Bill Text: CA AB851 | 2009-2010 | Regular Session | Chaptered


Bill Title: Education finance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 374, Statutes of 2009. [AB851 Detail]

Download: California-2009-AB851-Chaptered.html
BILL NUMBER: AB 851	CHAPTERED
	BILL TEXT

	CHAPTER  374
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2009
	APPROVED BY GOVERNOR  OCTOBER 11, 2009
	PASSED THE SENATE  SEPTEMBER 4, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2009
	AMENDED IN SENATE  SEPTEMBER 2, 2009
	AMENDED IN SENATE  JULY 15, 2009

INTRODUCED BY   Assembly Member Brownley

                        FEBRUARY 26, 2009

   An act to amend Section 42238 of, to amend and repeal Sections
42238.21, 42238.22, and 42241.2 of, to amend, repeal, and add
Sections 45023.1 and 45023.4 of, and to add Section 42238.485 to, the
Education Code, relating to education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 851, Brownley. Education finance.
   (1) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county
pursuant to a specified formula based on the base revenue limit of
the school district for the prior year, adjusted for inflation, and
the average daily attendance for the entire school district.
   This bill would require the base revenue limit for each school
district for the 2011-12 fiscal year to include an adjustment
computed as specified.
   The bill would require the Superintendent of Public Instruction to
calculate an add-on for each school district, as specified. The bill
would require the Superintendent to calculate and apportion for each
basic aid district, as defined, an amount equal to the amount
computed pursuant to the provision referenced in (4) below.
   (2) Existing law specifies that the revenue limit for the
Newport-Mesa Unified School District will not include certain amounts
that were not received by the district due to bankruptcy proceedings
initiated by the County of Orange.
   This bill would provide that these provisions would remain in
effect only until July 1, 2010.
   (3) Existing law creates the Santa Cruz High School attendance
area, a program for middle school options to eliminate revenue limit
inequities.
   This bill would provide that these provisions would remain in
effect only until July 1, 2010.
   (4) Under existing law, in the computation of its revenue limit
for the current fiscal year, a school district may add the amount
computed in the preceding fiscal year for the Meals for Needy Pupils
program.
   This bill would provide that these provisions would remain in
effect only until July 1, 2010.
   (5) Existing law provides a revenue limit adjustment for a school
district or county office of education that offers a minimum
beginning teacher salary.
   This bill would recast and revise these provisions to generally
delete their application to school districts as of July 1, 2010.
   (6) Existing law establishes the Jack O'Connell Beginning-Teacher
Salary Incentive Program, under which a county superintendent of
schools, or the county board of education, may increase the salary
for certain teachers on its adopted certificated employee salary
schedule, as specified. If a school district elects to meet specified
requirements, it is eligible to receive an incentive amount.
   This bill would recast and revise these provisions to generally
delete their application to school districts as of July 1, 2010.



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

  SECTION 1.  (a) It is the intent of the Legislature to accomplish
all of the following:
   (1) Address continuing concerns regarding the fragmentation of
funding sources and the need for flexibility in order to allow local
responses to the special needs of all pupils.
   (2) Reduce the extensive amount of state and school district
administrative work required for the apportionment of general purpose
funds.
   (3) Increase the transparency of the school funding system for the
educational community, policymakers, and parents.
   (4) Simplify the state's education funding system.
   (b) It is the intent of the Legislature to accomplish the goals
set forth in subdivision (a) by doing all of the following:
   (1) Consolidating historical revenue limit adjustments that are
free of state-imposed restrictions or conditions, or in which all
school districts participate, into the calculation of the total
revenue limit amount to be apportioned to each school district
pursuant to Section 42238.
   (2) Continuing to examine opportunities to consolidate school
funding and provide expenditure flexibility to school districts.
  SEC. 2.  Section 42238 of the Education Code is amended to read:
   42238.  (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
   (b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
   (1) The inflation adjustment specified in Section 42238.1.
   (2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
   (3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
   (4) For the 1985-86 fiscal year, the amount received per unit of
average daily attendance in the 1984-85 fiscal year pursuant to
Section 42238.7.
   (5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
   (6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
   (7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
   (8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
   (c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
   (B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
   (2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5
    by the total adjustments in funding for each district made for
the 2007-08 fiscal year pursuant to Section 42238.22 as it read on
January 1, 2009.
   (d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
   (e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
   (f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
   (g) The reduction required by subdivision (f) shall be calculated
as follows:
   (1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
   (2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
   (A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
   (B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
   (3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
   (A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
   (B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
   (4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
   (h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
   (1) The district's property tax revenue received pursuant to
Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with
Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation
Code.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 1 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) 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), except for 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, except for any amount
received pursuant to Section 33492.15 of, paragraph (4) of
subdivision (a) of Section 33607.5 of, or Section 33607.7 of, the
Health and Safety Code that is allocated exclusively for educational
facilities.
   (7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the district is the sponsoring local educational agency, as defined
in Section 47632, and who reside in and would otherwise have been
eligible to attend a noncharter school of the district.
   (i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving district receiving a revenue limit apportionment for those
pupils that exceeds 105 percent of the statewide average revenue
limit for the type and size of the receiving school district.
  SEC. 3.  Section 42238.21 of the Education Code is amended to read:

   42238.21.  (a) Notwithstanding any other provision of law, for the
purposes of this article, the revenue limit for the Newport-Mesa
Unified School District for the 1996-97 fiscal year, and future
fiscal years, shall not include any amounts that should have been
allocated to the Newport-Mesa Unified School District in the 1994-95
fiscal year but that were not received by the district until the
1996-97 fiscal year, and future fiscal years, due to the bankruptcy
proceedings initiated on December 6, 1994, by the County of Orange by
its filing of a voluntary Chapter 9 petition in United States
Bankruptcy Court, Case No. SA 94-22273-JR. These amounts shall not be
included in the revenue limit computations for the 1996-97 fiscal
year, and future fiscal years, but these amounts shall be treated as
being received by the Newport-Mesa Unified School District in the
1994-95 fiscal year, the 1995-96 fiscal year, or both.
   (b) This section shall remain in effect only until July 1, 2010,
and, as of January 1, 2011, is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 4.  Section 42238.22 of the Education Code is amended to read:

   42238.22.  (a) There is hereby created in the Santa Cruz High
School attendance area, a program for middle school options to
eliminate revenue limit inequities in the per-pupil funding for
instructional programs for pupils in grades 7 and 8. Participation is
limited to the Santa Cruz High School District, the Live Oak
Elementary School District, and the Soquel Union Elementary School
District. The purpose of the program is to encourage and enable these
elementary school districts in this attendance area to continue
providing a middle school program, in addition to the junior high
school program operated by the high school district, thereby
increasing enrollment options for all pupils in grades 7 and 8.
   (b) In order for these elementary school districts to receive an
addition to the revenue limit pursuant to subdivision (g), these
districts shall do all of the following:
   (1) Continue to participate in a consortium with the Santa Cruz
High School District.
   (2) At a minimum, all pupils in grades 7 and 8 in the
participating districts shall be provided with the option to enroll
in either a middle school operated by the elementary school district
or a junior high school operated by the high school district.
   (3) Provide evidence to the Superintendent that the amount
computed and allocated pursuant to subdivision (g) will be used only
for pupils in grades 7 and 8.
   (c) Participation by the districts in the consortium shall be
voluntary.
   (d) For purposes of this section, the following definitions shall
apply:
   (1) "Junior high school program" means a departmentalized program
in which pupils in grades 7, 8, and 9 select classes based on subject
and move from classroom to classroom during the schoolday.
   (2) "Middle school program" means a program in which teachers
teach a common core curriculum to the same group of pupils in grades
6, 7, and 8, and provide a transition from self-contained classroom
education at the elementary level to subject-oriented,
departmentalized classrooms at the high school level.
   (e) A school district shall not deny a request for enrollment made
pursuant to this section unless space is not available in the
selected school or unless the choice would have a negative impact on
an existing desegregation plan.
   (f) The average daily attendance of pupils participating in the
enrollment option pursuant to this section and attending the
elementary school districts shall be credited to the elementary
school district of residence for purposes of determining state
apportionments and revenue limits. The average daily attendance of
pupils attending the high school district shall be credited to the
Santa Cruz High School District.
   (g) For the 1990-91 fiscal year for the Live Oak Elementary School
District and each fiscal year thereafter, and for the 1991-92 fiscal
year for the Soquel Union Elementary School District and each fiscal
year thereafter, the Superintendent shall compute and allocate an
amount in addition to the revenue limit for each elementary school
district participating in the consortium, equal to the following:
   (1) Calculate the average of the base revenue limits per unit of
average daily attendance of the districts participating in the
consortium.
   (2) From the average base revenue limit calculated in paragraph
(1), subtract the base revenue limit of the elementary school
district per unit of average daily attendance.
   (3) If the result in paragraph (2) is a positive number, then
multiply the result in paragraph (2) by the average daily attendance
of the elementary school district in grades 7 and 8. That amount
shall be added to the total revenue limit computed for that district.
If the result in paragraph (2) is zero, or less than zero, then no
adjustment shall be computed for the district.
   (h) If the elementary school district ceases to participate in the
consortium, the adjustment computed in this section shall no longer
be provided to that district.
   (i) This section shall remain in effect only until July 1, 2010,
and, as of January 1, 2011, is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 5.  Section 42238.485 is added to the Education Code, to read:

   42238.485.  (a) For the 2010-11 fiscal year, the Superintendent
shall compute an adjustment for each school district by dividing each
school district's 2007-08 fiscal year average daily attendance into
the sum of the following:
   (1) Funding for Meals for Needy Pupils programs received by the
school district for the 2007-08 fiscal year pursuant to Section
42241.2, as it read on January 1, 2009.
   (2) Funding incentives to increase beginning teachers' salaries
received by the school district for the 2007-08 fiscal year pursuant
to Sections 45023.1 and 45023.4, as those sections read on January 1,
2009.
   (b) For purposes of this section, average daily attendance shall
be computed pursuant to Section 42238.5.
   (c) Notwithstanding any other provision of this section, no
funding specified in this section shall be added to the adjustment
computed pursuant to subdivision (a) if that funding is currently
included in a school district's base revenue limit calculated
pursuant to Section 42238.
  SEC. 6.  Section 42241.2 of the Education Code is amended to read:
   42241.2.  (a) A school district may add, in the computation of the
district's revenue limit pursuant to Section 42238 for the current
fiscal year, the amount computed in the preceding fiscal year for
Meals for Needy Pupils programs (Article 11 (commencing with Section
49550) of Chapter 9 of Part 27 of Division 4) multiplied by 1.06,
except that, commencing with the 1990-91 fiscal year, that amount
instead shall be multiplied by the sum of 1 plus the percentage
change determined pursuant to subdivision (b) of Section 42238.1.
   (b) This section shall remain in effect only until July 1, 2010,
and, as of January 1, 2011, is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 7.  Section 45023.1 of the Education Code is amended to read:
   45023.1.  (a) Commencing with the 2000-01 fiscal year, the
governing board of a school district, the county superintendent of
schools, or the county board of education may increase, for teachers
meeting the requirements prescribed by this section, the salary on
its adopted certificated employee salary schedule as provided in
subdivision (b). For purposes of this section, a teacher for whom the
governing board, county superintendent of schools, or county board
of education may increase salaries shall meet all of the following
criteria:
   (1) Hold a valid California teaching credential, not including an
emergency permit, intern certificate or credential, or waiver.
   (2) Possess a baccalaureate or higher degree.
   (3) Receive a salary paid through the general fund of the district
or county office.
   (b) The governing board, county superintendent of schools, or
county board of education that increases its salaries pursuant to
subdivision (a) shall perform the following computations:
   (1) The governing board, county superintendent of schools, or
county board of education shall designate as the lowest salary on the
salary schedule for a certificated employee meeting the criteria in
subdivision (a) an amount that is at least an annual salary of
thirty-four thousand dollars ($34,000) in the 2000-01 fiscal year.
   (2) The governing board, county superintendent of schools, or
county board of education shall increase to the annual salary amount
in paragraph (1) the salary of any certificated employee meeting the
criteria in subdivision (a) whose salary on the salary schedule for
the 1999-2000 fiscal year was less than the amount computed in
paragraph (1) and, notwithstanding Section 45028, shall incorporate
that increase into the salary schedule commencing with the 2000-01
fiscal year.
   (c) Each school district or county office of education that
increases its beginning teacher annual minimum salary to thirty-four
thousand dollars ($34,000) pursuant to subdivision (b) shall elect,
except as provided in subdivision (j), to receive reimbursement for
the cost of the increase pursuant to only one of the following two
options:
   (1) Option One:
   (A) In fiscal year 2000-01, a school district, county
superintendent of schools, or county office of education that
increases salaries pursuant to paragraph (2) of subdivision (b) and
selects reimbursement Option One shall receive an amount equal to six
dollars ($6) times the district's or county office's second
principal apportionment average daily attendance for the 1999-2000
fiscal year, excluding attendance in adult education programs and
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (B) Divide the amount received from the state pursuant to
subparagraph (A) for the 2000-01 fiscal year by the school district
or county office of education second principal apportionment average
daily attendance for the 1999-2000 fiscal year, excluding attendance
in adult education programs and charter schools participating in the
charter school block grant pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4.
   (C) For the 2001-02 fiscal year and each fiscal year thereafter,
for each school district that increases its salaries pursuant to
subdivision (a), the Superintendent shall sum the results of clauses
(i) and (ii) and add that figure to the total school district revenue
limit computed pursuant to Section 42238:
   (i) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
pursuant to subdivision (b) of Section 42238.1 and multiply the
resulting product by the school district's second principal
apportionment average daily attendance for the current fiscal year
excluding attendance in regional occupational centers/programs, adult
education programs, and charter schools participating in the charter
school block grant pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
pursuant to subdivision (b) of Section 42238.1 and multiply the
resulting product by the school district's second principal
apportionment average daily attendance for the current fiscal year in
regional occupational centers/programs excluding attendance in
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (D) For the 2001-02 fiscal year and each fiscal year thereafter,
for each county office of education that increases its salaries
pursuant to subdivision (a), the Superintendent shall add the sum of
clauses (i) and (ii) to the county office of education revenue limit
computed pursuant to Section 2550:
   (i) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
identified pursuant to Section 2557 and multiply the resulting
product by the county office of education's second principal
apportionment average daily attendance for the current fiscal year
excluding attendance in regional occupational centers/programs, adult
education programs, and charter schools participating in the charter
school block grant pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
identified pursuant to Section 2557 and multiply the resulting
product by the county office of education's second principal
apportionment average daily attendance for the current fiscal year in
regional occupational centers/programs excluding attendance in
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (E) The school district, county superintendent of schools, or
county office of education shall utilize these incentive funds not
only to meet the new beginning teacher annual minimum salary of
thirty-four thousand dollars ($34,000), but may also use the funds to
generally enhance teachers' salaries in order to achieve the goals
of retention of qualified, competent, and experienced teachers and
the attainment of a reasonable salary commensurate with a teacher's
experience, education, and responsibilities.
   (2) Option Two: A school district, county superintendent of
schools, or county office of education may submit a request to the
Superintendent, on a form supplied by the Superintendent, for state
funding computed as follows:
   (A) Total the salaries of all certificated employees receiving
increased salaries up to a maximum of thirty-four thousand dollars
($34,000) per person pursuant to subdivision (b) for the 2000-01
fiscal year.
   (B) Total all salaries, based on the salary schedule for the
2000-01 fiscal year before the increase made pursuant to subdivision
(b), of all certificated employees receiving increased salaries
pursuant to subdivision (b).
   (C) Subtract the amount in subparagraph (B) from the amount in
subparagraph (A).
   (D) Multiply the amount in subparagraph (C) by the district's
statutory benefit rates.
   (E) For the 2000-01 fiscal year, a school district, county
superintendent of schools, or county office of education that
increases salaries pursuant to paragraph (2) of subdivision (b) and
selects reimbursement Option Two shall receive the sum of
subparagraphs (C) and (D).
   (F) Divide the sum of the amounts received pursuant to
subparagraphs (C) and (D) for the 2000-01 fiscal year by the school
district and county office of education average daily attendance for
the second principal apportionment for the 2000-01 fiscal year,
excluding attendance in adult education programs and charter schools
participating in the charter school block grant pursuant to Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of
Division 4.
   (G) For the 2001-02 fiscal year and each fiscal year thereafter,
for each school district that increases its salaries pursuant to
subdivision (a), the Superintendent shall sum the results of clauses
(i) and (ii) and add that figure to the total school district revenue
limit computed pursuant to Section 42238:
   (i) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase pursuant to subdivision (b) of Section 42238.1 and multiply
the resulting product by the school district's second principal
apportionment average daily attendance for the current fiscal year
excluding attendance in regional occupational centers/programs, adult
education programs, and charter schools participating in the charter
school block grant pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase pursuant to subdivision (b) of Section 42238.1 and multiply
the resulting product by the school district's second principal
apportionment average daily attendance for the current fiscal year in
regional occupational centers/programs excluding attendance in
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (H) For the 2001-02 fiscal year and each fiscal year thereafter,
for each county office of education that increases its salaries
subdivision (a), the Superintendent shall add the sum of clauses (i)
and (ii) to the county office of education revenue limit computed
pursuant to Section 2550:
   (i) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase identified pursuant to Section 2557 and multiply the
resulting product by the county office of education's second
principal apportionment average daily attendance for the current
fiscal year excluding attendance in regional occupational
centers/programs, adult education programs, and charter schools
participating in the charter school block grant pursuant to Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of
Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase identified pursuant to Section 2557 and multiply the
resulting product by the county office of education's second
principal apportionment average daily attendance for the current
fiscal year in regional occupational centers/programs excluding
                                       attendance in charter schools
participating in the charter school block grant pursuant to Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of
Division 4.
   (3) For purposes of the calculation required by clause (ii) of
subparagraph (C) of paragraph (1), clause (ii) of subparagraph (D) of
paragraph (1), clause (ii) of subparagraph (G) of paragraph (2), and
clause (ii) of subparagraph (H) of paragraph (2), in the 2008-09,
2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, a school
district's and county office of education's second principal
apportionment average daily attendance for the current fiscal year
shall be the second principal apportionment average daily attendance
for the 2007-08 fiscal year.
   (d) State funds received pursuant to this section and not used
pursuant to the conditions of this section shall be returned to the
state.
   (e) If the funds requested by the school districts, the county
superintendents of schools, and the county offices of education for
the 2000-01 fiscal year exceed the state appropriation for this
section, the Superintendent shall reduce all requests by the
application of a single, common percentage factor for apportionment
purposes, so as not to exceed the amount appropriated for this
purpose.
   (f) A school district or county office of education shall receive
reimbursement pursuant to subdivision (c) only. However, this section
does not prohibit a school district and its employees from
negotiating salary schedules.
   (g) The adjustments to school district and county office of
education revenue limits prescribed in subparagraphs (C) and (D) of
paragraph (1) of subdivision (c) and subparagraphs (G) and (H) of
paragraph (2) of subdivision (c), respectively, shall continue so
long as the increase in the salary schedule made pursuant to
paragraph (2) of subdivision (b) or subdivision (i) is maintained.
   (h) The Superintendent shall issue appropriate forms to school
districts and county offices of education no later than September 1,
2000. School districts, county superintendents of schools, or county
offices of education shall notify the Superintendent no later than
September 30, 2001, regarding which option they wish to exercise for
the 2000-01 fiscal year. School districts, county superintendents of
schools, or county offices of education shall file their claim form
for state funds with the Superintendent no later than September 30,
2001.
   (i) Adjustments made to school district or county office of
education revenue limits pursuant to subparagraphs (C) and (D) of
paragraph (1) of subdivision (c) and subparagraphs (G) and (H) of
paragraph (2) of subdivision (c), respectively, shall not be
considered part of the base revenue limit for the purpose of
computing equalization adjustments or determining other
wealth-related differences in school funding.
   (j) Notwithstanding subdivision (c), a school district or county
office of education that already has as the annual minimum salary for
beginning teachers who meet the criteria in subdivision (a) an
amount equal to or greater than thirty-four thousand dollars
($34,000) shall be eligible to receive reimbursement pursuant to
Option One.
   (k) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2011, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 8.  Section 45023.1 is added to the Education Code, to read:
   45023.1.  (a) Commencing with the 2000-01 fiscal year, the county
superintendent of schools or the county board of education may
increase, for teachers meeting the requirements prescribed by this
section, the salary on its adopted certificated employee salary
schedule as provided in subdivision (b). For purposes of this
section, a teacher for whom the county superintendent of schools or
county board of education may increase salaries shall meet all of the
following criteria:
   (1) Hold a valid California teaching credential, not including an
emergency permit, intern certificate or credential, or waiver.
   (2) Possess a baccalaureate or higher degree.
   (3) Receive a salary paid through the general fund of the county
office.
   (b) The county superintendent of schools or county board of
education that increases its salaries pursuant to subdivision (a)
shall perform the following computations:
   (1) The county superintendent of schools or county board of
education shall designate as the lowest salary on the salary schedule
for a certificated employee meeting the criteria in subdivision (a)
an amount that is at least an annual salary of thirty-four thousand
dollars ($34,000) in the 2000-01 fiscal year.
   (2) The county superintendent of schools or county board of
education shall increase to the annual salary amount in paragraph (1)
the salary of any certificated employee meeting the criteria in
subdivision (a) whose salary on the salary schedule for the 1999-2000
fiscal year was less than the amount computed in paragraph (1) and,
notwithstanding Section 45028, shall incorporate that increase into
the salary schedule commencing with the 2000-01 fiscal year.
   (c) Each county office of education that increases its beginning
teacher annual minimum salary to thirty-four thousand dollars
($34,000) pursuant to subdivision (b) shall elect, except as provided
in subdivision (j), to receive reimbursement for the cost of the
increase pursuant to only one of the following two options:
   (1) Option One:
   (A) In fiscal year 2000-01, a county superintendent of schools or
county office of education that increases salaries pursuant to
paragraph (2) of subdivision (b) and selects reimbursement Option One
shall receive an amount equal to six dollars ($6) times the county
office's second principal apportionment average daily attendance for
the 1999-2000 fiscal year, excluding attendance in adult education
programs and charter schools participating in the charter school
block grant pursuant to Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4.
   (B) Divide the amount received from the state pursuant to
subparagraph (A) for the 2000-01 fiscal year by the county office of
education's second principal apportionment average daily attendance
for the 1999-2000 fiscal year, excluding attendance in adult
education programs and charter schools participating in the charter
school block grant pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4.
   (C) For the 2001-02 fiscal year and each fiscal year thereafter,
for each county office of education that increases its salaries
pursuant to subdivision (a), the Superintendent shall add the sum of
clauses (i) and (ii) to the county office of education revenue limit
computed pursuant to Section 2550:
   (i) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
identified pursuant to Section 2557 and multiply the resulting
product by the county office of education's second principal
apportionment average daily attendance for the current fiscal year
excluding attendance in regional occupational centers/programs, adult
education programs, and charter schools participating in the charter
school block grant pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance specified in subparagraph (B) by the percentage increase
identified pursuant to Section 2557 and multiply the resulting
product by the county office of education's second principal
apportionment average daily attendance for the current fiscal year in
regional occupational centers/programs excluding attendance in
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (D) The county superintendent of schools or county office of
education shall utilize these incentive funds not only to meet the
new beginning teacher annual minimum salary of thirty-four thousand
dollars ($34,000), but may also use the funds to generally enhance
teachers' salaries in order to achieve the goals of retention of
qualified, competent, and experienced teachers and the attainment of
a reasonable salary commensurate with a teacher's experience,
education, and responsibilities.
   (2) Option Two: A county superintendent of schools or county
office of education may submit a request to the Superintendent, on a
form supplied by the Superintendent, for state funding computed as
follows:
   (A) Total the salaries of all certificated employees receiving
increased salaries up to a maximum of thirty-four thousand dollars
($34,000) per person pursuant to subdivision (b) for the 2000-01
fiscal year.
   (B) Total all salaries, based on the salary schedule for the
2000-01 fiscal year before the increase made pursuant to subdivision
(b), of all certificated employees receiving increased salaries
pursuant to subdivision (b).
   (C) Subtract the amount in subparagraph (B) from the amount in
subparagraph (A).
   (D) Multiply the amount in subparagraph (C) by the district's
statutory benefit rates.
   (E) For the 2000-01 fiscal year, a county superintendent of
schools or county office of education that increases salaries
pursuant to paragraph (2) of subdivision (b) and selects
reimbursement Option Two shall receive the sum of subparagraphs (C)
and (D).
   (F) Divide the sum of the amounts received pursuant to
subparagraphs (C) and (D) for the 2000-01 fiscal year by the county
office of education average daily attendance for the second principal
apportionment for the 2000-01 fiscal year, excluding attendance in
adult education programs and charter schools participating in the
charter school block grant pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4.
   (G) For the 2001-02 fiscal year and each fiscal year thereafter,
for each county office of education that increases its salaries
pursuant to subdivision (a), the Superintendent shall add the sum of
clauses (i) and (ii) to the county office of education revenue limit
computed pursuant to Section 2550:
   (i) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase identified pursuant to Section 2557 and multiply the
resulting product by the county office of education's second
principal apportionment average daily attendance for the current
fiscal year excluding attendance in regional occupational
centers/programs, adult education programs, and charter schools
participating in the charter school block grant pursuant to Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of
Division 4.
   (ii) Annually increase the funding rate per unit of average daily
attendance calculated pursuant to subparagraph (F) by the percentage
increase identified pursuant to Section 2557 and multiply the
resulting product by the county office of education's second
principal apportionment average daily attendance for the current
fiscal year in regional occupational centers/programs excluding
attendance in charter schools participating in the charter school
block grant pursuant to Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4.
   (3) For purposes of the calculation required by clause (ii) of
subparagraph (C) of paragraph (1) and clause (ii) of subparagraph (G)
of paragraph (2), in the 2008-09, 2009-10, 2010-11, 2011-12, and
2012-13 fiscal years, a county office of education's second principal
apportionment average daily attendance for the current fiscal year
shall be the second principal apportionment average daily attendance
for the 2007-08 fiscal year.
   (d)  State funds received pursuant to this section and not used
pursuant to the conditions of this section shall be returned to the
state.
   (e) If the funds requested by the county superintendents of
schools and the county offices of education for the 2000-01 fiscal
year exceed the state appropriation for this section, the
Superintendent shall reduce all requests by the application of a
single, common percentage factor for apportionment purposes, so as
not to exceed the amount appropriated for this purpose.
   (f) A county office of education shall receive reimbursement
pursuant to subdivision (c) only. However, this section does not
prohibit a school district and its employees from negotiating salary
schedules.
   (g) The adjustments to county office of education revenue limits
prescribed in subparagraph (C) of paragraph (1) of subdivision (c)
and subparagraph (G) of paragraph (2) of subdivision (c) shall
continue so long as the increase in the salary schedule made pursuant
to paragraph (2) of subdivision (b) or subdivision (i) is
maintained.
   (h) The Superintendent shall issue appropriate forms to county
offices of education no later than September 1, 2000. County
superintendents of schools or county offices of education shall
notify the Superintendent no later than September 30, 2001, regarding
which option they wish to exercise for the 2000-01 fiscal year.
County superintendents of schools or county offices of education
shall file their claim form for state funds with the Superintendent
no later than September 30, 2001.
   (i) Adjustments made to county office of education revenue limits
pursuant to subparagraph (C) of paragraph (1) of subdivision (c) and
subparagraph (G) of paragraph (2) of subdivision (c) shall not be
considered part of the base revenue limit for the purpose of
computing equalization adjustments or determining other
wealth-related differences in school funding.
   (j) Notwithstanding subdivision (c), a county office of education
that already has as the annual minimum salary for beginning teachers
who meet the criteria in subdivision (a) an amount equal to or
greater than thirty-four thousand dollars ($34,000) shall be eligible
to receive reimbursement pursuant to Option One.
   (k) This section shall become operative on July 1, 2010.
  SEC. 9.  Section 45023.4 of the Education Code is amended to read:
   45023.4.  (a) This section shall be known, and may be cited, as
the Jack O'Connell Beginning-Teacher Salary Incentive Program.
Commencing in the 1999-2000 fiscal year the governing board of a
school district, the county superintendent of schools, or the county
board of education may increase, for teachers who meet the
requirements of this subdivision, the salary on its adopted
certificated employee salary schedule as provided in subdivision (b).
A school district that elects to meet the requirements of this
section shall be eligible to receive the incentive amount provided by
subdivision (c). For purposes of this section, a teacher for whom
the governing board, county superintendent of schools, or county
board of education may increase salaries shall meet all of the
following criteria:
   (1) Hold a valid California teaching credential, not including an
emergency permit, intern permit, or waiver.
   (2) Possess a baccalaureate or higher degree.
   (3) Receive a salary paid from the general fund of the district or
county office.
   (b) The governing board, county superintendent of schools, or
county board of education that elects to increase teachers' salaries
as authorized pursuant to subdivision (a) shall perform the following
computations:
   (1) The governing board, county superintendent of schools, or
county board of education shall designate as the lowest salary on the
salary schedule for a certificated employee meeting or exceeding the
criteria in subdivision (a) an amount equal to a minimum annual
salary of thirty-two thousand dollars ($32,000). If this salary
change results in costs to the school district or county office of
education that are equal to or greater than the incentive received
pursuant to subdivision (c), the minimum salary shall be thirty-two
thousand dollars ($32,000). If this salary change results in costs to
the school districts or county offices of education that are less
than the incentive received, the remainder shall be used to increase
the beginning salary by an amount above thirty-two thousand dollars
($32,000) which fully applies the incentive received.
   (2) The governing board, county superintendent of schools, or
county board of education shall increase to the annual salary amount
in paragraph (1) the salary of a certificated employee meeting the
criteria in subdivision (a) whose salary on the salary schedule is
less than the amount computed in paragraph (1) and, notwithstanding
Section 45028, shall incorporate that increase into the salary
schedule.
   (3) The newly adopted salary schedule shall contain only one cell
that meets the amount set forth in paragraph (1), which most often is
the first-year step of a salary schedule column for certificated
personnel who meet the criteria set forth in subdivision (a). All
other salary schedule cells shall exceed the level set forth in
paragraph (1) for personnel that meet the criteria in subdivision
(a).
   (c) In the 1999-2000 fiscal year, the Superintendent shall divide
the amount appropriated for the purposes of this section by the
1998-99 second principal apportionment average daily attendance for
all school districts and county offices of education in the state.
Each school district and county office of education that certifies to
the Superintendent that it is in full compliance with this section
shall receive following that certification an amount equal to the
results of the calculation multiplied by the participating school
district's or county office's 1998-99 second principal apportionment
average daily attendance.
   (d) For the 2000-01 fiscal year and each fiscal year thereafter,
for each school district that meets the requirements of subdivision
(b), the Superintendent shall sum the results of paragraphs (1) and
(2) and add that figure to the total school district revenue limit
computed pursuant to Section 42238.
   (1) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase computed pursuant to subdivision (b) of
Section 42238.1 and multiply the resulting product by the school
district's second period average daily attendance for the prior
fiscal year excluding attendance in regional occupational centers and
programs, adult education programs, and charter schools
participating in the charter school block grant pursuant to Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of
Division 4.
   (2) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase computed pursuant to subdivision (b) of
Section 42238.1 and multiply the resulting product by the school
district's second period average daily attendance for the prior
fiscal year in regional occupational centers and programs, excluding
attendance in charter schools participating in the charter school
block grant pursuant to Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4.
   (3) For purposes of the calculation required by paragraph (2), in
the 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the
second period average daily attendance for the prior fiscal year
shall be the second period average daily attendance for the 2007-08
fiscal year.
   (e) For the 2000-01 fiscal year and each fiscal year thereafter,
for each county office of education that meets the requirements of
subdivision (b), the Superintendent shall add the sum of paragraphs
(1) and (2) to the county office of education revenue limit computed
pursuant to Section 2550.
   (1) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase identified pursuant to Section 2557 and
multiply the resulting product by the county office of education's
second period average daily attendance for the prior fiscal year
excluding attendance in regional occupational centers or programs,
adult education programs, and charter schools participating in the
charter school block grant pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4.
   (2) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase identified pursuant to Section 2557 and
multiply the resulting product by the county office of education's
second period average daily attendance for the prior fiscal year in
regional occupational centers or programs excluding attendance in
charter schools participating in the charter school block grant
pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of
Part 26.8 of Division 4.
   (3) For purposes of the calculation required by paragraph (2), in
the 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the
second period average daily attendance for the prior fiscal year
shall be the second period average daily attendance for the 2007-08
fiscal year.
   (f) The adjustment to the school district and county office of
education revenue limit prescribed in subdivisions (d) and (e) shall
continue so long as the increase in the salary schedule made pursuant
to paragraph (2) of subdivision (b) is maintained.
   (g) The adjustment made to school district or county office of
education revenue limits pursuant to subdivisions (d) and (e) shall
not be considered part of the base revenue limit for purposes of
computing equalization adjustments or determining other differences
in school funding that are based on the amount of funding received by
a school district or county office of education.
   (h) This section does not prohibit a school district and its
employees from negotiating salary schedules.
   (i) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2011, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 10.  Section 45023.4 is added to the Education Code, to read:
   45023.4.  (a) This section shall be known, and may be cited, as
the Jack O'Connell Beginning-Teacher Salary Incentive Program.
Commencing in the 1999-2000 fiscal year the county superintendent of
schools or the county board of education may increase, for teachers
who meet the requirements of this subdivision, the salary on its
adopted certificated employee salary schedule as provided in
subdivision (b). For purposes of this section, a teacher for whom the
county superintendent of schools or county board of education may
increase salaries shall meet all of the following criteria:
   (1) Hold a valid California teaching credential, not including an
emergency permit, intern permit, or waiver.
   (2) Possess a baccalaureate or higher degree.
   (3) Receive a salary paid from the general fund of the district or
county office.
   (b) The county superintendent of schools or county board of
education that elects to increase teachers' salaries as authorized
pursuant to subdivision (a) shall perform the following computations:

   (1) The county superintendent of schools or county board of
education shall designate as the lowest salary on the salary schedule
for a certificated employee meeting or exceeding the criteria in
subdivision (a) an amount equal to a minimum annual salary of
thirty-two thousand dollars ($32,000). If this salary change results
in costs to the county office of education that are equal to or
greater than the incentive received pursuant to subdivision (c), the
minimum salary shall be thirty-two thousand dollars ($32,000). If
this salary change results in costs to the county offices of
education that are less than the incentive received, the remainder
shall be used to increase the beginning salary by an amount above
thirty-two thousand dollars ($32,000) which fully applies the
incentive received.
   (2) The county superintendent of schools or county board of
education shall increase to the annual salary amount in paragraph (1)
the salary of a certificated employee meeting the criteria in
subdivision (a) whose salary on the salary schedule is less than the
amount computed in paragraph (1) and, notwithstanding Section 45028,
shall incorporate that increase into the salary schedule.
   (3) The newly adopted salary schedule shall contain only one cell
that meets the amount set forth in paragraph (1), which most often is
the first-year step of a salary schedule column for certificated
personnel who meet the criteria set forth in subdivision (a). All
other salary schedule cells shall exceed the level set forth in
paragraph (1) for personnel that meet the criteria in subdivision
(a).
   (c) In the 1999-2000 fiscal year, the Superintendent shall divide
the amount appropriated for the purposes of this section by the
1998-99 second principal apportionment average daily attendance for
all county offices of education in the state. Each county office of
education that certifies to the Superintendent that it is in full
compliance with this section shall receive following that
certification an amount equal to the results of the calculation
multiplied by the participating county office's 1998-99 second
principal apportionment average daily attendance.
   (d) For the 2000-01 fiscal year and each fiscal year thereafter,
for each county office of education that meets the requirements of
subdivision (b), the Superintendent shall add the sum of paragraphs
(1) and (2) to the county office of education revenue limit computed
pursuant to Section 2550.
   (1) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase identified pursuant to Section 2557 and
multiply the resulting product by the county office of education's
second period average daily attendance for the prior fiscal year
excluding attendance in regional occupational centers or programs,
adult education programs, and charter schools participating in the
charter school block grant pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4.
   (2) Annually increase the statewide average funding rate per unit
of average daily attendance calculated pursuant to subdivision (c) by
the percentage increase identified pursuant to Section 2557 and
multiply the resulting product by the county office of education's
second period average daily attendance for the prior fiscal year
                                              in regional
occupational centers or programs excluding attendance in charter
schools participating in the charter school block grant pursuant to
Article 2 (commencing with Section 47633) of Chapter 6 of Part 26.8
of Division 4.
   (3) For purposes of the calculation required by paragraph (2), in
the 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the
second period average daily attendance for the prior fiscal year
shall be the second period average daily attendance for the 2007-08
fiscal year.
   (e) The adjustment to the county office of education revenue limit
prescribed in subdivision (d) shall continue so long as the increase
in the salary schedule made pursuant to paragraph (2) of subdivision
(b) is maintained.
   (f) The adjustment made to county office of education revenue
limits pursuant to subdivision (d) shall not be considered part of
the base revenue limit for purposes of computing equalization
adjustments or determining other differences in school funding that
are based on the amount of funding received by a school district or
county office of education.
   (g) This section shall become operative on July 1, 2010.
                            
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