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Warning! This is a not the current version of this legislative bill.
Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)
AMENDED IN SENATE JUNE 19, 2012
AMENDED IN SENATE JULY 5, 2011
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY APRIL 27, 2011

INTRODUCED BY Assembly Member Brownley

DECEMBER 6, 2010

An act to amend Section 60119 of, to add Sections 41055,
42238.01, and 42238.486 to, to add Article 5 (commencing with Section
42310) to Chapter 7 of Part 24 of Division 3 of Title 2 of, and to
add and repeal Section 41054
add and repeal Chapter 5
(commencing with Section 33625) of Part 20 of Division 2 of Title 2
of , the Education Code, relating to
education finance.



LEGISLATIVE COUNSEL'S DIGEST


AB 18, as amended, Brownley. Education finance:
school-based financial reporting system: Targeted Pupil Equity
funding: Quality Instruction funding.
California
School Finance Commission.

(1) Existing

Existing law establishes the public school system in
this state, and, among other things, provides for the establishment
of school districts throughout the state and for their provision of
instruction at the public elementary and secondary schools they
operate and maintain. Existing law establishes a public school
funding system that includes, among other elements, the provision of
funding to local educational agencies through state apportionments,
the proceeds of property taxes collected at the local level, and
other sources.
This bill would enact the Education Finance Reform Act. The bill
would require the Superintendent of Public Instruction, on or before
December 1, 2012, to make recommendations to the Legislature and the
Governor regarding prescribed topics relating to the statutory and
regulatory changes that would be necessary to support the
development, implementation, and use of comprehensive school-level
financial data. These provisions would be repealed on December 1,
2015. The bill would require the Superintendent, on or before July 1,
2012, to make all ministerial changes that are necessary to support
the future reporting of school-level financial data by local
educational agencies, as specified. The bill also would require the
Superintendent, on or before July 1, 2012, and annually thereafter,
to notify the superintendent of each school district and county
office of education, and the administrator of each charter school, of
specified items relating to tracking and reporting school-level
financial data.

(2) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county
pursuant to a specified formula based on the base revenue limit of
the school district for the prior fiscal year, adjusted for
inflation, and based on the average daily attendance for the entire
school district.

This bill would require the Superintendent of Public Instruction,
commencing with the 2015-16 fiscal year and each fiscal year
thereafter, to compute an amount to be apportioned in addition to the
revenue limit of each school district. This amount would be
calculated by multiplying a per pupil base amount determined for each
school district in accordance with a formula utilizing the average
daily attendance of each school district, and the amount of funding
provided by specified items of the annual Budget Act, for the 2014-15
fiscal year.

(3) Existing law establishes various public education programs
pursuant to which funds are allocated by the state to local
educational agencies.

This bill would establish Targeted Pupil Equity funding, pursuant
to which, commencing with the 2015-16 fiscal year and each fiscal
year thereafter, the Superintendent of Public Instruction would
apportion supplemental funds to school districts and charter schools,
in accordance with a prescribed formula, for any educational purpose
that provides instruction or support services to English learners
and low-income pupils, with the goal of improving the academic
performance or workforce preparation of those pupils.


This bill would also establish Quality Instruction funding,
pursuant to which, commencing with the 2015-16 fiscal year and each
fiscal year thereafter, the Superintendent would apportion funds to
school districts and charter schools identified as reporting average
daily attendance, as determined at the 2014-15 2nd principal
apportionment, based on attendance of pupils in kindergarten and
grades 1 to 3, inclusive, in accordance with a prescribed formula,
for any of several specified purposes, including the reduction of
class sizes in kindergarten and grades 1 to 3, inclusive, the
provision of professional development training to school personnel,
the provision of leadership coaching and individualized support to
schoolsite staff, the provision of mentoring or coaching in order to
support beginning teachers, the establishment of teacher recruitment
programs that provide professional development assistance to
paraprofessionals in order for them to obtain teaching credentials,
the establishment of intern programs to provide an alternative route
for individuals to obtain teaching credentials, and the provision of
support for beginning teacher support and assessment.


The bill would also require, for each school district and charter
school not identified as reporting average daily attendance, as
determined at the 2014-15 2nd principal apportionment, based on
attendance of pupils in kindergarten and grades 1 to 3, inclusive,
that Quality Instruction funding apportioned to those school
districts and charter schools be used for the purposes similar to
those authorized for the school districts and charter schools
reporting average daily attendance in kindergarten and grades 1 to 3,
inclusive, except that the use of Quality Instruction funding for
the reduction of class sizes by the school districts and charter
schools not reporting average daily attendance based on attendance of
pupils in kindergarten and grades 1 to 3, inclusive, would not be
authorized.

(4) Existing law requires that, in order to be eligible for
specified funds, a school district take steps to ensure that each
pupil in each school in the district has sufficient textbooks or
instructional materials, as defined.

This bill would provide that for purposes of these provisions,
sufficient textbooks or instructional materials means, among other
things, that all pupils within the local educational agency who are
enrolled in the same course have identical textbooks and
instructional materials, as prescribed.

This bill would establish a 13-member California School Finance
Commission as of January 1, 2013, to review and analyze alternative
formulas for allocating funds to public schools in California for the
purpose of identifying and recommending a formula or formulas that
best meet the needs of California's public school system and public
school pupils. The bill would specify criteria to be used by the
commission to evaluate funding formulas. The bill would provide that
6 of the members of the commission would be appointed by the
Governor, 3 appointed by the Speaker of the Assembly, 3 appointed by
the Senate Committee on Rules, and that the Superintendent of Public
Instruction or his or her designee would be a member of, and serve as
chair of, the commission. The bill would require the commission to
report its findings and recommendations to the Legislature on or
before February 1, 2013.

This bill would make these provisions inoperative on July 1, 2013,
and would repeal them as of January 1, 2014.

Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

SECTION 1. Chapter 5 (commencing with
Section 33625) is added to Part 20 of
Division 2 of Title
2 of the
Education Code , to read:
CHAPTER 5. CALIFORNIA SCHOOL FINANCE COMMISSION


33625. (a) The California School Finance Commission is hereby
established as of January 1, 2013. The commission shall review and
analyze alternative formulas for allocating funds to public schools
in California for the purpose of identifying and recommending a
formula or formulas that best meet the needs of California's public
school system and public school pupils. The criteria used to evaluate
different funding formulas shall include, but not necessarily be
limited to, all of the following:
(1) The degree to which the formula results in a level of funding
for each local educational agency that matches that local educational
agency's needs as determined by pupil demographics, grade level
enrollment, regional cost differences, and other cost factors
identified by the commission.
(2) The degree to which the formula facilitates the attainment of
educational policy objectives.
(3) The degree to which the formula can be modified to reflect
changing conditions and policy objectives.
(4) The degree to which the formula can be easily administered and
understood by policymakers and the public.
(b) The commission shall consist of 13 members, who shall be
representative of the diversity of the state population, 12 of whom
shall be appointed as follows:
(1) Six members shall be appointed by the Governor.
(2) Three members shall be appointed by the Speaker of the
Assembly.
(3) Three members shall be appointed by the Senate Committee on
Rules.
(c) The Superintendent or his or her designee shall be a member of
and serve as chair of the commission.
(d) It is the intent of the Legislature that the commission
include representation from urban, suburban, and rural school
districts; currently employed teachers, administrators, and
classified school employees; school board members; parents;
historically underserved pupil populations; and members of the
research community with expertise in school finance.
(e) The commission shall do all of the following:
(1) Identify key issues related to the fair, efficient, and
equitable distribution of resources among and within local
educational agencies.
(2) Identify means by which a funding formula can maximize local
decisionmaking authority while ensuring that statewide policy
objectives are met.
(3) Solicit comments and suggestions from professional educators
and administrators, parents, school finance experts, and other
interested parties.
(4) Develop alternative formulas for distributing resources to
local educational agencies. The formulas to be considered shall
include, but not necessarily be limited to, all of the following:
(A) Modifications to the current system of general purpose funding
plus categorical program funding.
(B) General purpose funding plus categorical program block grants.

(C) Weighted pupil formula.
(5) Simulate the distribution of funds under alternative formulas.

(6) Identify, for each formula simulated, a target level of
funding for each local educational agency.
(7) Make recommendations regarding a methodology for transitioning
to a new funding formula.
(f) The commission shall report its findings and recommendations
to the Legislature on or before February 1, 2013, in accordance with
Section 9795 of the Government Code.
(g) For purposes of this section:
(1) "Local educational agency" means school districts, county
offices of education, and charter schools.
(2) "Target level of funding" means the level of funding that is
not less than the amount yielded when a formula is applied to the
total level of funding, exclusive of federal and lottery funds,
allocated to local educational agencies for the 2012-13 fiscal year,
plus the school district share of the outstanding maintenance factor
computed pursuant to Section 8 of Article XVI of the California
Constitution as of July 1, 2012.
(h) This chapter shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.
All matter omitted in this version of the bill appears in the
bill as amended in the Senate, July 5, 2011. (JR11)