Bill Text: CA SB148 | 2015-2016 | Regular Session | Chaptered
Bill Title: School districts: reorganization: local control funding formula.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2015-10-02 - Chaptered by Secretary of State. Chapter 448, Statutes of 2015. [SB148 Detail]
Download: California-2015-SB148-Chaptered.html
BILL NUMBER: SB 148 CHAPTERED
BILL TEXT
CHAPTER 448
FILED WITH SECRETARY OF STATE OCTOBER 2, 2015
APPROVED BY GOVERNOR OCTOBER 2, 2015
PASSED THE SENATE SEPTEMBER 4, 2015
PASSED THE ASSEMBLY SEPTEMBER 2, 2015
AMENDED IN ASSEMBLY AUGUST 27, 2015
AMENDED IN ASSEMBLY AUGUST 17, 2015
AMENDED IN SENATE JUNE 2, 2015
AMENDED IN SENATE APRIL 7, 2015
INTRODUCED BY Senator McGuire
(Coauthor: Assembly Member O'Donnell)
JANUARY 29, 2015
An act to amend Sections 35510, 35514, 35515, 35735, and 35736 of,
to add Sections 35735.2, 35735.3, 35735.5, 35735.6, 35735.7,
35735.8, 35735.9, and 35735.10 to, to repeal and add Sections 35735.1
and 35735.4 of, and to repeal Section 35516 of, the Education Code,
relating to school districts.
LEGISLATIVE COUNSEL'S DIGEST
SB 148, McGuire. School districts: reorganization: local control
funding formula.
Existing law establishes a system of public elementary and
secondary education in this state. Under this system, school
districts throughout the state operate and maintain schools at which
they provide instruction. Existing law establishes procedures under
which new school districts may be formed by dissolving 2 or more
existing school districts of the same kind from the entire territory
of the original school districts, by forming one or more new school
districts of the same kind from all or parts of one or more existing
school districts of the same kind, or by unifying or deunifying
school districts as specified. Under existing law, new school
districts may also be formed through an action to transfer territory,
including an action to transfer all or part of an existing school
district to another existing school district.
Existing law also establishes a system of funding public
elementary and secondary education in this state. This funding system
includes, among other elements, a local control funding formula
through which funds are apportioned to school districts for
educational purposes based on the total number of pupils attending
the schools in those districts and the number of those pupils who
fall into specified categories, including English learners, pupils
eligible for free or reduced-price meals, and foster youth.
This bill would enact numerous provisions specifying computations
to determine the funding, pursuant to the local control funding
formula, of school districts that are, or proposed to be, affected by
the various types of actions that may be undertaken to reorganize
districts, as defined.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 35510 of the Education Code is amended to read:
35510. Unless the context otherwise requires, the definitions set
forth in this article govern the construction of this chapter and
Chapter 4 (commencing with Section 35700).
SEC. 2. Section 35514 of the Education Code is amended to read:
35514. As used in this chapter and in Chapter 4 (commencing with
Section 35700):
(a) "Affected district" means a district that has been, or is
proposed to be, affected by an action to reorganize pursuant to
Section 35511 or by an action to lapse a district pursuant to Section
35780.1. Affected districts include all of the following district
types:
(1) "Original district" means a district as it existed before an
action to reorganize pursuant to Section 35511 or before an action to
lapse a district pursuant to Section 35780.1. The boundaries of an
"original district" are those of the district as it existed
immediately before the action to reorganize or lapse.
(2) "Former district" means a district that has been wholly
included in another district, or has had all of its territory made
part of two or more other districts, through any action taken
pursuant to Section 35511 or through a lapse pursuant to Section
35780.1. The boundaries of a former district are those of the
district as it existed immediately before an action to reorganize or
lapse.
(3) "New district" means a district that is formed from all or
portions of one or more other districts by an action to reorganize
taken pursuant to subdivision (a) of Section 35511. A new district
does not exist before such an action.
(4) "Acquiring district" means a district that has all or portions
of one or more other districts transferred into, or lapsed into, its
boundaries pursuant to subdivision (b) of Section 35511 or Section
35780.1.
(5) "Divided district" means a district that has had a portion of
its territory become part of a new district or transferred into one
or more other districts by an action to reorganize taken pursuant to
Section 35511.
(A) The "reorganized portion of a divided district" means the
portion of the divided district's territory that becomes part of a
new district or is transferred into one or more other districts.
(B) The "remaining portion of a divided district" means the
portion of the divided district's territory that does not become part
of a new district or that is not transferred into one or more other
districts.
(6) "Reorganized district" means a district that is a "new
district," an "acquiring district," or a "divided district."
(b) "Districts" means school districts of every kind or class.
SEC. 3. Section 35515 of the Education Code is amended to read:
35515. "Component district" means an elementary school district
that is included within a high school district or an elementary
school district that is excluded from an action to unify a high
school district but that continues to feed into the high schools of
the new unified school district pursuant to subdivision (b) of
Section 35542.
SEC. 4. Section 35516 of the Education Code is repealed.
SEC. 5. Section 35735 of the Education Code is amended to read:
35735. (a) Each proposal for the reorganization of school
districts shall include a computation of the local control funding
formula entitlement determined pursuant to Section 42238.02, as
implemented by Section 42238.03, for the districts. That computation
shall be an integral part of the proposal, and shall not be
considered separately from the proposal. The funding computations for
the reorganized school districts shall be made consistent with the
calculations established in this article, and shall be based on the
current information available for each affected school district for
the second principal apportionment period for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective.
(b) The county superintendent of schools shall compute the local
control funding formula entitlement pursuant to this article for a
school district involved in an action to reorganize.
(c) (1) For a former school district that has been wholly included
in more than one new or acquiring district, the county
superintendent of schools with jurisdiction over the reorganized
school district shall compute the local control funding formula
entitlement pursuant to this article. As part of this computation,
and except as otherwise provided in this article, the county
superintendent of schools may determine both of the following:
(2) (A) The prior year funded average daily attendance as of the
second principal apportionment from each affected school district
that will be served by each reorganized school district.
(B) Consistent with paragraph (1), the division of all of the
following types of funding attributed to a former district when all
of the territory of that former district is made part of two or more
new or acquiring districts:
(i) Categorical program funding provided pursuant to subdivisions
(g) and (h) of Section 42238.02, paragraph (2) of subdivision (a) of
Section 42238.03, and subdivision (e) of Section 42238.03.
(ii) Economic recovery target payments computed pursuant to
paragraph (2) of subdivision (d) of Section 42238.025.
(iii) Necessary small school allowances provided for minimum state
aid pursuant to subparagraph (D) of paragraph (1) of subdivision (e)
of Section 42238.03, except that in no case shall the allowance
attributed to a single necessary small elementary or necessary small
high school be divided among more than one new or acquiring district.
(3) The funding calculated pursuant to this subdivision shall be
incorporated by the Superintendent into the new or acquiring district'
s calculations as if it were a former district that is wholly
included in the new district, provided that the required information
is submitted to the Superintendent within the timeframe established
by the Superintendent. If the county superintendent of schools does
not provide all of the information in paragraphs (1) and (2), the
funding shall not be included in the new or acquiring district's
calculations.
(d) For all actions to reorganize, except for those actions
approved pursuant to subdivision (b) of Section 35710, or appealed
pursuant to subdivision (c) of Section 35710, Section 35710.5, or
Section 35711, the Superintendent shall compute the local control
funding formula entitlement for a reorganized school district
pursuant to Section 42238.02, as implemented by Section 42238.03.
(e) The Superintendent may make adjustments to the local control
funding formula entitlements computed pursuant to subdivisions (b)
and (c), if those adjustments are necessary to cause those
entitlements to be consistent with this article.
(f) For purposes of this article, a lapse pursuant to Section
35780.1 shall be considered an action to reorganize pursuant to
subdivision (b) of Section 35511.
(g) Any costs incurred by the county superintendent of schools in
preparing reports pursuant to this section or Sections 35735.1 to
35735.9, inclusive, may be billed to the affected school districts on
a proportionate basis.
SEC. 6. Section 35735.1 of the Education Code is repealed.
SEC. 7. Section 35735.1 is added to the Education Code, to read:
35735.1. For purposes of paragraph (5) of subdivision (b) of
Section 42238.02, reorganized districts shall have their percentages
of unduplicated pupils calculated as follows:
(a) (1) For a new district in the first fiscal year of operation,
include only the current fiscal year unduplicated pupil and
enrollment counts used to establish the current fiscal year
percentage.
(2) For a new district in the second fiscal year of operation,
include only the current fiscal year and prior fiscal year
unduplicated pupil and enrollment counts to establish the current
fiscal year percentage.
(3) For a new district in the third and subsequent fiscal years of
operation, include the current fiscal year, prior fiscal year, and
second prior fiscal year unduplicated pupil and enrollment counts to
establish the current fiscal year percentage.
(b) For an acquiring district in the first fiscal year of
operation after the reorganization, retain the prior fiscal year and
second prior fiscal year unduplicated pupil and enrollment counts
from the fiscal years before the reorganization. For the current
fiscal year and each subsequent fiscal year after reorganization,
include the unduplicated pupil and enrollment counts for all pupils
who are being served by the acquiring district.
(c) For the remaining portion of a divided district, the
percentage calculation shall include the prior and second prior
fiscal year unduplicated pupil and enrollment counts from the fiscal
years before the reorganization. For the current and each subsequent
fiscal year after reorganization, include only the unduplicated pupil
and enrollment counts for the pupils who are being served by the
remaining portion of the divided district.
SEC. 8. Section 35735.2 is added to the Education Code, to read:
35735.2. For purposes of subdivisions (g) and (h) of Section
42238.02, paragraph (2) of subdivision (a) of Section 42238.03, and
subdivision (e) of Section 42238.03, reorganized districts shall have
categorical program funding determined as follows:
(a) (1) A new district shall retain the same amount of categorical
funding received by each former district before the reorganization.
A new district shall not retain any categorical funding received by
divided districts before the reorganization.
(2) If the new district is composed wholly of former districts, it
shall receive a reduction pursuant to paragraph (2) of subdivision
(a) of Section 42238.03 only to the extent that the new district
would have received a reduction in the 2012-13 fiscal year.
(3) If the new district is comprised of former districts and one
or more divided districts, it shall receive a reduction pursuant to
paragraph (2) of subdivision (a) of Section 42238.03 only to the
extent that the former districts received a reduction in the 2012-13
fiscal year.
(b) (1) An acquiring district shall retain the same amount of
categorical funding it received before the reorganization, plus the
amount of categorical funding received by each former district before
the reorganization. An acquiring district shall not retain any
categorical funding received by divided districts before the
reorganization.
(2) If the acquiring district is composed wholly of former
districts, it shall receive a reduction pursuant to paragraph (2) of
subdivision (a) of Section 42238.03 only to the extent that the
acquiring district would have received a reduction in the 2012-13
fiscal year.
(3) If the acquiring district comprises a former district and one
or more divided districts, it shall receive a reduction pursuant to
paragraph (2) of subdivision (a) of Section 42238.03 only to the
extent that the former district received a reduction in the 2012-13
fiscal year.
(c) (1) The remaining portion of a divided district shall retain
the same amount of categorical funding it received before the
reorganization.
(2) If a divided district received a reduction pursuant to
paragraph (2) of subdivision (a) of Section 42238.03, it shall
continue to receive that reduction.
(d) If the reorganization includes a former district that has been
wholly included in more than one new or acquiring districts, the
categorical funding shall be determined pursuant to subdivision (c)
of Section 35735.
SEC. 9. Section 35735.3 is added to the Education Code, to read:
35735.3. (a) A new or acquiring district shall receive an
economic recovery target payment pursuant to paragraph (2) of
subdivision (d) of Section 42238.025 that is equal to the sum of the
amounts determined for each former district that was eligible to
receive an economic recovery target payment pursuant to paragraph (1)
of subdivision (d) of Section 42238.025 before the reorganization.
(b) The remaining portion of a divided district shall retain the
same amount of economic recovery target funding pursuant to paragraph
(2) of subdivision (d) of Section 42238.025 that it was eligible to
receive before the reorganization.
(c) If the reorganization includes a former district that has been
wholly included in more than one new or acquiring district, the
economic recovery target funding shall be determined pursuant to
subdivision (c) of Section 35735.
SEC. 10. Section 35735.4 of the Education Code is repealed.
SEC. 11. Section 35735.4 is added to the Education Code, to read:
35735.4. For purposes of subdivision (d) of Section 42238.03, a
reorganized district shall be deemed to have a zero difference in the
prior fiscal year if one of the following conditions is met:
(a) For a new district resulting from an action to reorganize
pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
35511, each former district had a zero difference in the prior fiscal
year.
(b) For a new district resulting from an action to reorganize
pursuant to paragraph (4) subdivision (a) of Section 35511, the
original district had a zero difference in the prior fiscal year.
(c) For an acquiring district affected by an action to reorganize
taken pursuant to subdivision (b) of Section 35511, the acquiring
district has a zero difference in the prior fiscal year.
SEC. 12. Section 35735.5 is added to the Education Code, to read:
35735.5. (a) For a new or acquiring district that has reorganized
pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
35511 or subdivision (b) of Section 35511, the funding amount per
unit of average daily attendance pursuant to subparagraph (A) of
paragraph (1) of subdivision (a) of Section 42238.03 shall be
calculated, as follows:
(1) If the reorganization took place before December 31, 2013, for
each affected district:
(A) Blend the revenue limit pursuant to Section 35735.1, as that
section read on January 1, 2013.
(B) Multiply the average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to become
effective by the per unit of average daily attendance amount
computed pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 42238.03.
(C) Add the products determined in subparagraph (B) and divide by
the sum of units of average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to become
effective for all affected districts.
(2) If the reorganization took place after December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective by the per unit of average daily attendance
amount computed pursuant to subparagraph (A) of paragraph (1) of
subdivision (a) of Section 42238.03.
(B) Add the products determined in subparagraph (A) and divide by
the sum of units of average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective for all affected districts.
(3) (A) For purposes of paragraphs (1) and (2), average daily
attendance shall be the funded average daily attendance as of the
second principal apportionment.
(B) If the reorganization includes a divided district, the
following shall apply:
(i) For purposes of paragraph (1), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district.
(ii) For purposes of paragraph (2), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district in the first fiscal year the
reorganization becomes effective. If no average daily attendance of
the divided district is estimated to be served in the first fiscal
year of the reorganization, the divided district's funding shall not
be included in the blending calculation made pursuant to subparagraph
(A) of paragraph (1) of subdivision (a) of Section 42238.03.
(C) For purposes of paragraph (1) or (2), if the reorganization
includes a former district that has been wholly included in more than
one new or acquiring district, the average daily attendance shall be
the average daily attendance reported pursuant to subdivision (c) of
Section 35735.
(b) For a new district formed as a result of deunification
pursuant to paragraph (4) of subdivision (a) of Section 35511, the
funding amount per unit of average daily attendance pursuant to
subparagraph (A) of paragraph (1) of subdivision (a) of Section
42238.03 shall be equal to the amount calculated for the original
district for the fiscal year before the fiscal year in which the
reorganization is to become effective.
SEC. 13. Section 35735.6 is added to the Education Code, to read:
35735.6. (a) For a new or acquiring district that has reorganized
pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
35511 or subdivision (b) of Section 35511, the funding amount per
unit of average daily attendance pursuant to subparagraph (A) of
paragraph (1) of subdivision (e) of Section 42238.03, shall be
calculated as follows:
(1) If the reorganization took place before December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to become
effective by the per unit of average daily attendance amount
computed pursuant to subparagraph (A) of paragraph (1) of subdivision
(e) of Section 42238.03.
(B) Add the products determined in subparagraph (A), and divide
that sum by the sum of units of average daily attendance for the
fiscal year two years immediately preceding the fiscal year in which
the reorganization is to become effective for all affected districts.
(C) No adjustment shall be made for paragraphs (2) and (3) of
subdivision (a) of Section 35735.1, as that section read on January
1, 2013.
(2) If the reorganization took place after December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective by the per unit of average daily attendance
amount computed pursuant to subparagraph (A) of paragraph (1) of
subdivision (e) of Section 42238.03.
(B) Add the products determined in subparagraph (A), and divide by
the sum of units of average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective for all affected school districts.
(3) (A) For purposes of paragraphs (1) and (2), average daily
attendance shall be the funded average daily attendance as of the
second principal apportionment.
(B) If the reorganization includes a divided district, the
following shall apply:
(i) For purposes of paragraph (1), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district.
(ii) For purposes of paragraph (2), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district in the fiscal year the first
reorganization becomes effective. If no average daily attendance of
the divided district is estimated to be served in the first fiscal
year of the reorganization, the divided district's funding shall not
be included in the blending calculation made pursuant to subparagraph
(A) of paragraph (1) of subdivision (e) of Section 42238.03.
(C) For purposes of paragraph (1) or (2), if the reorganization
includes a former district that has been wholly included in more than
one new or acquiring district, the average daily attendance shall be
the average daily attendance reported pursuant to subdivision (c) of
Section 35735.
(b) For a new district formed as a result of deunification
pursuant to paragraph (4) of subdivision (a) of Section 35511, the
funding amount per unit of average daily attendance pursuant to
subparagraph (A) of paragraph (1) of subdivision (e) of Section
42238.03 shall be equal to the amount calculated for the original
district for the fiscal year immediately preceding the fiscal year in
which the reorganization is to become effective.
SEC. 14. Section 35735.7 is added to the Education Code, to read:
35735.7. For a new or acquiring district that has reorganized
pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
35511 or subdivision (b) of Section 35511, the funding amount per
unit of average daily attendance pursuant to paragraph (4) of
subdivision (a) of Section 42238.03 shall be calculated as follows:
(a) If the reorganization took place before December 31, 2013:
(1) For each affected district, divide the amount of funding
received in the immediately preceding fiscal year pursuant to
paragraph (4) of subdivision (a) of Section 42238.03 as of the second
principal apportionment by the units of average daily attendance for
the fiscal year immediately preceding the fiscal year in which the
reorganization is to become effective.
(2) For each affected district, multiply the amount determined in
paragraph (1) by the average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to
become effective.
(3) Add the products determined in paragraph (2), and divide that
sum by the sum of the average daily attendance determined in
paragraph (2) for all affected districts.
(b) If the reorganization took place after December 31, 2013:
(1) For each affected district, divide the amount of funding
received in the immediately preceding fiscal year pursuant to
paragraph (4) of subdivision (a) of Section 42238.03 as of the second
principal apportionment by the units of average daily attendance for
the fiscal year prior to the fiscal year in which the reorganization
is to become effective.
(2) For each affected district, multiply the amount determined in
paragraph (1) by the average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective.
(3) Add the products determined in paragraph (2), and divide that
sum by the sum of the average daily attendance determined in
paragraph (2) for all affected districts.
(c) (1) For purposes of subdivisions (a) and (b), average daily
attendance shall be the funded average daily attendance as of the
second principal apportionment.
(2) If the reorganization includes a divided district, the
following shall apply:
(A) For purposes of subdivision (a), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district.
(B) For purposes of subdivision (b), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district in the first fiscal year the
reorganization becomes effective. If no average daily attendance of
the divided district is estimated to be served in the first fiscal
year of the reorganization, the divided district's funding shall not
be included in the blending calculation pursuant to paragraph (4) of
subdivision (a) of Section 42238.03.
(3) For purposes of subdivisions (a) and (b), if the
reorganization includes a former district that has been wholly
included in more than one new or acquiring district, the average
daily attendance shall be the average daily attendance reported
pursuant to subdivision (c) of Section 35735.
SEC. 15. Section 35735.8 is added to the Education Code, to read:
35735.8. (a) For a new or acquiring district that has reorganized
pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
35511 or subdivision (b) of Section 35511, the funding amount per
unit of average daily attendance pursuant to Sections 42289 to
42289.5, inclusive, for purposes of determining funding pursuant to
paragraph (2) of subdivision (i) of Section 42283.02, shall be
calculated as follows:
(1) If the reorganization took place before December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to become
effective by the amount computed pursuant to subdivision (b) of
Section 42287 for the fiscal year two years before the fiscal year in
which the reorganization is to become effective.
(B) Add the products determined in subparagraph (A), and divide
that sum by the sum of units of average daily attendance for the
fiscal year two years before the fiscal year in which the
reorganization is to become effective for all affected districts.
(C) Increase the amount determined in subparagraph (B) by the
percentage calculated pursuant to paragraph (2) of subdivision (d) of
Section 42238.02 for the fiscal year immediately preceding the
fiscal year in which reorganization is to become effective.
(2) If the reorganization took place after December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective by the amount computed pursuant to subdivision
(b) of Section 42287 for the fiscal year immediately preceding the
fiscal year in which the reorganization is to become effective.
(B) Add the products determined in subparagraph (A), and divide
that sum by the sum of units of average daily attendance for the
fiscal year immediately preceding the fiscal year in which the
reorganization is to become effective for all affected districts.
(3) (A) For purposes of paragraphs (1) and (2), average daily
attendance shall be the funded average daily attendance as of the
second principal apportionment.
(B) If the reorganization includes a divided district, both of the
following shall apply:
(i) For purposes of paragraph (1), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district.
(ii) For purposes of paragraph (2), the average daily
attendance shall be estimated by the county office of education and
reported to the department based on the units of average daily
attendance to be served by the reorganized district in the first year
the reorganization becomes effective. If no average daily attendance
of the divided district is estimated to be served in the first year
of the reorganization, the divided district's funding shall not be
included in the blending calculation pursuant to paragraph (2) of
subdivision (i) of Section 42238.02.
(C) For purposes of paragraph (1) or (2), if the reorganization
includes a former district that has been wholly included in more than
one new or acquiring district, the average daily attendance shall be
the average daily attendance reported pursuant to subdivision (c) of
Section 35735.
(b) For a new district formed as a result of deunification
pursuant to paragraph (4) of subdivision (a) of Section 35511, the
funding amount per unit of average daily attendance shall be equal to
the amount calculated for the original district for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective.
SEC. 16. Section 35735.9 is added to the Education Code, to read:
35735.9. (a) For a new district or acquiring district that has
reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a)
of Section 35511 or subdivision (b) of Section 35511, the funding
amount per unit of average daily attendance pursuant to Sections
42289 to 42289.5, inclusive, for purposes of determining funding
pursuant to subparagraph (D) of paragraph (1) of subdivision (a) of
Section 42283.03, shall be calculated as follows:
(1) If the reorganization took place before December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year two
years before the fiscal year in which the reorganization is to become
effective by the amount per unit of average daily attendance that
corresponds to the 2012-13 fiscal year funding amounts pursuant to
Sections 42289 to 42289.5, inclusive, and Section 42238.146, as that
section read on June 15, 2015.
(B) Add the products determined in subparagraph (A), and divide
that sum by the sum of units of average daily attendance for the
fiscal year two years before the fiscal year in which the
reorganization is to become effective for all affected districts.
(2) If the reorganization took place after December 31, 2013, for
each affected district:
(A) Multiply the average daily attendance for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective by the amount per unit of average daily
attendance that corresponds to the 2012-13 fiscal year funding
amounts pursuant to Sections 42289 to 42289.5, inclusive, and Section
42238.146, as that section read on June 15, 2015.
(B) Add the products determined in subparagraph (A), and divide
that sum by the sum of units of average daily attendance for the
fiscal year immediately preceding the fiscal year in which the
reorganization is to become effective for all affected districts.
(3) (A) For purposes of paragraphs (1) and (2), average daily
attendance shall be the funded average daily attendance as of the
second principal apportionment.
(B) If the reorganization includes a divided district, the
following shall apply:
(i) For purposes of paragraph (1), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district.
(ii) For purposes of paragraph (2), the average daily attendance
shall be estimated by the county office of education and reported to
the department based on the units of average daily attendance to be
served by the reorganized district in the first fiscal year the
reorganization becomes effective. If no average daily attendance of
the divided district is estimated to be served in the first fiscal
year of the reorganization, the divided district's funding shall not
be included in the blending calculation pursuant to subparagraph (D)
of paragraph (1) of subdivision (a) of Section 42238.03.
(C) For purposes of paragraph (1) or (2), if the reorganization
includes a former district that has been wholly included in more than
one new or acquiring district, the average daily attendance shall be
the average daily attendance reported pursuant to subdivision (c) of
Section 35735.
(b) For a new district formed as a result of deunification
pursuant to paragraph (4) of subdivision (a) of Section 35511, the
funding amount per unit of average daily attendance shall be equal to
the amount calculated for the original district for the fiscal year
immediately preceding the fiscal year in which the reorganization is
to become effective.
SEC. 17. Section 35735.10 is added to the Education Code, to read:
35735.10. For the purpose of determining funding pursuant to
subparagraph (D) of paragraph (1) of subdivision (e) of Section
42238.03, the following shall apply to districts affected by
reorganization pursuant to Section 35511 or a lapse pursuant to
Section 35780.1:
(a) A new district shall receive the same amount of the 2012-13
fiscal year funding allowance provided for qualifying necessary small
elementary schools and necessary small high schools received by each
former district in the fiscal year immediately preceding the fiscal
year in which the reorganization is to become effective if the former
district has been wholly included in the new district.
(b) An acquiring district shall retain the same amount as the
2012-13 fiscal year funding allowance provided for its qualifying
necessary small elementary schools and necessary small high schools
in the fiscal year immediately preceding the fiscal year in which the
reorganization is to become effective and any such allowance
provided to a former district if the former district has been wholly
included in the acquiring district.
(c) A divided district shall retain the same amount of the 2012-13
fiscal year funding allowance provided for its qualifying necessary
small elementary schools and necessary small high schools in the
fiscal year immediately preceding the fiscal year in which the
reorganization is to become effective.
(d) If the reorganization includes a former district that has been
wholly included in more than one new or acquiring district, the
necessary small school allowance for minimum state aid shall be
determined pursuant to subdivision (c) of Section 35735.
SEC. 18. Section 35736 of the Education Code is amended to read:
35736. Plans and recommendations may include a proposal for
dividing the property, other than real property, and obligations of
any school district proposed to be divided between two or more school
districts, or proposed to be partially included in one or more
school districts. As used in this section, "property" includes funds,
cash on hand, and moneys due but uncollected on the date
reorganization becomes effective for all purposes, and state
apportionments based on average daily attendance earned in the year
immediately preceding the date reorganization becomes effective for
all purposes. In providing for this division, the plans and
recommendations may consider the assessed valuation of each portion
of the school district, the local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, in
each school district, the number of children of schoolage residing in
each portion of the school district, the value and location of the
school property, and such other matters as may be deemed pertinent
and equitable. Any such proposal shall be an integral part of the
proposal and not a separate proposition.
