AB 477: Fair Pay for Educators Act: local control funding formula: base grants: funding targets.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-06-23
Current Status:
In Progress
(2025-08-29: In committee: Held under submission.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
(1)Existing law, commencing with the 201314 fiscal year, 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 the Superintendent of Public Instruction to annually calculate a county local control funding formula for each county superintendent of schools that includes, among other components, a county office of education operations grant composed of (A) $655,920, as adjusted each fiscal year for inflation; (B) $109,320 per school district under the county office of educations jurisdiction, as adjusted each fiscal year for inflation; (C) $70 per unit of countywide average daily attendance up to 30,000 units, $60 per unit for 30,001 to 60,000 units, $50 per unit for 60,001 to 140,000 units, and $40 per unit above 140,000 units, as adjusted each fiscal year for inflation; and (D) commencing with the 202223 fiscal year, add-ons of (i) $175,000 to the per-school district amount and (ii) $14 to each per-unit amount.
This bill, commencing with the 203637 fiscal year, would increase each of those inflation-adjusted amounts to instead be $1,308,227, $520,751, $164, $144, $124, and $104, respectively, and would retain the requirement to adjust those amounts for inflation each fiscal year. The bill, commencing with the 203637 fiscal year, would increase the per-school district and per-unit add-on amounts to instead be $262,500 and $21, respectively.
(2)Existing law requires the county office of education local control funding formula to also include, among other things, an alternative education base grant that includes, among its own components, a base grant equal to the grade span-adjusted base grant for average daily attendance in grades 9 to 12, inclusive, for the 202223 fiscal year, multiplied by 1.33, as specified. Existing law requires that amount to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would require the inflation-adjusted base grant component of the alternative education grant to instead be $24,593 and would retain the requirement to adjust that amount for inflation each fiscal year.
(3)Existing law provides for the funding of necessary small schools and high schools, as specified. Existing law requires that funding to include, among other things, various specified per-pupil and per-teacher amounts for different tiers based on the numbers of pupils and teachers, as specified. Existing law requires those amounts to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would increase those various per-pupil and per-teacher inflation-adjusted amounts, as specified, and would retain the requirement to adjust that amount for inflation each fiscal year.
(4)Existing law, commencing with the 201314 fiscal year, requires school district and charter school funding pursuant to the local control funding formula to include, among other things, a base grant based on average daily attendance in kindergarten and grades 1 to 3, inclusive, grades 4 to 6, inclusive, grades 7 and 8, and grades 9 to 12, inclusive, of $6,485, $6,845, $6,947, $7,154, and $8,289 per pupil, respectively. Existing law requires those amounts to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would increase those inflation-adjusted base grant amounts to instead be $14,879, $15,104, $15,551 and $18,023 per pupil, respectively, and would retain the requirement to adjust those amounts for inflation each fiscal year.
(5)Existing law requires funding pursuant to the local control funding formula to include, in addition to the base grant, supplemental and concentration grant add-ons that are based on the percentage of unduplicated pupils, as specified, served by the school district or charter school. In addition to the base, supplemental, and concentration grants of the local control funding formula, existing law, commencing with the 202223 school year, requires the Superintendent to compute an additional add-on of $2,813 multiplied by the then current fiscal years average daily attendance in transitional kindergarten, as specified, and requires that add-on to be annually adjusted for inflation.
This bill, commencing with the 203637 fiscal year, would increase that inflation-adjusted add-on based on attendance in transitional kindergarten to instead be equal to $4,220 $8,318 multiplied by the then current fiscal years average daily attendance in transitional kindergarten for the school district or charter school, as specified, and would retain the requirement to adjust that amount for inflation each fiscal year.
(1)Existing law, commencing with the 201314 fiscal year, 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 the Superintendent of Public Instruction to annually calculate a county local control funding formula for each county superintendent of schools that includes, among other components, a county office of education operations grant composed of (A) $655,920, as adjusted each fiscal year for inflation; (B) $109,320 per school district under the county office of educations jurisdiction, as adjusted each fiscal year for inflation; (C) $70 per unit of countywide average daily attendance up to 30,000 units, $60 per unit for 30,001 to 60,000 units, $50 per unit for 60,001 to 140,000 units, and $40 per unit above 140,000 units, as adjusted each fiscal year for inflation; and (D) commencing with the 202223 fiscal year, add-ons of (i) $175,000 to the per-school district amount and (ii) $14 to each per-unit amount.
This bill, commencing with the 203637 fiscal year, would increase each of those inflation-adjusted amounts to instead be $1,308,227, $520,751, $164, $144, $124, and $104, respectively, and would retain the requirement to adjust those amounts for inflation each fiscal year. The bill, commencing with the 203637 fiscal year, would increase the per-school district and per-unit add-on amounts to instead be $262,500 and $21, respectively.
(2)Existing law requires the county office of education local control funding formula to also include, among other things, an alternative education base grant that includes, among its own components, a base grant equal to the grade span-adjusted base grant for average daily attendance in grades 9 to 12, inclusive, for the 202223 fiscal year, multiplied by 1.33, as specified. Existing law requires that amount to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would require the inflation-adjusted base grant component of the alternative education grant to instead be $24,593 and would retain the requirement to adjust that amount for inflation each fiscal year.
(3)Existing law provides for the funding of necessary small schools and high schools, as specified. Existing law requires that funding to include, among other things, various specified per-pupil and per-teacher amounts for different tiers based on the numbers of pupils and teachers, as specified. Existing law requires those amounts to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would increase those various per-pupil and per-teacher inflation-adjusted amounts, as specified, and would retain the requirement to adjust that amount for inflation each fiscal year.
(4)Existing law, commencing with the 201314 fiscal year, requires school district and charter school funding pursuant to the local control funding formula to include, among other things, a base grant based on average daily attendance in kindergarten and grades 1 to 3, inclusive, grades 4 to 6, inclusive, grades 7 and 8, and grades 9 to 12, inclusive, of $6,485, $6,947, $7,154, and $8,289 per pupil, respectively. Existing law requires those amounts to be adjusted for inflation each fiscal year.
This bill, commencing with the 203637 fiscal year, would increase those inflation-adjusted base grant amounts to instead be $14,879, $15,104, $15,551 and $18,023 per pupil, respectively, and would retain the requirement to adjust those amounts for inflation each fiscal year.
(5)Existing law requires funding pursuant to the local control funding formula to include, in addition to the base grant, supplemental and concentration grant add-ons that are based on the percentage of unduplicated pupils, as specified, served by the school district or charter school. In addition to the base, supplemental, and concentration grants of the local control funding formula, existing law, commencing with the 202223 school year, requires the Superintendent to compute an additional add-on of $2,813 multiplied by the then current fiscal years average daily attendance in transitional kindergarten, as specified, and requires that add-on to be annually adjusted for inflation.
This bill, commencing with the 203637 fiscal year, would increase that inflation-adjusted add-on based on attendance in transitional kindergarten to instead be equal to $4,220 multiplied by the then current fiscal years average daily attendance in transitional kindergarten for the school district or charter school, as specified, and would retain the requirement to adjust that amount for inflation each fiscal year.
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.This bill would state the intent of the Legislature to enact subsequent legislation that would increase schoolsite employee salaries by establishing new local control funding formula funding targets.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.
This bill would state the intent of the Legislature to enact subsequent legislation that would increase schoolsite employee salaries by establishing new local control funding formula funding targets.
This act shall be known, and may be cited, as the Fair Pay for Educators Act.
SECTION 1.SEC. 2.Section 2574 of the Education Code is amended to read:2574.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)(A)Six hundred fifty-five thousand nine hundred twenty dollars ($655,920).
(B)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year and for each fiscal year thereafter, one million three hundred eight thousand two hundred twenty-seven dollars ($1,308,227), as adjusted each fiscal year pursuant to paragraph (4).
(2)(A)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.
(B)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year and for each fiscal year thereafter, five hundred twenty thousand seven hundred fifty-one dollars ($520,751) multiplied by the number of school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253, as adjusted each fiscal year pursuant to paragraph (4).
(3)(A)(i)Seventy dollars ($70) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred sixty-four dollars ($164) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units, as adjusted each fiscal year pursuant to paragraph (4).
(B)(i)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.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred forty-four dollars ($144) 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, as adjusted each fiscal year pursuant to paragraph (4).
(C)(i)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 units, up to a maximum of 140,000 units.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred twenty-four dollars ($124) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 60,000 units, up to a maximum of 140,000 units, as adjusted each fiscal year pursuant to paragraph (4).
(D)(i)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.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred four dollars ($104) 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, as adjusted each fiscal year pursuant to paragraph (4).
(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.
(5)(A)For the 202223 fiscal year to the 203536 fiscal year, inclusive, add one hundred seventy-five thousand dollars ($175,000) to the amount specified in paragraph (2), as that rate was adjusted pursuant to paragraph (4).
(B)Commencing with the 203637 fiscal year and for each fiscal year thereafter, add two hundred sixty-two thousand five hundred dollars ($262,500) to the amount specified in paragraph (2), as that rate was adjusted pursuant to paragraph (4).
(6)(A)For the 202223 fiscal year to the 203536 fiscal year, inclusive, add fourteen dollars ($14) to each of the amounts specified in subparagraphs (A) to (D), inclusive, of paragraph (3), as those rates were adjusted pursuant to paragraph (4).
(B)Commencing with the 203637 fiscal year and for each fiscal year thereafter, add twenty-one dollars ($21) to each of the amounts specified in subparagraphs (A) to (D), inclusive, of paragraph (3), as those rates were adjusted pursuant to paragraph (4).
(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) 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)(i)For the 201314 fiscal year to the 202223 fiscal year, inclusive, 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, and as adjusted each fiscal year pursuant to subparagraph (B). 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.
(ii)For the 202324 fiscal year, a base grant equal to the grade span-adjusted base grant for average daily attendance in grades 9 to 12, inclusive, calculated pursuant to subdivision (d) of Section 42238.02, for the 202223 fiscal year, multiplied by 1.33, and then adjusted pursuant to subparagraph (B) for the 202324 fiscal year.
(iii)For the 202425 fiscal year to the 203536 fiscal year, inclusive, a base grant equal to the amount calculated pursuant to clause (ii) and as adjusted each year pursuant to subparagraph (B).
(iv)Commencing with the 203637 fiscal year and for each fiscal year thereafter, a base grant equal to twenty-four thousand five hundred ninety-three dollars ($24,593), as adjusted each fiscal year pursuant to subparagraph (B).
(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)Multiply the sum of paragraphs (1), (2), and (3) 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).
(5)Notwithstanding any other law, commencing with the 202324 fiscal year, and for purposes of this subdivision, average daily attendance shall be the sum of both of the following:
(A)The average daily attendance reported by the county superintendent of schools for the annual reporting period for the current fiscal year, or the prior fiscal year if the prior year total is greater, or the average of the three most recent prior fiscal years if the average total is greater than both the current year and the prior year.
(B)If applicable, the average daily attendance reported by a charter school in the county established pursuant to Section 47605.5 for the annual reporting period for the current fiscal year.
(d)Add the amount calculated in subdivision (a) to the amount calculated in subparagraph (C) of paragraph (4) 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)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.
(B)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.
(C)Commencing in the 202324 fiscal year, the add-on amounts referenced in subparagraphs (A) and (B) shall receive the annual cost-of-living adjustment specified in subparagraph (B) of paragraph (1) of subdivision (c).
(3)Commencing with the 202324 fiscal year, two hundred thousand dollars ($200,000) for each county office of education operating at least one juvenile court school pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, including a county office of education that authorized a charter school for that purpose pursuant to Section 47605.5.
(4)Commencing with the 202324 fiscal year, two hundred thousand dollars ($200,000) for each county office of education operating at least one county community school pursuant to Chapter 6.5 (commencing with Section 1980), including a county office of education that authorized a charter school for that purpose pursuant to Section 47605.5.
(f)(1)It is the intent of the Legislature that the funds allocated pursuant to paragraphs (3) and (4) of subdivision (e) be included in the local control and accountability plan template pursuant to Section 52064.
(2)It is the intent of the Legislature to fully fund the county office of education local control funding formula target county operations grants and alternative education base grants in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
SEC. 2.SEC. 3.Section 42238.017 is added to the Education Code, immediately following Section 42238.016, to read:42238.017.(a)It is the intent of the Legislature to establish new local control funding formula (LCFF) target grade span-adjusted base grant funding levels for school districts, charter schools, and county offices of education to raise wages by 50 percent, in recognition that the LCFF funding targets established in Assembly Bill 97 of the 201314 Regular Session (Chapter 47 of the Statutes of 2013) that were met in the 201819 fiscal year did not provide the funding necessary to close the pay gap for educators and schoolsite staff. These aspirational funding levels will continue to support local educational agencies efforts to improve recruitment and retention of schoolsite staff and improve educational opportunities for pupils.
(b)It is the intent of the Legislature to fully fund the LCFF target base grants over 10 years, with full implementation in the 203637 fiscal year. It is further the intent of the Legislature to use the funds in order to increase salaries for classified and certificated staff working at schoolsites in school districts, county offices of education, and charter schools to close the wage gap and improve recruitment and retention of school site staff. staff, subject to local bargaining. This legislative intent does not apply to basic aid school districts.
(c)It is the intent of the Legislature that sufficient funding be appropriated for the state special schools for the deaf and the blind to enable comparable wage increases as school districts, county offices of education, and charter schools.
SEC. 3.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.
(E)(i)Notwithstanding any other law, for purposes of subparagraph (C), the unduplicated pupils and total pupil enrollment in prior fiscal years shall be the following:
(I)For a transferred charter school, the counts shall be equal to the counts reported for the original charter school.
(II)For an acquiring charter school, the counts shall be equal to the counts reported for the original charter school. This subclause shall become inoperative on July 1, 2026, unless its operation is extended by the Legislature.
(III)For the restructured portions of a divided charter school, the counts shall be zero.
(IV)For the remaining portion of a divided charter school, the counts shall be equal to the counts reported for the original charter school.
(ii)The definitions in Section 47654 apply for the purposes of this subparagraph.
(6)Notwithstanding subdivision (a) of Section 14002, 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 exception, as described in paragraph (2) of subdivision (a) of Section 41341.
(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)(A)For the 201314 fiscal year, a base grant of:
(i)Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(ii)Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.
(iii)Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.
(iv)Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.
(B)(i)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year, a base grant of:
(I)Fourteen thousand eight hundred seventy-nine dollars ($14,879) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(II)Fifteen thousand one hundred four dollars ($15,104) for average daily attendance in grades 4 to 6, inclusive.
(III)Fifteen thousand five hundred fifty-one dollars ($15,551) for average daily attendance in grades 7 and 8.
(IV)Eighteen thousand twenty-three dollars ($18,023) for average daily attendance in grades 9 to 12, inclusive.
(ii)It is the intent of the Legislature to fully fund the local control funding formula target base grants in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
(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 pursuant to paragraphs (2) and (5) 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 paragraphs (2) and (5), 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)(i)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.
(ii)Notwithstanding clause (i), for purposes of meeting the requirements of paragraph (1) of subdivision (g) of Section 48000, a school district shall maintain an average transitional kindergarten class enrollment of not more than 24 pupils for each schoolsite.
(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 pursuant to paragraphs (2) and (5), 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 paragraphs (2) and (5) by 2.6 percent.
(5)For the 202223 fiscal year, the Superintendent shall increase the base grants for kindergarten and grades 1 to 12, inclusive, by 6.7 percent. This adjustment shall be calculated by multiplying the grade span-adjusted base grants calculated pursuant to paragraph (2) for the 202122 fiscal year by 6.7 percent. The adjustment shall be included in grade span-adjusted base grants grant amounts for purposes of the adjustment pursuant to paragraph (2) commencing with the 202324 fiscal year.
(e)The Superintendent shall compute a supplemental grant add-on equal to 20 percent of the base grants as specified in paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), 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 paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), 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.
(f)(1)(A)The Superintendent shall compute a concentration grant add-on equal to 50 percent of the base grants as specified in paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), 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 paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), 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.
(B)Commencing with the 202122 fiscal year, the concentration grant add-on referenced in subparagraph (A) shall instead be equal to 65 percent of the base grants as specified in paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), 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 paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (5), inclusive, of subdivision (d), by 65 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 (k) of Section 47605, the department shall include the school district that initially denied the petition in the departments determination of physical location. Notwithstanding subdivision (a) of Section 14002, the reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year, and, 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)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration 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.
(2)(A)Notwithstanding Section 42238.05, for the 202223 to 203536 fiscal years, inclusive, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration grants equal to two thousand eight hundred thirteen dollars ($2,813) multiplied by the then current fiscal years second principal apportionment period average daily attendance in transitional kindergarten, as adjusted each fiscal year pursuant to subparagraph (C).
(B)Notwithstanding Section 42238.05, commencing with the 203637 fiscal year and for each fiscal year thereafter, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration grants equal to four thousand two hundred twenty dollars ($4,220) eight thousand three hundred eighteen dollars ($8,318) multiplied by the then current fiscal years second principal apportionment period average daily attendance in transitional kindergarten, as adjusted each fiscal year pursuant to subparagraph (C).
(C)Commencing with the 202324 fiscal year, the add-on computed pursuant to subparagraph (A) or (B), as applicable, shall be adjusted by the percentage change applied pursuant to paragraph (2) of subdivision (d).
(D)It is the intent of the Legislature that the costs to meet the requirements of paragraph (2) of subdivision (g) of Section 48000 be supported by the add-on computed pursuant to this paragraph.
(h)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration 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 concentration grants equal to the amount of the entitlement to funding transferred by the joint powers agency to the member school district or charter school.
(3)Commencing in the 202324 fiscal year, the add-on amounts referenced in paragraphs (1) and (2) shall receive the annual cost-of-living adjustment specified in paragraph (2) of subdivision (d).
(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)This section does not 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 pursuant 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 41544, 42238.03, 47632, 47660, 47663, 48310, and 48359.5, and Section 95 of the Revenue and Taxation Code, shall exclude 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 52059.5) 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. 4.SEC. 5.Section 42282 of the Education Code is amended to read:42282.(a)For the 202223 to 203536 fiscal years, inclusive, for each school district, on account of each necessary small school, as defined in Section 42283, the Superintendent shall make the following computations, as adjusted each fiscal year pursuant to Section 42287:
(1)For each necessary small school that has an average daily attendance during the fiscal year of less than 25, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least one teacher was hired full time, the Superintendent shall compute for the school district two hundred thirty-two thousand seven hundred dollars ($232,700).
(2)For each necessary small school that has an average daily attendance during the fiscal year of 25 or more and less than 49, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least two teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district four hundred sixty thousand five hundred dollars ($460,500).
(3)For each necessary small school that has an average daily attendance during the fiscal year of 49 or more, but less than 73, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school three teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district six hundred eighty-eight thousand five hundred dollars ($688,500).
(4)For each necessary small school that has an average daily attendance during the fiscal year of 73 or more and less than 97, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school four teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district nine hundred sixteen thousand three hundred dollars ($916,300).
(b)Commencing with the 203637 fiscal year, for each school district, on account of each necessary small school, as defined in Section 42283, the Superintendent shall make the following computations, as adjusted each fiscal year pursuant to Section 42287:
(1)For each necessary small school that has an average daily attendance during the fiscal year of less than 25, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least one teacher was hired full time, the Superintendent shall compute for the school district four hundred six thousand eight hundred twenty-nine dollars ($406,829).
(2)For each necessary small school that has an average daily attendance during the fiscal year of 25 or more and less than 49, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least two teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district eight hundred five thousand ninety-one dollars ($805,091).
(3)For each necessary small school that has an average daily attendance during the fiscal year of 49 or more, but less than 73, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school three teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district one million two hundred three thousand seven hundred four dollars ($1,203,704).
(4)For each necessary small school that has an average daily attendance during the fiscal year of 73 or more and less than 97, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school four teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district one million six hundred one thousand nine hundred sixty-four dollars ($1,601,964).
(c)It is the intent of the Legislature to fully fund the necessary small school targets in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
SEC. 5.SEC. 6.Section 42284 of the Education Code is amended to read:42284.(a)For the 202223 to 203536 fiscal years, inclusive, for each school district with fewer than 2,501 units of average daily attendance, on account of each necessary small high school, the Superintendent shall make one of the following computations selected with regard only to the number of certificated employees employed or average daily attendance, whichever provides the lesser amount, as adjusted each fiscal year pursuant to Section 42287:
| Minimum number | Amount to be |
119 | 1 | $196,100 |
119 | 2 | $279,590 |
119 | 3 | $621,060 |
2038 | 4 | $760,855 |
3957 | 5 | $900,650 |
5871 | 6 | $1,040,445 |
7286 | 7 | $1,180,240 |
87100 | 8 | $1,320,035 |
101114 | 9 | $1,459,830 |
115129 | 10 | $1,599,625 |
130143 | 11 | $1,739,420 |
144171 | 12 | $1,879,215 |
172210 | 13 | $2,250,095 |
211248 | 14 | $2,656,345 |
249286 | 15 | $3,062,600 |
(b)Commencing with the 203637 fiscal year and for each school district with fewer than 2,501 units of average daily attendance, on account of each necessary small high school, the Superintendent shall make one of the following computations selected with regard only to the number of certificated employees employed or average daily attendance, whichever provides the lesser amount, as adjusted each fiscal year pursuant to Section 42287:
| Minimum number | Amount to be |
119 | 1 | $339,212 |
119 | 2 | $483,632 |
119 | 3 | $1,074,303 |
2038 | 4 | $1,316,118 |
3957 | 5 | $1,557,935 |
5871 | 6 | $1,799,750 |
7286 | 7 | $2,041,566 |
87100 | 8 | $2,283,381 |
101114 | 9 | $2,525,198 |
115129 | 10 | $2,767,013 |
130143 | 11 | $3,008,829 |
144171 | 12 | $3,250,646 |
172210 | 13 | $3,892,188 |
211248 | 14 | $4,594,914 |
249286 | 15 | $5,297,651 |
(c)For purposes of this section, a certificated employee means an equivalent full-time position of an individual holding a credential authorizing service and providing service in any of grades 9 to 12, inclusive, in any secondary school. Any fraction of an equivalent full-time position remaining after all equivalent full-time positions for certificated employees within the school district have been calculated shall be deemed to be a full-time position.
(d)It is the intent of the Legislature to fully fund the necessary small school targets in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
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)(A)Six hundred fifty-five thousand nine hundred twenty dollars ($655,920).
(B)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year and for each fiscal year thereafter, one million three hundred eight thousand two hundred twenty-seven dollars ($1,308,227), as adjusted each fiscal year pursuant to paragraph (4).
(2)(A)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.
(B)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year and for each fiscal year thereafter, five hundred twenty thousand seven hundred fifty-one dollars ($520,751) multiplied by the number of school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253, as adjusted each fiscal year pursuant to paragraph (4).
(3)(A)(i)Seventy dollars ($70) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred sixty-four dollars ($164) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units, as adjusted each fiscal year pursuant to paragraph (4).
(B)(i)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.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred forty-four dollars ($144) 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, as adjusted each fiscal year pursuant to paragraph (4).
(C)(i)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, 60,000 units, up to a maximum of 140,000 units.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred twenty-four dollars ($124) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 60,000 units, up to a maximum of 140,000 units, as adjusted each fiscal year pursuant to paragraph (4).
(D)(i)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.
(ii)Notwithstanding clause (i), commencing with the 203637 fiscal year and for each fiscal year thereafter, one hundred four dollars ($104) 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, as adjusted each fiscal year pursuant to paragraph (4).
(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.
(5)Commencing with (A)For the 202223 fiscal year to the 203536 fiscal year, inclusive, add one hundred seventy-five thousand dollars ($175,000) to the amount specified in paragraph (2), as that rate was adjusted pursuant to paragraph (4).
(B)Commencing with the 203637 fiscal year and for each fiscal year thereafter, add two hundred sixty-two thousand five hundred dollars ($262,500) to the amount specified in paragraph (2), as that rate was adjusted pursuant to paragraph (4).
(6)Commencing with (A)For the 202223 fiscal year to the 203536 fiscal year, inclusive, add fourteen dollars ($14) to each of the amounts specified in subparagraphs (A) to (D), inclusive, of paragraph (3), as those rates were adjusted pursuant to paragraph (4).
(B)Commencing with the 203637 fiscal year and for each fiscal year thereafter, add twenty-one dollars ($21) to each of the amounts specified in subparagraphs (A) to (D), inclusive, of paragraph (3), as those rates were adjusted pursuant to paragraph (4).
(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) 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)(i)For the 201314 fiscal year to the 202223 fiscal year, inclusive, 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, and as adjusted each fiscal year pursuant to subparagraph (B). 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.
(ii)For the 202324 fiscal year, a base grant equal to the grade span-adjusted base grant for average daily attendance in grades 9 to 12, inclusive, calculated pursuant to subdivision (d) of Section 42238.02, for the 202223 fiscal year, multiplied by 1.33, and then adjusted pursuant to subparagraph (B) for the 202324 fiscal year.
(iii)Commencing with For the 202425 fiscal year to the 203536 fiscal year, and each fiscal year thereafter, inclusive, a base grant equal to the amount calculated pursuant to clause (ii) and as adjusted each year pursuant to subparagraph (B).
(iv)Commencing with the 203637 fiscal year and for each fiscal year thereafter, a base grant equal to twenty-four thousand five hundred ninety-three dollars ($24,593), as adjusted each fiscal year pursuant to subparagraph (B).
(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)Multiply the sum of paragraphs (1), (2), and (3) 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).
(5)Notwithstanding any other law, commencing with the 202324 fiscal year, and for purposes of this subdivision, average daily attendance shall be the sum of both of the following:
(A)The average daily attendance reported by the county superintendent of schools for the annual reporting period for the current fiscal year, or the prior fiscal year if the prior year total is greater, or the average of the three most recent prior fiscal years if the average total is greater than both the current year and the prior year.
(B)If applicable, the average daily attendance reported by a charter school in the county established pursuant to Section 47605.5 for the annual reporting period for the current fiscal year.
(d)Add the amount calculated in subdivision (a) to the amount calculated in subparagraph (C) of paragraph (4) 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)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.
(B)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.
(C)Commencing in the 202324 fiscal year, the add-on amounts referenced in subparagraphs (A) and (B) shall receive the annual cost-of-living adjustment specified in subparagraph (B) of paragraph (1) of subdivision (c).
(3)Commencing with the 202324 fiscal year, two hundred thousand dollars ($200,000) for each county office of education operating at least one juvenile court school pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, including a county office of education that authorized a charter school for that purpose pursuant to Section 47605.5.
(4)Commencing with the 202324 fiscal year, two hundred thousand dollars ($200,000) for each county office of education operating at least one county community school pursuant to Chapter 6.5 (commencing with Section 1980), including a county office of education that authorized a charter school for that purpose pursuant to Section 47605.5.
(f)(1)It is the intent of the Legislature that the funds allocated pursuant to paragraphs (3) and (4) of subdivision (e) be included in the local control and accountability plan template pursuant to Section 52064.
(2)It is the intent of the Legislature to fully fund the county office of education local control funding formula target county operations grants and alternative education base grants in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
SEC. 2.Section 42238.017 is added to the Education Code, immediately following Section 42238.016, to read:42238.017.(a)It is the intent of the Legislature to establish new local control funding formula (LCFF) target grade span-adjusted base grant funding levels for school districts, charter schools, and county offices of education to raise wages by 50 percent, in recognition that the LCFF funding targets established in Assembly Bill 97 of the 201314 Regular Session (Chapter 47 of the Statutes of 2013) that were met in the 201819 fiscal year did not provide the funding necessary to close the pay gap for educators and schoolsite staff. These aspirational funding levels will continue to support local educational agencies efforts to improve recruitment and retention of schoolsite staff and improve educational opportunities for pupils.
(b)It is the intent of the Legislature to fully fund the LCFF target base grants over 10 years, with full implementation in the 203637 fiscal year. It is further the intent of the Legislature to use the funds in order to increase salaries for classified and certificated staff working at schoolsites in school districts, county offices of education, and charter schools to close the wage gap and improve recruitment and retention of school site staff. This legislative intent does not apply to basic aid school districts.
(c)It is the intent of the Legislature that sufficient funding be appropriated for the state special schools for the deaf and the blind to enable comparable wage increases as school districts, county offices of education, and charter schools.
SEC. 3.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.
(E)(i)Notwithstanding any other law, for purposes of subparagraph (C), the unduplicated pupils and total pupil enrollment in prior fiscal years shall be the following:
(I)For a transferred charter school, the counts shall be equal to the counts reported for the original charter school.
(II)For an acquiring charter school, the counts shall be equal to the counts reported for the original charter school. This subclause shall become inoperative on July 1, 2026, unless its operation is extended by the Legislature.
(III)For the restructured portions of a divided charter school, the counts shall be zero.
(IV)For the remaining portion of a divided charter school, the counts shall be equal to the counts reported for the original charter school.
(ii)The definitions in Section 47654 apply for the purposes of this subparagraph.
(6)Notwithstanding subdivision (a) of Section 14002, 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 exception, as described in paragraph (2) of subdivision (a) of Section 41341.
(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)(A)For the 201314 fiscal year, a base grant of:
(A)(i)Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(B)(ii)Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.
(C)(iii)Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.
(D)(iv)Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.
(B)(i)Notwithstanding subparagraph (A), commencing with the 203637 fiscal year, a base grant of:
(I)Fourteen thousand eight hundred seventy-nine dollars ($14,879) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(II)Fifteen thousand one hundred four dollars ($15,104) for average daily attendance in grades 4 to 6, inclusive.
(III)Fifteen thousand five hundred fifty-one dollars ($15,551) for average daily attendance in grades 7 and 8.
(IV)Eighteen thousand twenty-three dollars ($18,023) for average daily attendance in grades 9 to 12, inclusive.
(ii)It is the intent of the Legislature to fully fund the local control funding formula target base grants in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
(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 pursuant to paragraphs (2) and (5) 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 paragraphs (2) and (5), 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)(i)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.
(ii)Notwithstanding clause (i), for purposes of meeting the requirements of paragraph (1) of subdivision (g) of Section 48000, a school district shall maintain an average transitional kindergarten class enrollment of not more than 24 pupils for each schoolsite.
(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 pursuant to paragraphs (2) and (5), 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 paragraphs (2) and (5) by 2.6 percent.
(5)For the 202223 fiscal year, the Superintendent shall increase the base grants for kindergarten and grades 1 to 12, inclusive, by 6.7 percent. This adjustment shall be calculated by multiplying the grade span-adjusted base grants calculated pursuant to paragraph (2) for the 202122 fiscal year by 6.7 percent. The adjustment shall be included in grade span-adjusted base grants amounts for purposes of the adjustment pursuant to paragraph (2) commencing with the 202324 fiscal year.
(e)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 (5), 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 (5), 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.
(f)(1)(A)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 (5), 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 (5), 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.
(B)Commencing with the 202122 fiscal year, the concentration grant add-on referenced in subparagraph (A) shall instead be equal to 65 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 (5), 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 (5), inclusive, of subdivision (d), by 65 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 (k) of Section 47605, the department shall include the school district that initially denied the petition in the departments determination of physical location. Notwithstanding subdivision (a) of Section 14002, the reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year, and, 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)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration 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.
(2)(A)Notwithstanding Section 42238.05, commencing with for the 202223 to 203536 fiscal year, years, inclusive, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration grants equal to two thousand eight hundred thirteen dollars ($2,813) multiplied by the then current fiscal years second principal apportionment period average daily attendance in transitional kindergarten. Commencing kindergarten, as adjusted each fiscal year pursuant to subparagraph (C).
(B)Notwithstanding Section 42238.05, commencing with the 203637 fiscal year and for each fiscal year thereafter, the Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration grants equal to four thousand two hundred twenty dollars ($4,220) multiplied by the then current fiscal years second principal apportionment period average daily attendance in transitional kindergarten, as adjusted each fiscal year pursuant to subparagraph (C).
(C)Commencing with the 202324 fiscal year, the add-on computed pursuant to this paragraph subparagraph (A) or (B), as applicable, shall be adjusted by the percentage change applied pursuant to paragraph (2) of subdivision (d). It
(D)It is the intent of the Legislature that the costs to meet the requirements of paragraph (2) of subdivision (g) of Section 48000 be supported by the add-on computed pursuant to this paragraph.
(h)(1)The Superintendent shall compute an add-on to the total sum of a school districts or charter schools base, supplemental, and concentration 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 concentration grants equal to the amount of the entitlement to funding transferred by the joint powers agency to the member school district or charter school.
(3)Commencing in the 202324 fiscal year, the add-on amounts referenced in paragraphs (1) and (2) shall receive the annual cost-of-living adjustment specified in paragraph (2) of subdivision (d).
(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)This section does not 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 pursuant 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 41544, 42238.03, 47632, 47660, 47663, 48310, and 48359.5, and Section 95 of the Revenue and Taxation Code, shall exclude 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 52059.5) 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. 4.Section 42282 of the Education Code is amended to read:42282.Commencing with (a)For the 202223 fiscal year, to 203536 fiscal years, inclusive, for each school district, on account of each necessary small school, as defined in Section 42283, the Superintendent shall make the following computations: computations, as adjusted each fiscal year pursuant to Section 42287:
(a)(1)For each necessary small school that has an average daily attendance during the fiscal year of less than 25, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least one teacher was hired full time, the Superintendent shall compute for the school district two hundred thirty-two thousand seven hundred dollars ($232,700).
(b)(2)For each necessary small school that has an average daily attendance during the fiscal year of 25 or more and less than 49, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least two teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district four hundred sixty thousand five hundred dollars ($460,500).
(c)(3)For each necessary small school that has an average daily attendance during the fiscal year of 49 or more, but less than 73, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school three teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district six hundred eighty-eight thousand five hundred dollars ($688,500).
(d)(4)For each necessary small school that has an average daily attendance during the fiscal year of 73 or more and less than 97, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school four teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district nine hundred sixteen thousand three hundred dollars ($916,300).
(b)Commencing with the 203637 fiscal year, for each school district, on account of each necessary small school, as defined in Section 42283, the Superintendent shall make the following computations, as adjusted each fiscal year pursuant to Section 42287:
(1)For each necessary small school that has an average daily attendance during the fiscal year of less than 25, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least one teacher was hired full time, the Superintendent shall compute for the school district four hundred six thousand eight hundred twenty-nine dollars ($406,829).
(2)For each necessary small school that has an average daily attendance during the fiscal year of 25 or more and less than 49, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school at least two teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district eight hundred five thousand ninety-one dollars ($805,091).
(3)For each necessary small school that has an average daily attendance during the fiscal year of 49 or more, but less than 73, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school three teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district one million two hundred three thousand seven hundred four dollars ($1,203,704).
(4)For each necessary small school that has an average daily attendance during the fiscal year of 73 or more and less than 97, excluding pupils attending the 7th and 8th grades of a junior high school, and for which school four teachers were hired full time for more than one-half of the days schools were maintained, the Superintendent shall compute for the school district one million six hundred one thousand nine hundred sixty-four dollars ($1,601,964).
(c)It is the intent of the Legislature to fully fund the necessary small school targets in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
SEC. 5.Section 42284 of the Education Code is amended to read:42284.(a)Commencing with the 202223 fiscal year, For the 202223 to 203536 fiscal years, inclusive, for each school district with fewer than 2,501 units of average daily attendance, on account of each necessary small high school, the Superintendent shall make one of the following computations selected with regard only to the number of certificated employees employed or average daily attendance, whichever provides the lesser amount: amount, as adjusted each fiscal year pursuant to Section 42287:
| Minimum number | Amount to be |
119 | 1 | $196,100 |
119 | 2 | $279,590 |
119 | 3 | $621,060 |
2038 | 4 | $760,855 |
3957 | 5 | $900,650 |
5871 | 6 | $1,040,445 |
7286 | 7 | $1,180,240 |
87100 | 8 | $1,320,035 |
101114 | 9 | $1,459,830 |
115129 | 10 | $1,599,625 |
130143 | 11 | $1,739,420 |
144171 | 12 | $1,879,215 |
172210 | 13 | $2,250,095 |
211248 | 14 | $2,656,345 |
249286 | 15 | $3,062,600 |
(b)Commencing with the 203637 fiscal year and for each school district with fewer than 2,501 units of average daily attendance, on account of each necessary small high school, the Superintendent shall make one of the following computations selected with regard only to the number of certificated employees employed or average daily attendance, whichever provides the lesser amount, as adjusted each fiscal year pursuant to Section 42287:
| Minimum number | Amount to be |
119 | 1 | $339,212 |
119 | 2 | $483,632 |
119 | 3 | $1,074,303 |
2038 | 4 | $1,316,118 |
3957 | 5 | $1,557,935 |
5871 | 6 | $1,799,750 |
7286 | 7 | $2,041,566 |
87100 | 8 | $2,283,381 |
101114 | 9 | $2,525,198 |
115129 | 10 | $2,767,013 |
130143 | 11 | $3,008,829 |
144171 | 12 | $3,250,646 |
172210 | 13 | $3,892,188 |
211248 | 14 | $4,594,914 |
249286 | 15 | $5,297,651 |
(c)For purposes of this section, a certificated employee means an equivalent full-time position of an individual holding a credential authorizing service and providing service in any of grades 9 to 12, inclusive, in any secondary school. Any fraction of an equivalent full-time position remaining after all equivalent full-time positions for certificated employees within the school district have been calculated shall be deemed to be a full-time position.
(d)It is the intent of the Legislature to fully fund the necessary small school targets in those years preceding the 203637 fiscal year and to spend those funds in the manner described in subdivision (b) of Section 42238.017.
SECTION 1.It is the intent of the Legislature to enact subsequent legislation that would increase schoolsite employee salaries by establishing new local control funding formula funding targets. REVISIONS: HeadingLine 2.It is the intent of the Legislature to enact subsequent legislation that would increase schoolsite employee salaries by establishing new local control funding formula funding targets.
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Date
|
Status
|
|---|---|
| Aug 29, 2025 | In committee: Held under submission. |
| Jul 14, 2025 | In committee: Referred to APPR. suspense file. |
| Jul 2, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 2). Re-referred to Com. on APPR. |
| Jun 23, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED. |
| Jun 18, 2025 | Referred to Com. on ED. |
| Jun 4, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 3, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 1. Page 1972.) |
| May 27, 2025 | Read second time. Ordered to third reading. |
| May 23, 2025 | From committee: Do pass. (Ayes 12. Noes 1.) (May 23). |
| Apr 23, 2025 | In committee: Set, first hearing. Referred to suspense file. |
| Apr 10, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 9). Re-referred to Com. on APPR. |
| Apr 10, 2025 | Coauthors revised. |
| Mar 25, 2025 | Re-referred to Com. on ED. |
| Mar 24, 2025 | Referred to Com. on ED. |
| Mar 24, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended. |
| Feb 11, 2025 | From printer. May be heard in committee March 13. |
| Feb 10, 2025 | Read first time. To print. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 14, 2025 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 2, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Education |
Passed |
|
| Jun 3, 2025 | AB 477 Muratsuchi Assembly Third Reading | Assembly Floor |
Passed |
|
| May 23, 2025 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 9, 2025 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Education |
Passed |
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.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California State Council of Service Employees International Union | ** Support | |
| CFT- a Union of Educators & Classified Professionals, Aft, Afl-cio | ** Support |
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2025 - 2026 Regular Session
AB 477 (Muratsuchi) - Fair Pay for Educators Act: local control funding formula: base grants: funding targets
Version: June 23, 2025 | Policy Vote: ED. 4 - 1 |
Urgency: No | Mandate: No |
Hearing Date: July 14, 2025 | Consultant: Lenin Del Castillo |
Bill Summary:
This bill establishes new Local Control Funding Formula (LCFF) base grant targets for the 2036–37 fiscal year and declares the Legislature’s intent to fully fund these targets over time to increase schoolsite staff salaries.
Fiscal Impact:
By codifying new LCFF target base grant levels and expressing legislative intent to fully fund them, this bill could result in substantial Proposition 98 General Fund cost pressures to reach these targets by the 2036-37 fiscal year. The extent of these costs could be in the tens of billions of dollars from now until the 2036-37 fiscal year. However, any increases provided for the LCFF targets would be subject to the annual budget process.
Background:
Existing law establishes the LCFF as the primary funding mechanism for school districts and charter schools, consisting of a base grant per unit of average daily attendance (ADA), with adjustments for grade span, supplemental funding for unduplicated pupils (English learners, low-income students, and foster youth), and a concentration grant for districts with high proportions of unduplicated pupils. The law establishes a separate LCFF formula for county offices of education (COEs), including operations grants and alternative education base grants.
Existing law requires the base grant amounts and add-ons to be adjusted annually for inflation based on the Implicit Price Deflator for State and Local Government Purchases.
Existing law provides the following LCFF base grant targets for 2023–24:
- $10,951 for grades K–3 (includes 10.4% class size reduction adjustment)
- $10,069 for grades 4–6
- $10,367 for grades 7–8
- $12,327 for grades 9–12 (includes 2.6% career-technical education adjustment)
Proposed Law:
This bill establishes new LCFF base grant targets, effective for the 2036–37 fiscal year, as follows:
- $14,879 per ADA for grades K–3
- $15,104 per ADA for grades 4–6
- $15,551 per ADA for grades 7–8
- $18,023 per ADA for grades 9–12
This bill declares the intent of the Legislature to fully fund these targets by 2036–37 through the annual budget process and increase LCFF allocations for necessary small schools (NSS), COEs, and transitional kindergarten, consistent with the new targets. The bill also provides legislative intent to use this funding to support salary increases for certificated and classified schoolsite staff at school districts, COEs, and charter schools, subject to local bargaining.
This bill expresses that the current LCFF targets, established in 2013 and reached in 2018–19, are inadequate to close the wage gap between school employees and similarly educated professionals in other fields.
Related Legislation:
AB 938 (Muratsuchi, Chapter 345, Statutes of 2024) requires schools to report certificated and classified staff salaries annually; and requires the California Department of Education to report the changes in school staff wages over time to the Legislature.
AB 1614 (Muratsuchi, 2022) would have increased the LCFF base grant amounts, as specified, commencing with the 2022-23 fiscal year. This bill was held in the Assembly Education Committee.
Staff Comments:
This bill seeks to increase LCFF base grant targets over the next decade by setting new aspirational funding levels for the 2036–37 fiscal year and explicitly tying them to salary increases for certificated staff and classified employees. In doing so, the bill attempts to address concerns about educator pay and teacher recruitment and retention issues. According to the author, “In countries such as Finland, Australia, Canada, and Singapore, teaching is a highly competitive profession. Teacher salaries are comparable to those in fields like engineering, law, and business. In Finland, teaching is the most sought-after profession, with intense competition for entry. Only 1 in 4 applicants is accepted into teacher training programs overall, and for primary school teacher preparation, the acceptance rate is just 1 in 10. AB 477 will increase school staff salaries to help close the growing wage gap between teachers and similarly educated professionals in other fields. Over the past decade, this gap has widened, and raising school employee salaries is a necessary step toward correcting this long standing inequity.”
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 477
Author:(Muratsuchi)
As Amended Ver:March 24, 2025
Majority vote
SUMMARY
Establishes Local Control Funding Formula (LCFF) funding target levels for the 2036-37 fiscal year for the purpose of increasing school site employee salaries.
Major Provisions
- Establishes new LCFF base grant targets for Fiscal Year (FY) 2036-37 and states the intent of the Legislature to fully fund the LCFF target base grants in the years preceding the 2036–37 fiscal year and to spend those funds to increase school site staff salaries at school districts, county offices of education (COEs) and charter schools, as follows:
- $14,879 for average daily attendance (ADA) in kindergarten and grades 1 to 3, inclusive;
- $15,104 for ADA in grades 4-6, inclusive;
- $15,551 for ADA in grades 7-8; and
- $18,023 for ADA in grades 9-12, inclusive.
- States that it is the intent of the Legislature to establish new LCFF target grade span-adjusted base grant funding levels for school districts, charter schools, and COEs to raise wages in recognition that the LCFF funding targets established in AB 97 (Committee on Budget), Chapter 47, Statutes of 2013, that were met in the 2018–19 fiscal year did not provide the funding necessary to close the pay gap for educators and schoolsite staff. States that these aspirational funding levels will continue to support local educational agencies' (LEAs) efforts to improve recruitment and retention of schoolsite staff and improve educational opportunities for pupils.
- States that it is the intent of the Legislature to fully fund the LCFF target base grants over 10 years, with full implementation in the 2036–37 fiscal year. States the intent of the Legislature to use the funds in order to increase salaries for classified and certificated staff working at schoolsites in school districts, COEs, and charter schools.
COMMENTS
What does this bill do? This bill creates new LCFF funding targets to increase both classified and certificated school site staff salaries by 2036-37 at school districts, COEs and charter schools.
Salary deters people from entering the teaching profession. Research indicates that the most significant reason that students are not interested in teaching is salary. Nearly two-thirds (63%) of those not interested in teaching cited pay as one of the top three reasons they were not interested in teaching. Other frequently cited reasons included limited opportunity for career advancement (43%) and concern that they would not be good at teaching (40%). The concern about salary was also expressed by those "potentially" interested in teaching. When asked what would increase their interest, 72% of this group cited better pay as one of their top three reasons. (Croft, Guffy, and Vitale, 2018)
The wage gap. Research indicates that teachers earn 23.5% less than comparable college graduates. This percentage represents the wage gap between teachers and similarly educated peers. Over time, this wage gap has increased, and as a result, teacher salaries are falling further and further behind. This bill is intended to close the school employee wage gap. Below are key findings from research published by the Economic Policy Institute in 2022:
- Inflation-adjusted average weekly wages of teachers have been relatively flat since 1996. The average weekly wages of public school teachers (adjusted only for inflation) increased just $29 from 1996 to 2021, from $1,319 to $1,348 (in 2021 dollars). In contrast, inflation-adjusted weekly wages of other college graduates rose from $1,564 to $2,009 over the same period—a $445 increase.
- The relative teacher wage penalty grew to a record high in 2021. It was 23.5% in 2021, up from 6.1% in 1996. The penalty for men rose from 15.1% to 35.2% over that period. Women had a negligible wage penalty of 0.1% in 1996 but faced a wage penalty of 17.1% in 2021.
- The benefits advantage for teachers has not been enough to offset the growing wage penalty. The teacher total compensation penalty was 14.2% in 2021 (a 23.5% wage penalty offset by a 9.3% benefits advantage). The bottom line is that the teacher total compensation penalty grew by 11.5 percentage points from 1993 to 2021.
- The relative teacher wage penalty exceeds 20% in 28 states. Teacher weekly wage penalties estimated for each state range from 3.4% in Rhode Island to 35.9% in Colorado. In 28 states, teachers are paid less than 80 cents on the dollar earned by similar college-educated workers in those states.
Local Control Funding Formula. This bill increases the LCFF base grants by 2036-37. The LCFF was established in the 2013-14 FY to address the achievement gap by providing more equitable funding among LEAs by providing a higher level of funding to LEAs that enroll larger numbers of unduplicated pupils so they could provide those pupils with additional services and support. The LCFF consists of a base grant for school districts and charter schools of the following amounts in 2023-24:
- $10,951 for grades TK-3, which includes a 10.4% grade span adjustment for class size reduction;
- $10,069 for grades 4-6;
- $10,367 for grades 7-8; and
- $12,327 for grades 9-12, which includes a 2.6% grade span adjustment for college and career readiness.
The base grant for each school district and charter school, including the grade span adjustment, is multiplied by units of ADA. For school districts, funded ADA is equal to the greater of current or prior year ADA.
In addition to the base grant, school districts and charter schools also receive funding for each enrolled pupil who is either an English learner, low income (as determined by eligibility for free- or reduced-price meals), or in foster care. These are referred to as "unduplicated" pupils because pupils who fall into more than one of these categories are counted only once for LCFF purposes. Districts and charter schools receive an additional 20% of the base grant amount for each unduplicated pupil.
The concentration grant is provided to districts and charter schools that have a significant concentration of unduplicated pupils. The concentration grant is provided whenever the enrollment of unduplicated pupils exceeds 55% of total enrollment. For each grade span, the grant is calculated by multiplying the base grant per ADA, times the total funded ADA, times the portion (if any) of unduplicated pupil percentage that exceeds 55%, times 65%. AB 130 (Chapter 44, Statutes of 2021) increased the concentration grant factor to 65%.
According to the Author
"In countries such as Finland, Australia, Canada, and Singapore, teaching is a highly competitive profession. Teacher salaries are comparable to those in fields like engineering, law, and business. In Finland, teaching is the most sought-after profession, with intense competition for entry. Only 1 in 4 applicants is accepted into teacher training programs overall, and for primary school teacher preparation, the acceptance rate is just 1 in 10. AB 477 will increase school staff salaries to help close the growing wage gap between teachers and similarly educated professionals in other fields. Over the past decade, this gap has widened, and raising school employee salaries is a necessary step toward correcting this long-standing inequity."
Arguments in Support
The California Federation of Teachers states, "California is experiencing a severe school workforce crisis among both certificated and classified employees. Education workers constantly are providing support and services for California's students - the next generation of leaders, entrepreneurs, and the backbone of our economy. The work performed by education workers is often back-breaking, emotional, and runs workers through a gauntlet of challenges. Educators not only must pass certification and other licensing challenges, but also step into other roles for student safety and success. These roles are similar to therapists, mentors, emergency health providers, public safety officers, and now have been pushed to the limits in political defense of academic freedom and providing non-secular education. Today's workforce crisis is exacerbated by the lack of interest in the workforce to pursue a career in education.
AB 477 creates a new funding goal for the State of California to work towards in funding our public education system at a level that can sustain a workforce that is deserving of our students and future generations. The bill simply sets a goal, leaving the budget process and will of the Legislature and Governors of the future to meet the moment. Granted, there will be years of plenty and years of restraint when it comes to the state budget; however, without a goal for the budget to work towards, our students will remain in a funding limbo."
Arguments in Opposition
None on file
FISCAL COMMENTS
According to the Assembly Appropriations Committee, once new, aspirational base-grants are fully implemented, ongoing Proposition 98 General Fund costs of about $38 billion annually to provide funding at these rates. Assuming historic trends in growth of K-12 education funding since the inception of the LCFF continue, this bill could be fully funded within the Proposition 98 General Fund guarantee by FY 2036-37. The target could be reached more quickly should the Legislature provide funding above the annual statutory cost-of-living adjustment. Since FY 2013-14, LCFF base grant rates have increased annually by an average of 3.9%. Funding the rates set by this bill requires an average annual increase of 3.7%.
VOTES
ASM EDUCATION: 9-0-0
YES: Muratsuchi, Hoover, Addis, Alvarez, Bonta, Castillo, Garcia, Lowenthal, Patel
ASM APPROPRIATIONS: 12-1-2
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta
NO: Dixon
ABS, ABST OR NV: Sanchez, Tangipa
UPDATED
VERSION: March 24, 2025
CONSULTANT: Chelsea Kelley / ED. / (916) 319-2087 FN: 0000656
Date of Hearing: April 23, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 477
Author:(Muratsuchi) – As Amended Ver:March 24, 2025
Policy Committee: | Education | Vote: | 9 - 0 |
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| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes Local Control Funding Formula (LCFF) aspirational target funding levels for the 2036-37 fiscal year (FY) for the purpose of increasing school site employee salaries.
Specifically, this bill establishes new LCFF base grant targets for each of the K-12 “grade spans” of kindergarten through grade three, grades four through six, grades seven and eight, and grades nine through 12, for FY 2036-37. The bill also states legislative intent to fully fund these rates in the preceding years and that said funds increase school site staff salaries at school districts, county offices of education (COEs), and charter schools. The bill also provides similar increases for LCFF Necessary Small School (NSS) funding band amounts, COE LCFF allocation amounts, and the transitional kindergarten LCFF base grant “add-on” amount, all for FY 2036-37.
FISCAL EFFECT:
Once new, aspirational base-grants are fully implemented, ongoing Proposition 98 General Fund costs of about $38 billion annually to provide funding at these rates.
Assuming historic trends in growth of K-12 education funding since the inception of the LCFF continue, this bill could be fully funded within the Proposition 98 General Fund guarantee by FY 2036-37. The target could be reached more quickly should the Legislature provide funding above the annual statutory cost-of-living adjustment. Since FY 2013-14, LCFF base grant rates have increased annually by an average of 3.9%. Funding the rates set by this bill requires an average annual increase of 3.7%.
COMMENTS:
- Purpose. According to the author:
In countries such as Finland, Australia, Canada, and Singapore, teaching is a highly competitive profession. Teacher salaries are comparable to those in fields like engineering, law, and business. In Finland, teaching is the most sought-after profession, with intense competition for entry. Only 1 in 4 applicants is accepted into teacher training programs overall, and for primary school teacher preparation, the acceptance rate is just 1 in 10. AB 477 will increase school staff salaries to help close the growing wage gap between teachers and similarly educated professionals in other fields.
- LCFF and K-12 School Funding Increases. The state enacted the LCFF in FY 2013-14. Previously, the state allocated school funding through a combination of general purpose grants and more than 40 state categorical programs. In FY 2013-14, the state eliminated most categorical programs, replacing previous program-specific funding formulas with the LCFF. LCFF is general purpose funding, which provides flexible funding to schools to address each local educational agency’s (LEA) unique student and community needs. School districts and charter schools receive LCFF through a separate version of the formula than COEs, this bill sets corresponding aspirational targets for both version.
The largest component of LCFF is a base grant generated by an LEA’s average daily attendance within each grade span. Base grant rates vary across the grade spans, with funding most concentrated in the kindergarten through grade three and grades nine through 12. In addition to the base grant, LEAs receive funding for serving an unduplicated student, defined as a student that is an English-learner, low-income, or a foster youth. Specifically, for each unduplicated student, a school district or charter school receives a supplemental grant equal to 20% of its base grant. A school district or charter school serving a student population with more than 55% unduplicated students receives a concentration grant equal to 65% of the base grant for each unduplicated student above the 55% threshold.
In the initial year of implementation, the state set aspirational per-student base grant rate targets and increased LCFF funding to get closer to those targets. In FY 2018-19, the LCFF rates were fully funded for the first time. These fully-funded target base rates were as follows: for kindergarten and grades one through three, $8,141; for grades four through six, $7,484; for grades seven and eight, $7,707; and for grades nine through 12, $9,163.
Increases to the LCFF base grant also increase the amounts provided through the supplemental and concentration grants, because the latter grants are calculated as a portion of the base grant amount. According to the California Department of Education (CDE) the LCFF base grant rates for school districts and charter schools in FY 2024-25 are $10,025 for kindergarten and grades one through three; $10,177 for grades four through six; $10,478 for grades seven and eight; and $12,144 for grades nine through 12. This bill increases base grant rates for FY 2036-37 to $14,879 for kindergarten and grades one through three; $15,104 for grades four through six; $15,551 for grades seven and eight; and $18,023 for grades nine through 12.
Analysis Prepared by: Aaron Heredia / APPR. / (916) 319-2081
Date of Hearing: April 9, 2025
ASSEMBLY COMMITTEE ON EDUCATION
Al Muratsuchi, Chair
ABPCA Bill Id:AB 477 (
Author:Muratsuchi) – As Amended Ver:March 24, 2025
SUBJECT: Local control funding formula: funding targets: schoolsite employee salaries
SUMMARY: Establishes Local Control Funding Formula (LCFF) funding target levels for the 2036-37 fiscal year with the purpose of increasing school site employee salaries. Specifically, this bill:
- Establishes new LCFF base grant targets for Fiscal Year (FY) 2036-37 and states the intent of the Legislature to fully fund the LCFF target base grants in the years preceding the 2036–37 fiscal year and to spend those funds to increase school site staff salaries at school districts, county offices of education (COEs) and charter schools, as follows:
- $14,879 for average daily attendance (ADA) in kindergarten and grades 1 to 3, inclusive;
- $15,104 for ADA in grades 4-6, inclusive;
- $15,551 for ADA in grades 7-8; and
- $18,023 for ADA in grades 9-12, inclusive.
- States that it is the intent of the Legislature to establish new LCFF target grade span-adjusted base grant funding levels for school districts, charter schools, and COEs to raise wages in recognition that the LCFF funding targets established in AB 97 (Committee on Budget), Chapter 47, Statutes of 2013, that were met in the 2018–19 fiscal year did not provide the funding necessary to close the pay gap for educators and schoolsite staff. States that these aspirational funding levels will continue to support local educational agencies’ (LEAs) efforts to improve recruitment and retention of schoolsite staff and improve educational opportunities for pupils.
- States that it is the intent of the Legislature to fully fund the LCFF target base grants over ten years, with full implementation in the 2036–37 fiscal year. States the intent of the Legislature to use the funds in order to increase salaries for classified and certificated staff working at schoolsites in school districts, COEs, and charter schools.
EXISTING LAW establishes the LCFF, which, for school districts and charter schools, is comprised of the following components:
- A base grant of the following amounts per average daily attendance (ADA) in 2023-24:
- $10,951 for grades K-3, which includes a 10.4% grade span adjustment for class size reduction;
- $10,069 for grades 4-6;
- $10,367 for grades 7-8; and
- $12,327 for grades 9-12, which includes a 2.6% grade span adjustment for college and career readiness.
- A supplemental grant equal to 20% of the base grant for each pupil identified as either low income, an English learner, or in foster care (unduplicated pupils).
- A concentration grant based on the number of unduplicated pupils in excess of 65% of the district or charter school total enrollment.
- Requires, upon full implementation of the LCFF, as a condition of receiving funds, school districts 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 district. (Education Code 42238.02)
FISCAL EFFECT: Unknown
COMMENTS:
Need for the bill. According to the author, “In countries such as Finland, Australia, Canada, and Singapore, teaching is a highly competitive profession. Teacher salaries are comparable to those in fields like engineering, law, and business. In Finland, teaching is the most sought-after profession, with intense competition for entry. Only 1 in 4 applicants is accepted into teacher training programs overall, and for primary school teacher preparation, the acceptance rate is just 1 in 10. AB 477 will increase school staff salaries to help close the growing wage gap between teachers and similarly educated professionals in other fields. Over the past decade, this gap has widened, and raising school employee salaries is a necessary step toward correcting this long-standing inequity.”
What does this bill do? This bill creates new LCFF funding targets to increase both classified and certificated school site staff salaries by 2036-37 at school districts, COEs and charter schools.
The wage gap. Research indicates that teachers earn 23.5% less than comparable college graduates. This percentage represents the wage gap between teachers and similarly educated peers. Over time, this wage gap has increased, and as a result, teacher salaries are falling further and further behind. This bill is intended to close the school employee wage gap. Below are key findings from research published by the Economic Policy Institute in 2022:
- Inflation-adjusted average weekly wages of teachers have been relatively flat since 1996. The average weekly wages of public school teachers (adjusted only for inflation) increased just $29 from 1996 to 2021, from $1,319 to $1,348 (in 2021 dollars). In contrast, inflation-adjusted weekly wages of other college graduates rose from $1,564 to $2,009 over the same period—a $445 increase.
- The relative teacher wage penalty grew to a record high in 2021. It was 23.5% in 2021, up from 6.1% in 1996. The penalty for men rose from 15.1% to 35.2% over that period. Women had a negligible wage penalty of 0.1% in 1996 but faced a wage penalty of 17.1% in 2021.
The benefits advantage for teachers has not been enough to offset the growing wage penalty. The teacher total compensation penalty was 14.2% in 2021 (a 23.5% wage penalty offset by a 9.3% benefits advantage). The bottom line is that the teacher total compensation penalty grew by 11.5 percentage points from 1993 to 2021.
- The relative teacher wage penalty exceeds 20% in 28 states. Teacher weekly wage penalties estimated for each state range from 3.4% in Rhode Island to 35.9% in Colorado. In 28 states, teachers are paid less than 80 cents on the dollar earned by similar college-educated workers in those states.
(Source: Allegretto, 2022)
Salary deters people from entering the teaching profession. Research indicates that the most significant reason that students are not interested in teaching is salary. Nearly two-thirds (63%) of those not interested in teaching cited pay as one of the top three reasons they were not interested in teaching. Other frequently cited reasons included limited opportunity for career advancement (43%) and concern that they would not be good at teaching (40%). The concern about salary was also expressed by those “potentially” interested in teaching. When asked what would increase their interest, 72% of this group cited better pay as one of their top three reasons. (Croft, Guffy, and Vitale, 2018)
Top three reasons cited by survey respondents for reporting a lack of interest in becoming a K–12 teacher.
Teacher salary has long been a focus of debate in the U.S. In 1996, the National Commission on Teaching and America's Future (NCTAF) recommended reforming the teacher compensation system to reward them for their knowledge and skills demonstrated through a National Board certificate or licenses in multiple subject areas (NCTAF, 1996). In 2003, the NCTAF further pointed out the low salary level of teachers compared with that of the other professions with similar education and training levels and recommended a flexible compensation system that rewards teachers for improved practice, for teaching in shortage subject areas and hard-to-staff schools, and for taking on additional roles and responsibilities (NCTAF, 2003).
In the U.S., empirical studies found that higher salary is associated with lower attrition rates in Wisconsin (Imazeki, 2005), New York State (Brewer, 1996), Texas (Kirby et al., 1999), and across the country based on national data (Kelly, 2004; Stockard & Lehman, 2004). Using data from the 1990-1991 Schools and Staffing Survey (SASS) and the 1992 Teacher Follow up Survey (TFS), Kelly (2004) found that increasing teacher salary by $4,000 leads to a 3.8% increase in the probability of staying in the same school for at least 10 years. These studies conducted both in the U.S. and abroad, support the importance of teacher salaries for teaching effectiveness and retention. If low teacher salary affects their motivation and teaching quality, and increases teacher attrition, it also is likely that low teacher salary eventually affects student learning opportunities. (Akiba, Chiu, Shimizu, Liang, 2012)
What are other countries doing regarding teacher salaries? In Finland, preparation is fully funded by the government, and candidates earn a living stipend or a salary while they are in training. All candidates receive uniformly high-quality preparation. Among young Finns, teaching is the most desired profession, and competition for slots is intense, with only 1 in 4 applicants for teacher training accepted overall, including only 1 in 10 for primary school teacher preparation.
Similarly, in Singapore, generous support for teaching candidates (the equivalent of $30,000–$50,000 per year in salary, plus tuition, books, and laptop computers) is part of an agreement with the government to teach for 3–5 years, depending on the type of program completed. If the service requirement is not fulfilled, this funding must be repaid. This structure, along with the supportive induction program, enhances retention as well as recruitment. Salaries are commensurate with those in other fields such as engineering, law, and business.
In Australia and Canada, a major portion of candidates’ cost of teacher preparation is underwritten by the government. Canadian applicant numbers are so high that there is a strong demand for places in teacher education programs, which has enabled teacher education institutions to maintain high admission requirements. Virtually all require a high grade point average, and some also require interviews, portfolios, and volunteer work in schools. (Darling-Hammond, 2017)
Impact of recent state investments on the teacher workforce. A March 2023 LPI report shows, “In the two years following 2018–19, when many of the new state investments were beginning to be implemented, the number of fully prepared new entrants increased by about 3,300, while the number of emergency-style permits decreased by about 2,500. This increase represents a break from prior trends, in which the number of newly credentialed teachers had been dropping for over 10 years. Nationally, the number of individuals completing teacher preparation programs decreased by 22% between 2012–13 and 2018–19, and California was one of only eight states with increases during that period. The chart below illustrates these data.”
Statewide data on the diversity of teacher candidates. According to the LPI’s March 2023 report Educating Teachers in California, which analyzed teacher credentialing program completer surveys, the number of Latino/a candidates has more than doubled between 2016–17 and 2020–21, as shown in the table below. As of 2020– 21, 53% of survey respondents were teachers of color, compared to 39% in 2016–17. Nationally, just 27% of recent completers identified as people of color.
Clinical Pathway by Credential Type and Race/Ethnicity
The LPI report further noted, “not all completers reported equal access to the preparation experiences associated with higher ratings of program effectiveness and more positive perceptions of preparedness. Notably, access to preservice clinical experiences (i.e., student teaching or residency programs) varied considerably by race/ethnicity and credential type. As shown in Figure 3, only 46% of Black and 50% of Native American completers reported participating in student teaching or residencies, compared to at least two thirds of all other racial/ethnic groups. Fewer than one third of education specialists (i.e., special education teachers) participated in student teaching or residencies, as compared to about 7 in 10 multiple subject completers (i.e., elementary teachers) and single subject completers (i.e., secondary teachers). Education specialists were also more likely to report limited student teaching hours or low levels of clinical support from their TPPs.”
Local Control Funding Formula. This bill increases the LCFF base grants by 2036-37. The LCFF was established in the 2013-14 FY to address the achievement gap by providing more equitable funding among LEAs by providing a higher level of funding to LEAs that enroll larger numbers of unduplicated pupils so they could provide those pupils with additional services and support. The LCFF consists of a base grant for school districts and charter schools of the following amounts in 2023-24:
- $10,951 for grades TK-3, which includes a 10.4% grade span adjustment for class size reduction;
- $10,069 for grades 4-6;
- $10,367 for grades 7-8; and
- $12,327 for grades 9-12, which includes a 2.6% grade span adjustment for college and career readiness.
The base grant for each school district and charter school, including the grade span adjustment, is multiplied by units of ADA. For school districts, funded ADA is equal to the greater of current or prior year ADA.
In addition to the base grant, school districts and charter schools also receive funding for each enrolled pupil who is either an English learner, low income (as determined by eligibility for free- or reduced-price meals), or in foster care. These are referred to as "unduplicated" pupils because pupils who fall into more than one of these categories are counted only once for LCFF purposes. Districts and charter schools receive an additional 20% of the base grant amount for each unduplicated pupil.
The concentration grant is provided to districts and charter schools that have a significant concentration of unduplicated pupils. The concentration grant is provided whenever the enrollment of unduplicated pupils exceeds 55% of total enrollment. For each grade span, the grant is calculated by multiplying the base grant per ADA, times the total funded ADA, times the portion (if any) of unduplicated pupil percentage that exceeds 55%, times 65%. AB 130 (Chapter 44, Statutes of 2021) increased the concentration grant factor to 65%.
Where California ranks in per pupil funding. The publication EdWeek issues an annual ranking of per-pupil spending that adjusts for regional differences in cost-of-living. In the 2021 report, California’s regionally adjusted per pupil ranking was 21st of all states and Washington, D.C., up from 44th in the 2018 report. Due to lags in data, and the COVID-19 pandemic, the 2021 report is based on data from 2018. In that year, California's regionally-adjusted per pupil spending was $11,269, which was $2,410 below the national average of $13,679. For 2022, this figure rose, given the increases to K-12 public school spending during the COVID-19 pandemic.
What is the funding goal for public education? Although most advocates for public education believe additional funding is needed to support schools, there is little consensus regarding the ultimate goal. Is the goal for California to be one of the top 10 states in K-12 education funding? Is the goal for California to provide funding for K-12 at the national average? Is the funding goal related to adequacy? According to the technical report, Getting Down to Facts II: Adequacy and State Funding Formulas: What Can California Learn From the Research and National Context? “The cost of an adequate education is…the minimum cost to achieve a targeted outcome that has been deemed adequate by analysts, policymakers or, in some cases, a state constitution.” The Committee may wish to consider these policy questions.
Total school funding is determined by Proposition 98, not by the LCFF. Increasing the LCFF funding targets does not increase school funding. Rather, school funding is determined by Proposition 98, which requires a minimum level of funding, but has also, in practice, served as a funding ceiling. Accordingly, the increased targets established by this bill are aspirational, just as the original LCFF targets were.
Competing demands for ongoing funding. One objective of increasing the LCFF targets is to help ensure that funding increases generated by Proposition 98 that are in excess of what is needed to fully fund the statutory cost-of-living adjustments will be applied to the formula. However, there are other demands for increased funding, such as pensions, special education and home-to-school transportation programs. Competing demands for on-going K-12 funding will continue to be determined through the annual budget process.
Arguments in support. The California Federation of Teachers states, “California is experiencing a severe school workforce crisis among both certificated and classified employees. Education workers constantly are providing support and services for California’s students - the next generation of leaders, entrepreneurs, and the backbone of our economy. The work performed by education workers is often back-breaking, emotional, and runs workers through a gauntlet of challenges. Educators not only must pass certification and other licensing challenges, but also step into other roles for student safety and success. These roles are similar to therapists, mentors, emergency health providers, public safety officers, and now have been pushed to the limits in political defense of academic freedom and providing non-secular education. Today’s workforce crisis is exacerbated by the lack of interest in the workforce to pursue a career in education.
AB 477 creates a new funding goal for the State of California to work towards in funding our public education system at a level that can sustain a workforce that is deserving of our students and future generations. The bill simply sets a goal, leaving the budget process and will of the Legislature and Governors of the future to meet the moment. Granted, there will be years of plenty and years of restraint when it comes to the state budget; however, without a goal for the budget to work towards, our students will remain in a funding limbo.”
Related legislation. AB 938 (Muratsuchi), Chapter 345, Statutes of 2024, requires schools to report certificated and classified staff salaries annually; and requires the California Department of Education (CDE) to report the changes in school staff wages over time to the Legislature.
AB 1607 (Muratsuchi) of the 2021-22 Session would have, commencing with the 2022-23 school year, required any calculation of ADA for school districts, COE and charter schools to be based on the quotient of the sum of the ADA for the current fiscal year and each of the previous two fiscal years, divided by three. This bill was held in the Assembly Education Committee.
AB 1609 (Muratsuchi) of the 2021-22 Session would have required for the 2022-23 school year, the CDE to use the greater of the ADA from fiscal years 2019-20, 2020-21, 2021-22, or 2022-23 for purposes of apportionment under the LCFF for school districts, COEs, and charter schools.
AB 1614 (Muratsuchi) of the 2021-22 Session would have increased the LCFF base grant amounts, as specified, commencing with the 2022-23 fiscal year. This bill was held in the Assembly Education Committee.
AB 1948 (Ting) of the 2021-22 Session would require, commencing with the 2022–23 fiscal year, numerous changes to the calculation of the LCFF. This bill was held in the Senate Education Committee.
AB 39 (Muratsuchi) of the 2019-20 Session would have increased the school district and charter school LCFF base grant funding targets, and would have created a new grant-add on. This bill was held on the Senate Floor.
REGISTERED SUPPORT / OPPOSITION:
Support
California State Council of Service Employees International Union (seiu California)
Cft- a Union of Educators & Classified Professionals, Aft, Afl-cio
Opposition
None on file
Analysis Prepared by: Chelsea Kelley / ED. / (916) 319-2087
Discussed in Hearing
Senate Standing Committee on Education
Assembly Floor
Assembly Standing Committee on Education
Bill Author
Bill Co-Author(s):