Bill Text: CA AB123 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Early childhood education: childcare and development programs.

Spectrum: Partisan Bill (Democrat 22-1)

Status: (Engrossed - Dead) 2020-08-20 - In committee: Held under submission. [AB123 Detail]

Download: California-2019-AB123-Amended.html

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Amended  IN  Assembly  April 22, 2019

Amended  IN  Assembly  March 26, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 123

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Introduced by Assembly Members McCarty, Berman, Bonta, Burke, Carrillo, Chiu, Friedman, Eduardo Garcia, Gonzalez, Limón, Reyes, Santiago, Ting, and Wicks
(Principal coauthors: Senators Dodd and Hill Chang, Dodd, Hill, and Wieckowski)

December 03, 2018

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An act to amend Sections 8265, 8363, and 42238.02 8265 and 8363 of, to add Sections 8236.3, 8264.9, 8279.8, and 8499.8 to, and to add Article 16.1 (commencing with Section 8375) to Chapter 2 of Part 6 of Division 1 of Title 1 of, the Education Code, relating to early childhood education.

LEGISLATIVE COUNSEL'S DIGEST

AB 123, as amended, McCarty. Early childhood education: state preschool program: transitional kindergarten: access: standards.

(1) The Child Care and Development Services Act, administered by the State Department of Education, requires the Superintendent of Public Instruction to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law requires the Superintendent to administer all California state preschool programs, which include part-day age and developmentally appropriate programs for 3- and 4-year-old children, as provided. Existing law provides that 3- and 4-year-old children are eligible for the state part-day preschool program if the family meets one of several eligibility requirements, including income eligibility.

This bill would, commencing with the 2020–21 fiscal year, and notwithstanding any other law, authorize a provider operating a state preschool program within the attendance boundary of a public school, except as provided, where at least 70% of enrolled pupils are eligible for free or reduced-price meals, to enroll 4-year-old children meeting specified priorities. The bill would authorize any remaining slots to be open for enrollment to any other families otherwise not eligible, as provided. The bill would prohibit a state preschool classroom from exceeding 24 children.

Existing law requires the full-day state preschool reimbursement rate to be $12,070, as provided.

This bill would instead require the full-day state preschool reimbursement rate to be $14,062.50 commencing July 1, 2020, as provided.

(2) Existing law requires the Commission on Teacher Credentialing to establish requirements for the issuance and renewal of permits authorizing service in the care, development, and instruction of children in childcare and development programs.

This bill would require the commission, on or before July 1, 2020, to update the permit requirements to include specified requirements for teachers in a state preschool program, including that the requirement that, as of July 1, 2028, head teachers in a state preschool program with a teacher permit or higher have earned a bachelor’s degree, degree with an emphasis or major in early childhood studies or child development, obtained at least 24 units in early childhood education studies or child development, and obtained any other practicum and alternative certificates as determined by the commission. The bill would establish the California Preschool Teacher Qualifications Program for the purpose of supporting staff of licensed preschool and child development programs in acquiring the qualifications described above to improve the quality of preschool programs in California, increasing the compensation of preschool teachers, and maintaining the diversity of the existing preschool workforce. The bill would require the commission, department, subject to an appropriation, to provide funding to a licensed child development provider that participates in the program upon meeting specified criteria adopted by the commission. department.

(3) Existing law requires the county board of supervisors and the county superintendent of schools to select members for the local childcare and development planning council, known as a local planning council, for that county. Existing law requires a local planning council, by May 30 of each year, and upon approval by the county board of supervisors and the county superintendent of schools, to submit to the State Department of Education the local priorities the council has identified that reflect all childcare needs in the county.

This bill would require a local planning council, on or before May 30, 2020, and upon approval by the county board of supervisors and the county superintendent of schools, to submit to the department a plan for expanding state preschools based on the specified enrollment priorities described above, as provided. By imposing new duties on local planning councils, the bill would impose a state-mandated local program.

Existing law requires the department to disburse augmentations to the base allocation of for the expansion of childcare and development programs to promote equal access to child development services across the state. Existing law requires the Superintendent of Public Instruction to develop a formula for prioritizing the disbursement of augmentations.

This bill would require the Superintendent to consider the plans submitted by a local planning council, as described above, in determining the disbursement of augmentations to the base allocation for the expansion of childcare and development programs. The bill would require the department to allocate funding within each county in accordance with the priorities identified by the local planning council of that county, as provided.

(4)Existing law authorizes a school district or charter school to maintain a transitional kindergarten program. Existing law requires, in the 2014–15 school year and each school year thereafter, and as a condition of receipt of apportionments for pupils in a transitional kindergarten program, a child who will have their birthday between September 2 and December 2 to be admitted to a transitional kindergarten program maintained by a school district or charter school. Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires the Superintendent to compute a grade span adjusted base grant equal to the total of specified amounts, including an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant, as provided, that is equal to 10.4%.

This bill would, in addition to the adjustment computed above, require the Superintendent to compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant, as provided, that is equal to 27.6% for each transitional kindergarten pupil, who is enrolled in the school district or charter school, as provided, and conditioned upon meeting specified requirements relating to transitional kindergarten, including enrollment, ratio, and teacher credential requirements.

(5)

(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

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

SECTION 1.

 This act shall be known, and may be cited, as the Pre-K for All Act of 2019.

SEC. 2.

 The Legislature finds and declares all of the following:

(a) Quality early care and education for children from infancy to five years of age is a sound and strategic investment to narrow achievement gaps that are present before children enter kindergarten.

(b) Research shows that by five years of age, low-income children can be more than two years behind in language development relative to their higher income peers.

(c) Rigorous research shows that high-quality preschool significantly improves children’s school readiness and school performance and, in the long term, increases high school graduation rates, college enrollment, and adult earnings.

(d) A mixed-delivery early care and education system, including both public schools and community-based organizations, can support quality programs and effectively address the needs of working parents who need full-day, full-year services for their children.

(e) Well-trained teachers are crucial to quality preschool, and fair and adequate pay is key to valuing and retaining a qualified early childhood workforce. However, the median salary for California preschool teachers is less than one-half that of a kindergarten teacher.

(f) A targeted universal system of offering preschool to all children in high-poverty schools would help address the detrimental impact that concentrated poverty has on pupil achievement. Children living in communities with high proportions of low-income families experience crucial gains from quality early education that set them on the trajectory for academic success.

(g) In the annual Budget Act for the 2014–15 fiscal year, the Legislature and the Governor committed to providing all low-income children with at least one year of early care and education.

(h) California should build a more unified early care and education system, with adequate funding, quality standards driven by the best available evidence, simplified eligibility processes, and options for full-day, full-year services.

SEC. 3.

 Section 8236.3 is added to the Education Code, to read:

8236.3.

 (a) Commencing with the 2020–21 fiscal year, and notwithstanding any other law, a provider operating a state preschool program within the attendance boundary of a public school, except a charter or magnet school, where at least 70 percent of enrolled pupils are eligible for free or reduced-price meals, may enroll four-year-old children, as defined in Section 8208, as follows:

(1) First priority shall be given to children as provided for in paragraph (1) of subdivision (a) of Section 8236.

(2) Second priority shall be given to children as provided for in paragraph (2) of subdivision (a) of Section 8236.

(3) Any remaining slots may be open to enrollment of any families not otherwise eligible pursuant to paragraph (1) of subdivision (a) of Section 8263, subject to both of the following:

(A) Enrollment of eligible four-year-old children pursuant to this paragraph shall be limited to families that establish residency within the attendance boundary of the qualifying public school pursuant to subdivision (a). Providers shall require proof of residency as a condition of enrollment.

(B) To the best of their ability, providers shall give first enrollment priority for slots available pursuant to this paragraph to families with the lowest income, and last enrollment priority to families with the highest income.

(b) For purposes of this section, “magnet school” means an entire school with a focus on a special area of study, such as science, the performing arts, or career education, designed to attract pupils from across the school district who may choose to attend the magnet school instead of their local public school.

SEC. 4.

 Section 8264.9 is added to the Education Code, immediately following Section 8264.8, to read:

8264.9.

 The number of children served in a California state preschool program classroom shall not exceed 24.

SEC. 5.

 Section 8265 of the Education Code is amended to read:

8265.

 (a) The Superintendent shall implement a plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service.

(1) Parent fees shall be used to pay reasonable and necessary costs for providing additional services.

(2) When establishing standards and assigned reimbursement rates, the Superintendent shall confer with applicant agencies.

(3) The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.

(4) The Superintendent may establish any regulations the Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs.

(b) (1) Commencing July 1, 2018, the standard reimbursement rate shall be eleven thousand nine hundred ninety-five dollars ($11,995) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. From July 1, 2018, until June 30, 2020, inclusive, the full-day state preschool reimbursement rate shall be twelve thousand seventy dollars ($12,070) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.

(2) Commencing July 1, 2020, the full-day state preschool reimbursement rate shall be fourteen thousand sixty-two dollars and fifty cents ($14,062.50) and shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.

(3) (A) It is the intent of the Legislature that the increase to the full-day state preschool reimbursement rate provided in 2020 pursuant to paragraph (2) be used to advance towards parity of pay between state preschool teachers and public school kindergarten teachers.

(B) In order to make progress towards the goal set in subparagraph (A), contracting agencies shall use no less than 65 percent of the increase to the full-day state preschool reimbursement rate provided pursuant to paragraph (2) to increase the wages of classroom staff. lead teachers who have obtained a bachelor’s degree.

(c) The plan shall require agencies having an assigned reimbursement rate above the current year standard reimbursement rate to reduce costs on an incremental basis to achieve the standard reimbursement rate.

(d) (1) The plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies currently at a rate less than the standard reimbursement rate. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:

(A) Loss of program resources from other sources.

(B) Need of an agency to pay the same childcare rates as those prevailing in the local community.

(C) Increased costs directly attributable to new or different regulations.

(D) Documented increased costs necessary to maintain the prior year’s level of service and ensure the continuation of threatened programs.

(2) Childcare agencies funded at the lowest rates shall be given first priority for increases.

(e) The plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.

(f) The Superintendent may reduce the percentage of reduction for a public agency that satisfies any of the following:

(1) Serves more than 400 children.

(2) Has in effect a collective bargaining agreement.

(3) Has other extenuating circumstances that apply, as determined by the Superintendent.

SEC. 6.

 Section 8279.8 is added to the Education Code, immediately following Section 8279.7, to read:

8279.8.

 (a) It is the intent of the Legislature to ensure that all four-year-old children within the attendance boundary of a public school, except a charter or magnet school, where at least 70 percent of enrolled pupils are eligible for free or reduced-price meals and all eligible three-year-old children in poverty have access to a state preschool program or other child development program.

(b) It is further the intent of the Legislature to appropriate sufficient annual funding to expand additional full-day, full-year slots in the state preschool program in accordance with the goals identified in subdivision (a).

SEC. 7.

 Section 8363 of the Education Code is amended to read:

8363.

 The Commission on Teacher Credentialing shall by rule or regulation establish the requirements for the following:

(a) (1) The issuance and the renewal of permits authorizing service in the care, development, and instruction of children in childcare and development programs, as well as the issuance of emergency permits for this purpose.

(2) On or before July 1, 2020, the Commission on Teacher Credentialing shall update the permit requirements to include both of the following: the requirement that,

(A)As of July 1, 2024, head teachers in a state preschool program with a teacher permit or higher shall have earned an associate degree in early childhood education or child development or are working towards a bachelor’s degree or associate degree and have obtained 24 units in early childhood education or child development and 16 units of general education.

(B)As as of July 1, 2028, head teachers in a state preschool program with a teacher permit or higher shall have earned a bachelor’s degree, degree with an emphasis or major in early childhood studies or child development, obtained at least 24 units in early childhood education studies or child development, and obtained any other practicum and alternative certificates as determined by the Commission on Teacher Credentialing.

(3) By July 1, 2028, in each California state preschool classroom there shall be at least one teacher present who provides instruction who meets the educational requirements identified in paragraph (2).

(4) (A) A person issued an early childhood teaching permit from the Commission on Teacher Credentialing who served as a head teacher in a state preschool program as of December 31, 2019, shall be deemed to meet the educational requirements identified in paragraph (2).

(B) A person deemed pursuant to this paragraph to meet the educational requirements identified in paragraph (2) shall be eligible to participate in the California Preschool Teacher Qualifications Program to obtain a bachelor’s degree in early childhood studies or child development pursuant to the approved application of a licensed child development provider pursuant to Section 8377.

(4)

(5) Permits for other job roles in a state preschool program, including those identified in subdivision (b), shall be created and revised in alignment with the requirements listed in this subdivision.

(b) The issuance and renewal of permits authorizing supervision of a childcare and development program, as well as the issuance of emergency permits for this purpose.

(c) The periods of duration of the permits set forth in this section.

SEC. 8.

 Article 16.1 (commencing with Section 8375) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  16.1. The California Preschool Teacher Qualifications Program

8375.

 This article shall be known, and may be cited, as the California Preschool Teacher Qualifications Program.

8376.

 For purposes of this article, unless the context clearly requires otherwise, the following definitions apply:

(a) “Applicant” means a licensed child development provider applying for program funds pursuant to this article.

(b)“Commission” means the Commission on Teacher Credentialing.

(b) “Department” means the State Department of Education.

(c) “Institutions of higher education” means the California Community Colleges, the California State University, the University of California, and private not-for-profit postsecondary educational institutions that offer child development and early childhood education courses.

(d) “Paraprofessional” means a person who assists classroom head teachers in a child development program, and includes a teaching assistant.

(d)

(e) “Participant” means a licensed child development program employee who elects to participate in the program.

(e)

(f) “Program” means the California Preschool Teacher Qualifications Program.

8377.

 (a) The California Preschool Teacher Qualifications Program is hereby established for the purpose of supporting staff of licensed preschool and child development programs in acquiring the qualifications specified in Section 8363 to improve the quality of preschool programs in California, increase the compensation of preschool teachers, and maintain the diversity of the existing preschool workforce. A person serving as a head teacher or a paraprofessional in an early childhood setting shall be eligible to apply for a scholarship provided through the California Preschool Teacher Qualifications Program to achieve the accomplishments identified in subdivision (e) upon approval of an application covering the child development provider employing the head teacher or paraprofessional.

(b) Subject to an appropriation for these purposes in the annual Budget Act or another statute, the commission department shall provide funding to a licensed child development provider that participates in the program upon meeting specified criteria adopted by the commission. department. A consortium of licensed child development providers or a county office of education applying on behalf of a licensed child development provider shall also be eligible for funding and technical assistance pursuant to this article. The criteria adopted by the commission department for the selection of licensed child development providers to participate in the program shall include all of the following:

(1) The extent to which the applicant has identified a potential partnership with one or more local campuses or online programs of participating institutions of higher education with coursework in early childhood education or child development.

(2) The extent to which the applicant plans to enter into a written matriculation agreement with the participating campuses of the institutions of higher education and develops a process of paying tuition and fees of participants directly to the participating institutions of higher education.

(3) The extent to which the applicant’s plan for recruitment attempts to meet its own specific teacher needs.

(c) The commission department shall establish a plan to pursue equity in the selection of applicants from a variety of settings and areas of the state, including providing technical assistance to licensed child development providers with limited infrastructure to submit the application.

(d) An applicant that is selected to participate pursuant to subdivision (b) shall provide information about the program to all eligible staff in the child development program and shall assist each employee it recruits under the program regarding admission to an institution of higher education.

(e) An applicant shall certify that it has received a commitment from each participant that the participant will accomplish all of the following:

(1)On or before July 1, 2024, successfully earn an associate degree in early childhood education or child development or be working towards a bachelor’s degree or associate degree and has obtained 24 units in early childhood education or child development and 16 units of general education.

(2)

(1) On or before July 1, 2028, successfully earn a bachelor’s degree, degree with an emphasis or major in early childhood studies or child development, obtain at least 24 units in early childhood education studies or child development, and obtain any other practicum and alternative certificates as determined by the commission. Commission on Teacher Credentialing.

(3)

(2) Complete all of the requirements established by the commission Commission on Teacher Credentialing to obtain a teacher permit for employment in a licensed preschool program.

(4)

(3) Complete one year of classroom instruction in the licensed preschool or child development program for each year that the applicant receives assistance for books, fees, tuition, and other eligible expenses while attending an institution of higher education under the program.

(f) The commission department shall determine the level of state assistance for participants based on an analysis of the cost of tuition, books, and fees for obtaining the qualifications listed in subdivision (e).

SEC. 9.

 Section 8499.8 is added to the Education Code, to read:

8499.8.

 (a) On or before May 30, 2020, upon approval by the county board of supervisors and the county superintendent of schools, a local planning council shall submit to the department a plan for expanding state preschool based on the enrollment priorities described in Section 8236.3. The plan shall be developed in consultation with stakeholders within the county, including, but not limited to, local First 5 agencies, alternative payment programs, resource and referral agencies, Head Start grantees, and preschool and childcare providers. The plan shall include the following components:

(1) A phase-in period of four years for serving additional children who are eligible under Section 8236.3, including the additional slots needed each year and identifying the distribution of additional slots between existing and new local educational agencies and community based providers.

(2) A special emphasis on the steps required to serve all four-year-old children within the attendance boundary of a public school where at least 70 percent of enrolled pupils are eligible for free or reduced-price meals, as identified in Section 8236.3, as well as all three-year-old children in poverty, as defined by the California Poverty Measure.

(3) An analysis of the need for additional facilities and associated costs.

(b) The Superintendent shall consider the plans submitted pursuant to this section in determining the disbursement of augmentations to the base allocation for the expansion of childcare and development programs, as described in Section 8279.3.

(c) Except as otherwise required by subdivision (c) of Section 8236, the department shall allocate funding within each county in accordance with the priorities identified by the local planning council of that county and submitted to the department pursuant to this section, unless the priorities do not meet the requirements of state or federal law.

(d) It is the intent of the Legislature to provide sufficient funding to local planning councils to undertake the additional planning required by this section.

SEC. 10.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 2013–14 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 2013–14 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 district’s or charter school’s 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 2013–14 fiscal year, divide the sum of unduplicated pupils for the 2013–14 fiscal year by the sum of the total pupil enrollment for the 2013–14 fiscal year.

(B)For the 2014–15 fiscal year, divide the sum of unduplicated pupils for the 2013–14 and 2014–15 fiscal years by the sum of the total pupil enrollment for the 2013–14 and 2014–15 fiscal years.

(C)For the 2015–16 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 district’s or charter school’s enrollment of unduplicated pupils and total pupil enrollment in the 2014–15 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 2013–14 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 school’s enrollment of unduplicated pupils for the 2013–14 and 2014–15 fiscal years and provide one-time funding, if necessary, for a school district or charter school with higher enrollment of unduplicated pupils in the 2014–15 fiscal year as compared to the 2013–14 fiscal year.

(6)The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This paragraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.

(c)Commencing with the 2013–14 fiscal year and each fiscal year thereafter, the Superintendent shall annually calculate a local control funding formula grant for each school district and charter school in the state pursuant to this section.

(d)The Superintendent shall compute a grade span adjusted base grant equal to the total of the following amounts:

(1)For the 2013–14 fiscal year, a base grant of:

(A)Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.

(B)Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.

(C)Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.

(D)Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.

(2)In each year the grade span adjusted base grants in paragraph (1) shall be adjusted by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, as reported by the Department of Finance.

(3)(A)(i)The Superintendent shall compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant as adjusted for inflation pursuant to paragraph (2) equal to 10.4 percent. The additional grant shall be calculated by multiplying the kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by paragraph (2), by 10.4 percent.

(ii)(I)In addition to the adjustment computed pursuant to clause (i), the Superintendent shall compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant as adjusted for inflation pursuant to paragraph (2) that is equal to 27.6 percent for each transitional kindergarten pupil, as described in subdivision (c) of Section 48000, who is enrolled in the school district or charter school. The additional grant shall be calculated by multiplying the kindergarten and grades 1 to 3, inclusive, base grant as adjusted by paragraph (2), by 27.6 percent for each transitional kindergarten pupil only.

(II)As a condition of receiving the additional adjustment pursuant to subclause (I), a school district or charter school shall operate an extended-day transitional kindergarten class with enrollment of not more than 24 pupils for each schoolsite and shall maintain an average of one adult for every 12 pupils with at least one credentialed teacher in the classroom.

(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 district’s average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the prior year. For the 2013–14 fiscal year, this amount shall be the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the 2012–13 fiscal year.

(ii)Determine a school district’s 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 2012–13 fiscal year, shall be exempt from the requirements of subparagraph (B) so long as the school district continues to maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils, unless a collectively bargained alternative ratio is agreed to by the school district.

(D)Upon full implementation of the local control funding formula, as a condition of the receipt of funds in this paragraph, all school districts shall maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative ratio is agreed to by the school district.

(E)The average class enrollment requirement for each schoolsite for kindergarten and grades 1 to 3, inclusive, established pursuant to this paragraph shall not be subject to waiver by the state board pursuant to Section 33050 or by the Superintendent.

(F)The Controller shall include the instructions necessary to enforce this paragraph in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, exceeds 24 pupils, or an alternative average class enrollment for each schoolsite pursuant to a collectively bargained alternative ratio. The procedures for determining average class enrollment for each schoolsite shall include criteria for employing sampling.

(4)The Superintendent shall compute an additional adjustment to the base grant for grades 9 to 12, inclusive, as adjusted for inflation pursuant to paragraph (2), equal to 2.6 percent. The additional grant shall be calculated by multiplying the base grant for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6 percent.

(e)The Superintendent shall compute a supplemental grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school district’s or charter school’s 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), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in that school district or charter school. The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.

(f)(1)The Superintendent shall compute a concentration grant add-on equal to 50 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school district’s or charter school’s percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district’s or charter school’s total enrollment. The concentration grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 50 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the total enrollment in that school district or charter school.

(2)(A)For a charter school physically located in only one school district, the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district in which the charter school is physically located. For a charter school physically located in more than one school district, the charter school’s 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 department’s determination of physical location. For a charter school authorized on appeal pursuant to subdivision (j) of Section 47605, the department shall include the sponsoring school district in the department’s determination of physical location. The reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year. For purposes of this paragraph, the percentage of unduplicated pupils of the school district associated with the charter school pursuant to subparagraph (A) shall be considered final as of the second principal apportionment for that fiscal year.

(g)The Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s 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 2012–13 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 2012–13 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h)(1)The Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s 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 2012–13 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 2012–13 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 2012–13 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 agency’s 2012–13 fiscal year entitlement to the member local educational agency. Commencing with the 2015–16 fiscal year, the Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s 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.

(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 district’s or charter school’s amount determined in subdivisions (g) to (i), inclusive, pursuant to the calculation specified in Section 42238.03, less the sum of the following:

(1)(A)For school districts, the property tax revenue received pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code.

(B)For charter schools, the in-lieu property tax amount provided to a charter school pursuant to Section 47635.

(2)The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code.

(3)The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 of the Government Code.

(4)Prior years’ taxes and taxes on the unsecured roll.

(5)Fifty percent of the amount received pursuant to Section 41603.

(6)The amount, if any, received pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), less any amount received pursuant to Section 33401 or 33676 of the Health and Safety Code that is used for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance and that is not an amount received pursuant to Section 33492.15, or paragraph (4) of subdivision (a) of Section 33607.5, or Section 33607.7 of the Health and Safety Code that is allocated exclusively for educational facilities.

(7)The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.

(8)Revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.

(k)A school district shall annually transfer to each of its charter schools funding in lieu of property taxes pursuant to Section 47635.

(l)(1)Nothing in this section shall be interpreted to authorize a school district that receives funding on behalf of a charter school pursuant to Section 47651 to redirect this funding for another purpose unless otherwise authorized in law pursuant to paragraph (2) or pursuant to an agreement between the charter school and its chartering authority.

(2)A school district that received funding on behalf of a locally funded charter school in the 2012–13 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 2012–13 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 2012–13 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 2012–13 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 2013–14 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 2012–13 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 be made exclusive of the revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.

(n)The funds apportioned pursuant to this section and Section 42238.03 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 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. 11.SEC. 10.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.