Amended  IN  Senate  June 24, 2023
Amended  IN  Assembly  February 01, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 115

Introduced by Committee on Budget (Assembly Members Ting (Chair), Alvarez, Arambula, Bennett, Bonta, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Garcia, Hart, Jackson, Jones-Sawyer, Lee, McCarty, Muratsuchi, Ramos, Reyes, Luz Rivas, Blanca Rubio, Wicks, and Wood)

January 09, 2023

An act relating to the Budget Act of 2023. An act to amend Sections 8820, 8821, and 14041 of the Education Code, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


AB 115, as amended, Committee on Budget. Budget Act of 2023. Arts and Music in Schools—Funding Guarantee and Accountability Act: local control and accountability plan electronic template.
(1) Existing law, the Arts and Music in Schools—Funding Guarantee and Accountability Act, an initiative measure approved by the voters as Proposition 28 at the November 8, 2022, statewide general election, provides a minimum source of annual funding to K–12 public schools, including public charter schools, to supplement arts education programs for pupils attending those schools, as specified. Existing law requires the continuous appropriation for these purposes, without regard to fiscal years, from the General Fund to the State Department of Education, of an amount equal to 1% of the total state and local revenues received by local educational agencies in the preceding fiscal year that are included in the calculation of the minimum funding guarantee established by the California Constitution, as provided. Existing law requires funds to be allocated by the department to local educational agencies based on a formula that includes, among other things, a calculation of 30% of the total funds appropriated for the above-described purposes multiplied by the school’s enrollment of economically disadvantaged pupils in the prior fiscal year, divided by the total statewide enrollment of economically disadvantaged pupils in the prior fiscal year of local educational agencies, as provided. Under existing law, a school serving preschool pupil’s enrollment of economically disadvantaged pupils equals the preschool’s enrollment times the same percentage of pupils that are economically disadvantaged at the closest elementary schoolsite within the preschool’s local educational agency, if applicable. Existing law defines a preschool pupil, for these purposes, as a pupil enrolled in the California state preschool program or a preschool for pupils with exceptional needs in a local educational agency. Existing law authorizes funds allocated to schoolsites to be available for use for up to 3 fiscal years after which the funds revert to the department, as provided. Proposition 28 authorizes the Legislature to amend its provisions by a 2/3 vote of each house if the amendment furthers its purposes.
This bill would revise and recast the provisions of Proposition 28 by, among other things, defining a preschool pupil as a pupil enrolled in the California state preschool program or a pupil 3 years of age through 5 years of age enrolled in a preschool program for pupils with exceptional needs in a local educational agency. The bill would deem the enrollment of economically disadvantaged preschool pupils to instead equal the enrollment of preschool pupils in the prior fiscal year times the same percentage of pupils that are economically disadvantaged at the elementary schoolsite with the highest percentage of economically disadvantaged pupils in the prior year within the preschool’s local educational agency. If there is no elementary school within the preschool’s local educational agency, the enrollment of economically disadvantaged preschool pupils would instead be deemed to equal the enrollment of preschools pupils in the prior fiscal year times the same percentage of pupils that are economically disadvantaged at the elementary schoolsite with the highest percentage of economically disadvantaged pupils in the prior year within the preschool’s county. The bill would also require unexpended funds to revert to the department, including in the event of a closure of a charter school, as provided. The bill would require local educational agencies to report to the department, by October 1, the amount of unexpended funds following the conclusion of the 3-year-expenditure period, and would authorize the department to withhold the release of a local educational agency’s allocation for the fiscal year in which the expenditure report is due until that local educational agency has submitted the expenditure report, as provided. The bill would declare that these provisions further the purposes of Proposition 28.
(2) This bill would, commencing with the 2023–24 fiscal year, and for each fiscal year thereafter, appropriate $148,000 from the General Fund to the department for the maintenance and support of the Local Control and Accountability Plan Electronic Template System and a specified database and reporting interface, as provided.
(3) Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.
(4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 8820 of the Education Code is amended to read:

8820.
 (a) The Arts and Music in Schools—Funding Guarantee and Accountability Act is hereby established for the purpose of providing a minimum source of annual funding K–12 public schools, including public charter schools, to supplement arts education programs for pupils attending those schools.
(b) (1) Commencing with the first fiscal year following enactment of this act, and for each fiscal year thereafter, there shall be continuously appropriated without regard to fiscal years from the General Fund to the department for the purposes of this chapter, an amount which is equal to 1 percent of the total state and local revenues received by local educational agencies in the preceding fiscal year that are included in the calculation of the minimum funding guarantee established by Sections 8 and 8.5 of Article XVI of the California Constitution, excluding the appropriation made pursuant to this chapter.
(2) The Director of Finance shall calculate and publish an estimate of the amount necessary to fund the amount required to be appropriated by this chapter as part of the annual May Revision of the Governor’s Budget, and Budget. The amount required to be appropriated by this chapter for each subsequent fiscal year shall finalize be considered final as of the calculation and annual May Revision of the Governor’s Budget for the subsequent fiscal year. The Director of Finance shall publish the required appropriation amount by January 10 each fiscal year as part of the director’s duties pursuant to subdivision (d) of Section 41206.01.
(3) Notwithstanding any other law, for purposes of making the computations required by subdivision (b) of Section 8 of Article XVI of the California Constitution:
(A) For the first fiscal year following enactment of this chapter, the appropriations made pursuant to this subdivision shall be deemed supplementary payments in excess of the minimum amount required for that fiscal year pursuant to Section 8 of Article XVI of the California Constitution and shall not be considered towards fulfilling the requirements of Section 8 of Article XVI of the California Constituition Constitution for that fiscal year.
(B) For subsequent fiscal years, the appropriations made pursuant to this subdivision shall be considered moneys that were allocated to school districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B of the California Constitution.
(C) Commencing with the second fiscal year following the enactment of this act, and each fiscal year thereafter, “the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the share of the General Fund of the supplementary payments calculated pursuant to this subdivision in the prior fiscal year had been included in the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87.
(c) Funds appropriated pursuant to this chapter shall be allocated by the department to each local educational agency as the sum of the amount calculated pursuant to paragraph (1) and the amount calculated pursuant to paragraph (2) for each schoolsite in that local educational agency, as follows:
(1) An amount equal to the product of 70 percent of the funding appropriated in subdivision (b) times the school’s enrollment in the prior fiscal year, divided by the total statewide enrollment in the prior fiscal year of local educational agencies.
(2) An amount equal to the product of 30 percent of the funds appropriated in subdivision (b) times the school’s enrollment of economically disadvantaged pupils in the prior fiscal year, divided by the total statewide enrollment of economically disadvantaged pupils in the prior fiscal year of local educational agencies. For schools serving preschool pupils, the school’s enrollment of economically disadvantaged preschool pupils shall be deemed to equal the enrollment of preschool pupils in the prior fiscal year times the same percentage of pupils that are economically disadvantaged at the elementary schoolsite with the highest percentage of economically disadvantaged pupils in the prior year within the preschool’s local educational agency. If there is no elementary school within the preschool’s local educational agency, the enrollment of economically disadvantaged preschool pupils shall be deemed to equal the enrollment of preschool pupils in the prior fiscal year times the same percentage of pupils that are economically disadvantaged at the closest elementary schoolsite with the highest percentage of economically disadvantaged pupils in the prior year within the preschool’s local educational agency, if applicable. county.
(d) Local educational agencies shall allocate to each schoolsite an amount equal to the sum of the amount calculated pursuant to paragraph (1) of subdivision (c) and the amount calculated pursuant to paragraph (2) of subdivision (c).
(e) For each schoolsite or preschool, the principal or program director shall develop an expenditure plan for the funds allocated pursuant to subdivision (d).
(f) (1) Funds allocated pursuant to subdivision (d) shall be available for use for up to three fiscal years after which time the unexpended funds shall be reverted to the department, which shall reallocate those funds to all local educational agencies in the following fiscal year pursuant to subdivision (c).
(2) Local educational agencies are required to report to the department the amount of unexpended funds by October 1 following the conclusion of the expenditure period pursuant to paragraph (1). If a charter school ceases to operate, a final expenditure report shall be due to the department within 60 days of the effective date of closure and the department shall collect any unexpended amounts.
(3) The department may withhold the release of a local educational agency’s allocation pursuant to this section for the fiscal year in which the expenditure report required by paragraph (2) is due until that local educational agency has submitted the required expenditure report.
(g) As a condition of receipt of funds pursuant to this chapter, a local educational agency shall annually:
(1) Certify that all funds are will be used to provide arts education, education programs, and that funds expended in the prior fiscal year were, in fact, used for those purposes, except as provided in paragraph (3). For local educational agencies with an enrollment of 500 or more pupils, the certification shall also ensure that at least 80 percent of funds to be expended will be used to employ certificated or classified employees to provide arts education program instruction and that the remaining funds will be used for training, supplies and materials, and arts educational partnership programs.
(2) Certify that such funds received will be used to supplement funding for arts education programs and that funds received expended in the prior fiscal year were, in fact, used to supplement arts education programs.
(3) Certify that no more than 1 percent of funds received will be used for a local educational agency’s administrative expenses to implement this chapter and that funds received in the prior fiscal year were, in fact, used within that limit.
(4) Submit an annual board- or body-approved report in a manner determined by the Superintendent, that shall be posted on the local educational agency’s and the department’s internet websites and that details the type of arts education programs funded by the program, the number of full-time equivalent teachers, classified personnel, and teaching aides, the number of pupils served, and the number of schoolsites providing arts education programs with those funds.
(h) The department may, for good cause shown, provide a waiver from the requirement pursuant to paragraph (1) of subdivision (g) upon written request from the principal of a schoolsite. local educational agency.
(i) Annual audits conducted in accordance with Section 41020 shall include all funds received and distributed by the local educational agency pursuant to this section, and shall include a determination of whether the funds were expended pursuant to the certifications submitted and the requirements of this section.
(j) The Legislature may reduce the annual appropriation required by this chapter if the Legislature suspends the operation of Proposition 98 by the enactment of an urgency statute pursuant to subdivision (h) of Section 8 of Article XVI of the California Constitution. The percent of the reduction in the annual appropriation required by this chapter shall not exceed the percent of reduction in funding provided to K–12 schools and community colleges for the fiscal year below the funding level of minimum guarantee that would have been provided pursuant to Section 8 of Article XVI of the California Constitution if the suspension of the operation of Proposition 98 had not occurred.
(k) Nothing in this section prohibits the Legislature from appropriating funds for the program in excess of this minimum annual appropriation.

SEC. 2.

 Section 8821 of the Education Code is amended to read:

8821.
 For purposes of this chapter, the following definitions apply:
(a) “Arts education program” includes, but is not limited to, instruction and training, supplies, materials, and arts educational partnership programs, for instruction in: dance, media arts, music, theatre, and visual arts, including folk art, painting, sculpture, photography, and craft arts, creative expressions, including graphic arts and design, computer coding, animation, music composition and ensembles, and script writing, costume design, film, and video.
(b) “Economically disadvantaged pupil” means a pupil who is eligible for the federal National School Lunch Act (42 U.S.C. Sec. 1751 et seq.) or any successor program.
(c) “Enrollment” means every preschool, transitional kindergarten, and K–12 pupil enrolled in a local educational agency and schoolsite. A “preschool pupil” means a pupil enrolled in the California state preschool program or a pupil three years of age through five years of age enrolled in a preschool program for pupils with exceptional needs in a local educational agency.
(d) “Local educational agency” includes K–12 school districts, county offices of education, charter schools, and the California school for the blind and the California school for the deaf.
(e) “Supplement” means that the funds appropriated by this chapter shall be used by local educational agencies to increase funding of arts education programs and not to supplant existing funding for those programs.

SEC. 3.

 Section 14041 of the Education Code is amended to read:

14041.
 (a) The Controller shall draw warrants on the State Treasury in favor of the county treasurer of each county in each month of each year in the amounts and manner prescribed in this section so as to provide in each warrant a portion of the total amount certified by the Superintendent as apportioned for programs identified in paragraph (1) during the fiscal year from the State School Fund to the school districts and charter schools under the jurisdiction of the county superintendent of schools of that county, to the county school service fund of that county, and to the county school tuition fund of that county.
(1) Programs to be included in the apportionment include all of the following:
(A) Section 8820.

(A)

(B) Chapter 12.5 (commencing with Section 2574) of Part 2.

(B)

(C) Sections 41330 to 41343, inclusive.

(C)

(D) Section 41544.

(D)

(E) Chapter 4 (commencing with Section 41600) of Part 24 of Division 3 of Title 2.

(E)

(F) Chapter 5 (commencing with Section 41760.2) of Part 24 of Division 3 of Title 2.

(F)

(G) Section 41841.5.

(G)

(H) Section 41850.1.

(H)

(I) Article 2 (commencing with Section 42238) of Chapter 7 of Part 24 of Division 3 of Title 2.

(I)

(J) Section 46120.

(J)

(K) Section 47663.

(K)

(L) Article 7 (commencing with Section 48300) of Chapter 2 of Part 27 of Division 4 of Title 2.

(L)

(M) Article 10 (commencing with Section 48350) of Chapter 2 of Part 27 of Division 4 of Title 2.

(M)

(N) Sections 56428, 56432, 56836 to 56836.13, inclusive, and 56836.165 to 56836.31, inclusive.

(N)

(O) Article 2.2 (commencing with Section 56836.14) of Chapter 7.2 of Part 30 of Division 4 of Title 2.

(O)

(P) Article 6.5 (commencing with Section 56836.39) of Chapter 7.2 of Part 30 of Division 4 of Title 2.
(2) Warrants for amounts apportioned to school districts, county school service funds, and county school tuition funds shall be for amounts equal to 5 percent in July, 5 percent in August, and 9 percent in September, October, November, December, and January, of the amounts certified by the Superintendent as a part of the advance apportionment.
(3) Warrants in the months of February to May, inclusive, shall be for amounts equal to one-fifth of the difference between the amounts certified by the Superintendent for school districts, county school service funds, and county school tuition funds as the first principal apportionment and the amounts required by paragraph (2).
(4) Warrants for the month of June shall be for amounts equal to the difference between the amounts certified by the Superintendent for school districts, county school service funds, and county school tuition funds as the second principal apportionment and the amounts required by paragraphs (2) and (3).
(5) Warrants in June shall include the total amounts certified by the Superintendent as the final apportionment.
(6) Notwithstanding paragraph (2) to the contrary, for school districts that reported less than 5,000 units of average daily attendance in the 1979–80 fiscal year and that received 39 percent or more, but less than 75 percent, of their total revenue limits from local property taxes in that fiscal year, warrants for amounts apportioned to the school districts shall be for amounts equal to 15 percent in July, August, September, and October; zero percent in November and December; and 6 percent in January of the amounts certified by the Superintendent as a part of the advance apportionment. Warrants for amounts apportioned to the school districts for the months of February to May, inclusive, shall be in accordance with paragraph (3), and for the month of June, shall be in accordance with paragraph (4).
(7) Notwithstanding paragraph (2) or (6) to the contrary, for school districts that reported less than 5,000 units of average daily attendance in the 1979–80 fiscal year and that received 75 percent or more of their total revenue limits from local property taxes in that fiscal year, warrants for amounts apportioned to the school districts shall be for amounts equal to 15 percent in July; 30 percent in August and September; 15 percent in October; zero percent in November and December; 6 percent in January; and zero percent in February, March, April, and May, of the amounts certified by the Superintendent as a part of the advance apportionment. Warrants for the month of June shall be in accordance with paragraph (4).
(8) (A) Notwithstanding any other law, for the 2012–13 fiscal year only, for purposes of warrants drawn on the State Treasury pursuant to this section, the amount certified by the Superintendent as the advance apportionment and first principal apportionment shall include the following reduction:
(i) The Superintendent shall multiply six billion nine hundred twenty-one million five hundred twenty-two thousand dollars ($6,921,522,000) by the ratio of the revenue limit or charter school general purposes funding for each county office of education, school district, or charter school, to the statewide total of revenue limit and charter school general purpose funding.
(ii) For each county office of education, school district, or charter school, the Superintendent shall subtract the amount calculated in clause (i) from the apportionments calculated pursuant to Sections 2558, 42238, and 47633.
(B) Notwithstanding any other law, for the 2012–13 fiscal year, the Superintendent shall delay the second principal apportionment calculated pursuant to Section 41335 from July 2, 2013, to July 15, 2013, to account for all revenues remitted to school districts and county offices of education pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution. The Superintendent shall ensure that the second principal apportionment calculated pursuant to Section 41335 accounts for the difference between the amount distributed pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution and the offsets listed in subparagraph (A). Nothing in this section shall delay the payment of warrants to school districts and county offices of education 10 days before the close of the state’s fiscal year pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(9) Notwithstanding paragraph (1), (3), or (7), as those paragraphs and this section read on June 1, 2018, for the 2012–13 fiscal year only, the Superintendent shall reduce the June warrants for any amounts received pursuant to Sections 34179.5 and 34179.6 of the Health and Safety Code. This reduction shall constitute the entire amount distributed pursuant to Sections 34179.5 and 34179.6 of the Health and Safety Code and offset pursuant to subparagraph (B) of paragraph (6) of subdivision (h) of Section 42238, paragraph (6) of subdivision (c) of Section 2558, and Section 56836.08.
(b) The drawing of the warrants required to be drawn during any one of the months mentioned may be postponed by the Controller for not to exceed 30 days, but the total amounts due the several counties during any fiscal year shall be paid within the fiscal year. The warrants shall be paid by the Treasurer from the State School Fund and are not subject to Section 925.6 of the Government Code.

SEC. 4.

 (a) Commencing with the 2023–24 fiscal year, and for each fiscal year thereafter, the sum of one hundred forty-eight thousand dollars ($148,000) is hereby appropriated from the General Fund to the State Department of Education for the maintenance and support of the Local Control and Accountability Plan Electronic Template System and the database and reporting interface established pursuant to Section 116 of Chapter 24 of the Statutes of 2020.
(b) (1) For the purposes specified in subdivision (a), the State Department of Education, in collaboration with, and subject to the approval of, the executive director of the State Board of Education, shall enter into a contract with the San Joaquin County Office of Education.
(2) When performing these activities, the San Joaquin County Office of Education may enter into appropriate contracts for the provision of support and services, as necessary.
(c) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriations made by subdivision (a) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202 of the Education Code, for the fiscal year for which the appropriation is made, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code, for the fiscal year for which the appropriation is made.

SEC. 5.

 The Legislature finds and declares that Sections 1, 2, and 3 of this act, which amend Sections 8820, 8821, and 14041 of the Education Code, further the purposes of the Arts and Music in Schools—Funding Guarantee and Accountability Act (Chapter 5.1 (commencing with Section 8820) of Part 6 of Division 1 of Title 1 of the Education Code).

SEC. 6.

 This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.