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AB-3136 Special education funding.(2017-2018)

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Date Published: 06/26/2018 09:00 PM
AB3136:v96#DOCUMENT

Amended  IN  Senate  June 26, 2018
Amended  IN  Assembly  April 23, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 3136


Introduced by Assembly Members O’Donnell, Frazier, and Thurmond
(Coauthors: Assembly Members Reyes, Eduardo Garcia, Gonzalez Fletcher, and Kamlager-Dove)
(Coauthor: Senator Wilk)(Coauthors: Senators Allen, Vidak, and Wilk)

February 16, 2018


An act to amend Sections 56836.06, 56836.11, and 56836.145 of, and to add Sections 56836.12 and 56836.146 to, the Education Code, relating to special education funding.


LEGISLATIVE COUNSEL'S DIGEST


AB 3136, as amended, O’Donnell. Special education funding.
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula. Existing law requires the Superintendent of Public Instruction to determine the amount of funding to be provided for each special education local plan area in accordance with specified calculations. Existing law requires the Superintendent, for the 2013–14 fiscal year, to compute an equalization adjustment for each special education local plan area for purposes of increasing the funding rates for special education local plan areas with funding rates below the 90th percentile, as specified.
This bill would increase that percentile to the 95th percentile and would require the Superintendent to compute that equalization adjustment commencing with the first fiscal year after funds are apportioned pursuant to a specified formula and for each fiscal year thereafter in which an equalization appropriation is made, as specified. The bill would require the Superintendent to make certain computations following each year in which an equalization appropriation is made.
The bill would establish the high-cost service allowance for the purpose of providing supplemental funding to a special education local plan area on the basis of the number of pupils with severe disabilities and the number pupils with both deafness and blindness, traumatic brain injury, or multiple disabilities, and would require the Superintendent to make specified computations that would determine the high-cost service allowance for each special education local plan area.
The bill would require, commencing with the first fiscal year after funds are apportioned pursuant to a specified formula, a special education local plan area that reports serving children 3 or 4 years of age who meet the definition of an “individual with exceptional needs” to count 3 times all units of average daily attendance generated by children enrolled in kindergarten less those children eligible for transitional kindergarten, for purposes of calculating units of average daily attendance, except as provided. By adding to the duties of special education local plan areas, the bill would impose a state-mandated local program.
Existing law defines “average daily attendance reported for the special education local plan area” for purposes of these and other provisions to mean the total number of units of average daily attendance reported in the school district or districts and in the county office of education or offices, county offices of education, or portion of an office, a county office of education that is a part of more than one special education local plan area, as specified.
The bill would revise that definition to mean the total number of units of average daily attendance reported for the current school year or the prior school year, whichever is greater, in those same entities, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Special education is a federal- and state-mandated educational program that entitles children with disabilities to receive a free appropriate public education in the least restrictive environment.
(b) In 2015, the Statewide Special Education Task Force was established by the State Board of Education for the purpose of outlining distinct reforms necessary for a successful special education system, which included a call for additional state funding earmarked for services required by the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.).
(c) The findings contained in the Statewide Special Education Task Force report acknowledge several policy and fiscal challenges faced by local educational agencies (LEAs) and provide recommendations and detail actions to improve the system and pupil outcomes. The report includes all of the following findings:
(1) Special education is underfunded.
(2) The special education local plan area (SELPA) base rates established by Assembly Bill 602 of the 1997–98 Regular Session (Chapter 854 of the Statutes of 1997) (AB 602) are not equitable throughout the state.
(3) The state needs to better support local infant and preschool special education programs.
(4) The census-based funding model of AB 602 has been successful in avoiding incentives to place special education pupils in restrictive educational placements.
(d) The growth in funding for special education does not reflect the actual growth in enrollment of special education pupils.
(e) There is widespread agreement among LEAs that the state should adopt the following recommendations contained in the Statewide Special Education Task Force report:
(1) Retain the AB 602 census-based funding model.
(2) Level up the AB 602 SELPA funding base rates.
(3) Increase state funding for preschoolers with disabilities.
(4) Provide an adequate funding set-aside to assist pupils with severe disabilities.
(5) Adjust the enrollment growth calculation to reflect the actual growth in special education enrollment.

SEC. 2.

 It is the intent of the Legislature that the funding required to implement the provisions in this act be provided over the course of five years.

SEC. 3.

 Section 56836.06 of the Education Code is amended to read:

56836.06.
 For purposes of this article, the following definitions apply, unless the context clearly requires otherwise:
(a) “Average daily attendance reported for the special education local plan area” means the total of the following:
(1) The total number of units of average daily attendance reported for the second principal apportionment pursuant to Section 41601, for the current school year or the prior school year, whichever is greater, for all pupils enrolled in the district or districts that are a part of the special education local plan area.
(2) The total number of units of average daily attendance reported pursuant to subdivisions (a) and (b) of Section 41601, for the current school year or the prior school year, whichever is greater, for all pupils enrolled in schools operated by the county office or offices that compose the special education local plan area, or for those county offices that are a part of more than one special education local plan area, that portion of the average daily attendance of pupils enrolled in the schools operated by the county office that are under the jurisdiction of the special education local plan area.
(b) For purposes of computing apportionments pursuant to this chapter for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, the term “average daily attendance” means the total number of units of average daily attendance reported for the second principal apportionment pursuant to subdivisions (a) and (b) of Section 41601 for all pupils enrolled in districts within Los Angeles County and all schools operated by the Los Angeles County Office of Education and the districts within Los Angeles County.
(c) “Special education local plan area” includes the school district or districts and county office or offices of education composing the special education local plan area.
(d) “The fiscal year in which equalization among special education local plan areas has been achieved” means the first fiscal year in which each special education local plan area is funded at or above the statewide target amount per unit of average daily attendance, as computed pursuant to Section 56836.11.
(e) For a charter school deemed a local educational agency for purposes of special education, an amount equal to the amount computed pursuant to Section 56836.08 for the special education local plan area in which the charter school is included shall be apportioned by the department pursuant to the local allocation plan developed pursuant to subdivision (i) of Section 56195.7 or 56836.05, or both. If the charter school is a participant in a local plan that only includes other charter schools pursuant to subdivision (f) of Section 56195.1, the amount computed pursuant to Section 56836.11 shall be apportioned by the department for each unit of average daily attendance reported pursuant to subdivision (a).

SEC. 4.

 Section 56836.11 of the Education Code is amended to read:

56836.11.
 (a) For the purpose of computing the equalization adjustment for special education local plan areas for the 1998–99 fiscal year, the Superintendent shall make the following computations to determine the statewide target amount per unit of average daily attendance for special education local plan areas:
(1) Total the amount of funding computed for each special education local plan area exclusive of the amount of funding computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, pursuant to Section 56836.09 for the 1997–98 fiscal year.
(2) Total the number of units of average daily attendance reported for each special education local plan area for the 1997–98 fiscal year, exclusive of average daily attendance for absences excused pursuant to subdivision (b) of Section 46010, as that section read on July 1, 1996, and exclusive of the units of average daily attendance computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area.
(3) Divide the sum computed in paragraph (1) by the sum computed in paragraph (2) to determine the statewide target amount for the 1997–98 fiscal year.
(4) Add the amount computed in paragraph (3) to the inflation adjustment computed pursuant to subdivision (d) of Section 56836.08 for the 1998–99 fiscal year to determine the statewide target amount for the 1998–99 fiscal year.
(b) Commencing with the 1999–2000 fiscal year to the 2004–05 fiscal year, inclusive, to determine the statewide target amount per unit of average daily attendance for special education local plan areas, the Superintendent shall multiply the statewide target amount per unit of average daily attendance computed for the prior fiscal year pursuant to this section by one plus the inflation factor computed pursuant to subdivision (b) of Section 42238.1 for the fiscal year in which the computation is made.
(c) For the 2005–06 fiscal year, the Superintendent shall make the following computation to determine the statewide target amount per unit of average daily attendance to determine the inflation adjustment pursuant to paragraph (2) of subdivision (d) of Section 56836.08 and growth pursuant to subdivision (c) of Section 56836.15, as follows:
(1) The 2004–05 fiscal year statewide target amount per unit of average daily attendance less the sum of the 2004–05 fiscal year total amount of federal funds apportioned pursuant to Schedule (1) in Item 6110-161-0890 of Section 2.00 of the Budget Act of 2004 for purposes of special education for individuals with exceptional needs enrolled in kindergarten and grades 1 to 12, inclusive, divided by the total average daily attendance computed for the 2004–05 fiscal year.
(2) Multiply the amount computed in paragraph (1) by the inflation factor computed pursuant to subdivision (b) of Section 42238.1 for the fiscal year in which the computation is made.
(3) Add the amounts computed in paragraphs (1) and (2).
(d) Commencing with the 2006–07 fiscal year and continuing through the 2012–13 fiscal year, inclusive, the Superintendent shall make the following computation to determine the statewide target amount per unit of average daily attendance for special education local plan areas for the purpose of computing the inflation adjustment pursuant to paragraph (2) of subdivision (d) of Section 56836.08 and growth pursuant to subdivision (c) of Section 56836.15:
(1) The statewide target amount per unit of average daily attendance computed for the prior fiscal year pursuant to this section.
(2) Multiply the amount computed in paragraph (1) by the inflation factor computed pursuant to subdivision (b) of Section 42238.1 for the fiscal year in which the computation is made.
(3) Add the amounts computed in paragraphs (1) and (2).
(e) For the 2013–14 fiscal year, the Superintendent shall make the following computations to determine the statewide target amount per unit of average daily attendance to determine the inflation adjustment pursuant to subdivision (f) of Section 56836.08 and growth pursuant to subdivision (c) of Section 56836.15, as follows:
(1) Total the amount of funding computed for each special education local plan area pursuant to the amount computed in subdivision (b) of Section 56836.08, including the amount of funds appropriated pursuant to Provision 22 of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2013, and excluding the amount of funding computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, for the 2013–14 fiscal year.
(2) Total the number of units of average daily attendance reported for each special education local plan area for the 2012–13 fiscal year, exclusive of the units of average daily attendance computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area.
(3) Divide the sum computed in paragraph (1) by the sum computed in paragraph (2).
(f) Commencing with the 2014–15 fiscal year and continuing each fiscal year thereafter, the Superintendent shall make the following computations to determine the statewide target amount per unit of average daily attendance for special education local plan areas for the purpose of computing the inflation adjustment pursuant to subdivision (f) of Section 56836.08 and growth pursuant to subdivision (c) of Section 56836.15:
(1) The statewide target amount per unit of average daily attendance computed for the prior fiscal year pursuant to this section.
(2) Multiply the amount computed in paragraph (1) by the inflation factor computed pursuant to Section 42238.1, as that section read on January 1, 2013, or any successor section of law enacted by the Legislature that specifies the inflation factor contained in Section 42238.1, as that section read on January 1, 2013, for application to the 2014–15 fiscal year and each fiscal year thereafter.
(3) Add the amounts computed in paragraphs (1) and (2).
(g) Following each year in which an equalization appropriation is made pursuant to Section 56836.145, the Superintendent shall make the following computations to determine the statewide target amount per unit of average daily attendance to determine the inflation adjustment pursuant to subdivision (f) of Section 56836.08 and growth pursuant to subdivision (c) of Section 56836.15, as follows:
(1) Total the amount of funding computed for each special education local plan area pursuant to the amount computed in subdivision (b) of Section 56836.08, including the amount of funds appropriated pursuant to Provision 22 of Item 6110-161-0001 of Section 2.00 of the most recent Budget Act, and excluding the amount of funding computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, for the fiscal year in which the equalization appropriation has been made.
(2) Total the number of units of average daily attendance reported for each special education local plan area for the fiscal year preceding the equalization appropriation, exclusive of the units of average daily attendance computed for the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area.
(3) Divide the sum computed in paragraph (1) by the sum computed in paragraph (2).

SEC. 5.

 Section 56836.12 is added to the Education Code, to read:

56836.12.
 (a) The high-cost service allowance is hereby established for the purpose of providing supplemental funding to a special education local plan area on the basis of the number of pupils with severe disabilities, as defined in Section 56030.5, and the number of pupils with both deafness and blindness, traumatic brain injury, or multiple disabilities.
(b) For the 2018–19 fiscal year, the Superintendent shall make the following computations to determine the high-cost service allowance for each special education local plan area:
(1) From the December 2017 pupil count, the number of pupils who have a severe disability, as defined in Section 56030.5, plus the number of pupils with both deafness and blindness, traumatic brain injury, or multiple disabilities.
(2) Multiply the amount computed in paragraph (1) by the statewide target amount per unit of average daily attendance for the 2018–19 fiscal year.
(c) For the 2019–20 fiscal year and each fiscal year thereafter, the Superintendent shall make the following computations to determine the high-cost service allowance for each special education local plan area for the fiscal year in which the computation is made:
(1) From the prior school year’s December pupil count, the number of pupils who have a severe disability, as defined in Section 56030.5, plus the number of pupils with both deafness and blindness, traumatic brain injury, or multiple disabilities.
(2) Multiply the amount computed in paragraph (1) by the statewide target amount per unit of average daily attendance for the fiscal year in which the computation is made.

SEC. 6.

 Section 56836.145 of the Education Code is amended to read:

56836.145.
 (a) Commencing with the first fiscal year after funds are apportioned pursuant to subdivision (g) of Section 42238.03, and for each fiscal year thereafter in which an appropriation is made for purposes of this section, the Superintendent shall compute an equalization adjustment for each special education local plan area, exclusive of the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, so that the special education funding rate per unit of average daily attendance calculated pursuant to subdivision (c) of Section 56836.10 of a special education local plan area is not less than the special education funding rate per unit of average daily attendance calculated pursuant to subdivision (c) of Section 56836.10 that does not fall below more than 10 percent of the total statewide units of average daily attendance for each special education local plan area.
(b) The Superintendent shall compute an equalization adjustment for each special education local plan area’s special education funding rate per unit of average daily attendance, exclusive of the special education local plan area identified as the Los Angeles County Juvenile Court and Community School/Division of Alternative Education Special Education Local Plan Area, as follows:
(1) Multiply the amount computed for each special education local plan area pursuant to subdivision (a) by the average daily attendance used to calculate the special education local plan area’s special education funding for the fiscal year in which an appropriation is made for purposes of this section.
(2) Divide the amount appropriated for purposes of this section for the fiscal year in which an appropriation is made by the statewide sum of the amount computed pursuant to paragraph (1).
(3) Multiply the amount computed for the special education local plan area pursuant to subdivision (a) by the amount computed pursuant to paragraph (2).
(c) For purposes of this section, the statewide 95th percentile special education funding rate determined pursuant to subdivision (a), and the fraction computed pursuant to paragraph (2) of subdivision (b) for the second principal apportionment of the fiscal year preceding any appropriation made for purposes of this section, shall be final, and shall not be recalculated at subsequent apportionments. The fraction computed pursuant to paragraph (2) of subdivision (b) shall not exceed 1.00.

SEC. 7.

 Section 56836.146 is added to the Education Code, immediately following Section 56836.145, to read:

56836.146.
 (a) In order to provide funding for preschool-aged children with special exceptional needs, commencing with the first fiscal year after funds are apportioned pursuant to subdivision (g) of Section 42238.03, a special education local plan area that reports serving children three or four years of age who meet the definition in Section 56026, except for a special education local plan area that, as of December 1, 2017, reported exclusively serving children three or four years of age in transitional kindergarten or kindergarten, shall, for purposes of calculating units of average daily attendance, count three times all units of average daily attendance generated by children enrolled in kindergarten less those children eligible for transitional kindergarten as defined in subdivision (d) of Section 48000.
(b) Any growth in average daily attendance generated by the adjustment described in subdivision (a) shall be funded at the prevailing statewide target rate, as calculated by subdivision (f) of Section 56836.11.

SEC. 8.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.