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AB-2781 Education finance.(2001-2002)

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AB2781:v92#DOCUMENT

Assembly Bill No. 2781
CHAPTER 1167

An act to amend Sections 10554, 41203.1, 42238, 42238.12, 42238.44, 44515, 44955.5, 47634.5, 48005.10, 48005.13, 48005.15, 48005.25, 48005.30, 48005.35, 48005.45, 48005.55, 53075, 54201, 56836.158, 70000, 99234, 99235, 99240, and 99242 of, to add Sections 42238.445, 42238.46, and 54205 to, and to add and repeal Section 52263.5 of, the Education Code, to add Section 17581.5 to the Government Code, and to amend Section 5701.3 of the Welfare and Institutions Code, relating to school finance, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor  September 30, 2002. Filed with Secretary of State  September 30, 2002. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2781, Oropeza. Education finance.
(1) Existing law, until January 1, 2003, establishes the Educational Telecommunication Fund in order for the governing board of the County Office Fiscal Crisis and Management Assistance Team to carry out its responsibilities regarding the establishment of telecommunications standards to support the efficient sharing of school business and administrative information.
This bill would change the date upon which the Educational Telecommunication Fund becomes inoperative to January 1, 2004.
(2) Existing law requires, for the 1990–91 fiscal year and each fiscal year thereafter, that moneys to be applied by the state for the support of school districts and community college districts be distributed in accordance with certain calculations. This provision does not apply to the fiscal years between the 1992–93 fiscal year and the 2001–02 fiscal year, inclusive.
This bill would, instead, make this provision inapplicable to the fiscal years between the 1992–93 fiscal year and the 2002–03 fiscal year, inclusive.
(3) Existing law requires the county superintendent of schools to adjust the total revenue limit for each school district in the jurisdiction of the county superintendent of schools by the amount of increased or decreased employer contributions to the Public Employees’ Retirement System (PERS) and sets forth a method for calculating that amount for the 1995–96 fiscal year and each fiscal year thereafter. Existing law provides that funding appropriated in the Budget Act of 2001, or legislation amending that act, for the purpose of limiting reductions to revenue limits for the 2001–02 fiscal year is to be allocated on a one-time basis. Existing law appropriates $35,000,000 from the General Fund to Section A of the State School Fund for purposes of limiting the reductions to revenue limits for the 2003–04 fiscal year and limits reductions to revenue limits for the 2004–05 fiscal year and each fiscal year thereafter to $35,000,000 increased annually by cost-of-living adjustments, as specified.
This bill would provide that funding appropriated in the Budget Act of 2002 for the purpose of limiting reductions to revenue limits for the 2002–03 fiscal year is to be allocated on a one-time basis and that total allocations for this purpose may not exceed $36,000,000.
(4) Existing law requires the Superintendent of Public Instruction to compute an equalization adjustment for the 2001–02 fiscal year for each school district, so that no district’s prior year base revenue limit per unit of average daily attendance is less than the prior year base revenue limit per unit of average daily attendance above which fall not more than 10% of the total statewide units of average daily attendance for the appropriate size and type of district.
This bill would require the superintendent also to compute an equalization adjustment for the 2002–03 fiscal year, so that no district’s prior year adjusted base revenue limit per unit of average daily attendance is less than the prior year adjusted base revenue limit above which fall not more than 10% of the total statewide units of average daily attendance for the appropriate size and type of district.
(5) Existing law, the Fairness in Education Funding Act, requires the Superintendent of Public Instruction to compute an equalization adjustment for the 2003–04 fiscal year for each school district, so that no district’s prior year base revenue limit per unit of average daily attendance is less than the prior year base revenue limit per unit of average daily attendance above which fall not more than 10% of the total statewide units of average daily attendance for the appropriate size and type of district.
This bill would require the superintendent to also compute an equalization adjustment for the 2003–04 fiscal year, so that no district’s prior year adjusted base revenue limit per unit of average daily attendance is less than the prior year adjusted base revenue limit above which fall not more than 8.25% of the total statewide units of average daily attendance for the appropriate size and type of district. The bill would provide a formula for calculating the adjusted base revenue limit and would require the average daily attendance of a charter school to be included in calculating the size of, and target amounts for, a school district that is a chartering agency.
(6) This bill would provide that if the appropriations made for purposes of the equalization adjustments are insufficient to provide funding equal to the amounts computed by the equalization formulas, the amounts appropriated shall be allocated to school districts on a pro rata basis.
(7) This bill would appropriate $406,000,000 from the General Fund to the Superintendent of Public Instruction for the 2003–04 fiscal year, pursuant to a schedule, for purposes of the equalization adjustments, to be allocated to school districts on a pro rata basis.
The bill would require the appropriation to be included in the amounts appropriated by the state in the 2003–04 fiscal year for purposes of meeting the state’s minimum funding obligation to school districts and community college districts under Section 8 of Article XVI of the California Constitution for that fiscal year.
(8) Existing law authorizes the governing board of a school district to terminate the services of certificated employees during the time period between 5 days after the enactment of the Budget Act and August 15 of the fiscal year to which the Budget Act applies, according to a schedule of notice and hearing adopted by the governing board, if the district determines that its revenue limit has not increased by 2% more and it is necessary, therefore, to decrease the district’s permanent employees.
This bill would make this provision inoperative from July 1, 2002, to July 1, 2003, inclusive.
(9) Existing law establishes, until July 1, 2006, the Principal Training Program to provide incentive funding to provide schoolsite administrators with instruction and training and requires1/3 of a local education agency’s schoolsite administrators be trained in each of the 3 years of program implementation.
This bill would instead require that 50% of the schoolsite administrators be trained in each of the 2002–03 and 2003–04 fiscal years.
(10) Existing law requires the Director of Finance to make certain computations annually regarding charter school block grant funding and to provide that information as part of the May revision to the Governor’s Budget.
This bill would instead require the Director of Finance to make that computation, as specified, and provide that information to the Superintendent of Public Instruction within 30 days of the enactment of the annual Budget Act.
(11) Existing law establishes the Kindergarten Readiness Pilot Program, to be implemented in the 2002–03 school year, and requires a participating school district to offer admission to 1st grade at the beginning of the school year, or at a later time in the same school year, only to children who will have their 6th birthday on or before September 1 of that school year.
This bill would delay the implementation of that program until the 2003–04 school year and make conforming changes.
(12) Existing law establishes the Digital High School Education Technology Grant Program to provide one-time installation grants and ongoing technology support and staff training grants to school districts and county offices of education for projects at high schools. Existing law requires the Superintendent of Public Instruction, commencing in the second fiscal year following the year in which a high school receives a technology installation grant and upon certification of completion of the installation project, to allocate to each high school an annual technology support and staff training grant.
This bill would specify that technology support and staff training grants would not be provided to school districts and county offices of education for the 2002–03 fiscal year and would prohibit the Superintendent of Public Instruction from allocating those grants for the 2002–03 fiscal year. The bill would state the intent of the Legislature that the funding that would otherwise have been provided for the 2002–03 fiscal year be provided in the 2003–04 fiscal year.
(13) Existing law requires the Secretary for Education to contract for development and establishment of a public involvement campaign to inform Californians that promoting reading in the public schools as a key to success in life is the responsibility of all Californians.
This bill would make the provision subject to funding being appropriated in the annual Budget Act for this purpose.
(14) Existing law establishes the Targeted Instructional Improvement Grant Program and requires the amount of a school district’s grant to be adjusted for inflation.
This bill would provide that commencing with the 2001–02 fiscal year, and each fiscal year thereafter, the total amount a school district shall receive in any fiscal year is at a minimum the same total amount it received in the 2000–01 fiscal year adjusted annually for inflation.
(15) Existing law combines the funding for court-ordered desegregation programs and for voluntary integration programs in the Targeted Instructional Improvement Grant Program and calculates a per pupil amount of funding for school districts based on the amounts received in the 2000–01 fiscal year for court-ordered desegregation and voluntary integration claims.
This bill would require the Superintendent of Public Instruction, commencing with the 2001–02 fiscal year, to calculate an apportionment of state funds for a basic aid district that was entitled to reimbursement pursuant to repealed provisions regarding court-ordered voluntary pupil transfer programs and that received an apportionment under the repealed provisions because a court order directs pupils to transfer to that district as part of the court-ordered voluntary pupil transfer program. The amount of the apportionment would be 70% of the district revenue limit that would have been apportioned to the school district from which the pupils were transferred.
(16) Existing law requires the Superintendent of Public Instruction, for purposes of calculating funding for each special education local plan area, to determine the statewide total average daily attendance for the 2000–01 fiscal year, to increase the amount per unit of average daily attendance for the 2001–02 fiscal year by a specified quotient, and to increase the statewide target per unit of average daily attendance for the 2001–02 fiscal year, as provided.
This bill would require that determination and those increases also to be made for the 2001–02 and 2002–03 fiscal years, respectively, and would make conforming changes.
(17) Existing law establishes the Governor’s Teaching Fellowships Program and provides, beginning in the 2001–02 fiscal year, for 1,000 nonrenewable graduate teaching fellowships to be awarded annually in the amount of $20,000 each.
This bill would provide that commencing with the 2002–03 fiscal year and each fiscal year thereafter, the number of fellowships awarded shall be determined pursuant to an appropriation in the annual Budget Act for this purpose.
(18) Existing law establishes, until July 1, 2005, the Mathematics and Reading Professional Development Program, under which a local education agency, as defined, receives incentive funding to provide training in mathematics and reading to teachers and also to provide training to instructional aides and paraprofessionals, as defined, who directly assist with classroom instruction in mathematics and reading, through professional development programs conducted by institutions of higher education or an approved provider of training.
This bill would extend the program until July 1, 2006, and would reduce the number of teachers, instructional aides, and paraprofessionals for whom a local education agency may receive an incentive award.
(19) Under existing law, a local agency may not be required to implement or give effect to any statute or executive order during any fiscal year and for the period immediately following that fiscal year for which the Budget Act has not been enacted for the subsequent fiscal year if specified conditions are met. Existing law excepts from that provision, any state-mandated local program for which reimbursement funding counts toward the minimum General Fund requirements of Section 8 of Article XVI of the California Constitution.
This bill would specify that a school district may not be required to implement or give effect to the School Bus Safety II mandate statutes and the School Crimes Reporting II mandate statutes if certain conditions are met.
(20) Existing law, the Bronzan-McCorquodale Act, organizes and finances community mental health services for the mentally disordered in every county through locally administered and locally controlled community mental health programs and states the intent of the Legislature that certain funding provisions related to financing community mental health services not affect the responsibilities to fund psychotherapy and other mental health services for handicapped and disabled pupils that are required by law.
This bill would prohibit the funding provisions related to financing community mental health services from affecting the responsibility of the state to fund psychotherapy and other mental health services for handicapped and disabled pupils required by law and would require the state to reimburse counties for all allowable costs incurred by counties in providing those services to handicapped and disabled pupils. The bill would require the state to provide reimbursement for those services through an appropriation included in either the annual Budget Act or other statute. The bill would provide that counties are not required to provide any share of those costs or to fund the cost of any part of these services with money received from the Local Revenue Fund for reimbursement claims for services delivered in the 2001–02 fiscal year and thereafter to handicapped and disabled pupils.
The bill would provide that county reimbursement claims submitted to the Controller for reimbursement for services associated with providing allowable mental health treatment services required by an individualized education program in fiscal years up to and including the 2000–01 fiscal year are not subject to dispute by the Controller’s office regarding the percentage of reimbursement claimed by any county. The bill would prohibit a county that previously submitted a reimbursement claim for services delivered in the 2000–01 fiscal year or prior for less than 100% of the allowable mental health treatment services to special education pupils from amending its claim for a higher percentage of those same allowable costs.
(21) This bill would set the cost-of-living adjustment for certain items contained in the Budget Act of 2002 and for revenue limit determinations at 2%.
(22) This bill would require the Commission on State Mandates, to amend the parameters and guidelines of the School Bus Safety II mandate to specify that costs associated with implementation of transportation plans are not reimbursable claims and would require the amended parameters and guidelines to be applied retroactively as well as prospectively.
(23) The Budget Act of 2002 makes various appropriations for the support of the public elementary and secondary schools for the 2002–03 fiscal year.
This bill would revise the Budget Act of 2002 by augmenting certain appropriations, by reducing certain appropriations, and by making a new appropriation, as provided.
(24) This bill would appropriate $681,000,000 from the General Fund in the 2003–04 fiscal year to the State Department of Education pursuant to a schedule for specified school improvement programs, for home to school transportation, for targeted instructional improvement grants, and for other supplemental grants, as specified. The funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution for the 2003–04 fiscal year.
(25) Existing law requires the Controller to draw warrants on the State Treasury from the State School Fund in favor of the county treasurer of each county in each month in certain amounts determined pursuant to specified calculations. Existing law requires warrants in the months of September to November, inclusive, to include one-tenth of the estimated total amounts of the special purpose apportionment. Under existing law, warrants in December are required to include one-tenth of the amounts certified by the Superintendent of Public Instruction as the special purpose apportionment, as adjusted, if necessary, to correct excesses or deficiencies in the estimates made for purposes of the warrants issued in September to November, inclusive. Existing law requires an additional one-tenth apportionment to be included in the warrants for January to June, inclusive.
This bill would apply that formula for purposes of apportioning funds from the State School Fund for economic impact aid programs as part of the special purpose apportionment in the 2002–03 fiscal year. The bill would apply a revised formula, based on a one-seventh apportionment, for purposes of apportioning funds from the State School Fund for home to school transportation programs as part of the special purpose apportionment in the 2002–03 fiscal year.
(26) The California Constitution requires that the amount appropriated by the Legislature for the support of school districts, as defined, and community college districts in any fiscal year be not less than a specified amount and authorizes the suspension of this minimum funding obligation for one year.
This bill would require the state’s minimum funding obligation for the support of school districts, as defined, and community college districts to be increased, as specified, for the 2003–04 fiscal year. If the state’s minimum funding obligation for the support of school districts, as defined, and community college districts is suspended, the bill would require the amount of the maintenance factor to be computed in a manner that includes this increase.
(27) This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: YES  

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


SECTION 1.

 Section 10554 of the Education Code is amended to read:

10554.
 (a) In order for the governing board to carry out its responsibilities pursuant to this chapter, there is hereby established the Educational Telecommunication Fund. The amount of moneys to be deposited in the fund shall be the amount of any offset made to the principal apportionments made pursuant to Sections 1909, 2558, 42238, 52616, Article 1.5 (commencing with Section 52335) of Chapter 9 of Part 28, and Chapter 7.2 (commencing with Section 56836) of Part 30, based on a finding that these apportionments were not in accordance with law. The maximum amount that may be annually deposited in the fund from the offset shall be fifteen million dollars ($15,000,000). The Controller shall establish an account to receive and expend moneys in the fund. The placement of the moneys in the fund shall occur only upon a finding by the Superintendent of Public Instruction and the Director of Finance that the principal apportionments made pursuant to Sections 1909, 2558, 42238, 52616, and Article 1.5 (commencing with Section 52335) of Chapter 9 of Part 28, and Chapter 7.2 (commencing with Section 56836) of Part 30 were not in accordance with existing law and were so identified pursuant to Sections 1624, 14506, 41020, 41020.2, 41320, 42127.2, and 42127.3, or an independent audit that was approved by the State Department of Education.
(b) Moneys in the fund established pursuant to subdivision (a) shall only be available for expenditure upon appropriation by the Legislature in the Budget Act.
(c) The moneys in the fund established pursuant to subdivision (a) may be expended by the governing board to carry out the purposes of this chapter, including for the following purposes:
(1) To support the activities of the team established pursuant to subdivision (c) of Section 10551.
(2) To assist the school districts and county superintendents of schools in purchasing both hardware and software to allow school districts, county superintendents of schools, and the State Department of Education to be linked for school business and administrative purposes. The governing board shall establish a matching share requirement that applicant school districts and county superintendents of schools must fulfill to receive those funds. It is the intent of the Legislature to encourage the distribution of grants to school districts and county superintendents of schools to the widest extent possible.
(3) To provide technical assistance through county offices of education to school districts in implementing the standards established pursuant to subdivision (a) of Section 10552.
(d) This section shall become inoperative as of January 1, 2004.

SEC. 2.

 Section 41203.1 of the Education Code is amended to read:

41203.1.
 (a) For the 1990–91 fiscal year and each fiscal year thereafter, allocations calculated pursuant to Section 41203 shall be distributed in accordance with calculations provided in this section. Notwithstanding Section 41203, and for the purposes of this section, school districts, community college districts, and direct elementary and secondary level instructional services provided by the State of California shall be regarded as separate segments of public education, and each of these three segments of public education shall be entitled to receive respective shares of the amount calculated pursuant to Section 41203 as though the calculation made pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution were to be applied separately to each segment and the base year for the purposes of this calculation under paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution were based on the 1989–90 fiscal year. Calculations made pursuant to this subdivision shall be made so that each segment of public education is entitled to the greater of the amounts calculated for that segment pursuant to paragraph (1) or (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution.
(b) If the single calculation made pursuant to Section 41203 yields a guaranteed amount of funding that is less than the sum of the amounts calculated pursuant to subdivision (a), then the amount calculated pursuant to Section 41203 shall be prorated for the three segments of public education.
(c) Notwithstanding any other provision of law, this section shall not apply to the fiscal years between the 1992–93 fiscal year and the 2002–03 fiscal year, inclusive.

SEC. 3.

 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 the current 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 2003–04 fiscal year, the equalization adjustments specified in Sections 42238.44 and 42238.46.
(c) Except for districts subject to subdivision (d), the base revenue limit computed pursuant to subdivision (b) shall be multiplied by the district average daily attendance computed pursuant to Section 42238.5.
(d) (1) For districts for which the number of units of average daily attendance determined pursuant to Section 42238.5 is greater for the current fiscal year than for the 1982–83 fiscal year, compute the following amount, in lieu of the amount computed pursuant to subdivision (c):
(A) Multiply the base revenue limit computed pursuant to subdivision (c) by the average daily attendance computed pursuant to Section 42238.5 for the 1982–83 fiscal year.
(B) Multiply the lesser of the amount in subdivision (c) or 1.05 times the statewide average base revenue limit per unit of average daily attendance for districts of similar type for the current fiscal year by the difference between the average daily attendance computed pursuant to Section 42238.5 for the current and 1982–83 fiscal years.
(C) Add the amounts in subparagraphs (A) and (B).
(2) This subdivision shall become inoperative on July 1, 1998.
(e) For districts electing to compute units of average daily attendance pursuant to paragraph (3) 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 were 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 were 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 any 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 by funds received pursuant to Section 42243.6.
(C) Positions supported, to the extent of employer contributions not exceeding twenty-five thousand dollars ($25,000) by any 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 of Public Instruction 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 of Public Instruction.
(h) The Superintendent of Public Instruction 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 the Revenue and Taxation Code.
(2) The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) 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 of motor vehicle license fees distributed pursuant to Section 11003.4 of the Revenue and Taxation Code.
(7) The amount, if any, received pursuant to any provision of 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, paragraph (4) of subdivision (a) of Section 33607.5, or Section 33607.7 of the Health and Safety Code that is allocated exclusively for educational facilities.
(8) 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 State Department of Education 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 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) No transfer of seventh and eighth grade pupils between an elementary school district and a high school district shall 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. 4.

 Section 42238.12 of the Education Code is amended to read:

42238.12.
 (a) For the 1995–96 fiscal year and each fiscal year thereafter, the county superintendent of schools shall adjust the total revenue limit for each school district in the jurisdiction of the county superintendent of schools by the amount of increased or decreased employer contributions to the Public Employees’ Retirement System resulting from the enactment of Chapter 330 of the Statutes of 1982, adjusted for any changes in those contributions resulting from subsequent changes in employer contribution rates, excluding rate changes due to the direct transfer of the state-mandated portion of the employer contributions to the Public Employees’ Retirement System, through the current fiscal year. The adjustment shall be calculated for each school district, as follows:
(1) (A) Determine the amount of employer contributions that would have been made in the current 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 were in effect during the current fiscal year.
(B) For the purposes of this calculation, no school district shall have a contribution rate higher than 13.020 percent.
(2) Determine the actual amount of employer contributions made to the Public Employees’ Retirement System in the current fiscal year.
(3) If the amount determined in paragraph (1) for a school district is greater than the amount determined in paragraph (2), the total revenue limit computed for that school district shall be decreased by the amount of the difference between those paragraphs; or, if the amount determined in paragraph (1) for a school district is less than the amount determined in paragraph (2), the total revenue limit for that school district shall be increased by the amount of the difference between those paragraphs.
(4) For the purpose of this section, employer contributions to the Public Employees’ Retirement System for any of the following positions shall be excluded from the calculation specified above:
(A) Positions or portions of positions supported by federal funds that are subject to supplanting restrictions.
(B) Positions supported by funds received pursuant to Section 42243.6.
(C) Positions supported, to the extent of employers contributions not exceeding twenty-five thousand dollars ($25,000) by any single educational agency, from a non-General Fund revenue source determined to be properly excludable from this section by the Superintendent of Public Instruction with the approval of the Director of Finance.
(5) For accounting purposes, any reduction to district revenue limits made by this provision may be reflected as an expenditure from appropriate sources of revenue as directed by the Superintendent of Public Instruction.
(6) The amount of the increase or decrease to the revenue limits of school districts computed pursuant to paragraph (3) for the 1995–96 fiscal year or any fiscal year thereafter shall not be adjusted by the deficit factor applied to the revenue limit of each school district pursuant to Section 42238.145.
(b) Funding appropriated through the Budget Act of 2001 or legislation amending the Budget Act of 2001 for the purpose of limiting the reductions to revenue limits calculated pursuant to this section and to Section 2558 for the 2001–02 fiscal year shall be allocated on a one-time basis in the following manner:
(1) Each school district and county office of education subject to a reduced apportionment pursuant to this section or to Section 2558 shall receive a share of the amount described in paragraph (3) that is proportionate to the reduction in their apportionment pursuant to this section or to Section 2558 for the 2001–02 fiscal year as compared to the statewide total reduction that would occur absent this paragraph.
(2) For the 2001–02 fiscal year, in lieu of the alternative calculation authorized by paragraph (1), San Francisco Unified School District shall receive an amount equal to five dollars and 57 cents ($5.57) multiplied by its second principal apportionment average daily attendance for the 2001–02 fiscal year.
(3) Notwithstanding any other provision of law, total allocations pursuant to this subdivision shall not exceed thirty-five million dollars ($35,000,000).
(c) Funding appropriated pursuant to Provision 1 of Item 6110-223-0001 of Section 2.00 of the Budget Act of 2002 for the purpose of limiting the reductions to revenue limits calculated pursuant to this section and to Section 2558 for the 2002–03 fiscal year shall be allocated on a one-time basis in the following manner:
(1) Each school district and county office of education subject to a reduced apportionment pursuant to this section or to Section 2558 shall receive a share of the amount described in paragraph (3) that is proportionate to the reduction in their apportionment pursuant to this section or to Section 2558 for the 2002–03 fiscal year as compared to the statewide total reduction that would occur absent this paragraph.
(2) For the 2002–03 fiscal year, in lieu of the alternative calculation authorized by paragraph (1), the San Francisco Unified School District shall receive an amount equal to five dollars and fifty-seven cents ($5.57) multiplied by its second principal apportionment average daily attendance for the 2002–03 fiscal year.
(3) Notwithstanding any other provision of law, total allocations pursuant to this subdivision shall not exceed thirty-six million dollars ($36,000,000).
(d) Thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund for transfer to Section A of the State School Fund for local assistance for the purpose of limiting the reductions to revenue limits calculated pursuant to this section and to Section 2558 for the 2003–04 fiscal year. Funding from this appropriation shall be allocated in the following manner:
(1) Each school district and county office of education subject to a reduced apportionment pursuant to this section or to Section 2558 shall receive a share of the amount appropriated in this subdivision that is proportionate to the reduction in their apportionment pursuant to this section or to Section 2558 for the 2003–04 fiscal year as compared to the statewide total reduction that would occur absent this paragraph.
(2) For the 2003–04 fiscal year, in lieu of the alternative calculation authorized by paragraph (1), the San Francisco Unified School District shall receive an amount equal to five dollars and fifty-seven cents ($5.57) multiplied by its second principal apportionment average daily attendance for the 2003–04 fiscal year.
(3) Notwithstanding any other provision of law, total allocations pursuant to this subdivision shall not exceed thirty-five million dollars ($35,000,000) for the 2003–04 fiscal year.
(4) For the purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made by this section shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202 of the Education Code, for the 2003–04 fiscal year and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code, for the 2003–04 fiscal year.
(d) For the 2004–05 fiscal year, and each fiscal year thereafter, apportionment reductions pursuant to this section and to Section 2558 shall be limited as follows:
(1) Each school district and county office of education subject to a reduced apportionment pursuant to this section or to Section 2558 shall receive a share of the amount described in paragraph (3) that is proportionate to the reduction in their apportionment pursuant to this section or to Section 2558 for the 2004–05 fiscal year as compared to the statewide total reduction as would occur absent this paragraph.
(2) In lieu of the alternative calculation authorized by paragraph (1), the San Francisco Unified School District shall receive funding equal to the amount of funding per unit of average daily attendance specified in paragraph (2) of subdivision (c) as increased annually by cost-of-living adjustments specified in Section 42238.1, multiplied by its second principal apportionment average daily attendance for that fiscal year.
(3) Notwithstanding any other provision of law, total limitations pursuant to this subdivision shall not annually exceed the amount described in paragraph (3) of subdivision (c) as annually increased by the cost-of-living adjustments specified in Section 42238.1, multiplied by the annual statewide percentage growth in total average daily attendance, measured at the second principal apportionment.

SEC. 5.

 Section 42238.44 of the Education Code is amended to read:

42238.44.
 (a) This section shall be known and may be cited as, the Fairness in Education Funding Act.
(b) (1) For the 2003–04 fiscal year, the Superintendent of Public Instruction shall compute an equalization adjustment for each school district, so that no district’s 2002–03 base revenue limit per unit of average daily attendance is less than the 2002–03 base revenue limit per unit of average daily attendance above which fall not more than 10 percent of the total statewide units of average daily attendance for each category of school district set forth in subdivision (c).
(2) For purposes of this section, the district base revenue limit and the statewide average base revenue limit shall not include any amounts attributable to Section 45023.4, 46200, or 46201.
(c) Subdivision (b) shall apply to the following school districts, which shall be grouped according to size and type as follows:
District
ADA
Elementary ........................
less than 101
Elementary ........................
more than 100
High School ........................
less than 301
High School ........................
more than 300
Unified ........................
less than 1,501
Unified ........................
more than 1,500
(d) The Superintendent of Public Instruction shall compute a revenue limit equalization adjustment for each school district’s base revenue limit per unit of average daily attendance as follows:
(1) Multiply the amount computed for each school district pursuant to subdivision (b) by the average daily attendance used to calculate the district’s revenue limit for the 2003–04 fiscal year.
(2) Divide the amount appropriated for purposes of this section for the 2003–04 fiscal year by the statewide sum of the amount computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant to paragraph (1) of subdivision (b) by the amount computed pursuant to paragraph (2).
(e) (1) For the purposes of this section, the 2002–03 statewide 90th percentile base revenue limit determined pursuant to paragraph (1) of subdivision (b), and the fraction computed pursuant to paragraph (2) of subdivision (d) for the 2002–03 second principal apportionment, shall be final, and shall not be recalculated at subsequent apportionments. The fraction computed pursuant to paragraph (2) of subdivision (d) shall not, under any circumstances, exceed 1.00. For purposes of determining the size of a school district pursuant to subdivision (c), county superintendents of schools, in conjunction with the Superintendent of Public Instruction, shall use school district revenue limit average daily attendance for the 2002–03 fiscal year as determined pursuant to Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district pursuant to subdivision (c), the Superintendent of Public Instruction shall include units of average daily attendance of any charter school for which the school district is the chartering agency.
(3) For the purposes of computing the target amounts pursuant to subdivision (b), the Superintendent of Public Instruction shall count all charter school average daily attendance toward the average daily attendance of the school district that is the chartering agency.

SEC. 6.

 Section 42238.445 is added to the Education Code, immediately following Section 42238.44, to read:

42238.445.
 (a) (1) For the 2002–03 fiscal year, the Superintendent of Public Instruction shall compute an equalization adjustment for each school district by determining the amount that would be necessary to assure that no district’s 2001–02 base revenue limit per unit of average daily attendance is less than the 2001–02 base revenue limit per unit of average daily attendance above which fall not more than 10 percent of the total statewide units of average daily attendance for each category of school district set forth in subdivision (b).
(2) For purposes of this section, the district base revenue limit and the statewide average base revenue limit shall not include any amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts, which shall be grouped according to size and type as follows:
District
ADA
Elementary ........................
less than 101
Elementary ........................
more than 100
High School ........................
less than 301
High School ........................
more than 300
Unified ........................
less than 1,501
Unified ........................
more than 1,500
(c) The Superintendent of Public Instruction shall determine and allocate, on a one-time basis, an amount for each school district as follows:
(1) Multiply the amount computed for each school district pursuant to subdivision (a) by the average daily attendance used to calculate the district’s revenue limit for the 2002–03 fiscal year.
(2) Divide forty-two million dollars ($42,000,000) appropriated pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of the Budget Act of 2002 by the statewide sum of the amount computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant to paragraph (1) by the amount computed pursuant to paragraph (2).
(d) (1) For the purposes of this section, the 2001–02 statewide 90th percentile base revenue limit determined pursuant to paragraph (1) of subdivision (a), and the fraction computed pursuant to paragraph (2) of subdivision (c) for the 2001–02 second principal apportionment, shall be final, and shall not be recalculated at subsequent apportionments. The fraction computed pursuant to paragraph (2) of subdivision (c) shall not, under any circumstances, exceed 1.00. For purposes of determining the size of a school district pursuant to subdivision (b), county superintendents of schools, in conjunction with the Superintendent of Public Instruction, shall use school district revenue limit average daily attendance for the 2001–02 fiscal year as determined pursuant to Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district pursuant to subdivision (b), the Superintendent of Public Instruction shall include units of average daily attendance of any charter school for which the school district is the chartering agency.
(3) For the purposes of computing the target amounts pursuant to subdivision (a), the Superintendent of Public Instruction shall count all charter school average daily attendance toward the average daily attendance of the school district that is the chartering agency.
(e) Allocations pursuant to this section do not represent adjustments to school district base revenue limits.

SEC. 7.

 Section 42238.46 is added to the Education Code, to read:

42238.46.
 (a) For the 2003–04 fiscal year, the Superintendent of Public Instruction, shall compute an equalization adjustment for each school district so that no district’s 2002–03 adjusted base revenue limit per unit of average daily attendance is less than the 2002–03 fiscal year adjusted base revenue limit above which fall not more that 8.25 percent of the total statewide units of average daily attendance for the appropriate size and type of district listed in subdivision (b).
For purposes of this section, the district adjusted base revenue limit and the statewide average adjusted base revenue limit shall not include any amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts, which shall be grouped according to size and type as follows:
District
ADA
Elementary ........................
less than 101
Elementary ........................
more than 100
High School ........................
less than 301
High School ........................
more than 300
Unified ........................
less than 1,501
Unified ........................
more than 1,500
(c) The Superintendent of Public Instruction shall compute a revenue limit equalization adjustment for each school district’s adjusted base revenue limit per unit of average daily attendance as follows:
(1) Add the products of the amount computed for each school district by the county superintendent pursuant to subdivision (a) and the average daily attendance used to calculate the district’s revenue limit for the current fiscal year.
(2) Divide the amount appropriated for purposes of this section for the current fiscal year by the amount computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant to subdivision (a) by the amount computed pursuant to paragraph (2).
(d) (1) For purposes of this section only, prior to computing the equalization adjustment pursuant to this section, the Superintendent of Public Instruction shall calculate an adjusted base revenue limit for each district by revising the 2002–03 base revenue limit of the district to eliminate that portion of the one-time adjustment to its base revenue limit related to excused absences made pursuant to Section 42238.8.
(2) For the purposes of this section, the 2002–03 statewide average adjusted base revenue limits determined for the purposes of subdivision (a) and the fraction computed pursuant to paragraph (2) of subdivision (c) by the Superintendent of Public Instruction for the 2002–03 second principal apportionment shall be final, and shall not be recalculated at subsequent apportionments. In no event shall the fraction computed pursuant to paragraph (2) of subdivision (c) exceed 1.00. For the purposes of determining the size of a district used in subdivision (b), county superintendents of schools, in conjunction with the Superintendent of Public Instruction, shall use a school district’s revenue limit average daily attendance for the 2002–03 fiscal year as determined pursuant to Section 42238.5 and Article 4 (commencing with Section 42280).
(3) For the purposes of calculating the size of a school district pursuant to subdivision (b), the Superintendent of Public Instruction shall include units of average daily attendance of any charter school for which the school district if the chartering agency.
(4) For the purposes of computing the target amounts pursuant to subdivision (a), the Superintendent of Public Instruction shall count all charter school average daily attendance towards the average daily attendance of the school district that is the chartering agency.

SEC. 8.

 Section 44515 of the Education Code is amended to read:

44515.
 (a) Program funding is intended to serve 50 percent of the total number of public school principals and vice principals in each of the 2002–03 and 2003–04 fiscal years.
(b) A local education agency shall receive program funding to train up to 50 percent of its schoolsite administrators in the 2002–03 fiscal year and the remainder in the 2003–04 fiscal year.
(c) If all of the statewide funding is not expended in a fiscal year, it may be redistributed on a pro rata basis to local education agencies that have served more than the proportion specified in subdivision (a) of their schoolsite administrators during that fiscal year.
(d) It is the intent of the Legislature that a local education agency give highest priority to training administrators assigned to, and practicing in, low-performing or hard-to-staff schools.

SEC. 9.

 Section 44955.5 of the Education Code is amended to read:

44955.5.
 (a) During the time period between five days after the enactment of the Budget Act and August 15 of the fiscal year to which that Budget Act applies, if the governing board of a school district determines that its total revenue limit per unit of average daily attendance for the fiscal year of that Budget Act has not increased by at least 2 percent, and if in the opinion of the governing board it is therefore necessary to decrease the number of permanent employees in the district, the governing board may terminate the services of any permanent or probationary certificated employees of the district, including employees holding a position that requires an administrative or supervisory credential. The termination shall be pursuant to Sections 44951 and 44955 but, notwithstanding anything to the contrary in Sections 44951 and 44955, in accordance with a schedule of notice and hearing adopted by the governing board.
(b) This section is inoperative from July 1, 2002, to July 1, 2003, inclusive.

SEC. 10.

 Section 47634.5 of the Education Code is amended to read:

47634.5.
 (a) The Director of Finance shall compute and provide to the Superintendent of Public Instruction within 30 days of the enactment of the Budget Act of 1999 the percentage change calculated based on the Budget Act of 1999 and accompanying statutes in the following:
(1) The total amount of state funding per unit of average daily attendance received by kindergarten and grades 1 to 12, inclusive, local educational agencies in 1998–99 for purposes that apply toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year, exclusive of funding for school district revenue limits, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately.
(2) The total amount of state funding per unit of average daily attendance appropriated in the Budget Act of 1999 and related implementing legislation for kindergarten and grades 1 to 12, inclusive, local educational agencies for purposes which count toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year, exclusive of funding for school district revenue limits, charter schools’ general-purpose entitlements, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately.
(b) Commencing in 2000, the Director of Finance shall annually compute and provide as part of the May revision to the Governor’s Budget the percentage change in the following:
(1) The total amount of state funding per unit of average daily attendance received by kindergarten and grades 1 to 12, inclusive, local educational agencies in 1998–99 for purposes which count toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year, exclusive of funding for school district revenue limits, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately.
(2) The total amount of state funding per unit of average daily attendance proposed to be appropriated in the following year for kindergarten and grades 1 to 12, inclusive, local educational agencies in the budget year for purposes which count toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year, exclusive of funding for school district revenue limits, charter schools’ general-purpose entitlements, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately.
(c) (1) Notwithstanding subdivision (b), commencing in 2002, the Director of Finance shall annually compute and provide to the Superintendent of Public Instruction within 30 days of the enactment of the annual Budget Act the cumulative percentage change between the amounts calculated pursuant to subparagraphs (A) and (B).
(A) The total amount of state funding per unit of average daily attendance received by kindergarten and grades 1 to 12, inclusive, local educational agencies in 1998–99 for purposes that count toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year, exclusive of funding for school district revenue limits, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately.
(B) The total amount of state funding per unit of average daily attendance appropriated in the annual Budget Act and related implementing legislation for kindergarten and grades 1 to 12, inclusive, to local educational agencies for purposes that count toward meeting the requirements of Section 8 of Article XVI of the California Constitution for that fiscal year, exclusive of funding for school district revenue limits, charter schools’ general-purpose entitlements, county offices of education, adult education, child development programs, special education, Economic Impact Aid, and programs for which a charter school is required to apply separately. The Director of Finance shall not include in the calculation made to determine the amount required pursuant to this paragraph reappropriations of funding that previously counted toward meeting the requirements of Section 8 of Article XVI of the California Constitution for any fiscal year.
(2) As part of providing the calculation required pursuant to paragraph (1), the Department of Finance shall provide the State Department of Education with a comprehensive list of categorical programs that are included in the Charter School Categorical Block Grant.

SEC. 11.

 Section 48005.10 of the Education Code is amended to read:

48005.10.
 (a) This article shall be known, and may be cited, as the Kindergarten Readiness Pilot Program.
(b) The Legislature hereby finds and declares the following:
(1) The available data indicate all of the following:
(A) By changing the age at which children generally enter kindergarten, California’s children will be better prepared to enter into the academic environment that is required by the California content standards for kindergarten.
(B) Success in school is often related to socioeconomic status, English language fluency at school entry, and access to preschool. By providing a kindergarten readiness program for the children most at risk for low performance and delaying entry to allow all children time to become more developmentally ready to learn, pupils are more likely to succeed in school.
(C) Comparisons between California pupils and pupils in other states on national achievement tests in the later grades are likely to be more equitable if the entry age of California pupils is more closely aligned to that of most other states.
(D) Children who have attended an educationally based kindergarten readiness program, including, but not limited to, a quality state preschool, Head Start, or kindergarten readiness program, are better prepared academically and socially for the existing kindergarten curriculum, as reflected by the state adopted standards.
(2) The purpose of the pilot project established pursuant to this article is intended to test these data.
(3) For participating school districts, the change in enrollment required pursuant to this article will result in a decrease in the number of pupils enrolled in kindergarten classes for the class entering kindergarten in the 2003–04 school year. Thus, it is estimated that in participating school districts there will be a 25 percent decrease in the enrollment of the kindergarten class in the initial year of implementation.
(4) The school district revenue related provision of this article in Section 48005.30 is intended to fully fund participation in the program and provide an incentive to participate.

SEC. 12.

 Section 48005.13 of the Education Code is amended to read:

48005.13.
 (a) The Superintendent of Public Instruction shall establish and administer the Kindergarten Readiness Pilot Program to permit school districts to provide opportunities for children to enhance their readiness for kindergarten, thereby increasing their likelihood for future academic success.
(b) The Superintendent of Public Instruction shall convene an advisory panel to assist the department in developing its request for proposals, and in evaluating and selecting the proposals submitted to the department. The advisory panel shall include, but need not be limited to, a representative of each of the following:
(1) The Department of Finance.
(2) The Legislature.
(3) The California Research Bureau.
(4) The Legislative Analyst.
(5) The State Board of Education.
(6) The Secretary for Education.
(c) By February 1, 2003, the superintendent shall notify elementary and unified school districts maintaining kindergarten about the existence of this program, shall notify them about the procedures for participation, and shall request proposals for participation.
(d) Participation in the program by a school district shall be voluntary.
(e) A school district that elects to participate in the program shall apply to the Superintendent of Public Instruction by May 1, 2003, upon forms adopted by the superintendent for this purpose.
(f) The Superintendent of Public Instruction, with the advice of the advisory panel, and in consultation with the Secretary for Education, shall select participants from the group of applicants. The Superintendent of Public Instruction shall give priority to applicant school districts that are representative of the diversity of pupils and of the various types of school districts within the state. Priority shall, also, be given to unified school districts.
(g) Nothing in this article prohibits a school district from implementing the program in selected schools within the district if adequate records are kept to substantiate the accuracy of the declining enrollment incentive and limits on prekindergarten instruction funding provided pursuant to Section 48005.30.

SEC. 13.

 Section 48005.15 of the Education Code is amended to read:

48005.15.
 By July 1, 2003, each participant school district shall enter into an agreement with the Superintendent of Public Instruction setting forth the requirements under the program, including, but not limited to, all of the following:
(a) The participating school district shall make reasonable efforts to identify parents and guardians of children from three to five years of age who reside within the school district and to provide the parents and guardians with information regarding, and access to, services, programs, or methods, to assist them in assessing the level of readiness of a child to enter school.
(b) The effort set forth in paragraph (1) shall include, but need not be limited to, information regarding available care services, preschool programs, and educationally based kindergarten readiness programs. The school district may coordinate this effort with local parent-teacher organizations.
(c) “Reasonable effort” as used in this subdivision does not require that the school district individually contact every potential parent who resides within the school district.
(d) The school district shall provide assistance to parents or guardians who request assistance regarding activities that parents may initiate in preparing children for school.
(e) At a minimum, participating school districts shall supply parents or guardians with written readiness guidelines developed by the State Department of Education.
(f) Assistance provided pursuant to this section shall be based on generally accepted child development theory and may include information related to social and development readiness and professional consultations with teachers and school administrators.
(g) The participating school district shall make reasonable efforts to collect data and make it available to the independent evaluator, as specified in Section 48005.45.

SEC. 14.

 Section 48005.25 of the Education Code is amended to read:

48005.25.
 (a) Notwithstanding any provision of law to the contrary, including, but not limited to, Section 48000, for the 2003–04 school year, and each school year thereafter in which a school district continues to participate in the program, the school district shall offer admission to kindergarten at the beginning of the school year, or at a later time in the same school year, only to children who will have their fifth birthday on or before September 1 of that school year. For a school district that is not implementing the pilot project authorized by this article on a districtwide basis, this subdivision applies only to children whose residence is in the regular attendance boundary of a participating school or who would otherwise attend that school under school assignment policies established in the school year prior to implementation of this pilot program.
(b) Notwithstanding any provision of law to the contrary, including, but not limited to, Section 48010, for the 2004–05 school year, and each school year thereafter in which a school district continues to participate in the program, a school district shall offer admission to first grade at the beginning of the school year, or at a later time in the same school year, only to children who will have their sixth birthday on or before September 1 of that school year. Kindergarten shall not be a prerequisite for enrollment in first grade pursuant to this article. For a school district that is not implementing the pilot project authorized by this article on a districtwide basis, this subdivision applies only to children whose residence is in the regular attendance boundary of a participating school or who would otherwise attend that school under school assignment policies established in the school year prior to implementation of this pilot program.
(c) Notwithstanding subdivisions (a) and (b), the governing board of each school district participating in this program shall adopt a policy to allow, for good cause, admission of a child to kindergarten or to the first grade at the beginning of a school year in which the child’s birthday will be after September 1, or at a later time in the same school year. It is the intent of the Legislature that this subdivision authorize rare exceptions for only the most gifted and socially mature children. Therefore, exceptions are limited to no more than the greater of either one child or the number of children determined by multiplying .01 times the prior school year P-2 average daily attendance in kindergarten within the participating school district or the school implementing the program, as applicable. A school or school district may not exceed this limitation without specific written approval from the Superintendent of Public Instruction upon consideration of a statement by the school or school district of the circumstances that meet the legislative intent regarding this subdivision.

SEC. 15.

 Section 48005.30 of the Education Code is amended to read:

48005.30.
 (a) For the 2003–04 school year and each school year thereafter until the 2009–10 school year the Superintendent of Public Instruction shall allocate a grant of funds for a participating school district for each year of participation to cover the costs of developing and operating the school district kindergarten readiness program, including, but not limited to, the costs of administration and the costs associated with services provided to parents and children in the program. For any participating school district, annual funding pursuant to this paragraph shall be subject to the limitations and requirements of this subdivision and shall not exceed the per-pupil amount nor the total amount computed as follows:
(1) Five dollars ($5) per hour for each hour of attendance for every child participating in the kindergarten readiness program up to a maximum of 150 hours of attendance for each child. The amount per hour shall be adjusted annually, commencing with the 2004–05 school year for the inflation adjustment calculated pursuant to subdivision (b) of Section 42238.1.
(2) For purposes of total funding to a participating school district, the amount claimed may not exceed an amount equivalent to multiplying the amount in paragraph (1) by a number equal to 50 percent of the entire kindergarten P-2 average daily attendance for the 2002–03 school year of the school district or, in a school district that is not implementing the pilot project authorized by this article on a districtwide basis, by a number equal to 50 percent of the kindergarten P-2 average daily attendance for the 2002–03 school year of the schools in the district that are implementing the program.
(b) For the 2003–04 school year, the Superintendent of Public Instruction shall allocate a one-time incentive grant to enhance transition of the school district for the reduced attendance that results from the program, to be determined by multiplying one-fourth of the kindergarten average daily attendance for the 2002–03 school year by the school district’s base revenue limit per unit of average daily attendance. If a school district does not implement the program districtwide, this one-time incentive shall be determined by multiplying one-fourth of the specific portion of the district’s kindergarten average daily attendance for the 2002–03 school year contributed by the implementing school or schools by the school district’s base revenue limit per unit of average daily attendance.
(c) A participating school district that does not implement the program on a districtwide basis shall provide to the Superintendent of Public Instruction a statement certifying the following:
(1) P-2 average daily attendance in the implementing schools for the 2002–03 school year. The school district shall maintain these records for audit purposes. The Superintendent of Public Instruction may request documentation of the P-2 average daily attendance in schools implementing the program as deemed necessary to enforce the funding limits of this article.
(2) Attendance boundaries for the schools implementing the program will remain the same as they existed in the 2002–03 school year through the duration of the program unless the district submits an application to and receives approval from the State Board of Education. The State Board of Education shall only consider applications for attendance boundary changes for participating schools in cases where significant population changes necessitate the opening of new schools or the closing of existing schools. In order to preserve the integrity of the evaluation required by this article, it is the intent of the Legislature that a school district applying to participate in the program on a less than districtwide basis avoid implementation of the program in schools that can reasonably be foreseen to be subject to boundary changes within the timeframe of the pilot program authorized in this article. The State Board of Education may not approve boundary changes that do not meet the requirements and intent of this paragraph.
(3) The district has established procedures that restrict attendance in nonparticipating schools of the district for children residing in the attendance boundaries of the schools implementing the program.
(d) Total incentive funding for reduced P-2 average daily attendance provided pursuant to this article shall be subject to a statewide maximum funding level equal to the equivalent of 2,300 full annual units of average daily attendance multiplied by the statewide average school district revenue limit for the 2003–04 fiscal year as determined by the Department of Finance.

SEC. 16.

 Section 48005.35 of the Education Code is amended to read:

48005.35.
 (a) A school district kindergarten readiness program operated pursuant to this article is exempt from Chapter 14 (commencing with Section 15000) and Chapter 19 (commencing with Section 17906) of Division 1 of Title 5 of the California Code of Regulations if the program meets kindergarten staffing and safety requirements.
(b) Notwithstanding any other provision of law to the contrary, including, but not limited to, subdivision (a) of Section 17285, a commercial building that does not meet the requirements of Section 17820, that is leased to a school district may, until January 1, 2004, be used as a classroom in order to accommodate programs under this article if the governing board of the school district finds that conditions of subdivision (b) of Section 17285 have been met.
(c) Any teacher participating in the kindergarten readiness program shall be a holder of a permit or credential issued by the Commission on Teacher Credentialing that authorizes instruction in kindergarten or child care and development.

SEC. 17.

 Section 48005.45 of the Education Code is amended to read:

48005.45.
 (a) The Superintendent of Public Instruction shall, by June 1, 2004, contract for an independent longitudinal evaluation regarding the effects of the change in the entry age for kindergarten and first grade pursuant to this article. In selecting the independent evaluator, awarding the contract pursuant to this section, and in monitoring performance under the contract, the Superintendent of Public Instruction shall consult with the advisory panel convened pursuant to subdivision (b) of Section 48005.13.
(b) The evaluation shall be based upon samples of sufficient size and diversity to allow results to be reported separately for pupils of different ethnicity, socioeconomic status, and primary language, and results of the evaluation shall be so reported.
(c) The primary purpose of the evaluation is to determine whether this entry age change results in improved readiness for school and an improvement in academic achievement among participating children.
(d) The evaluation shall use representative sampling to identify the change’s effects on all of the following:
(1) Academic achievement, as measured by standardized tests, as compared with pupils not participating in the program.
(2) Behavioral problems, as measured by objective data including, but not limited to, suspension and expulsion rates, as compared with pupils not participating in the program.
(3) Academic problems, as measured by referrals to special education and remedial programs, as compared with pupils not participating in the program.
(4) Age of kindergarten entry and previous educationally based preschool experience, including, but not limited to, access to child care and preschool by parents or guardians.
(5) Overall retention rates in kindergarten and in subsequent grades.
(6) Participation in remedial, supplemental, or summer school programs.
(7) Class size.
(8) Number of pupils participating in kindergarten.
(9) Number of pupils participating in the kindergarten readiness programs.
(10) Differences, if any, between programs with full preschool participation, and those with partial or no preschool.
(11) Childcare difficulties caused by the admission age change.
(12) Demographic breakdown of participants and nonparticipants, including, but not limited to, socioeconomic and ethnic demographics.
(13) Facilities difficulties, if any, encountered by participating school districts.
(14) The ability of parents to gain access to the program, disaggregated by ethnic, primary language, and socioeconomic status.
(e) It is the intent of the Legislature that funding for this evaluation be included in the Budget Act or a bill related to the Budget Act. It is the intent of the Legislature to subsequently increase the number of hours funded for the kindergarten readiness program if the reports pursuant to this section indicate that the increase would be beneficial.
(f) (1) The independent evaluator shall report to the Legislature, the Governor, the Superintendent of Public Instruction, the State Board of Education, and the Secretary for Education.
(2) The initial report shall be filed by June 1, 2006. The interim report shall be filed by January 1, 2008. The final report shall be filed by January 1, 2009.

SEC. 18.

 Section 48005.55 of the Education Code is amended to read:

48005.55.
 This article 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. 19.

 Section 52263.5 is added to the Education Code, to read:

52263.5.
 (a) Notwithstanding subdivision (a) of Section 52253, no technology support and staff training grants shall be provided to school districts and county offices of education for the 2002–03 fiscal year. Notwithstanding subdivision (a) of Section 52262, the Superintendent of Public Instruction may not allocate technology support and staff training grants for the 2002–03 fiscal year.
(b) It is the intent of the Legislature that the funding that would otherwise have been provided for the 2002–03 fiscal year be provided in the 2003–04 fiscal year.
(c) This section shall become inoperative on July 1, 2003, and, as of January 1, 2004, is repealed, unless a later enacted statute that is enacted before January 1, 2004, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 20.

 Section 53075 of the Education Code is amended to read:

53075.
 Subject to funding being appropriated in the annual Budget Act for this purpose, the Secretary for Education shall contract for the development and establishment of a public involvement campaign to inform Californians that promoting reading in the public schools as a key to success in life is the responsibility of all Californians. The campaign shall address, but not necessarily be limited to, promoting family reading activities, encouraging private sector support for child literacy programs, and publicizing the importance of reading skills for academic success.
Elected officials and declared candidates for partisan public office may not appear in promotional materials for the reading campaign.

SEC. 21.

 Section 54201 of the Education Code is amended to read:

54201.
 (a) The State Department of Education shall calculate the per pupil amount that was received by each school district pursuant to the court-ordered desegregation claims filed pursuant to Sections 42243.6 and 42247, and the per pupil amount that was received based on voluntary integration claims filed pursuant to Sections 42247 and 42249 for the 2000–01 fiscal year. This amount shall be determined by dividing the total funds by the actual average daily attendance as reported on the second principal apportionment for 2000–01.
(b) The amount determined pursuant to subdivision (a) for each school district, adjusted by the percentage increase calculated pursuant to Section 42238.1, multiplied by the districts’ total average daily attendance for each fiscal year shall be the total per pupil funding received for the Targeted Instructional Improvement Grant. This amount shall be adjusted annually thereafter by the percentage increase calculated pursuant to Section 42238.1. For the 2001–02 fiscal year, and each fiscal year thereafter, the total amount a school district shall receive in any fiscal year is at a minimum the same total amount it received in the 2000–01 fiscal year adjusted annually pursuant to Section 42238.1.

SEC. 22.

 Section 54205 is added to the Education Code, to read:

54205.
 (a) For a basic aid district that was entitled to reimbursement pursuant to Section 42247.4, as that section read on January 1, 2001, and that received an apportionment pursuant to subdivision (h) of Section 42247.4, as that section read on January 1, 2001, because a court order directs pupils to transfer to that district as part of the court-ordered voluntary pupil transfer program, the Superintendent of Public Instruction, commencing with the 2001–02 fiscal year, shall calculate an apportionment of state funds for that basic aid district that provides 70 percent of the district revenue limit calculated pursuant to Section 42238 that would have been apportioned to the school district from which the pupils were transferred for the average daily attendance of any pupils credited under that court order who did not attend the basic aid school district prior to the 1995–96 fiscal year.
(b) For purposes of this section, “basic aid district” means a school district that does not receive from the state, for any fiscal year in which this section is applied, an apportionment of state funds pursuant to subdivision (h) of Section 42238.

SEC. 23.

 Section 56836.158 of the Education Code is amended to read:

56836.158.
 (a) (1) The superintendent shall determine the statewide total average daily attendance used for the purposes of Section 56836.08 for the 2000–01 fiscal year. For the purposes of this calculation, the 2000–01 second principal average daily attendance for the court, community school, and special education programs served by the Los Angeles County Juvenile Court and Community School/Division of Alternative Education special education local plan area shall be used in lieu of the average daily attendance used for that agency for the purposes of Section 56836.08.
(2) The superintendent shall distribute the amount appropriated for purposes of this section from the Budget Act of 2001. The superintendent shall divide that amount of funding by the amount calculated in paragraph (1).
(3) For each special education local plan area, the superintendent shall permanently increase the amount per unit of average daily attendance determined pursuant to paragraph (2) of Section 56836.10 for the 2001–02 fiscal year by the quotient determined pursuant to paragraph (2) of this section. This increase shall be effective beginning in the 2001–02 fiscal year.
(4) Notwithstanding paragraph (3), for the Los Angeles County Juvenile Court and Community School/Division of Alternative Education special education local plan area, the superintendent shall permanently increase the amount per unit of average daily attendance determined pursuant to paragraph (2) of Section 56836.10 by the ratio of the amount determined pursuant to paragraph (2) to the statewide target per unit of average daily attendance determined pursuant to Section 56836.11 for the 2000–01 fiscal year. This increase shall be effective beginning in the 2001–02 fiscal year.
(5) The superintendent shall increase the statewide target per unit of average daily attendance determined pursuant to Section 56836.11 for the 2001–02 fiscal year by the amount determined pursuant to paragraph (2).
(b) (1) The superintendent shall determine the statewide total average daily attendance used for the purposes of Section 56836.08 for the 2001–02 fiscal year. For the purposes of this calculation, the 2001–02 second principal average daily attendance for the court, community school, and special education programs served by the Los Angeles County Juvenile Court and Community School/Division of Alternative Education special education local plan area shall be used in lieu of the average daily attendance used for that agency for the purposes of Section 56836.08.
(2) The superintendent shall distribute the amount appropriated for purposes of this section from the Budget Act of 2002. The superintendent shall divide that amount of funding by the amount calculated in paragraph (1).
(3) For each special education local plan area, the superintendent shall permanently increase the amount per unit of average daily attendance determined pursuant to paragraph (2) of Section 56836.10 for the 2002–03 fiscal year by the quotient determined pursuant to paragraph (2). This increase shall be effective commencing in the 2002–03 fiscal year.
(4) Notwithstanding paragraph (3), for the Los Angeles County Juvenile Court and Community School/Division of Alternative Education special education local plan area, the superintendent shall permanently increase the amount per unit of average daily attendance determined pursuant to paragraph (2) of Section 56836.10 by the ratio of the amount determined pursuant to paragraph (2) to the statewide target per unit of average daily attendance determined pursuant to Section 56836.11 for the 2001–02 fiscal year. This increase shall be effective commencing in the 2002–03 fiscal year.
(5) The superintendent shall increase the statewide target per unit of average daily attendance determined pursuant to Section 56836.11 for the 2002–03 fiscal year by the amount determined pursuant to paragraph (2).

SEC. 31.

 Section 70000 of the Education Code is amended to read:

70000.
 (a) The Governor’s Teaching Fellowships Program is hereby established to be administered by the Chancellor’s office of the California State University. The chancellor’s office shall collaborate with the University of California, the California Community Colleges, the Association of Independent California Colleges and Universities, the State Department of Education, and the Commission on Teacher Credentialing to ensure that access to the fellowships is available to students in a variety of teaching preparation programs.
(b) In January 2001, 250 nonrenewable graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded, with funds disbursed one-half in January 2001 and one-half in September 2001.
(c) During the 2001–02 fiscal year, 1,000 nonrenewable, graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded.
(d) Commencing with the 2002–03 fiscal year and each fiscal year thereafter, the number of fellowships awarded shall be determined pursuant to an appropriation in the annual Budget Act for this purpose.
(e) The fellowship award may be used to defer tuition for a teacher certification program at any accredited postsecondary institution in California and for living expenses while enrolled in that program.

SEC. 33.

 Section 99234 of the Education Code is amended to read:

99234.
 (a) The Superintendent of Public Instruction shall notify local education agencies that they are eligible to receive an incentive award for up to 3 percent of eligible teachers in the 2002–03 fiscal year, up to 3 percent in the 2003–04 fiscal year, up to 2.4 percent in the 2004–05 fiscal year, up to 2.7 percent in the 2005–06 fiscal year, and up to 1.3 percent in the 2006–07 fiscal year. It is the intent of the Legislature that a local education agency give highest priority to training teachers assigned to low-performing schools. It is also the intent of the Legislature that funding appropriated in one fiscal year that is not expended by a local education agency be redirected to local education agencies that have trained more eligible teachers than the percentage funded. When a redirection of funding occurs, funding in subsequent fiscal years for the local education agencies involved shall be adjusted to reflect the redirection of funding.
(b) A school district that cannot make the certification required pursuant to paragraph (3) of subdivision (a) of Section 99237 for all the grade levels it maintains in reading and mathematics may apply for and receive incentive funding for the grade levels and subjects for which it can make the certification required pursuant to paragraph (3) of subdivision (a) of Section 99237, in which case the certified assurance submitted pursuant to Section 99237 shall apply only to the professional development provided to teachers and instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading in the grade levels and subjects for which it can make the certification required pursuant to paragraph (3) of subdivision (a) of Section 99237.
(c) Of the incentive provided pursuant to subdivision (c), a local education agency may use not more than one thousand dollars ($1,000) of the per teacher per subject amount to provide an individual teacher stipend.
(d) The Superintendent of Public Instruction shall notify local education agencies that the maximum funding for the purpose of this article for which they are eligible each year is equal to the percentage set forth in subdivision (a), multiplied by the sum of the following two factors multiplied by two thousand five hundred dollars ($2,500):
(1) Twice the number of multiple subjects teachers teaching in a self-contained classroom and special education teachers, as specified in paragraphs (1) and (2) of Section 99233, that provide direct instruction in reading and mathematics as reported in the most recent available CBEDS data, who have not received training pursuant to either this article or Article 2 (commencing with Section 99220).
(2) The number of mathematics, English, science, and social science teachers as specified in paragraphs (3) to (6), inclusive, of Section 99233 that were reported in the most recent available CBEDS data, who have not received training pursuant to either this article or Article 2 (commencing with Section 99220).
(e) The Superintendent of Public Instruction shall allocate funding appropriated for the purposes of this article in the following order of priority:
(1) Two thousand five hundred dollars ($2,500) for each qualifying teacher who was provided training pursuant to subdivision (a) in the prior year for whom the local education agency did not receive funding due to insufficient availability of funds in the prior fiscal year.
(2) Two thousand five hundred dollars ($2,500) for each qualifying teacher who was provided training pursuant to this article, subject to the limitations in subdivision (d).
(3) Five hundred dollars ($500) for each qualifying teacher for each qualifying program as specified in Article 2 (commencing with Section 99220) who successfully completes mathematics or reading standards training, or both, at a California Professional Development Institute authorized pursuant to Article 2 (commencing with Section 99220) in the 2001–02 fiscal year to the 2004–05 fiscal year, inclusive, using funds received pursuant to Article 2 (commencing with Section 99220), and has had specific approved training on the mathematics or reading instructional materials selected for use in the school.
(4) Five hundred dollars ($500) for each qualifying teacher in each qualifying program pursuant to Article 2 (commencing with Section 99220) who successfully completed mathematics or reading standards training, or both, at a California Professional Development Institute authorized pursuant to Article 2 (commencing with Section 99220) in the 1999–2000 or 2000–01 fiscal year, using funds received pursuant to Article 2 (commencing with Section 99220), and has had specific approved training on the mathematics or English-language arts instructional materials selected for use in the school.
(5) Two thousand five hundred dollars ($2,500) for each qualifying teacher who was provided training pursuant to this article in excess of limitations in subdivision (d).
(f) For purposes of this article, qualifying teachers who, in the 2000–01 fiscal year, received training at a California Professional Development Institute authorized pursuant to Article 2 (commencing with Section 99220) that was paid for by a local education agency using funds that were not received pursuant to Article 2 (commencing with Section 99220) shall be deemed to have received training in the 2001–02 fiscal year. A local education agency shall receive funding for these qualifying teachers in accordance with paragraph (2) of subdivision (e).
(g) Except as provided in subdivision (f) of Section 99237, funding may not be provided to a local education agency until the State Board of Education approves the agency’s certified assurance submitted pursuant to Section 99237.
(h) Of the funding a local education agency is eligible to receive pursuant to this section for each eligible teacher, up to the number specified in subdivision (a), 50 percent shall be awarded following the provision of 40 hours of professional development as specified in subdivision (b) of Section 99237, with the remaining funding to be awarded following certification of the provision of the 80 hours of followup instruction as specified in subdivision (b) of Section 99237.
(i) Except as provided in paragraphs (3) and (4) of subdivision (e), a local education agency may not receive funds pursuant to this article for teachers who receive training pursuant to Article 2 (commencing with Section 99220) using funding provided pursuant to Article 2 (commencing with Section 99220).

SEC. 34.

 Section 99235 of the Education Code is amended to read:

99235.
 (a) The Superintendent of Public Instruction shall notify local education agencies that they are eligible to receive funding to provide instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading with professional development training in mathematics and reading, in an amount equal to one thousand dollars ($1,000) per qualifying instructional aide. Funding will be provided to local education agencies on a first-come, first-serve basis. A local education agency that chooses to participate in the program is eligible to receive funding for no greater than 29 percent of its instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading in the 2004–05 fiscal year and up to 14.5 percent in the 2005–06 fiscal year. However, the statewide total number of instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading served under this program may not exceed 9,600 over the two fiscal years.
(b) Of the incentive provided pursuant to subdivision (a), a local educational agency may use not more than five hundred dollars ($500) of the per instructional aide and paraprofessionals who directly assist with classroom instruction in mathematics and reading amount to provide an individual instructional aid stipend.

SEC. 35.

 Section 99240 of the Education Code is amended to read:

99240.
 (a) By July 1, 2003, the State Department of Education, in cooperation with the University of California and the California Professional Development Institutes authorized pursuant to Article 2 (commencing with Section 99220), shall develop, and the State Board of Education shall review and approve, an interim report regarding the program established pursuant to this article for submission to the Legislature. The interim report shall, at a minimum, detail the following:
(1) The number of teachers, by credential type, who have received training offered pursuant to this article.
(2) The number of instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading who have received training offered pursuant to this article.
(3) The entities that have received funds for the purpose of offering training pursuant to this article and the number of teachers and instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading, respectively, that each has trained.
(b) By June 30, 2005, the State Department of Education shall submit, subject to review and approval by the State Board of Education, a final report to the Legislature regarding the program established pursuant to this article. The final report shall, at a minimum, detail the following:
(1) The number of teachers, by credential type, who received training offered pursuant to this article.
(2) The number of instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading who received training offered pursuant to this article.
(3) The entities that received funds for the purpose of offering training pursuant to this article and the number of teachers and instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading, respectively, that each has trained.
(4) Information detailing the effectiveness of the program established pursuant to this article. This information shall, at a minimum, incorporate survey data concerning program effectiveness that has been gathered from program participants and school principals.
(5) To the extent information is available, information detailing the retention rate, by credential type, of teachers who participated in training offered pursuant to this article. The information shall, at a minimum, incorporate sample data concerning teachers who are no longer in the profession.
(6) To the extent information is available, information detailing the retention rate of instructional aides and paraprofessionals who directly assist with classroom instruction in mathematics and reading who participated in training offered pursuant to this article. The information shall, at a minimum, incorporate sample data concerning aides who are no longer in the profession, as well as aides who have obtained a teacher credential subsequent to training.

SEC. 36.

 Section 99242 of the Education Code is amended to read:

99242.
 This article shall become inoperative on July 1, 2006, and, as of January 1, 2007, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2007, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 37.

 Section 17581.5 is added to the Government Code, to read:

17581.5.
 (a) A school district shall not be required to implement or give effect to the statutes, or portion thereof, identified in subdivision (b) during any fiscal year and for the period immediately following that fiscal year for which the Budget Act has not been enacted for the subsequent fiscal year if all of the following apply:
(1) The statute or portion thereof, has been determined by the Legislature, the commission, or any court to mandate a new program or higher level of service requiring reimbursement of local agencies pursuant to Section 6 of Article XIIIB of the California Constitution.
(2) The statute, or portion thereof, has been specifically identified by the Legislature in the Budget Act for the fiscal year as being one for which reimbursement is not provided for that fiscal year. For purposes of this paragraph, a mandate shall be considered to have been specifically identified by the Legislature only if it has been included within the schedule of reimbursable mandates shown in the Budget Act and it is specifically identified in the language of a provision of the item providing the appropriation for mandate reimbursements.
(b) This section applies only to the following mandates:
(1) The School Bus Safety II mandate (Chapter 642 of the Statutes of 1992; Chapter 831 of the Statutes of 1994; and Chapter 739 of the Statutes of 1997).
(2) The School Crimes Reporting II mandate (Chapter 759 of the Statutes of 1992 and Chapter 410 of the Statutes of 1995).

SEC. 38.

 Section 5701.3 of the Welfare and Institutions Code is amended to read:

5701.3.
 Consistent with the annual Budget Act, this chapter shall not affect the responsibility of the state to fund psychotherapy and other mental health services required by Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1 of the Government Code, and the state shall reimburse counties for all allowable costs incurred by counties in providing services pursuant to that chapter. The reimbursement provided pursuant to this section for purposes of Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1 of the Government Code shall be provided by the state through an appropriation included in either the annual Budget Act or other statute. Counties shall continue to receive reimbursement from specifically appropriated funds for costs necessarily incurred in providing psychotherapy and other mental health services in accordance with this chapter. For reimbursement claims for services delivered in the 2001–02 fiscal year and thereafter, counties are not required to provide any share of those costs or to fund the cost of any part of these services with money received from the Local Revenue Fund established by Chapter 6 (commencing with Section 17600) of Part 5 of Division 9.

SEC. 39.

 (a) Notwithstanding Section 42238.1 of the Education Code or any other provision of law, the cost-of-living adjustment for Items 6110-104-0001, 6110-105-0001, 6110-156-0001, 6110-158-0001, 6110-161-0001, 6110-189-0001, 6110-190-0001, 6110-191-0001, 6110-196-0001, 6110-234-0001, and 6110-235- 0001 of Section 2.00 of the Budget Act of 2002, and those items identified in subdivision (b) of Section 12.40 of the Budget Act of 2002 shall be 2 percent. All funds appropriated in the items identified in this section are in lieu of the amounts that would otherwise be appropriated pursuant to any other provision of law.
(b) Notwithstanding Section 42238.1 of the Education Code for purposes of Sections 2550 and 42238 of the Education Code, for the 2002–03 fiscal year, the cost-of-living adjustment shall be 2 percent.

SEC. 40.

 Before funds are disbursed to reimburse school districts for claims related to costs incurred from July 1, 1995, to June 30, 2002, inclusive, pursuant to former Section 38048 of, and Sections 39831.3 and 39831.5 of, the Education Code, and Section 22112 of the Vehicle Code, known as the School Bus Safety II mandate, the Commission on State Mandates shall amend the parameters and guidelines for the School Bus Safety II mandate (Ch. 624, Stats. 1992; Ch. 831, Stats. 1994; and Ch. 739, Stats. 1997) to specify that costs associated with implementation of transportation plans are not reimbursable and to detail the documentation necessary to support reimbursement claims under this mandate. In identifying the necessary documentation, the commission shall consult with the Bureau of State Audits and the Controller’s Office. In addition to applying to costs incurred in the 2002–03 fiscal year and each fiscal year thereafter, the parameters and guidelines amended pursuant to this section shall apply to claims related to costs incurred from July 1, 1995, to June 30, 2002, inclusive.

SEC. 41.

 Notwithstanding any other provision of law, with respect to the handicapped and disabled students state-mandated local program, county reimbursement claims submitted to the Controller for reimbursement for services associated with providing, pursuant to Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1 of the Government Code, allowable mental health treatment services required by an individualized education program in fiscal years up to and including the 2000–01 fiscal year are not subject to dispute by the Controller’s office regarding the percentage of reimbursement claimed by any county. A county that previously submitted a reimbursement claim for services delivered in the 2000–01 fiscal year or prior for less than 100 percent of the allowable mental health treatment services to special education pupils may not amend its claim for 100 percent or other percentage of those same allowable costs. This paragraph does not abridge the right of the Controller to otherwise dispute claims on the basis of allowable costs. With the exception of those costs claimed in excess of what is allowable, claims shall be fully paid at the percentage originally submitted.

SEC. 42.

 (a) If the appropriation in the 2002–03 fiscal year for purposes of Section 42238.445 of the Education Code pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of the Budget Act of 2002 is insufficient to provide funding equal to the amount computed pursuant to Section 42238.445 of the Education Code, the amount appropriated shall be allocated to school districts on a pro rata basis.
(b) If the appropriation in the 2003–04 fiscal year for purposes of Section 42238.44 of the Education Code is insufficient to provide funding equal to the amount computed pursuant to Section 42238.44 of the Education Code, the amount appropriated shall be allocated to school districts on a pro rata basis.
(c) If the appropriation in the 2003–04 fiscal year for purposes of Section 42238.46 of the Education Code is insufficient to provide funding equal to the amount computed pursuant to Section 42238.46 of the Education Code, the amount appropriated shall be allocated to school districts on a pro rata basis.

SEC. 43.

 The sum appropriated in Item 6110-111-0001 of Section 2.00 of the Budget Act of 2002 is hereby reduced by one hundred thirty-nine million five hundred seventy-nine thousand dollars ($139,579,000), and the amount in Schedule (1) of that item is reduced by one hundred thirty-nine million five hundred seventy-nine thousand dollars ($139,579,000).

SEC. 44.

 The sum appropriated in Item 6110-113-0001 of Section 2.00 of the Budget Act of 2002 is hereby augmented by forty-six million six hundred nine thousand dollars ($46,609,000) and the amount appropriated in Schedule (4) of that item is augmented by forty-five million eight hundred nine thousand dollars ($45,809,000).

SEC. 45.

 The sum of three hundred thirteen million nine hundred eight thousand dollars ($313,908,000) is hereby appropriated for purposes of the School Improvement Programs by adding Item 6110-116-0001 to Section 2.00 of the Budget Act of 2002, to read:
6110-116-0001--For local assistance, Department of Education (Proposition 98), for transfer to Section A of the State School Fund, Program 20.60.030- School Improvement Programs, pursuant to Chapter 6 (commencing with Section 52000) of Part 28 of the Education Code ........................





313,908,000
Schedule: 
(1) 20.60.030.010-For the purpose
of making allowances for kind-
ergarten and grades 1 to 6, in-
clusive ........................


259,727,000
 
(2) 20.60.030.020-For the purpose of making allowances for grades 7 to 12, inclusive ........................ ........................
54,181,000
 
Provisions:
1. From the funds appropriated in Schedule (2), the State Department of Education shall allocate $34.72 per unit of average daily attendance (ADA) generated by pupils enrolled in grades 7 and 8 to those school districts that received School Improvement Grants in the 1989–90 fiscal year at arate of $30 per unit of ADA generated by pupils enrolled in grades 7 and 8.
 
2. Of the funds appropriated in Schedule (1) of this item, $6,963,000 is for the purpose of providing a cost-of-living adjustment at a rate of 2.00 percent.
 
3. Of the funds appropriated in Schedule (2) of this item, $2,303,000 is for the purpose of providing an adjustment for increases in average daily attendance at a rate of 3,27 percent. If growth funds are insufficient, the State Department of Education may adjust the per-pupil growth rates to conform to available funds. Additionally, $1,453,000 is for the purpose of providing a cost-of-living adjustment at a rate of 2.00 percent.

SEC. 46.

 The sum appropriated in Item 6110-132-0001 of Section 2.00 of the Budget Act of 2002 is hereby reduced by one hundred eighty-four million three hundred ninety-nine thousand dollars ($184,399,000).

SEC. 47.

 The sum appropriated in Item 6110-235-0001 of Section 2.00 of the Budget Act of 2002 is hereby reduced by two hundred forty-one million seven hundred thirty-nine thousand dollars ($241,739,000).

SEC. 48.

 Notwithstanding paragraph (5) of subdivision (a) of, and subdivision (b) of, Section 14041 of the Education Code, or any other provision of law, for the purpose of apportioning funds from the State School Fund for Home to School Transportation, pursuant to Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of the Education Code, and School Improvement Programs, pursuant to Chapter 6 (commencing with Section 52000) of Part 28 of the Education Code, as part of the special purpose apportionment in the 2002–03 fiscal year only, the warrants drawn by the Controller, pursuant to Section 14041 of the Education Code, in the months of September to November, inclusive, shall include one-seventh of the estimated total amounts of the portion of the special purpose apportionment for the programs identified in this section, as determined by the Superintendent of Public Instruction. Warrants in December shall include one-seventh of the amounts certified by the Superintendent of Public Instruction as the portion of the special purpose apportionment for the programs identified in this section, as adjusted, if necessary, to correct excesses or deficiencies in the estimates made for purposes of the warrants in the months of September to November, inclusive. An additional one-seventh of the amounts of the portion of the special purpose apportionment for the programs identified in this section shall be included in the warrants for the months from January to March, inclusive.

SEC. 49.

 Notwithstanding paragraph (5) of subdivision (a) of, and subdivision (b) of, Section 14041 of the Education Code, or any other provision of law, for the purpose of apportioning funds from the State School Fund for Economic Impact Aid, pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29 of the Education Code and Article 4 (commencing with Section 54040) of Chapter 1 of Part 29 of the Education Code, as part of the special purpose apportionment in the 2002–03 fiscal year only, the warrants drawn by the Controller, pursuant to Section 14041 of the Education Code, in the months of September to November, inclusive, shall include one-tenth of the estimated total amounts of the portion of the special purpose apportionment for the programs identified in this section, as determined by the Superintendent of Public Instruction. Warrants in December shall include one-tenth the portion of the special purpose apportionment for the programs identified in this section, as adjusted, if necessary, to correct excesses or deficiencies in the estimates made for purposes of the warrants in the months of September to November, inclusive. An additional one-tenth of the amounts of the portion of the special purpose apportionment for the programs identified in this section shall be included in the warrants for the months from January to June, inclusive.

SEC. 50.

 (a) The sum of six hundred eighty-one million dollars ($681,000,000) is hereby appropriated from the General Fund in the 2003-04 fiscal year according to the following schedule:
(1) The sum of one hundred fifteen million two hundred eighty-three thousand dollars ($115,283,000) to the State Department of Education for the School Improvement Programs pursuant to Chapter 6 (commencing with Section 52000) of Part 28 of the Education Code, to be expended consistent with the requirements specified in Item 6110-116-0001 of Section 2.00 of the Budget Act of 2002. Of the amount appropriated in this provision, ninety five million three hundred eighty-five thousand dollars ($95,385,000) shall be expended consistent with Schedule (1) of Item 6110-116-0001 of Section 2.00 of the Budget Act of 2002, and nineteen million eight hundred ninety-eight thousand dollars ($19,898,000) shall be expended consistent with Schedule (2) of Item 6110-116-0001 of Section 2.00 of the Budget Act of 2002.
(2) The sum of one hundred thirty-nine million five hundred seventy-nine thousand dollars ($139,579,000) to the State Department of Education for Home to School Transportation pursuant to Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of the Education Code, to be expended consistent with the requirements specified in Schedule (1) of Item 6110-111-0001 of Section 2.00 of the Budget Act of 2002.
(3) The sum of one hundred eighty-four million three hundred ninety-nine thousand dollars ($184,399,000) to the State Department of Education for the Targeted Instructional Improvement Grant pursuant to Chapter 2.5 (commencing with Section 54200) of Part 29 of the Education Code, to be expended consistent with the requirements specified in Item 6110-132-0001 of Section 2.00 of the Budget Act of 2002.
(4) The sum of two hundred forty-one million seven hundred thirty-nine thousand dollars ($241,739,000) to the State Department of Education for supplemental grants pursuant to Sections 54761.2 and 54761.3 of the Education Code, to be expended consistent with the requirements specified in Item 6110-235-0001 of Section 2.00 of the Budget Act of 2002.
(b) For the purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made by subdivision (a) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (d) of Section 41202 of the Education Code, for the 2003–04 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code for the 2003–04 fiscal year.

SEC. 51.

 (a) The amount of four hundred six million dollars ($406,000,000) is hereby appropriated from the General Fund to the Superintendent of Public Instruction for the 2003–04 fiscal year for the following purposes:
(1) Two hundred three million dollars ($203,000,000) for purposes of Section 42238.44 of the Education Code, to be allocated to school districts on a pro rata basis.
(2) Two hundred three million dollars ($203,000,000) for purposes of Section 42238.46 of the Education Code, to be allocated to school districts on a pro rata basis.
(b) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made by this section shall be deemed to be “General Fund revenues appropriated to schools districts,” as defined in subdivision (c) of Section 41202 of the Education Code for the 2003–04 fiscal year and be included within the “total allocations to schools district and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XVII B,” as defined in subdivision (e) of Section 41202 of the Education Code for the 2003–04 fiscal year.

SEC. 52.

 (a) Notwithstanding any other provision of law, the amount that is required to be appropriated for the purpose of satisfying the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, shall, in addition to all other funds required to be appropriated to school districts, as defined in Section 41302.5 of the Education Code, and community college districts, be increased by twenty million nine hundred thirty thousand dollars ($20,930,000) for the 2003–04 fiscal year.
(b) For the purposes of making the computations required by Section 8 of Article XVI of the California Constitution, including, but not limited to, the purposes of determining the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code, the amount of the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2003–04 fiscal year shall be increased by the amount determined for the 2003–04 fiscal year pursuant to subdivision (a).
(c) If, for any reason for the 2003–04 fiscal year, subparagraph (B) of paragraph (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution is suspended pursuant to subdivision (h) of that section, the amount of the maintenance factor for school districts and community college districts determined pursuant to subdivisions (d) and (e) of that section as a result of that suspension, shall be computed in a manner that includes the increase to the state’s minimum funding obligation to school districts and community college districts pursuant to that section that are required under subdivision (a).

SEC. 53.

 (a) Notwithstanding any other provision of law, in addition to the amount specified in Section 52 of this act, the amount that is required to be appropriated for the purpose of satisfying the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, shall, in addition to all other funds required to be appropriated to school districts, as defined in Section 41302.5 of the Education Code, and community college districts, be increased by fifty-seven million eight hundred thirty-one thousand dollars ($57,831,000) for the 2003–04 fiscal year.
(b) For the purposes of making the computations required by Section 8 of Article XVI of the California Constitution, including, but not limited to, the purposes of determining the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code, the amount of the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2003–04 fiscal year shall be increased by the amount determined for the 2003–04 fiscal year pursuant to subdivision (a).
(c) If, for any reason for the 2003–04 fiscal year, subparagraph (B) of paragraph (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution is suspended pursuant to subdivision (h) of that section, the amount of the maintenance factor for school districts and community college districts determined pursuant to subdivisions (d) and (e) of that section as a result of that suspension, shall be computed in a manner that includes the increase to the state’s minimum funding obligation to school districts and community college districts pursuant to that section that are required under subdivision (a). The Superintendent of Public Instruction shall, by August 1, 2003, allocate the funds appropriated by this act.

SEC. 54.

 Notwithstanding any other provision of law, the amount that is required to be appropriated for the purpose of satisfying the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution in the 2003–04 fiscal year, shall include the full restoration of the maintenance factor.

SEC. 55.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to make the necessary statutory changes to implement the Budget Act of 2002 at the earliest possible time, it is necessary that this act take effect immediately.