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AB-740 Charter schools: funding.(2005-2006)

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Assembly Bill No. 740
CHAPTER 359

An act to amend Sections 41540, and 47634.3 of, to amend and repeal Section 47634 of, to amend, repeal, and add Section 47636 of, to add Sections 47634.1 and 47634.4 to, and to repeal Section 47634.5 of, the Education Code, and to amend Item 6110‑211‑0001 of Section 2.00 of Chapter 38 of the Statutes of 2005, relating to charter schools, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor  September 28, 2005. Filed with Secretary of State  September 28, 2005. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 740, Huff. Charter schools: funding.
(1)  Existing law establishes the targeted instructional improvement block grant and authorizes school districts, if they are not in violation of a court order regarding desegregation, to expend funds received pursuant to the grant for purposes related to specified programs.
This bill would allow schools to continue to receive funding, as specified, for purposes of a court‑ordered desegregation program after they convert to charter schools if the court order remains in effect and they continue to serve the same population and implement the intended goals of the court order.
(2)  Existing law requires the Superintendent of Public Instruction annually to compute a categorical block grant amount for each charter school, as specified.
This bill would repeal that provision of existing law as of July 1, 2006, and would establish a categorical block grant to provide charter schools with funding for general education and educationally disadvantaged pupil programs that would be in lieu of the funding received by charter schools pursuant to various categorical programs. The bill would establish, for the 2005–06 fiscal year, for the 2006–07 fiscal year, and for the 2007–08 fiscal year and thereafter, a different method for calculating the categorical block grant for charter schools.
(3)  Existing law authorizes charter schools to apply for federal and state categorical programs, as provided.
This bill would revise those provisions and make related changes.
(4)  Existing law requires the Director of Finance to make certain computations annually regarding charter school block grant funding and to provide that information to the Superintendent within 30 days of the enactment of the annual Budget Act.
This bill would repeal that provision of existing law.
(5)  Existing law, the Budget Act of 2005, appropriates $62,158,000 to the State Department of Education for categorical programs for charter schools.
This bill would require the department to distribute base block grant funds using a single funding rate per unit of average daily attendance, as provided. The bill would specify the manner in which supplemental educationally disadvantaged pupil block grant funds are to be distributed.
(6)  This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a)  The Legislature finds and declares the following:
(1)  This act establishes a categorical block grant for charter schools for the purpose of providing charter schools with operational funding in addition to the charter school general-purpose entitlement.
(2)  The categorical block grant established by this act, when added to other funding received by charter schools or for which charter schools are eligible, is intended to substantially equalize total funding for charter schools that would otherwise be available to similar school districts serving similar pupil populations, and, therefore, is consistent with the intent of Section 47630 of the Education Code.
(3)  It may be appropriate for charter schools to receive other resources made available to meet the special needs of pupils, schools, or school districts.
(4)  The act revises the existing categorical block grant for charter schools by simplifying the calculation of the block grant, which provides in-lieu funding for a broad array of uses that are supported by categorical programs available to noncharter schools.
(b)  It is the intent of the Legislature in enacting this act to do all of the following:
(1)  Annually increase Budget Act appropriations so that the increased categorical block grant amount resulting from the provisions of this act is phased‑in over a two-year period.
(2)  Annually adjust the categorical block grant appropriation for inflation and changes in the average daily attendance and counts of educationally disadvantaged pupils in charter schools.
(3)  Triennially review, commencing with appropriations proposed for the 2008–09 fiscal year, the appropriateness of the level of funding provided by the categorical block grant established by this act and consider the addition of new programs established after the effective date of this act.
(4)  Review the allocation of in-lieu funding to charter schools serving pupils who are English learners or from low‑income families, or both, to simplify the annual computation and allocation of funding on behalf of those pupils, assure comparability with resources available to noncharter schools, and allow charter schools to effectively provide for the needs of those pupils.

SEC. 2.

 Section 41540 of the Education Code is amended to read:

41540.
 (a)  There is hereby established the targeted instructional improvement block grant. Commencing with the 2005–06 fiscal year, the Superintendent shall apportion block grant funds to a school district in the same relative statewide proportion that the school district received in the 2003–04 fiscal year for the programs listed in Section 41541.
(b)  If a school district is not in violation of a court order regarding desegregation, the school district may expend funds received pursuant to this article for any purpose authorized by the programs listed in Section 41541 as the statutes governing those programs read on January 1, 2004.
(c)  For purposes of this article, “school district” includes a county office of education if county offices of education are eligible to receive funds for the programs that are listed in Section 41541. The block grant of a county office of education shall be based only on those programs for which it was eligible to receive funds in the 2003–04 fiscal year.
(d)  A school that received funding in the 2000–01 fiscal year, or any fiscal year thereafter, from a desegregation program or a targeted instructional improvement grant program pursuant to Chapter 2.5 (commencing with Section 54200) of Part 29, that was allocated by a school district as part of a court‑ordered desegregation program before the school converted to a charter school, shall continue to receive its proportionate share of funding from the school district through the block grant established pursuant to this section if all of the following conditions are met:
(1)  The charter school continues to serve the same general population.
(2)  The charter school implements the intended goals of the court order.
(3)  The court order remains in effect.

SEC. 3.

 Section 47634 of the Education Code is amended to read:

47634.
 The Superintendent shall annually compute a categorical block grant amount for each charter school as follows:
(a)  The Superintendent shall compute, as of June 30, 1999, the estimated statewide average amount of funding for other state categorical aid per unit of average daily attendance received by school districts in 1998–99, for each of four grade level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and 6; grades 7 and 8; and grades 9 to 12, inclusive. For purposes of this computation, other state categorical aid is limited to the following programs:
(1)  The Agricultural Vocational Education Incentive Program, as set forth in Article 7.5 (commencing with Section 52460) of Chapter 9 of Part 28.
(2)  Apprentice education established pursuant to Article 8 (commencing with Section 8150) of Chapter 1 of Part 6.
(3)  The Beginning Teacher Support and Assessment System as set forth in Article 4.5 (commencing with Section 44279.1) of Chapter 2 of Part 25.
(4)  College preparation programs as set forth in Chapter 8 (commencing with Section 60830) of Part 33, the Academic Improvement and Achievement Act as set forth in Chapter 12 (commencing with Section 11020) of Part 7, and the advanced placement program as set forth in Chapter 8.3 (commencing with Section 52240) of Part 28.
(5)  Community day schools as set forth in Article 3 (commencing with Section 48660) of Chapter 4 of Part 27.
(6)  The Instructional Time and Staff Development Reform Program, as set forth in Article 7.5 (commencing with Section 44579) of Chapter 3 of Part 25.
(7)  The School-Based Pupil Motivation and Maintenance Program and Dropout Recovery Act, as set forth in Article 7 (commencing with Section 54720) of Chapter 9 of Part 29.
(8)  The Early Intervention for School Success Program, as set forth in Article 4.5 (commencing with Section 54685) of Chapter 9 of Part 29.
(9)  Education Technology pursuant to Article 15 (commencing with Section 51870.5) of Chapter 5 of Part 28.
(10)  Foster youth programs pursuant to Chapter 11.3 (commencing with Section 42920) of Part 24.
(11)  Gifted and talented pupil programs pursuant to Chapter 8 (commencing with Section 52200) of Part 28.
(12)  The Healthy Start Support Services for Children Act, as set forth in Chapter 5 (commencing with Section 8800) of Part 6.
(13)  High-Risk First-Time Offenders Program pursuant to Chapter 2 (commencing with Section 47760) of Part 26.95.
(14)  The General Fund contribution to the State Instructional Material Fund pursuant to Article 3 (commencing with Section 60240) of Chapter 2 of Part 33.
(15)  Intersegmental programs for kindergarten and grades 1 to 12, inclusive, funded by Item 6110-230-0001 of Section 2.00 of the Budget Act of 1998.
(16)  Proposition 98 educational programs pursuant to Item 6110-231-0001 of Section 2.00 of the Budget Act of 1998.
(17)  The California Mentor Teacher Program, as set forth in Section 44253.6.
(18)  The Miller-Unruh Basic Reading Act of 1965, as set forth in Chapter 2 (commencing with Section 54100) of Part 29.
(19)  The Morgan-Hart Class Size Reduction Act of 1989, as set forth in Chapter 6.8 (commencing with Section 52080) of Part 28.
(20)  Opportunity schools pursuant to Article 2 (commencing with Section 48630) of Chapter 4 of Part 27.
(21)  Partnership academies pursuant to Article 5 (commencing with Section 54690) of Chapter 9 of Part 29.
(22)  Mathematics staff development pursuant to Chapter 3.25 (commencing with Section 44695) and Chapter 3.33 (commencing with Section 44720) of Part 25.
(23)  Improvement of elementary and secondary education pursuant to Chapter 6 (commencing with Section 52000) of Part 28.
(24)  The School Community Policing Partnership Act of 1998, as set forth in Article 6 (commencing with Section 32296) of Chapter 2.5 of Part 19.
(25)  The School/Law Enforcement partnership funded by Item 6110-226-0001 of Section 2.00 of the Budget Act of 1998.
(26)  Specialized secondary schools pursuant to Chapter 6 (commencing with Section 58800) of Part 31.
(27)  School personnel staff development and resource centers pursuant to Chapter 3.1 (commencing with Section 44670) of Part 25.
(28)  Supplemental grant funding, not otherwise included in the programs described above, provided by Item 6110-230-0001 of Section 2.00 of the Budget Act of 1998.
(29)  Academic progress and counseling review pursuant to Section 48431.6.
(30)  The Schiff-Bustamante Standards-Based Instructional Materials Program as set forth in Chapter 3.5 (commencing with Section 60450) of Part 33.
(31)  The Elementary School Intensive Reading Program, as set forth in Chapter 16 (commencing with Section 53025) of Part 28.
(32)  The California Public School Library Protection Act, as set forth in Article 6 (commencing with Section 18175) of Chapter 2 of Part 11.
(33)  The California Peer Assistance and Review Program for Teachers, as set forth in Article 4.5 (commencing with Section 44500) of Chapter 3 of Part 25.
(34)  The State Instructional Materials Fund, as set forth in Article 3 (commencing with Section 60240) of Chapter 2 of Part 33.
(35)  The Instructional Materials Funding Realignment Program, as set forth in Chapter 3.25 (commencing with Section 60420) of Part 33.
(36)  Mathematics and Reading Professional Development Program, as set forth in Article 3 (commencing with Section 99230) of Chapter 5 of Part 65.
Notwithstanding any other provision of law, charter schools that have received a block grant pursuant to this section are not eligible to receive separate funding for programs enumerated in this subdivision or any other state categorical aid programs established on or after July 1, 1999, that are included in the calculation made pursuant to this subdivision and for which charter schools are not required to apply separately.
(b)  For purposes of the computation prescribed by subdivision (a), other state categorical aid does not include any of the following:
(1)  Programs for which a charter school is required to apply separately.
(2)  Programs that support, or are provided in lieu of, capital expenses.
(3)  Funding for court-ordered or voluntary desegregation programs.
(4)  Special education programs.
(5)  Economic Impact Aid.
(6)  Lottery funds.
(c)  The Superintendent shall annually adjust each of the amounts computed pursuant to subdivision (a) to reflect programs that existed on or after July 1, 1999, or their successors, that are subsequently included in or deleted from the categorical block grant. The Director of Finance shall annually recalculate the cumulative percentage change required pursuant to subdivision (c) of Section 47634.5 by adjusting the base year and the budget year figures to reflect those program shifts.
(d)  The Superintendent shall annually adjust each of the resulting four amounts computed pursuant to subdivision (a) by the cumulative percentage change from the 1998–99 fiscal year, as annually calculated by the Director of Finance pursuant to Section 47634.5, in the total amount of state funding per unit of average daily attendance received by local educational agencies maintaining kindergarten or any of grades 1 to 12, inclusive, for purposes that apply toward meeting the requirements of Section 8 of Article XVI of the California Constitution, exclusive of funding for adult education, child development programs, special education, Economic Impact Aid, revenue limits for school districts and county offices of education, and programs for which a charter school is required to apply separately. Programs for which charter schools are required to apply separately are programs that expressly authorize or require a charter school to apply for funding.
(e)  The Superintendent shall multiply each of the four amounts computed in subdivision (d) by the charter school’s average daily attendance in the corresponding grade level ranges.
(f)  The Superintendent shall compute the statewide average amount of funding per identified educationally disadvantaged pupil received by school districts in the current fiscal year pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29. This amount shall be multiplied by the number of educationally disadvantaged pupils enrolled in the charter school. The resulting amount, if greater than zero, may not be less than the minimum amount of Economic Impact Aid funding to which a school district of similar size would be entitled pursuant to Section 54031. For purposes of this subdivision, a pupil who is eligible for subsidized meals pursuant to Section 49552 and is identified as an English language learner pursuant to subdivision (a) of Section 306 shall count as two pupils.
(g)  The Superintendent shall add the amounts computed in subdivisions (e) and (f). The resulting amount shall be the charter school’s categorical block grant that the Superintendent shall apportion to each charter school from funds appropriated for this purpose in the annual Budget Act or another statute.
(h)  Notwithstanding any other provision of law, a charter school is not eligible to apply for funding under any of the programs the funding of which is included in the computation of the categorical block grant. The Superintendent shall annually provide each charter school with a list of these programs and shall ensure that a charter school receives timely notification of the opportunity to apply for programs administered by the department that are excluded from the categorical block grant.
(i)  It is the intent of the Legislature to fully fund the categorical block grant and to appropriate additional funding that may be needed in order to compensate for unanticipated increases in average daily attendance in charter schools. In any fiscal year in which the department identifies a deficiency in the Charter School Categorical Block Grant, the department shall identify programs that are funded toward meeting the requirements of Section 8 of Article XVI of the California Constitution that will have unobligated funds for the year and the associated balances available. At the second principal apportionment, the department shall provide the Department of Finance with a list of those programs and their available balances, and the amount of the deficiency in the Charter School Categorical Block Grant. The Director of Finance shall verify the amount of the deficiency in the Charter School Categorical Block Grant and direct the Controller to transfer from those programs to the Charter School Categorical Block Grant an amount equal to the lesser of the amount available or the amount needed to fully fund the Charter School Categorical Block Grant. The Department of Finance shall request the transfer on or before July 1 and notify the Joint Legislative Budget Committee within 45 days of the transfer.
(j)  Categorical block grant funding may be used for any purpose determined by the governing body of the charter school.
(k)  This section shall remain in effect only until July 1, 2006, and as of that date is repealed, unless a later enacted statute, which is enacted before July 1, 2006, deletes or extends that date.

SEC. 4.

 Section 47634.1 is added to the Education Code, to read:

47634.1.
 (a)  Notwithstanding subdivision (a) of Section 47634, a categorical block grant for charter schools for the 2005–06 fiscal year shall be calculated as follows:
(1)  The Superintendent shall divide the total amount of funding appropriated for the purpose of this block grant in the annual Budget Act or another statute, less the total amount calculated in paragraph (2), by the statewide total of charter school average daily attendance, as determined at the second principal apportionment for the 2005–06 fiscal year.
(2)  The statewide average amount, as computed by the Superintendent, of funding per identified educationally disadvantaged pupil received by school districts in the current fiscal year pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29. This amount shall be multiplied by the number of educationally disadvantaged pupils enrolled in the charter school. The resulting amount, if greater than zero, may not be less than the minimum amount of Economic Impact Aid funding to which a school district of similar size would be entitled pursuant to Section 54031. For purposes of this subdivision, a pupil who is eligible for subsidized meals pursuant to Section 49552 and is identified as an English learner pursuant to subdivision (a) of Section 306 shall count as two pupils.
(3)  For each charter school, the Superintendent shall multiply the amount calculated in paragraph (1) by the school’s average daily attendance as determined at the second principal apportionment for the 2005–06 fiscal year.
(4)  The Superintendent shall add the amounts computed in paragraphs (2) and (3). The resulting amount shall be the charter school categorical block grant that the Superintendent shall apportion to each charter school from funds appropriated for this purpose in the annual Budget Act or another statute. The Superintendent shall allocate an advance payment of this grant as early as possible, but no later than October 31, 2005, based on prior year average daily attendance as determined at the second principal apportionment or, for a charter school in its first year of operation that commences instruction on or before September 30, 2005, on estimates of average daily attendance for the current fiscal year determined pursuant to Section 47652.
(b)  (1)  For the 2006–07 fiscal year, the categorical block grant allocated by the Superintendent for charter schools shall be four hundred dollars ($400) per unit of charter school average daily attendance as determined at the second principal apportionment for the 2006–07 fiscal year. This amount shall be supplemented by the amount calculated in paragraph (2).
(2)  The statewide average amount, as computed by the Superintendent, of funding per identified educationally disadvantaged pupil received by school districts in the current fiscal year, pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29, shall be multiplied by the number of educationally disadvantaged pupils enrolled in the charter school. The resulting amount, if greater than zero, may not be less than the minimum amount of Economic Impact Aid funding to which a school district of similar size would be entitled pursuant to Section 54031. For purposes of this subdivision, a pupil who is eligible for subsidized meals pursuant to Section 49552 and is identified as an English learner pursuant to subdivision (a) of Section 306 shall count as two pupils.
(c)  (1)  For the 2007–08 fiscal year, the categorical block grant allocated by the Superintendent for charter schools shall be five hundred dollars ($500) per unit of charter school average daily attendance as determined at the second principal apportionment for the 2007–08 fiscal year. For each fiscal year thereafter, this per unit amount shall be adjusted for the cost-of-living adjustment, as determined pursuant to Section 42238.1, for that fiscal year. This amount shall be supplemented in the 2007–08 fiscal year and each fiscal year thereafter by the amount calculated in paragraph (2).
(2)  The statewide average amount, as computed by the Superintendent, of funding per identified educationally disadvantaged pupil received by school districts in the current year, pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29, shall be multiplied by the number of educationally disadvantaged pupils enrolled in the charter school. The resulting amount, if greater than zero, may not be less than the minimum amount of Economic Impact Aid funding to which a school district of similar size would be entitled pursuant to Section 54031. For purposes of this subdivision, a pupil who is eligible for subsidized meals pursuant to Section 49552 and is identified as an English learner pursuant to subdivision (a) of Section 306 shall count as two pupils.
(d)  It is the intent of the Legislature to fully fund the categorical block grant for charter schools as specified in this section and to appropriate additional funding that may be needed in order to compensate for unanticipated increases in average daily attendance and counts of educationally disadvantaged pupils, pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of Part 29, in charter schools. In any fiscal year in which the department identifies a deficiency in the categorical block grant, the department shall identify the available balance for programs that count towards meeting the requirements of Section 8 of Article XVI of the California Constitution and have unobligated funds for the year. On or before July 1, the department shall provide the Department of Finance with a list of those programs and their available balances, and the amount of the deficiency, if any, in the categorical block grant. Within 45 days of the receipt of a notification of deficiency, the Director of Finance shall verify the amount of the deficiency in the categorical block grant and direct the Controller to transfer an amount, equal to the lesser of the amount available or the amount needed to fully fund the categorical block grant, from those programs to the categorical block grant. The Department of Finance shall notify the Joint Legislative Budget Committee within 30 days of any transfer made pursuant to this section.
(e)  Commencing October 1, 2007, the Legislative Analyst’s Office shall triennially convene a work group to review, commencing with appropriations proposed for the 2008–09 fiscal year, the appropriateness of the funding level provided by the categorical block grant established in this section.
(f)  Categorical block grant funding may be used for any purpose determined by the governing body of the charter school.

SEC. 5.

 Section 47634.3 of the Education Code is amended to read:

47634.3.
 For purposes of Section 47633, the Superintendent shall compute average daily attendance in each of grades 1 through 12, respectively, as follows:
(a)  Distribute statewide total ungraded enrollment and average daily attendance among kindergarten and each of grades 1 through 12, inclusive, in proportion to the amounts of graded enrollment and average daily attendance, respectively, in each of these grades.
(b)  Multiply enrollment in each of grades 1 through 12, respectively, by the ratio of average daily attendance to enrollment in the applicable grade range: 1 through 3, inclusive, 4 through 6, inclusive; 7 and 8; and 9 through 12, inclusive.

SEC. 6.

 Section 47634.4 is added to the Education Code, to read:

47634.4.
 (a)  A charter school that elects to receive its funding directly, pursuant to Section 47651, may apply individually for federal and state categorical programs, not excluded in this section, but only to the extent it is eligible for funding and meets the provisions of the program. For purposes of determining eligibility for, and allocation of, state or federal categorical aid, a charter school that applies individually shall be deemed to be a school district, except as otherwise provided in this chapter.
(b)  A charter school that does not elect to receive its funding directly, pursuant to Section 47651, may, in cooperation with its chartering authority, apply for federal and state categorical programs not specified in this section, but only to the extent it is eligible for funding and meets the provisions of the program.
(c)  Notwithstanding any other provision of law, for the 2006–07 fiscal year and each fiscal year thereafter, a charter school may not apply directly for categorical programs for which services are exclusively or almost exclusively provided by a county office of education.
(d)  Consistent with subdivision (c), a charter school may not receive direct funding for any of the following county-administered categorical programs:
(1)  American Indian Education Centers.
(2)  The California Association of Student Councils.
(3)  California Technology Assistance Project established pursuant to Article 15 (commencing with Section 51870) of Chapter 5 of Part 28.
(4)  The Center for Civic Education.
(5)  County Office Fiscal Crisis and Management Assistance Team.
(6)  The K-12 High Speed Network.
(e)  A charter school may apply separately for district-level or school-level grants associated with any of the categorical programs specified in subdivision (d).
(f)  Notwithstanding any other provision of law, for the 2006–07 fiscal year and each fiscal year thereafter, in addition to the programs listed in subdivision (d), a charter school may not apply for any of the following categorical programs:
(1)  Agricultural Career Technical Education Incentive Program, as set forth in Article 7.5 (commencing with Section 52460) of Chapter 9 of Part 28.
(2)  Bilingual Teacher Training Assistance Program, as set forth in Article 4 (commencing with Section 52180) of Chapter 7 of Part 28.
(3)  California Peer Assistance and Review Program for Teachers, as set forth in Article 4.5 (commencing with Section 44500) of Chapter 3 of Part 25.
(4)  College preparation programs, as set forth in Chapter 12 (commencing with Section 11020) of Part 7, Chapter 8.3 (commencing with Section 52240) of Part 28, and Chapter 8 (commencing with Section 60830) of Part 33.
(5)  English Language Acquisition Program, as set forth in Chapter 4 (commencing with Section 400) of Part 1.
(6)  Foster youth programs pursuant to Chapter 11.3 (commencing with Section 42920) of Part 24.
(7)  Gifted and talented pupil programs pursuant to Chapter 8 (commencing with Section 52200) of Part 28.
(8)  Home-to-school transportation programs, as set forth in Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 and Article 10 (commencing with Section 41850) of Chapter 5 of Part 24.
(9)  International Baccalaureate Diploma Program, as set forth in Chapter 12.5 (commencing with Section 52920) of Part 28.
(10)  Mathematics and Reading Professional Development Program, as set forth in Article 3 (commencing with Section 99230) of Chapter 5 of Part 65.
(11)  Principal Training Program, as set forth in Article 4.6 (commencing with Section 44510) of Chapter 3 of Part 25.
(12)  Professional Development Block Grant, as set forth in Article 5 (commencing with Section 41530) of Chapter 3.2 of Part 24.
(13)  Program to Reduce Class Size in Two Courses in Grade 9 (formerly The Morgan-Hart Class Size Reduction Act of 1989), as set forth in Chapter 6.8 (commencing with Section 52080) of Part 28.
(14)  Pupil Retention Block Grant, as set forth in Article 2 (commencing with Section 41505) of Chapter 3.2 of Part 24.
(15)  Reader services for blind teachers, as set forth in Article 8.5 (commencing with Section 45370) of Chapter 5 of Part 25.
(16)  School and Library Improvement Block Grant, as set forth in Article 7 (commencing with Section 41570) of Chapter 3.2 of Part 24.
(17)  School Safety Consolidated Competitive Grant, as set forth in Article 3 (commencing with Section 41510) of Chapter 3.2 of Part 24.
(18)  School safety programs, as set forth in Article 3.6 (commencing with Section 32228) and Article 3.8 (commencing with Section 32239.5) of Chapter 2 of Part 19.
(19)  Specialized secondary schools pursuant to Chapter 6 (commencing with Section 58800) of Part 31.
(20)  State Instructional Materials Fund, as set forth in Article 3 (commencing with Section 60240) of Chapter 2 of Part 33.
(21)  Targeted Instructional Improvement Grant, as set forth in Chapter 2.5 (commencing with Section 54200) of Part 29.
(22)  Teacher Credentialing Block Grant, as set forth in Article 4 (commencing with Section 41520) of Chapter 3.2 of Part 24.
(23)  Teacher dismissal apportionment, as set forth in Section 44944.
(24)  The deferred maintenance program, as set forth in Article 1 (commencing with Section 17565) of Chapter 5 of Part 10.5.
(25)  The General Fund contribution to the State Instructional Materials Fund pursuant to Article 3 (commencing with Section 60240) of Chapter 2 of Part 33.
(26)  Year-Round School Grant Program, as set forth in Article 3 (commencing with Section 42260) of Chapter 7 of Part 24.

SEC. 7.

 Section 47634.5 of the Education Code is repealed.

SEC. 8.

 Section 47636 of the Education Code is amended to read:

47636.
 (a)  This chapter may not be construed to prevent charter schools from applying for, or receiving, operational funding under state or federal categorical programs, the funding of which is not included in the computation of the block grant entitlement. Unless specifically prohibited, a charter school shall only apply for federal or state categorical programs as follows:
(1)  A charter school that elects to receive its funding directly, pursuant to Section 47651, may apply for federal and state categorical programs individually. Except as otherwise provided in this chapter, for purposes of determining eligibility for, and allocations of federal or state categorical aid, a charter school that applies individually shall be deemed to be a school district.
(2)  A charter school that does not elect to receive its funding directly may apply for federal and state categorical programs in cooperation with its authorizing local educational agency.
(b)  This chapter may not be construed to prevent a charter school from negotiating with a local educational agency for a share of operational funding from sources not otherwise set forth in this chapter including, but not limited to, all of the following:
(1)  Forest reserve revenues and other operational revenues received due to harvesting or extraction of minerals or other natural resources.
(2)  Sales and use taxes, to the extent that the associated revenues are available for noncapital expenses of public schools.
(3)  Parcel taxes, to the extent that the associated revenues are available for noncapital expenses of public schools.
(4)  Ad valorem property taxes received by a school district which exceed its revenue limit entitlement.
(5)  “Basic aid” received by a school district pursuant to Section 6 of Article IX of the California Constitution.
(c)  This section 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. 9.

 Section 47636 is added to the Education Code, to read:

(a)  This chapter does not prevent a charter school from negotiating with a local educational agency for a share of operational funding from sources not otherwise set forth in this chapter including, but not limited to, all of the following:

47636.
 (1)  Forest reserve revenues and other operational revenues received due to harvesting or extraction of minerals or other natural resources.
(2)  Sales and use taxes, to the extent that the associated revenues are available for noncapital expenses of public schools.
(3)  Parcel taxes, to the extent that the associated revenues are available for noncapital expenses of public schools.
(4)  Ad valorem property taxes received by a school district which exceed its revenue limit entitlement.
(5)  “Basic aid” received by a school district pursuant to Section 6 of Article IX of the California Constitution.
(b)  This section shall become operative July 1, 2006.

SEC. 10.

 Item 6110-211-0001 of Section 2.00 of Chapter 38 of the Statutes of 2005 is amended to read:
6110-211-0001—For local assistance, Department of Education (Proposition 98), for transfer to Section A of the State School Fund, Program 20.60.036 for Categorical Programs for charter schools ........................
62,158,000
Provisions:
1.   Funds appropriated in this item are for the charter school categorical block grant. The State Department of Education shall distribute block grant funds pursuant to legislation enacted during the 2005‑06 Regular Session that is effective on or before January 1, 2006, and that designates which categorical programs are to be included or excluded from the block grant.
1.5.  Notwithstanding Section 47634 of the Education Code, the State Department of Education shall distribute base block grant funds using a single funding rate per unit of average daily attendance (ADA). This rate shall not exceed $298 per unit of ADA and shall be prorated downward as necessary given total charter school ADA. Supplemental educationally disadvantaged pupil block grant funds shall be distributed pursuant to subdivisions (f) and (g) of Section 47634 of the Education Code.
2.   The Department of Education shall provide an estimate of average daily attendance expected to be claimed for this item for the 2006‑07 fiscal year to the Department of Finance and the Legislative Analyst’s Office by October 1, 2005, for use in developing the 2006‑07 Governor’s Budget. The Department of Education shall provide an update of the estimate by March 31, 2006, for preparation of the May Revision.
3.   An additional $5,947,000 in expenditures for this item has been deferred until the 2006‑07 fiscal year.

SEC. 11.

 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 statutory changes needed to implement the Budget Act of 2005 as early as possible, it is necessary that this act take effect immediately.