Bill Text: CA SB98 | 2023-2024 | Regular Session | Chaptered
Bill Title: Education finance: local control funding formula: enrollment-based funding report.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-09-22 - Chaptered by Secretary of State. Chapter 442, Statutes of 2024. [SB98 Detail]
Download: California-2023-SB98-Chaptered.html
Senate Bill
No. 98
CHAPTER 442
An act to add and repeal Section 42238.026 of the Education Code, relating to education finance.
[
Approved by
Governor
September 22, 2024.
Filed with
Secretary of State
September 22, 2024.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 98, Portantino.
Education finance: local control funding formula: enrollment-based funding report.
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified, that includes average daily attendance as a component of that calculation for these local educational agencies. Existing law requires the Superintendent of Public Instruction, on or before February 20 of each year, to make a first principal apportionment of funds and, on or before July 2 of each year, to make a 2nd principal apportionment of funds to each local educational agency.
This bill would require the Legislative Analyst’s Office to submit a report to the Legislature, on or before January 1, 2026, on the effects of changing the pupil count methodology of the local control funding formula from average
daily attendance to pupil enrollment. The bill would require the report, at a minimum, to analyze specified information, to the extent data is available, including, among other things, a review of research regarding evidence-based approaches to improving pupil attendance and the extent to which a state’s method of funding affects pupil attendance rates, the fiscal, programmatic, and administrative impacts of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil
enrollment, and the potential impacts on pupil attendance of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment, as provided. The bill would require the report to include input from relevant stakeholders, as determined by the Legislative Analyst’s Office. The bill would repeal these provisions on January 1, 2027.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 42238.026 is added to the Education Code, to read:42238.026.
(a) On or before January 1, 2026, the Legislative Analyst’s Office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, on the effects of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment. The report, at a minimum, shall analyze all of the following, to the extent data is available:(1) The legislative history of
the change from funding excused absences to funding based on average daily attendance pursuant to Senate Bill 727 (Rosenthal), Chapter 855 of the Statutes of 1997, including legislative intent and any indications of inaccurate or inappropriate attendance reporting of excused absences.
(2) The impact on attendance of the change from funding excused absences to funding based on average daily attendance pursuant to Senate Bill 727 (Rosenthal), Chapter 855 of the Statutes of 1997, including statewide attendance, and the equity impact of this change, including attendance by pupil subgroup, and attendance at local educational agencies with high percentages of pupils who are English learners, low-income pupils, and foster youth.
(3) The programmatic changes made by local educational agencies to increase attendance after the switch to funding based on average daily attendance pursuant to Senate Bill 727 (Rosenthal), Chapter 855 of the Statutes of 1997.
(4) The methods used by other states to count pupils for education funding purposes and the ways in which other states create incentives for local educational agencies to encourage pupil attendance.
(5) A review of research regarding both of the following:
(A) Evidence-based approaches to improving pupil attendance.
(B) The extent to which a state’s method of funding affects pupil attendance rates.
(6) The fiscal, programmatic, and administrative impacts of changing the pupil count methodology of the local control funding formula
from average daily attendance to pupil enrollment, including the effects on the state and local educational agencies.
(7) The potential impacts on pupil attendance of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment, including the effects on the state and local educational agencies, including by pupil grade and pupil subgroups as described in Section 52052.
(8) How a change to enrollment-based funding
would affect local educational agencies of varying sizes, locations, and pupil demographics.
(9) Alternative methods of changing the local control funding formula that would have a similar effect on local educational agencies serving a higher percentage of English learners, low-income pupils, and foster youth.
(10) Phase-in approaches to implement the cost of an enrollment-based funding model over several years that do not reduce the funding received by any local educational agency.
(11) If the pupil count methodology for the local control funding formula is changed, whether the state should continue using average daily attendance for the Proposition 98 funding calculation and other education programs, such as
lottery funding.
(12) The impacts on Proposition 98 and the minimum funding guarantee set forth in Sections 8 and 8.5 of Article XVI of the California Constitution and its implementing statutes, and the ability of the local control funding formula with a pupil count methodology based on pupil enrollment to fund existing and ongoing public education obligations.
(b) The report required by subdivision (a) shall include input from relevant stakeholders, as determined by the Legislative Analyst’s Office.
(c) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
