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School Finance Legislation March 2015

Below is a complete list of school finance legislation. The bill titles are hyperlinked to the full text of the bill. 

Many of these bills remain in “spot bill form,” meaning they lack substance at this point. We expect most of them to be amended significantly in the next few weeks (bills must be in print for 30-days after their introduction before they can be amended). We will update you as major changes occur. 

In the area of school finance, you will see several bills seeking to repeal or amend the school district budget reserve cap. That conversation is happening mostly behind the scenes between the Governor’s Office and representatives from the major statewide education associations. 

There are also several bills seeking to place a school facilities bond on the November 2016 ballot, but everyone capitulates this conversation is predicated upon voter attitudes towards supporting a revenue solution for schools (either in the form of some sort of extension of Prop 30 tax rates, or tax reform that would yield ongoing funding for education) and a school bond on the same ballot. CTA is doing a lot of polling and focus groups on the topic.

School Finance Legislation:

AB 6 (Wilk (R)): Bonds: Transportation: School Facilities
Provides that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. Requires the net proceeds of other bonds to be made available to fund construction of school facilities for K-12 and higher education.
AB 47 (McCarty (D)): State Preschool Program: Report
Requires the Department of Education to report to the Legislature and Department of Finance a plan for expanding the state preschool program to all eligible low-income children who do not have access to one year of state preschool or transitional kindergarten. We expect the author to amend this bill with more substantive language.
AB 63 (Bonilla (D)): School Safety Programs: Funding
Authorizes the Superintendent of Public Instruction to consult with specified entities on school violence prevention and intervention in order to carry out one or more of the purposes of the programs established under the School Safety and Violence Prevention Strategy Program. Requires the Department of Education to apply for the creation of a specialized license plate program with the revenues therefrom to be used to carry out the program.
AB 148 (Holden (D)): School Facilities: General Obligation Bond Measure
Expresses the intent of the Legislature to enact legislation to submit a general obligation bond measure to the voters during the 2016 calendar year to fund the modernization and construction of school facilities. We expect the author to amend this bill with more substantive language and we hear the intent of the bill is to provide a “bridge bond” of approximately $2 billion.
AB 158 (O’Donnell (D)): School Finance: John B. Mockler School Finance Act
Relates to existing law that defines the words and phrases used to calculate the moneys to be applied by the State for the support of school districts and community college districts and provides the method for calculating the amount of moneys to be applied. Provides that those provisions shall be known, and may be cited, as the John B. Mockler School Finance Act.
AB 200 (Alejo (D)): Student Financial Aid: Competitive Cal Grant Awards
Requires that an unspecified total number of Competitive Cal Grant A and B awards be granted for the 2016-17 and 2017-18 academic years and that a specified amount of funds be granted for the 2018-19 academic year and each year thereafter.
AB 237 (Daly (D)): Local Governments: Parcel Taxes: Notice
Requires, before the adoption of any new parcel tax, the legislative body of a local agency to provide at least 90 days’ notice of the vote to enact the proposed parcel tax to the owner of each parcel affected by the tax. Requires the notice to include specified information and to be provided to the property owner in a specified manner.
AB 252 (Holden (D)): Advanced Placement Program: STEM Curriculum
Establishes a grant program for purposes of awarding grants to cover the costs associated with a high school establishing or expanding its advanced placement STEM curriculum. Requires the Superintendent of Public Instruction to submit a specified report to the Legislature describing the effectiveness of the grant program.
AB 283 (Dababneh (D)): Financial Affairs
Eliminates the limitation that would become operative on January 1, 2017, and thus would indefinitely continue the existing authority for a local agency to invest its surplus funds, in certificates of deposit or in another form of investment. Removes the limit on the percentage of local agency funds that may be invested by any one private sector entity.
AB 377 (Linder (R)): Examination Fees: Advanced Placement and IB Program
Establishes a grant program by the Department of Education for the purpose of awarding grants to cover the costs of advanced placement examination fees or International Baccalaureate examination fees, or both, for eligible economically disadvantaged or foster youth high school pupils. Authorizes a school district or charter school to apply to the department for grant funding under the program.
AB 440 (Alejo (D)): Local Government Finance: Property Tax Revenue
Deems to be correct certain property tax revenue apportionment factors that were applied in allocating property tax revenues in the County of San Benito for certain fiscal years. Requires property tax apportionment factors applied in allocating property tax revenue in the County for the 2002-03 fiscal year and each fiscal year thereafter to be determined on the basis of certain apportionment factors.
AB 482 (Harper (R)): Concurrent Enrollment in Secondary School and College
Expresses the intent of the Legislature to enact legislation later in the 2015-16 Regular Session regarding concurrent enrollment in secondary school and community college for pupils pursuing studies related to computer science.
AB 531 (O’Donnell (D)): School Finance: Budget Calculations
Makes the formula for school districts with less than 400,000 units of average daily attendance applicable to school districts with 400,000 units of average daily attendance or less.
AB 567 (Gipson (D)): Property Taxation: Change in Ownership
Provides that information requested or furnished in a change in ownership statement, with respect to a legal entity and its real property does not include the fact that a change in ownership statement has been filed with the Board of Equalization or that the board has issued a determination to the assessor relating to a change in ownership statement, and that the board and the assessor are not required to hold these facts secret.
AB 631 (Bonilla (D)): Common Core and Next Generation Science Standards
Establishes the Common Core and Next Generation Science Standards Implementation Fund Act. Requires the Superintendent of Public Instruction to allocate funds for the 2015-16 fiscal year to local education agencies, on the basis of an equal amount per pupil based on the prior year’s enrollment for specified purposes relating to the integration of common core academic content standards, science standards and English language development standards in schools, and teacher development.
AB 646 (McCarty (D)): Education Finance: School Districts
Makes nonsubstantive changes to existing law that requires the governing board of each school district to approve an annual statement of all receipts and expenditures of the district for the preceding fiscal year and to file the statement with the county Superintendent of schools.
AB 668 (Gomez (D)): Property Taxation: Assessment: Affordable Housing
States the intent of the Legislature to enact legislation that would require a county assessor to consider a recorded contract with a nonprofit corporation that restricts the use of the land for at least 30 years for affordable housing or affordable rent when valuing real property for property taxation purposes. We expect the author to amend this bill with more substantive language.
AB 699 (Olsen (R)): Education Technology: Grants
Makes a nonsubstantive change to existing law that establishes the Education Technology Grant Act of 2002 to provide technology education grants to school district applicants for schools serving pupils in grades 4 to 8, inclusive, consistently with federal law, and defines school district for purposes of this act. We expect the author to amend this bill with more substantive language.
AB 710 (Brown (D)): Youth on Probation: Local Control Funding Formula
Amends existing law that relates to public school financing system and a local control funding formula. Includes a youth who is on probation as an unduplicated pupil. Requires a local control and accountability plan to also include a description of the annual goals to be achieved for youth on probation for each state priority. Requires the State Department of Education to add appropriate data collections questions to the State Longitudinal Pupil Achievement Data System.
AB 748 (Lackey (R)): Taxation: Exemptions: Public Schools
Adds public schools to the list of entities eligible for the cancellation or refund of any tax or penalty or interest imposed on property acquired in a given calendar year after the lien date but before the first day of the fiscal year commencing within that calendar year.
AB 760 (O’Donnell (D)): Local Educational Agencies: Portable Elect Equipment
Requires the Department of General Services to seek bids for the purchase of portable electronic equipment and establish a process for local educational agencies to purchase the equipment under terms negotiated by the department.
AB 765 (Ridley-Thomas S (D)): Child Care and Development: Reimbursement Rates
Makes nonsubstantive changes to existing law that requires the Superintendent of Public Instruction to implement a plan that establishes reasonable child care standards and assigned reimbursement rates. We expect the author to amend this bill with more substantive language.
AB 853 (Hernandez R (D)): Electrical Transmission: Public Convenience Certificate
Includes demand response as being amongst the demand-side alternatives that the Public Utilities Commission is to consider when considering an application for a certificate of public convenience and necessity for an electric transmission facility.
AB 882 (Wilk (R)): School Bonds: Portable Electronic Devices
Prohibits proceeds from the sale of bonds authorized and issued pursuant to the exception in existing law to be used to purchase portable electronic devices, including laptop computers and tablet computers, that are not closely connected to classroom instruction, are assigned to individual pupils, or are permitted to leave the schoolsite for more than one school day, or to purchase basic or supplemental instructional materials.
AB 889 (Chang (R)): Concurrent Enrollment in School and Community College
Authorizes the governing board of a school district to authorize a pupil to attend a community college during any session or term as a special part-time or full-time student and to undertake one or more STEM courses offered at the community college if that pupil has exhausted all opportunities to enroll in an equivalent course at the high school of attendance, or at an adult education program.
AB 912 (Wilk (R)): Local Educational Agencies: School Bonds: Notices
Requires that before the approval by the governing board of the school district to proceed with the issuance of bonds, the school district notify the county superintendent of schools and the county auditor. Deletes the language limiting the requirement of this notice to instruments that do not require approval of the voters of the school district or county.
AB 1007 (McCarty (D)): Minimum Wage
States the intent of the Legislature to enact legislation relating to the minimum wage. We expect the author to amend this bill with more substantive language.
AB 1048 (Baker (R)): School Finance: School Districts: Annual Budgets
Repeals an existing law which provides that in a fiscal year immediately after a fiscal year in which a transfer is made into the Public School System Stabilization Account, a school district’s budget is prohibited from containing a certain combined assigned or unassigned ending fund balance.
AB 1064 (Hernandez R (D)): Education Finance: Indirect Cost Rates
Amends existing law that makes a nonsubstantive change that requires the State Department of Education or any other state agency that administers a grant or allocation of state funds to a school district to allow an indirect cost rate that is not less than the indirect cost rate established by the department, unless a lower rate is required by law.
AB 1088 (O’Donnell (D)): School Facilities: Bond Act: Greene Act
States the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act, a state general obligation bond act that would provide funds to construct and modernize education facilities. We expect the author to amend this bill with more substantive language.
AB 1112 (Lopez (D)): Adult Education: Consortia
Expresses the intent of the Legislature to enact legislation to provide that the funding distributed to local educational agencies through adult education consortia continues to be available to pupils who are minors participating in high school credit recovery pursuant to designated provisions. We expect the author to amend this bill with more substantive language.
AB 1161 (Olsen (R)): Preschool: Privately Funded Pilot Program
Authorizes the State Department of Education to accept monetary contributions made to the state Preschool Investment Fund by a person for purposes of preschool education. Requires the money in the fund to be used to fund state preschool parts of the state preschool program located in participating counties.
AB 1181 (Calderon I (D)): Adult Education Programs: Federal Pell Grant Program
States the intent of the Legislature to enact legislation that would, to the extent feasible, qualify adult education programs operated by local educational agencies to participate in the federal Pell Grant Program under Title IV of the federal Higher Education Act of 1965 so that students enrolled in those programs may qualify to receive federal Pell Grant program awards for short-term career technical education programs.
AB 1185 (Ridley-Thomas S (D)): Los Angeles Unified School District
Establishes a pilot program to authorize the Los Angeles Unified School district to use a best value procurement method for bid evaluation and selection for public projects. Establishes various requirements applicable to the use of the best value procurement method under this authorization.
AB 1198 (Dababneh (D)): School Facilities: California School Finance
Establishes the Credit Enhancement Program within the California School Financing Authority for purposes of providing lower cost alternatives for school facility financing through a leveraged public-private partnership program.
AB 1262 (Wood (D)): Telecommunications: Universal Service
Requires that of the moneys collected for California Advanced Services Fund on and after a specified date, a specified amount is to be deposited into the Rural and Urban Regional Broadband Consortia Grant Account and used for specified purposes and a specified amount is to be deposited into the Broadband Infrastructure Revolving Loan Account and used for specified purposes.
AB 1297 (Achadjian (R)): School Finance: Local Control Funding Formula
Makes nonsubstantive changes to provisions of existing law which 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. We expect the author to amend this bill with more substantive language.
AB 1318 (Gray (D)): School Finance: School Districts: Annual Budgets
Expresses the intent of the Legislature to enact legislation regarding adequate levels of school district reserves, as specified. We expect the author to amend this bill with more substantive language.
AB 1372 (Holden (D)): School Facilities: Funding
States the intent of the Legislature to enact legislation to adopt a long-term funding solution to ensure California meets its obligation to provide adequate funding to school districts for facility construction and maintenance.
AB 1342 (Steinorth (R)): Pupil Transportation
Makes nonsubstantive changes to provisions of existing law that authorizes the governing board of any school district to provide for the transportation of pupils to and from school. We expect the author to amend this bill with more substantive language.
AB 1428 (Gray (D)): California State Lottery: Education Finance
Requires the State Lottery Commission to collect, and make publicly available on the commission’s Internet Web site, information related to certain lottery education accounts.
AB 1474 (Chavez (R)): Community Colleges: Technical Education Bond Act
Enacts the Community College Career Technical Education Bond Act, which if adopted by the voters would authorize the issuance of bonds to finance a community college career technical education bond program.
AB 1487 (Obernolte (R)): Property Taxation: Assessment: Full Value
Makes a technical, nonsubstantive change to existing property tax law that requires every assessor to assess all property subject to general property taxation at its full value. We expect the author to amend this bill with more substantive language.
AB 1503 (Perea (D)): Telecommunications Universal Service Programs
Relates to a program to advance universal service by providing discounted rates to qualifying schools, community colleges, libraries, hospitals and community organizations. Requires the Public Utilities Commission to include auxiliary organizations of the California State University in the program.
SB 3 (Leno (D)): State Minimum Wage
The bill would increase the state’s minimum wage to $11 in 2016 and $13 in 2017. Beginning in 2019, the bill would require automatic increases tied to the Consumer Price Index.
SB 8 (Hertzberg (D)): Taxation
Expands the Sales and Use Tax Law to impose a tax on the gross receipts from the sale in the State or, or the receipt of the benefit in the State of services at a specified percentage rate.
SB 25 (Roth (D)): Local Government Finance: Property Tax Revenue
Amends an existing law which requires that each city, county and city and county receive certain additional property tax revenues in the form of a vehicle license fee adjustment amount and which requires that these additional allocations be funded from ad valorem property tax revenues otherwise required to be allocated to educational entities. Modifies certain reduction and transfer provisions.
SB 111 (Fuller (R)): School Facilities: Military Installations
Appropriates a specified amount of funds from the General Fund to the State Department of Education for the 2015-16 fiscal year for apportionment to school districts to meet the matching share requirement of a school construction grant made by the Office of Economic Adjustment of the federal Department of Defense to construct, renovate, repair, or expand elementary and secondary public schools located on military installations.
SB 114 (Liu (D)): Kindergarten-University Public Education Facilities
Revises the definition of modernization under the Leroy F. Greene Facilities Act of 1998 to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old. Requires a district to reestablish eligibility. Authorizes a grant to be used for seismic mitigation purposes, and design, study, and testing costs. Enacts a specified facilities bond act for funds for K-12 and postsecondary facilities. **
SB 191 (Block (D)): School Transportation: Apportionments
Requires the Superintendent of Public Instruction, for specified fiscal years, to apportion to each school district, county office of education, entity providing services under a school transportation joint powers agreement, or a regional occupational center or program that provides pupil transportation services, in an amount determined by a specified formula.
SB 222 (Block (D)): School Bonds: School Facilities: Statutory Lien
Requires school facility bonds issued and sold pursuant to existing law to be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax. **
SB 256 (Berryhill (R)): School Finance: Necessary Small Schools
Makes nonsubstantive changes to existing law that provides that a necessary small school is an elementary school with an average daily attendance of less than 97 maintained by a school district to which any of certain conditions apply.
SB 318 (Morrell (R)): Education Technology and Digital Resources
Appropriates funds from the General Fund to the Superintendent of Public Instruction to be allocated to specified local educational agencies for the purpose of implementing a pilot program in the County of San Bernardino County to train kindergarten and grades 1 to 12, inclusive, teachers to more effectively utilize technology and digital resources within their instructional day, while also measuring and teaching skills pupils need to succeed in next-generation online assessments, college and careers.
SB 320 (Lara (D)): Pupil Fees
Makes nonsubstantive changes to existing law that prohibits a pupil enrolled in a public school from being required to pay a fee for participation in an educational activity.
SB 329 (Mendoza (D)): School Finance: Accounting
Makes nonsubstantive changes to existing law that requires the accounting system used to record the financial affairs of any school district to be in accordance with the definitions and procedures published in the California School Accounting Manual.
SB 416 (Huff (R)): Public Schools: Repeal of Funding Programs
Repeals the Art Work Visual and Performing Arts Education Program. Repeals the School Safety and Violence Prevention Act. Repeals the California Peer Assistance Review Program for Teachers. Repeals the Education Technology Staff Development Program. Repeals the Impacted Languages Act of 1984, the Chacon-Moscone Bilingual-Bicultural Education Act of 1976, and the State Bilingual Teacher Training Assistance Program.
SB 436 (Liu (D)): Education: Omnibus Bill
Amends existing law to delete specified allocation authorizations to the State School Deferred Maintenance Fund. Deletes an authorization that school district’s may deposit certain funds into the district’s general fund to receive an apportionment from the Fund. Requires a postsecondary institution to make it possible for each candidate to complete all teaching credential requirements in the equivalent of a specified amount of study. Repeals obsolete provisions regarding the Compton Unified School District.
SB 458 (Gaines T (R)): Insurance Taxation: College Access Tax Credit Fund
Allows a credit equal to a certain percentage of a contribution to the College Access Tax Credit Fund. Specifies that the aggregate amount of credit allocated shall not exceed an unspecified sum for each calendar year. Requires the State Educational Facilities Authority to perform certain duties with regard to allocating and certifying the tax credits allowed under this provision.
SB 481 (Hueso (D)): Internal Auditors: Independence
Requires internal auditor employees to conduct their work under conditions that ensure their independence, including the requirement that the head of the auditing unit, branch, or group for which he or she works be answerable directly to the head, deputy head, or governing board of the governmental agency being audited, is given direct access to that person or persons and is required to report the audit results to the unit head, deputy head, or governing board.
SB 515 (Beall (D)): Grant Programs
States the intent of the Legislature to enact legislation that establishes funding priorities for moneys distributed from the Safe Neighborhoods and Schools Fund to the Board of State and Community Corrections.
SB 527 (Liu (D)): Education Finance: Safe Neighborhoods and Schools
Expresses findings and declarations of the Legislature with respect to the purposes of the Safe Neighborhoods and Schools Act. Specifies the administrative duties and responsibilities of the State Department of Education with respect to the administration, commencing with the 2016-17 fiscal year, of a Safe Neighborhoods and Schools Fund Grant Program.
SB 549 (Hall (D)): Charitable Raffles
Authorizes a raffle conducted by an eligible organization for the purpose of directly supporting specified beneficial or charitable purposes or financially supporting another private, nonprofit, eligible organization that performs those purposes if, among other requirements, each ticket sold contains a unique and matching identifier, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes.
SB 618 (Pavley (D)): Educational Apprenticeships: Grant Programs
Establishes a statewide grant program for educational apprenticeship programs under the administration of the Superintendent of Public Instruction. Requires that a grant allocated by the Superintendent to be distributed on a competitive basis, subject to funding being made available in the annual Budget Act. Specifies certain criteria to be applied by the Superintendent to determine the competitive value of an application for a grant.
SB 645 (Hancock (D)): After School Programs: Grant Amounts
Relates to the After School Education and Safety Program Act of 2002 to serve pupils in kindergarten and grades 1 to 9. Requires the Department of Finance to annually adjust the amount provided that adjustment does not result in a reduction. Provides that funds appropriated would be applied toward the minimum funding requirement for school districts and community college districts.
SB 774 (Fuller (R)): School Finance: School Districts: Annual Budget
Repeals provisions of existing law that prohibits a school district’s adopted or revised budget from containing a combined assigned or unassigned ending fund balance that is in excess of either 2 or 3 times the minimum recommended reserve for economic uncertainties adopted by the State Board of Education, depending on the school district’s units of average daily attendance.
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