrollment of unduplicated pupils for the 201314 and 201415 fiscal years and provide one-time funding, if necessary, for a school district or charter school with higher enrollment of unduplicated pupils in the 201415 fiscal year as compared to the 201314 fiscal year.
(6)The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This paragraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.
(c)Commencing with the 201314 fiscal year and each fiscal year thereafter, the Superintendent shall annually calculate a local control funding formula grant for each school district and charter school in the state pursuant to this section.
(d)The Superintendent shall compute a grade span adjusted base grant equal to the total of the following amounts:
(1)For the 201314 fiscal year, a base grant of:
(A)Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(B)Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.
(C)Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.
(D)Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.
(2)In each year the grade span adjusted base grants in paragraph (1) shall be adjusted by 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.
(3)(A)The Superintendent shall compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant as adjusted for inflation pursuant to paragraph (2) equal to 10.4 percent. The additional grant shall be calculated by multiplying the kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by paragraph (2), by 10.4 percent.
(B)Until paragraph (4) of subdivision (b) of Section 42238.03 is effective, as a condition of the receipt of funds in this paragraph, a school district shall make progress toward maintaining an average class enrollment of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative annual average class enrollment for each schoolsite in those grades is agreed to by the school district, pursuant to the following calculation:
(i)Determine a school districts average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the prior year. For the 201314 fiscal year, this amount shall be the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the 201213 fiscal year.
(ii)Determine a school districts proportion of total need pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
(iii)Determine the percentage of the need calculated in clause (ii) that is met by funding provided to the school district pursuant to paragraph (3) of subdivision (b) of Section 42238.03.
(iv)Determine the difference between the amount computed pursuant to clause (i) and an average class enrollment of not more than 24 pupils.
(v)Calculate a current year average class enrollment adjustment for each schoolsite for kindergarten and grades 1 to 3, inclusive, equal to the adjustment calculated in clause (iv) multiplied by the percentage determined pursuant to clause (iii).
(C)School districts that have an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24 pupils or less for each schoolsite in the 201213 fiscal year, shall be exempt from the requirements of subparagraph (B) so long as the school district continues to maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils, unless a collectively bargained alternative ratio is agreed to by the school district.
(D)Upon full implementation of the local control funding formula, as a condition of the receipt of funds in this paragraph, all school districts shall maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative ratio is agreed to by the school district.
(E)The average class enrollment requirement for each schoolsite for kindergarten and grades 1 to 3, inclusive, established pursuant to this paragraph shall not be subject to waiver by the state board pursuant to Section 33050 or by the Superintendent.
(F)The Controller shall include the instructions necessary to enforce this paragraph in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, exceeds 24 pupils, or an alternative average class enrollment for each schoolsite pursuant to a collectively bargained alternative ratio. The procedures for determining average class enrollment for each schoolsite shall include criteria for employing sampling.
(4)The Superintendent shall compute an additional adjustment to the base grant for grades 9 to 12, inclusive, as adjusted for inflation pursuant to paragraph (2), equal to 2.6 percent. The additional grant shall be calculated by multiplying the base grant for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6 percent.
(e)(1)The Superintendent shall compute a supplemental grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b). The supplemental grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1), (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in that school district or charter school. The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(2)(A)The Superintendent shall compute a special education grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of individuals with exceptional needs served by the school district or charter school. The special education grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of individuals with exceptional needs calculated pursuant to subparagraph (B) in that school district or charter school. The special education grant shall be expended for individuals with exceptional needs served by the school district or charter school.
(B)The Superintendent shall determine the enrollment percentage of individuals with exceptional needs by dividing the sum of the enrollment of individuals with exceptional needs served by a school district or charter school in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in the school district or charter school in the current fiscal year and the two prior fiscal years.
(C)Under procedures and timeframes established by the Superintendent, school districts and charter schools annually shall report the enrollment of individuals with exceptional needs served by the school district or charter school, as applicable, to the Superintendent using the California Longitudinal Pupil Achievement Data System. The Superintendent shall make the calculations pursuant to this paragraph using the data submitted through the California Longitudinal Pupil Achievement Data System.
(D)For purposes of this paragraph, individuals with exceptional needs shall have the same meaning as it is defined in Section 56026.
(f)(1)The Superintendent shall compute a concentration grant add-on equal to 50 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school districts or charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school districts or charter schools total enrollment. The concentration grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 50 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the total enrollment in that school district or charter school.
(2)(A)For a charter school physically located in only one school district, the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district in which the charter school is physically located. For a charter school physically located in more than one school district, the charter schools percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed that of the school district with the highest percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school districts in which the charter school has a school facility. The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(B)For purposes of this paragraph and subparagraph (A) of paragraph (1) of subdivision (f) of Section 42238.03, a charter school shall report its physical location to the department under timeframes established by the department. For a charter school authorized by a school district, the department shall include the authorizing school district in the departments determination of physical location. For a charter school authorized on appeal pursuant to subdivision (j) of Section 47605, the department shall include the sponsoring school district in the departments determination of physical location. The reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year. For purposes of this paragraph, the percentage of unduplicated pupils of the school district associated with the charter school pursuant to subparagraph (A) shall be considered final as of the second principal apportionment for that fiscal year.
(g)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration concentration, and special education grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2, for the 201213 fiscal year, as that article read on January 1, 2013. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount of funding received by the school district or charter school from that program in the 201213 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(h)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration concentration, and special education grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former Article 10 (commencing with Section 41850) of Chapter 5, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290), as those articles read on January 1, 2013, for the 201213 fiscal year. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount received by the school district or charter school for those programs in the 201213 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(2)If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent from any of the funding sources specified in paragraph (1) for the 201213 fiscal year, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agencys 201213 fiscal year entitlement to the member local educational agency. Commencing with the 201516 fiscal year, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentrations concentration, and special education grants equal to the amount of the entitlement to funding transferred by the joint powers agency to the member school district or charter school.
(i)(1)The sum of the local control funding formula rates computed pursuant to subdivisions (c) to (f), inclusive, shall be multiplied by:
(A)For school districts, the average daily attendance of the school district in the corresponding grade level ranges computed pursuant to Section 42238.05, excluding the average daily attendance computed pursuant to paragraph (2) of subdivision (a) of Section 42238.05 for purposes of the computation specified in subdivision (d).
(B)For charter schools, the total current year average daily attendance in the corresponding grade level ranges.
(2)The amount computed pursuant to Article 4 (commencing with Section 42280) shall be added to the amount computed pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied by subparagraph (A) or (B) of paragraph (1), as appropriate.
(j)The Superintendent shall adjust the sum of each school districts or charter schools amount determined in subdivisions (g) to (i), inclusive, pursuant to the calculation specified in Section 42238.03, less the sum of the following:
(1)(A)For school districts, the property tax revenue received pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code.
(B)For charter schools, the in-lieu property tax amount provided to a charter school pursuant to Section 47635.
(2)The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3)The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 of the Government Code.
(4)Prior years taxes and taxes on the unsecured roll.
(5)Fifty percent of the amount received pursuant to Section 41603.
(6)The amount, if any, received pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), less any amount received pursuant to Section 33401 or 33676 of the Health and Safety Code that is used for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance and that is not an amount received pursuant to Section 33492.15, or paragraph (4) of subdivision (a) of Section 33607.5, or Section 33607.7 of the Health and Safety Code that is allocated exclusively for educational facilities.
(7)The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(8)Revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(k)A school district shall annually transfer to each of its charter schools funding in lieu of property taxes pursuant to Section 47635.
(l)(1)Nothing in this section shall be interpreted to authorize a school district that receives funding on behalf of a charter school pursuant to Section 47651 to redirect this funding for another purpose unless otherwise authorized in law pursuant to paragraph (2) or pursuant to an agreement between the charter school and its chartering authority.
(2)A school district that received funding on behalf of a locally funded charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or a school district that was required to pass through funding to a conversion charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42606, as that section read on January 1, 2013, may annually redirect for another purpose a percentage of the amount of the funding received on behalf of that charter school. The percentage of funding that may be redirected shall be determined pursuant to the following computation:
(A)(i)Determine the sum of the need fulfilled for that charter school pursuant to paragraph (3) of subdivision (b) of Section 42238.03 in the then current fiscal year for the charter school.
(ii)Determine the sum of the need fulfilled in every fiscal year before the then current fiscal year pursuant to paragraph (3) of subdivision (b) of Section 42238.03 adjusted for changes in average daily attendance pursuant to paragraph (3) of subdivision (a) of Section 42238.03 for the charter school.
(iii)Subtract the amount computed pursuant to paragraphs (1) to (3), inclusive, of subdivision (a) of Section 42238.03 from the amount computed for that charter school under the local control funding formula entitlement computed pursuant to subdivision (i) of this section.
(iv)Compute a percentage by dividing the sum of the amounts computed to clauses (i) and (ii) by the amount computed pursuant to clause (iii).
(B)Multiply the percentage computed pursuant to subparagraph (A) by the amount of funding the school district received on behalf of the charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013.
(C)The maximum amount that may be redirected shall be the lesser of the amount of funding the school district received on behalf of the charter school in the 201213 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or the amount computed pursuant to subparagraph (B).
(3)Commencing with the 201314 fiscal year, a school district operating one or more affiliated charter schools shall provide each affiliated charter school schoolsite with no less than the amount of funding the schoolsite received pursuant to the charter school block grant in the 201213 fiscal year.
(m)Any calculations in law that are used for purposes of determining if a local educational agency is an excess tax school entity or basic aid school district, including, but not limited to, this section and Sections 42238.03, 41544, 47632, 47660, 47663, 48310, and 48359.5, and Section 95 of the Revenue and Taxation Code, shall be made exclusive of the revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(n)The funds apportioned pursuant to this section and Section 42238.03 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4.
(o)A school district that does not receive an apportionment of state funds pursuant to this section, as implemented pursuant to Section 42238.03, excluding funds apportioned pursuant to the requirements of subparagraph (A) of paragraph (2) of subdivision (e) of Section 42238.03, shall be considered a basic aid school district or an excess tax entity.
SEC. 5.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.
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Date
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Status
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|---|---|
| Feb 1, 2018 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2018 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr 26, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Apr 18, 2017 | Re-referred to Com. on ED. |
| Apr 17, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended. |
| Mar 13, 2017 | Referred to Com. on ED. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Association Of School Business Officials | ** Against | Apr 25, 2017 |
| California Teachers Association | ** Against | Apr 25, 2017 |
| Educate. Advocate. | ** Support | Apr 25, 2017 |
| Los Angeles Unified School District | ** Support | Apr 25, 2017 |
| Torrance Unified School District | ** Support | Apr 25, 2017 |
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
ABPCA Bill Id:AB 1449 (
Author:Muratsuchi) – As Amended Ver:April 17, 2017
SUBJECT: Education finance: local control funding formula: special education grant
SUMMARY: Adds a special education grant to the Local Control Funding Formula (LCFF) for school districts, county offices of education (COEs), and charter schools. Specifically, this bill:
- Adds a special education grant to COE LCFFs, to be computed by multiplying the total base grant by the percentage of enrolled pupils who are severely disabled and by 35%.
- Adds a special education grant to school district and charter school LCFFs, to be computed by multiplying the total base grants by the percentage of enrolled pupils who are severely disabled and by 20%.
- Requires that the grant be spent on services for students who are severely disabled, defined to include students who are identified as requiring services for autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, severe intellectual disability, and those individuals who would have been eligible for enrollment in a development center
- Requires, under procedures and timeframes established by the Superintendent of Public Instruction (SPI), county superintendents of schools, school districts, and charter schools to annually report their enrollment of individuals who are severely disabled served using the California Longitudinal Pupil Achievement Data System (CALPADS). Requires the SPI to calculate the special education grants using the data submitted through CALPADS.
EXISTING LAW:
- Establishes, commencing with the 1998-99 fiscal year, a “census based” funding system for the allocation of state special education funds, providing most funding appropriated for support of special education programs on the basis of the ADA of special education students enrolled in the prior year, multiplied by a funding rate unique to each SELPA. (EC 56836 et sec).
- Establishes a calculation for determining a statewide target rate of funding used for the purpose of calculating the funding rate of ADA growth in each SELPA. (EC 56836.11)
- Requires, in specified fiscal years, equalization adjustments to be made to increase the funding rates of SELPAs with rates below the 90th percentile.
- Establishes an extraordinary cost pool for the extraordinary costs associated with single placements in nonpublic, nonsectarian schools. (EC 56836.21)
- Establishes a low incidence disability fund for costs associated with the education of students who are visually impaired, hearing impaired, and severely orthopedically impaired, and any combination thereof. (EC 56838.22)
- Defines “severely disabled” to include students with the following disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, severe intellectual disability, and those individuals who would have been eligible for enrollment in a development center (EC 56030.5)
- Establishes the Local Control Funding Formula, which provides base grants by grade span, supplemental grants for excess cost of education students who are English learners, low income, or in foster care, and supplemental grants for school districts in which more than 50% of students fall into one or more of those categories.
- Establishes a local control funding formula (LCFF) for county offices of education (COEs) that is the sum of the following:
- a base grant
- a supplemental grant
- a concentration factor grant
- Provides that the COE supplemental grant shall be equal to 35% of the total base grant multiplied by the percentage of the total enrollment that is either low income, an English learner, or in foster care.
- Provides that the DOE concentration factor grant shall be equal to 35% of the total base grant multiplied by the percentage of the total enrollment that is either low income, an English learner, or in foster care that is in excess of 50% of the total COE enrollment.
- Establishes a LCFF for school districts and charter schools that is the sum of the following:
- a base grant for each of the K-3, 4-6, 7-8, and 9-12 grade spans
- a supplemental grant
- a concentration factor grant
- Provides that the district or charter school supplemental grant shall be equal to 20% of the total base grant multiplied by the percentage of the total enrollment that is either low income, an English learner, or in foster care.
- Provides that the district or charter school concentration factor grant shall be equal to 50% of the total base grant multiplied by the percentage of the total enrollment that is either low income, an English learner, or in foster care that is in excess of 55% of the total COE enrollment.
FISCAL EFFECT: The Office of Legislative Counsel has keyed this bill as a possible state mandated local program.
COMMENTS:
Need for the bill. The author’s office states “AB 1449 creates a special education add-on grant under LCFF, which will provide additional resources for students with severe disabilities by establishing a dedicated funding source through a percentage calculation of the base grant, which is based on per pupil average daily attendance (ADA), similar to existing supplemental grants. All special education students require additional resources; however, students with severe disabilities require highly specialized teachers, support staff, equipment, and resources that are very expensive. Therefore, this add-on grant is in line with the philosophy of LCFF, ensuring that students with the greatest needs receive the most resources.
The local control funding formula (LCFF) was implemented in 2013, placing funding decisions in the hands of school districts, so that they could more adequately address needs at the local level. The funding structure of LCFF is divided into base, supplemental, and concentration grants. Supplemental grants are designated for English language learners, foster youth, and students that come from low income families. The rationale for creating supplemental grants for these students was to ensure that those with the greatest needs receive the most resources.
When LCFF was implemented, special education was not included as a supplemental or concentration grant under the formula.
A 2016 report on special education finance, published by the Public Policy Institute of California (PPIC), found that special education is underfunded statewide and districts are struggling to meet the needs of exceptional needs students. While special education is a federally mandated program, the federal government has never met its funding obligation of 40 percent, as set forth in the Individuals with Disabilities Education Act (IDEA). The report also found that, based on district reporting, special education needs are growing throughout the state and that funding has stagnated and is not keeping up with demand. The most costly area of special education is addressing the needs of students with severe disabilities, such as: autism, blindness, deafness, and severe mental or orthopedic disabilities.”
Bill does not match the author’s intent. According to the author’s office, the author’s intent for this measure is to create a school district special education grant within LCFF which provides 1) a 35% grant for students identified as having a severe disability, and 2) a 20% grant for students identified as having a severe disability who are also considered to be “unduplicated pupils” under LCFF (English learners, foster youth, or low income). This bill provides a 35% grant to county offices of education and a 20% grant to school districts for students identified as having severe disabilities, and does not make any adjustment for students who are also unduplicated pupils under LCFF.
Recent reports and Governor’s Budget Statement. This analysis cites the following recent reports and recommendations frequently:
- Special Education Task Force (Task Force). In 2015, the Statewide Task Force of Special Education, convened the State Board of Education, the Superintendent of Public Instruction, and the Commission on Teacher Credentialing, issued a comprehensive report titled “One System: Reforming Education to Serve ALL Students.” This report made a number of recommendations regarding special education finance.
- Legislative Analyst’s Office (LAO). The LAO provides much of the background information about special education finance which informs this analysis.
- Public Policy Institute of California (PPIC). In 2016 the Public Policy Institute of California issued a report titled, “Special Education Finance in California,” which analyzed California’s special education finance system in light of the principles that underlie the Local Control Funding Formula (LCFF): local control and accountability, transparency, and equity. In 2009 PPIC also released a report which looked broadly at special education finance ten years after the enactment of AB 602.
- Governor’s Budget Statement. In his 2017-18 Governor’s Budget Summary the Governor committed to engaging in stakeholder meetings throughout the spring budget process to solicit feedback on the current special education finance system. He stated that central to these discussions would be principles which are consistent with the LCFF and apply to all students, including students with disabilities. He stated that school funding mechanisms should be equitable, transparent, easy to understand, focused on the needs of students, and that general purpose funding should cover the full range of costs to educate all students.
Special education in California. Federal law, the federal Individuals with Disabilities Education Act (IDEA), and corresponding state law requires that students with exceptional needs aged birth to 22 be provided a free and appropriate public education in the least restrictive environment. IDEA was established in 1975 and was most recently reauthorized in 2004.
According to the CDE, in 2015-16 there were 734,000 children aged birth to 22 who were identified as having exceptional needs. 662,000 of these children were enrolled in grades K-12, representing roughly 11% of K-12 enrollment.
The most common disabilities among students are specific learning disabilities, speech and language impairments, and other health impairments, which together constituted about 73% of all students with exceptional needs in 2015. While the prevalence of students with Autism Spectrum Disability (ASD) is relatively rare (affecting about 1.5 percent of California students), the number of students diagnosed with ASD has increased notably over the last decade.
Viewed as a whole, there is a significant achievement gap between students with disabilities and their peers. The LAO notes that while performance on standardized tests (including those specifically designed for students with disabilities) has improved over the past several years, a majority of students with disabilities still fail to meet state and federal achievement expectations, and that 60 percent of these students graduate on time with a high school diploma and about two–thirds of are engaged productively after high school (with about half enrolled in an institute of higher education and 15 percent competitively employed within one year after high school).
Special education finance in California. Special education in California is funded with a combination of federal, state, and local revenues, totaling $13.2 billion in 2015-16. In 2015-16 local general purpose funds covered the largest share of these costs ($8.2 billion, or 62 percent), followed by state special education categorical funds ($3.8 billion, or 43 percent), combined with federal special education funds ($1.2 billion, or 9 percent).
State law requires that funding be allocated to Special Education Local Plan Areas (SELPAs), which are either a collection of local educational agencies (LEAs), single school districts, or a collection of charter schools. The SELPAs develop allocation plans and disburse funding to LEAs to serve students.
About 85% of state special education funding is provided as categorical funds known as “AB 602” (Chapter 854, Statutes of 1997). This allocation method provides funding using a census–based method that allocates special education funds to SELPAs based on the total number of students attending school within the area. AB 602 was based on the assumption that students with disabilities are fairly equally distributed in the student population. The intent of AB 602 funding was to remove financial incentives to over-identify students with disabilities that existed under the prior J-50 model. AB 602 also included a “special disabilities adjustment” which accounted for variation in the enrollment of students with more severe disabilities. This adjustment was eliminated in 2011-12, and at the time totaled $74 million.
Local funds covering an increasing share of special education costs. In recent years local budgets have been covering an increasing share of special education costs.
As shown in the adjacent chart, provided by the LAO, in the last ten years the local share of special education funding has increased from 48% to 62%. This is a result of a number of factors:
- As discussed below, the growth formula for AB 602 is based on overall student growth and not on growth in special education, and overall student growth has been flat while special education enrollment has increased significantly. The result has been a flat level of state funding for a growing student population.
- Federal special education funding has declined since 2013-14 due to sequestration.
- Two compensation-related factors contribute to this increased local share: 1) since special education personnel are paid on the same salary schedules as general education personnel, any negotiated increases in compensation raise special education costs, and 2) in recent years the state has required LEAs to provide an increased share of contributions to the state teachers’ retirement system (CalSTRS).
- There has been a marked increase in special education placements which require a higher level of service (such as ASD), and a decline in placements requiring a lower level of service (such as Specific Learning Disability).
- Dedicated funding for higher cost placements, already small in proportion to overall funding, has either declined or remained flat, depending upon the source.
- Districts with a large number of fiscally independent charter schools which enroll less than a proportionate share of students with severe disabilities may find that district special education costs increase as their severely disabled students comprise a larger share of their special education enrollment. Data presented to the board of one large school district, for example, show that the district serves three times as many severely disabled students than the charter schools within the district.
SELPAs report that 1) funding cuts during the recession reduced the provision of early intervention services which reduce the need for later, more costly services, and 2) some programs are providing a higher level of service for the same placements, as understanding of effective practices evolves.
Trend toward higher percentage of high-cost placements. As shown in the charts on this page, the distribution of disabilities among students identified for special education services has changed over time. Notably, the percentage of students identified with a specific learning disability, a lower cost disability, has declined from 57.3% in 2002 to 39.6% in 2015. Over the same time period, students with autism spectrum disorders, a higher cost disability, increased from 2.2% to 12.6%.
Severe disabilities not equally distributed statewide. To examine the distribution of severe disabilities in California, the PPIC calculated the number of students with autism, cognitive impairment, deafness-blindness, emotionally disturbance, multiple disabilities, and traumatic brain injury. Their analysis showed that students in these categories as a percentage of all K–12 students are not evenly distributed across the state. It found that at the SELPA level, students with severe disabilities range from one to four percent of the total student population, but that even these small variations could produce large SELPA cost differences. PPIC found that at the county level, the range is identical.
Preschool enrollment of children with Autism Spectrum Disability rising rapidly. According to CDE data, in 2005-06 there were 38,563 preschool age students with exceptional needs. In 2015 there were 46,596 such children - an increase of 21% over ten years. The increase in special education enrollment among children of other ages was 7% over the same time period.
Between 2005-06 and 2015-16 the number of preschool age children identified with Autism Spectrum Disability (ASD) increased from 4,845 to 10,688 – an increase of 121%. In 2005-06 children identified with ASD comprised 13% of preschool enrollment; in 2015-16 children with ASD represented nearly 23% of all preschoolers with exceptional needs. Severe disabilities would be expected to constitute a higher proportion of students with disabilities at earlier ages because one large category (Specific Learning Disability) is not typically identified until later grades, but this percentage is striking because 1) growth in ASD enrollment in this age group has been so rapid and now represents such a large share of preschool enrollment, and 2) in the absence of state funding, school districts spend significant amounts of local funds on the higher cost preschool many of these children need.
Funding for high cost special education placements. In addition to AB 602, the state currently provides two sources of funding for low incidence, and generally higher cost, placements:
- Low Incidence funding. The budget appropriates approximately $17 million in funding for low incidence disabilities, providing approximately $560 per student who is blind, deaf or hard of hearing, or who has severe orthopedic impairments. Funding is provided on the basis of actual pupil counts, not by census, and the appropriation is capped and prorated based on demand. Students with these disabilities comprise 0.5% of California enrollment and 4% of special education enrollment. Services for these students tend to be significantly higher in cost than for other special education students. Services for deaf and hard of hearing students, for example, range from $20,000 to $100,000 per pupil, according to the LAO. It is important to note that, unlike the enrollment of other students requiring higher-cost services such as ASD, the enrollment of students with these disabilities has been flat or even declined slightly in recent years (from 30,000 in 2001-02 to 29,000 in 2014-15, according to the LAO). Funding has increased slightly since 2001-02, from $13.7 million to $17.4 million in 2016-17.
- Extraordinary cost pools. Current law establishes two extraordinary cost pools for the extraordinary costs associated with single placements in nonpublic, nonsectarian schools. The total appropriation for these cost pools was $6 million in the Budget Act of 2016. Funding for the extraordinary cost pools has not been adjusted in a number of years and is widely viewed as inadequate.
Special Disabilities Adjustment eliminated. As part of the AB 602 reform, a funding mechanism known as the “special disabilities adjustment” (SDA) was created to provide additional funding to SELPAs which enrolled a disproportionately large number of "high-cost" special education pupils. This funding was based on an incidence multiplier that was developed pursuant to a study completed in 1998 by the American Institutes for Research (AIR).
Recognizing that these factors may change over time, AB 602 called for the incidence multiplier to expire after the 2002-03 fiscal year, and called for a new study to be completed by March 2003. AIR completed this second study, which recommended that the incidence multiplier be updated at least every five years, if not annually, that the state gradually phase-out allocation to SELPAs that had been receiving adjustment funds for the five years prior to the release of the report, and provide full and immediate funding to SELPAs identified as responsible for a disproportionate number of high cost students.
The incidence multiplier was never updated due to local concerns about the redistribution of funding. The authority for the SDA was extended annually by legislation for a number of years, and during those years the CDE continued to calculate the adjustment based on the original 1998 formula. In 2011 the Legislature allowed the authority to sunset. At that time the SDA appropriation was $74 million.
Recommendations to increase funding to address shifts to higher cost placements. Two recent reports make recommendations relating to the need for additional resources for higher-cost services:
- PPIC noted that “the AB 602 formula’s biggest problems are that funding to SELPAs is not equal and that the state had not updated it in response to increased special education caseloads and the rising incidence of high-cost disabilities.” In addition to recommending the equalization of funding rates, PPIC recommended that the state increase funding to special education generally in order to recognize the higher costs generated by rising caseloads relative to ADA and the shift towards more severe disabilities. They tentatively estimated the cost of such an increase at $1.1 billion a year, and recommended that funding be withheld from districts at the top of the distribution.
- The Task Force, noting that actual expenses far exceed current low incidence funding amounts, that Low Incidence Funding be increased by $50 million, providing $1,600 per eligible student.
Proceed with caution when creating a funding system based on identified pupils. This bill essentially proposes a two-part system for funding special education: one census-based funding source for all disabilities and one pupil count-based funding source for higher cost disabilities, provided as an adjustment within LCFF.
Recent history illustrates why creating a pupil-count based allocation for special education is challenging, and requires careful and deliberate consideration:
California’s experience moving from a model based on identified pupils (J-50) to a census-based model (AB 602) provides one illustration of the need for caution. As shown in the chart above (PPIC, 2009), after shifting to a census-based model, the number of students identified as having learning disabilities declined precipitously. PPIC found that the enactment of AB 602, and a similar policy change in the 1997 reauthorization of the IDEA, diminished the fiscal incentive to identify additional students as a means of increasing funding, and found evidence that the same pattern occurred in other states which adopted census-based models.
So is the answer is to base an allocation on the number of students with disabilities which are less prone to over-identification? As noted above, this may not be effective. The existing low incidence funding is based on disabilities which are less prone to over-identification (hearing, visual, and orthopedic impairment). But targeting funding at districts serving those pupils does not necessarily direct funding to the LEAs experiencing the most cost, because the growth in other higher cost disabilities, most notably ASD.
The fate of the Special Disabilities Adjustment (described above) provides further evidence of the need for caution. As noted above, this adjustment was an original part of AB 602, designed to support SELPAs which had a greater share of higher cost placements. But when the time came to adjust the allocation based on changing local costs, conflict over who would lose and receive the funding made it impossible to re-allocate. After years of inability to resolve the issue and at least seven bills to extend the SDA for one or more years, the Legislature allowed the SDA to sunset.
Given this history, the Committee may wish to consider the following questions among others when evaluating or developing a proposal based on identified numbers of students with higher cost disabilities:
- Does the allocation method effectively drive funding to the SELPAs which have higher costs?
- Does the allocation create fiscal incentives to over-identify pupils as having exceptional needs, or as having more severe disabilities?
- Does the allocation allow for adjustments over time to meet changing needs, without devolving into conflict when the time comes to redistribute funding?
- What is the appropriate balance between census-based and pupil count-based allocations of special education funding?
- What is the appropriate level of funding for an extraordinary cost pool vs. an adjustment or grant, and how much support should the state provide to each?
- Should the allocation be funded as a capped appropriation which is prorated based on demand, or as an entitlement that grows?
- Does the allocation allow and prioritize support for early intervention in order to reduce future costs?
- What allowances should be made for small SELPAs?
These are complex issues which require considerable time to address. The Committee may wish to consider the importance of carefully and deliberately crafting any new funding mechanism for this purpose. It is unclear how the adjustment proposed by this bill addresses these concerns.
Implications for the Local Control Funding Formula. This bill adds a special education grant to COE LCFFs, to be computed by multiplying the total base grant by the percentage of enrolled pupils who are severely disabled and by 35%, and adds a special education grant to school district and charter school LCFFs, to be computed by multiplying the total base grants by the percentage of enrolled pupils who are severely disabled and by 20%.
2016-17 LCFF Base Grants
County Offices of Education
$11,429 per pupil 35% = $4,000
School Districts
K-3 $7,626 per pupil 20% = $1,525
4-6 $7,011 per pupil 20% = $1,402
7-8 $7,220 per pupil 20% = $1,444
9-12 $8,583 per pupil 20% = $1,716
This bill adds another category of funding—a special education grant—to the LCFFs. Under existing law, pupils generate supplemental and concentration factor funding if they are low income, English learners, or in foster care. A pupil who falls into more than one of these categories is only counted once for purposes of the formula. They are defined as "unduplicated pupils" in statute. This bill provides additional funding for pupils who are severely disabled even if they are already included in the unduplicated pupil count.
Impact on LCFF funding targets/distribution of LCFF dollars. The legislation that established the LCFF (AB 97, Chapter 47, Statutes of 2013) set funding targets for COEs, districts, and charter schools. The cost of fully funding the targets was estimated to require an increase of about $18 billion for K-12 funding, meaning it would take several years to reach them. Until the targets are fully funded, "gap" funding is provided to each LEA. Specifically, the funding increase that any LEA receives in a fiscal year is dependent on the size of the gap between its current level of funding and its funding target—the larger the gap, the larger the increase. The LAO estimates that the Governor's budget proposal for 2017-18 would result in targets being 96% funded, leaving a gap of 4%.
The calculation of each LEA's LCFF target is based on its base grant. The amount of supplemental and concentration factor grant funding each LEA receives depends on its enrollment of unduplicated students, so, as the enrollment of such students increases, the LCFF target also increases. Similarly, adding another adjustment to the formula for special education students will increase each LEA's target in accordance with its enrollment of severely disabled pupils. As a result, this bill would result in an increase of LCFF funding targets among LEAs, basically making full funding of the formula more costly. With this change, the gap between actual funding and the amount needed to fully fund the statewide LCFF target will be larger than the 4% estimated by the LAO in 2017-18 and will increase the length of time it will take to fully fund the LCFF.
Under this bill, until the LCFF is fully funded, districts that enroll relatively few severely disabled pupils would receive smaller annual increases in their total LCFF funding, and districts that enroll a relatively large number of disabled pupils would get larger increases than they would under existing law. In addition, adding a special education grant would change the allocation of dollars within the categories of the LCFF by reducing the dollars for base, supplemental grant, and concentration factor funding relative to existing law in order to cover the cost of the new adjustment for severely disabled pupils.
Impact on local budgets. Although this bill will result in funding "winners" and "losers" among LEAs relative to existing law, on average, it will have no impact on total statewide revenues LEAs receive from the LCFF. This is because total K-12 funding is driven by Proposition 98, not by the formula. The primary statewide difference that this bill will make is that LCFF funding will be in four categories instead of three. However, this would have an impact on local budget decision making to the extent the addition of a special education grant reduces funding for the programs and services paid for out of the other three LCFF funding categories. All districts, regardless of the number of severely disabled pupils they enroll, will receive less funding from these three categories than they otherwise would until the formula is fully funded, potentially affecting decision about how funds are spent.
In addition, state and federal categorical funding for special education falls short of actual LEA costs. Therefore, LEA's typically spend a portion of their base grant funding for special education. This bill requires that the special education grant be expended for severely disabled pupils. Spending new special education grant funding on special education would likely be offset by a reduction in base grant dollars that are spent for the same purpose. To the extent there would be a dollar-for-dollar offset, total special education spending would not be increased. Accordingly, this bill is likely to have a larger impact on the distribution of LCFF funds among LEAs than on total statewide spending for special education.
Arguments in support. The Los Angeles Unified School District (LAUSD) writes: “The existing AB 602 funding formula is insufficient, inequitable, and does not account for the unique funding obligations of school districts serving students with an array of exceptional needs and types of disabilities…AB 1449 takes great strides toward a funding system that is more equitable, transparent, and focused on the specific needs of students.” LAUSD recommends that the author consider including a primary funding base that accounts for poverty and foster youth status, establishing a funding source for students who have exited special education, and establishing a funding source for preschool students with disabilities.
Arguments in opposition. The California Teachers Association writes: “Special education is woefully underfunded at the state and federal level. This bill does nothing to increase that funding, and by moving state special education funding into the LCFF may in fact place that funding in competition with – and possibly subordinate to – other district priorities. By moving special education into LCFF, and thereby removing any distinction from that funding, this bill jeopardizes the current guarantee that districts focus specified financial resources for the benefit of special education students.” CTA urges the Legislature to consider this issue carefully and to hold detailed policy committee hearings on subjects relating to the structure, provision, and funding of special education.
Related and prior legislation. AB 312 (O’Donnell) of this Session would require that special education funding rates be equalized to the 90th percentile after the LCFF is fully funded, and creates a funding mechanism for state support of special education preschool.
SB 1071 (Allen) of the 2015-16 Session would have required, upon an appropriation in the Budget Act, a permanent one-time adjustment to the base funding calculation for each special education local plan area to support special education and related services for three and four year old preschool children with exceptional needs.
REGISTERED SUPPORT / OPPOSITION:
Support
Educate. Advocate.
Los Angeles Unified School District
Torrance Unified School District
Opposition
California Association of School Business Officials
California Teachers Association
Analysis Prepared by: Tanya Lieberman and Rick Pratt/ ED. / (916) 319-2087
Bill Author
Bill Co-Author(s):