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AB-1948 Education finance: local control funding formula: low-income pupils: pupils experiencing homelessness.(2021-2022)

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Date Published: 05/03/2022 09:00 PM
AB1948:v96#DOCUMENT

Revised  May 11, 2022
Amended  IN  Assembly  May 03, 2022
Amended  IN  Assembly  April 19, 2022
Amended  IN  Assembly  March 07, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1948

Introduced by Assembly Members Ting and McCarty McCarty, Muratsuchi, and O’Donnell
(Principal coauthor: Senator Portantino)
(Coauthors: Assembly Members Nazarian, Quirk-Silva, and Akilah Weber) Akilah Weber, Bennett, and Megan Dahle)

February 10, 2022

An act to amend Sections 2574, 42238.01, and 42238.02 of, 42238.02, 42238.05, 42238.051, and 42280 of, to amend and repeal Section 42238.052 of, and to add Section 42238.023 to, the Education Code, relating to education finance, and making an appropriation therefor. finance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1948, as amended, Ting. Education finance: local control funding formula: low-income pupils: pupils experiencing homelessness.
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires funding pursuant to the local control funding formula to include a base grant that in each fiscal year is adjusted for inflation by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as specified. Existing law requires the local control funding formula to include, in addition to the base grant, supplemental and concentration grant add-ons that are based on the percentage of pupils who are unduplicated pupils, as defined to include English learners, pupils eligible for free or reduced-price meals, and foster youth, as specified. Existing law requires county superintendents of schools, school districts, and charter schools to annually report their enrollment of unduplicated pupils to the Superintendent of Public Instruction, as specified. Existing law requires pupils who are classified in more than one of these groups to be counted only once for these purposes.
This bill would require, for the 2022–23 fiscal year, the inflation adjustment to the base grant for a school district or charter school to instead be 10%. 15%. For county offices of education only, purposes of the local control funding formula, the bill would immediately replace pupils who are eligible for free or reduced-price meals with low-income pupils pupils, as defined to included pupils whose household income level is at or below 250% of the federal poverty level, as adjusted annually, or who is eligible for free or reduced-price meals, and would include pupils experiencing homelessness, as defined, in the categories of pupils who are unduplicated pupils for purposes of determining eligibility for supplemental and concentration grants. The bill, for county offices of education, would require pupils who are only English learners or low-income pupils, or pupils who only fall within both of these categories, to be counted only once, and would require pupils who are pupils experiencing homelessness or foster youth, or both, or who are also English learners or low-income pupils, or both, to be counted twice. For school districts and charter schools only, the bill would establish transition adjustments for the 2022–23 fiscal year through the 2029–30 fiscal years, inclusive, for purposes of the increased funding generated by the changes to supplemental and concentration grant eligibility described above, as provided, and would continuously appropriate the moneys necessary to implement those adjustments. The bill would state the intent of the Legislature to fully transition the local control funding formula commencing with the 2030–31 fiscal year, as provided. In order to determine income level, the bill would require a school to use an alternative household income data collection form for any pupil not determined to be eligible for free or reduced-price meals, as specified, and would require the State Department of Education to develop a sample form. The bill would place reporting requirements on local educational agencies to implement these provisions and would also make conforming changes. By imposing additional duties on county superintendents of schools, school districts, and charter schools related to unduplicated pupils, the bill would impose a state-mandated local program.
Existing law requires the local control funding formula, in part, to be based on average daily attendance, which for school districts is based in part on the 2nd principal apportionment regular average daily attendance for the current or prior fiscal year, whichever is greater, and requires an adjustment for the calculation of average daily attendance for a sponsoring school district, as defined. Existing law requires the prior fiscal year average daily attendance for specified school districts to be increased by the prior fiscal year 2nd principal apportionment average daily attendance.
This bill instead would require the calculation of the average daily attendance for school districts to also be based on the computation of the 2nd principal apportionment regular average daily attendance for the average of the 3 most recent prior fiscal years, if greater than that of the current or prior fiscal year, would specify the adjustments to be made to this computation for a sponsoring school district, and would also make conforming changes.
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: YESNO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 2574 of the Education Code is amended to read:

2574.
 For the 2013–14 fiscal year and for each fiscal year thereafter, the Superintendent annually shall calculate a county local control funding formula for each county superintendent of schools as follows:
(a) Compute a county office of education operations grant equal to the sum of each of the following amounts:
(1) Six hundred fifty-five thousand nine hundred twenty dollars ($655,920).
(2) One hundred nine thousand three hundred twenty dollars ($109,320) multiplied by the number of school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253.
(3) (A) Seventy dollars ($70) multiplied by the number of units of countywide average daily attendance, up to a maximum of 30,000 units.
(B) Sixty dollars ($60) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 30,000 units, up to a maximum of 60,000 units.
(C) Fifty dollars ($50) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 60,000, up to a maximum of 140,000 units.
(D) Forty dollars ($40) multiplied by the number of units of countywide average daily attendance for the portion of countywide average daily attendance, if any, above 140,000 units.
(E) For purposes of this section, countywide average daily attendance means the aggregate number of annual units of average daily attendance within the county attributable to all school districts for which the county superintendent of schools has jurisdiction pursuant to Section 1253, charter schools authorized by school districts for which the county superintendent of schools has jurisdiction, and charter schools authorized by the county superintendent of schools.
(4) For the 2014–15 fiscal year and each fiscal year thereafter, adjust each of the rates provided in the prior year pursuant to paragraphs (1), (2), and (3) by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, as reported by the Department of Finance.
(b) Determine the enrollment percentage of unduplicated pupils pursuant to the following:
(1) (A) For the 2013–14 fiscal year, divide the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 2013–14 fiscal year by the total enrollment in those schools in the 2013–14 fiscal year.
(B) For the 2014–15 fiscal year, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the 2013–14 and 2014–15 fiscal years by the sum of the total enrollment in those schools in the 2013–14 and 2014–15 fiscal years.
(C) For the 2015–16 fiscal year and each fiscal year thereafter, divide the sum of the enrollment of unduplicated pupils in all schools operated by a county superintendent of schools in the current fiscal year and the two prior fiscal years by the sum of the total enrollment in those schools in the current fiscal year and the two prior fiscal years.
(D) (i) For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a county superintendent of schools’ enrollment of unduplicated pupils and total pupil enrollment in the 2014–15 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 2013–14 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii) It is the intent of the Legislature to review each county office of education’s enrollment of unduplicated pupils for the 2013–14 and 2014–15 fiscal years and provide one-time funding, if necessary, for a county office of education with higher enrollment of unduplicated pupils in the 2014–15 fiscal year as compared to the 2013–14 fiscal year.
(E) For purposes of determining the enrollment percentage of unduplicated pupils pursuant to this subdivision, enrollment in schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 and the enrollment of pupils other than the pupils identified in clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4) of subdivision (c), shall be excluded from the calculation of the enrollment percentage of unduplicated pupils.
(F) The data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This subparagraph does not apply to a change that is the result of an audit that has been appealed pursuant to Section 41344.
(2) For purposes of this section, an “unduplicated pupil” is a pupil who is classified as an English learner, a low-income pupil, a pupil experiencing homelessness, or a foster youth. For purposes of this section, the definitions in Section 42238.01 of an English learner, a low-income pupil, a pupil experiencing homelessness, and a foster youth shall apply. A pupil shall be counted only once for purposes of this section if the pupil is classified as only an English learner or only a low-income pupil, or only both an English learner and a low-income pupil. A pupil shall be counted twice for purposes of this section if the pupil is classified as a pupil experiencing homelessness or a foster youth, or both, or if in addition to being classified as a pupil experiencing homelessness or a foster youth, or both, the pupil is also classified as an English learner or a low-income pupil, or both. any of the following apply:
(A) The pupil is classified as an English learner and is a foster youth.
(B) The pupil is classified as an English learner and is a low-income pupil.
(C) The pupil is classified as an English learner and is a pupil experiencing homelessness.
(D) The pupil is a foster youth and is a low-income pupil.
(E) The pupil is a foster youth and is a pupil experiencing homelessness.
(F) The pupil is low-income pupil and is a pupil experiencing homelessness.
(G) The pupil is classified as an English learner, is a foster youth, and is a low-income pupil.
(H) The pupil is classified as an English learner, is a low-income pupil, and is a pupil experiencing homelessness.
(I) The pupil is classified as an English learner, is a foster youth, and is a pupil experiencing homelessness.
(J) The pupil is a foster youth, is a low-income pupil, and is a pupil experiencing homelessness.
(K) The pupil is classified as an English learner, is a foster youth, is a low-income pupil, and is a pupil experiencing homelessness.
(3) (A) Under procedures and timeframes established by the Superintendent, commencing with the 2013–14 fiscal year, a county superintendent of schools annually shall report the enrollment of unduplicated pupils, pupils classified as English learners, low-income pupils, pupils experiencing homelessness, and foster youth in schools operated by the county superintendent of schools to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(B) The Superintendent shall make the calculations pursuant to this section using the data submitted through the California Longitudinal Pupil Achievement Data System.
(C) The Controller shall include instructions, as appropriate, in the audit guide required by subdivision (a) of Section 14502.1, for determining if the data reported by a county superintendent of schools using the California Longitudinal Pupil Achievement Data System is consistent with pupil data records maintained by the county office of education.
(c) Compute an alternative education grant equal to the sum of the following:
(1) (A) For the 2013–14 fiscal year, a base grant equal to the 2012–13 per pupil undeficited statewide average juvenile court school base revenue limit calculated pursuant to Article 3 (commencing with Section 2550) of Chapter 12, as that article read on January 1, 2013. For purposes of this subparagraph, the 2012–13 statewide average juvenile court school base revenue limit shall be considered final as of the annual apportionment for the 2012–13 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339.
(B) Commencing with the 2013–14 fiscal year, the per pupil base grant shall be adjusted by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, as reported by the Department of Finance.
(2) A supplemental grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the enrollment percentage calculated in subdivision (b). The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(3) (A) A concentration grant equal to 35 percent of the base grant described in paragraph (1) multiplied by the greater of either of the following:
(i) The enrollment percentage calculated in subdivision (b) less 50 percent.
(ii) Zero.
(B) The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the total number of units of average daily attendance for pupils attending schools operated by a county office of education, excluding units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are enrolled pursuant to any of the following:
(i) Probation-referred pursuant to Sections 300, 601, 602, and 654 of the Welfare and Institutions Code.
(ii) On probation or parole and not in attendance in a school.
(iii) Expelled for any of the reasons specified in subdivision (a) or (c) of Section 48915.
(B) Multiply the number of units of average daily attendance for pupils attending schools or classes established pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2 by the sum of the base grant calculated pursuant to paragraph (1), a supplemental grant equal to 35 percent of the base grant calculated pursuant to paragraph (1), and a concentration grant equal to 17.5 percent of the base grant calculated pursuant to paragraph (1). Funds provided for the supplemental and concentration grants pursuant to this calculation shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(C) Add the amounts calculated in subparagraphs (A) and (B).
(d) Add the amount calculated in subdivision (a) to the amount calculated in subparagraph (C) of paragraph (4) of subdivision (c).
(e) Add all of the following to the amount calculated in subdivision (d):
(1) The amount of funding a county superintendent of schools received for the 2012–13 fiscal year from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read on January 1, 2013.
(2) (A) (i) The amount of funding a county superintendent of schools received for the 2012–13 fiscal year from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, former Article 10 (commencing with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, as those articles read on January 1, 2013.
(ii) If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent pursuant to Item 6110-111-0001 of Section 2.00 of the Budget Act of 2012, as identified in clause (i) of subparagraph (A) of paragraph (2) of subdivision (a) of Section 2575, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agency’s 2012–13 fiscal year entitlement to the member local educational agency. Commencing with the 2015–16 fiscal year, the Superintendent shall add the reassigned amounts to the amounts calculated pursuant to this paragraph.
(B) On or before March 1, 2014, the Legislative Analyst’s Office shall submit recommendations to the fiscal committees of both houses of the Legislature regarding revisions to the methods of funding pupil transportation that address historical funding inequities across county offices of education and school districts and improve incentives for local educational agencies to provide efficient and effective pupil transportation services.

SEC. 2.

 Section 42238.01 of the Education Code is amended to read:

42238.01.
 For purposes of Section 42238.02, the following definitions shall apply:
(a) (1) “Eligible for free or reduced-price meals” means determined to meet federal income eligibility criteria, either through completing an application for the federal National School Lunch Program or through an alternative household income data collection form, or deemed to be categorically eligible for free or reduced-price meals under the federal National School Lunch Program, as described in Part 245 of Title 7 of the Code of Federal Regulations.

(1)

(2) (A) A school participating in a special assistance alternative authorized by Section 11(a)(1) of the federal Richard B. Russell National School Lunch Act (Public Law 113-79), including Provision 2, Provision 3, or the Community Eligibility Provision, may establish a base year for purposes of the local control funding formula by doing either of the following:
(i) Determining the pupils at the school who are eligible for free or reduced-price meals and using each pupil’s eligibility status in that base year to report eligibility for up to each of the following three school years.
(ii) Carrying forward eligibility for pupils eligible for free or reduced-price meals from the school year in which the school applied to use a federal universal school meal provision, and using each pupil’s eligibility status from the application year to report eligibility for up to each of the following three school years.
(B) The school may include between base year eligibility determinations, any newly enrolled pupils who are determined to be eligible for free or reduced-price meals or any current pupils found to be newly eligible for free or reduced-price meals as identified through a local or state direct certification match or another categorical designation.

(2)

(3) A school that uses the special assistance alternative shall maintain information on each pupil’s eligibility status and annually submit information on that status in the California Longitudinal Pupil Achievement Data System pursuant to paragraph (2) of subdivision (b) of Section 42238.02 or subparagraph (A) of paragraph (3) of subdivision (b) of Section 2574, as applicable.

(3)

(4) For a pupil who transfers to a school using a special assistance alternative and who is transferring between schools within the same school district, documentation supporting eligibility for that pupil for purposes of the local control funding formula may be transferred from the pupil’s old school to the pupil’s new school, as long as the documentation supporting eligibility for that pupil is less than four years old and is updated at least once every four years.

(4)

(5) To the extent permitted by federal law, a school may choose to establish a new base year for purposes of the federal National School Lunch Program at the same time the school establishes a new base year for purposes of the local control funding formula. A school may use federal National School Lunch Program application forms to collect household income data as permitted under the federal National School Lunch Program. If the use of federal National School Lunch Program application forms is not permitted, a school shall use alternative household income data collection forms.

(5)

(6) An alternative household income data collection form shall be confidential and shall not be shared by the school other than as necessary for purposes of determining funding allocations under the local control funding formula and for assessing the accountability of that funding. An alternative household income data collection form shall contain, at a minimum, all of the following information:
(A) Information sufficient to identify the pupil or pupils.
(B) Information sufficient to determine that the pupil or household meets federal income eligibility criteria sufficient to qualify for either a free or reduced-priced meal under the federal Richard B. Russell National School Lunch Act (Public Law 113-79).
(C) Certification that the information is true and correct by the pupil’s adult household member.

(6)

(7) Paragraphs (1) and (3) (2) and (4) are effective commencing with the 2014–15 fiscal year.
(b) “Foster youth” means any of the following:
(1) A child who is the subject of a petition filed pursuant to Section 300 of the Welfare and Institutions Code, whether or not the child has been removed from the child’s home by the juvenile court pursuant to Section 319 or 361 of the Welfare and Institutions Code.
(2) A child who is the subject of a petition filed pursuant to Section 602 of the Welfare and Institutions Code, has been removed from the child’s home by the juvenile court pursuant to Section 727 of the Welfare and Institutions Code, and is in foster care as defined by subdivision (d) of Section 727.4 of the Welfare and Institutions Code.
(3) A nonminor under the transition jurisdiction of the juvenile court, as described in Section 450 of the Welfare and Institutions Code, who satisfies all of the following criteria:
(A) The nonminor has attained 18 years of age while under an order of foster care placement by the juvenile court, and is not more than 19 years of age on or after January 1, 2012, not more than 20 years of age on or after January 1, 2013, and not more than 21 years of age, on or after January 1, 2014, and as described in Section 10103.5 of the Welfare and Institutions Code.
(B) The nonminor is in foster care under the placement and care responsibility of the county welfare department, county probation department, Indian tribe, consortium of tribes, or tribal organization that entered into an agreement pursuant to Section 10553.1 of the Welfare and Institutions Code.
(C) The nonminor is participating in a transitional independent living case plan pursuant to Section 475(8) of the federal Social Security Act (42 U.S.C. Sec. 675), as contained in the federal Fostering Connections to Success and Increasing Adoptions Act of 2008 (Public Law 110-351), as described in Section 11403 of the Welfare and Institutions Code.
(4) A dependent child of the court of an Indian tribe, consortium of tribes, or tribal organization who is the subject of a petition filed in the tribal court pursuant to the tribal court’s jurisdiction in accordance with the tribe’s law.
(5) A child who is the subject of a voluntary placement agreement, as defined in subdivision (p) of Section 11400 of the Welfare and Institutions Code.
(c) (1) “Low-income pupil” means a pupil whose household income level is at or below 250 percent of the federal poverty level level, as adjusted annually. annually, or who is eligible for free or reduced-price meals.
(2) (A) In order to determine income level, a school shall use an alternative household income data collection form, as authorized pursuant to subdivision (a), for any pupil not determined to be eligible for free or reduced-price meals.
(B) An alternative household income data collection form shall be confidential and shall not be shared by the school except as necessary for purposes of determining funding allocations under the local control funding formula or for assessing the accountability of that funding. An alternative household income data collection form shall contain, at a minimum, all of the following information:
(i) Information sufficient to identify the pupil or pupils.
(ii) Information sufficient to determine that the pupil’s household income level is at or below 250 percent of the federal poverty level, as adjusted annually.
(iii) Certification that the information is true and correct by the pupil’s adult household member.
(3) The department shall develop a sample alternative household income data collection form.
(d) “Pupil experiencing homelessness” means a pupil who meets the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)).
(e) “Pupils of limited English proficiency” means pupils who do not have the clearly developed English language skills of comprehension, speaking, reading, and writing necessary to receive instruction only in English at a level substantially equivalent to pupils of the same age or grade whose primary language is English. “English learner” shall have the same meaning as provided for in subdivision (a) of Section 306 and as “pupils of limited English proficiency.”

SEC. 3.

 Section 42238.02 of the Education Code is amended to read:

42238.02.
 (a) The amount computed pursuant to this section shall be known as the school district and charter school local control funding formula.
(b) (1) For purposes of this section “unduplicated pupil” means a pupil enrolled in a school district or a charter school who is either classified as an English learner, eligible for a free or reduced-price meal, or is a foster youth. a foster youth, a low-income pupil, or a pupil experiencing homelessness. A pupil shall be counted only once for purposes of this section if any of the following apply:

(A)The pupil is classified as an English learner and is eligible for a free or reduced-price meal.

(B)

(A) The pupil is classified as an English learner and is a foster youth.

(C)The pupil is eligible for a free or reduced-price meal and is classified as a foster youth.

(D)The pupil is classified as an English learner, is eligible for a free or reduced-price meal, and is a foster youth.

(B) The pupil is classified as an English learner and is a low-income pupil.
(C) The pupil is classified as an English learner and is a pupil experiencing homelessness.
(D) The pupil is a foster youth and is a low-income pupil.
(E) The pupil is a foster youth and is a pupil experiencing homelessness.
(F) The pupil is low-income pupil and is a pupil experiencing homelessness.
(G) The pupil is classified as an English learner, is a foster youth, and is a low-income pupil.
(H) The pupil is classified as an English learner, is a low-income pupil, and is a pupil experiencing homelessness.
(I) The pupil is classified as an English learner, is a foster youth, and is a pupil experiencing homelessness.
(J) The pupil is a foster youth, is a low-income pupil, and is a pupil experiencing homelessness.
(K) The pupil is classified as an English learner, is a foster youth, is a low-income pupil, and is a pupil experiencing homelessness.
(2) Under procedures and timeframes established by the Superintendent, commencing with the 2013–14 fiscal year, a school district or charter school shall annually submit its enrolled free and reduced-price meal eligibility, foster youth, English learner, low-income pupils, and pupils experiencing homelessness pupil-level records for enrolled pupils to the Superintendent using the California Longitudinal Pupil Achievement Data System.
(3) (A) Commencing with the 2013–14 fiscal year, a county office of education shall review and validate certified aggregate English learner, foster youth, free or reduced-price meal eligible, low-income pupils, and pupils experiencing homelessness pupil data for school districts and charter schools under its jurisdiction to ensure the data is reported accurately. The Superintendent shall provide each county office of education with appropriate access to school district and charter school data reports in the California Longitudinal Pupil Achievement Data System for purposes of ensuring data reporting accuracy.
(B) The Controller shall include the instructions necessary to enforce paragraph (2) in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the English learner, foster youth, free or reduced-price meal eligible, low-income pupils, and pupils experiencing homelessness pupil counts are consistent with the school district’s or charter school’s English learner, foster youth, free or reduced-price meal eligible, low-income pupils, and pupils experiencing homelessness pupil records.
(4) The Superintendent shall make the calculations pursuant to this section using the data submitted by local educational agencies, including charter schools, through the California Longitudinal Pupil Achievement Data System. Under timeframes and procedures established by the Superintendent, school districts and charter schools may review and revise their submitted data on English learner, foster youth, free or reduced-price meal eligible, low-income pupils, and pupils experiencing homelessness pupil counts to ensure the accuracy of data reflected in the California Longitudinal Pupil Achievement Data System.
(5) The Superintendent shall annually compute the percentage of unduplicated pupils for each school district and charter school by dividing the enrollment of unduplicated pupils in a school district or charter school by the total enrollment in that school district or charter school pursuant to all of the following:
(A) For the 2013–14 fiscal year, divide the sum of unduplicated pupils for the 2013–14 fiscal year by the sum of the total pupil enrollment for the 2013–14 fiscal year.
(B) For the 2014–15 fiscal year, divide the sum of unduplicated pupils for the 2013–14 and 2014–15 fiscal years by the sum of the total pupil enrollment for the 2013–14 and 2014–15 fiscal years.
(C) For the 2015–16 fiscal year and each fiscal year thereafter, divide the sum of unduplicated pupils for the current fiscal year and the two prior fiscal years by the sum of the total pupil enrollment for the current fiscal year and the two prior fiscal years.
(D) (i) For purposes of the quotients determined pursuant to subparagraphs (B) and (C), the Superintendent shall use a school district’s or charter school’s enrollment of unduplicated pupils and total pupil enrollment in the 2014–15 fiscal year instead of the enrollment of unduplicated pupils and total pupil enrollment in the 2013–14 fiscal year if doing so would yield an overall greater percentage of unduplicated pupils.
(ii) It is the intent of the Legislature to review each school district and charter school’s enrollment of unduplicated pupils for the 2013–14 and 2014–15 fiscal years and provide one-time funding, if necessary, for a school district or charter school with higher enrollment of unduplicated pupils in the 2014–15 fiscal year as compared to the 2013–14 fiscal year.
(E) (i) Notwithstanding any other law, for purposes of subparagraph (C), the unduplicated pupils and total pupil enrollment in prior fiscal years shall be the following:
(I) For a transferred charter school, the counts shall be equal to the counts reported for the original charter school.
(II) For an acquiring charter school, the counts shall be equal to the counts reported for the original charter school. This subclause shall become inoperative on July 1, 2023, unless its operation is extended by the Legislature.
(III) For the restructured portions of a divided charter school, the counts shall be zero.
(IV) For the remaining portion of a divided charter school, the counts shall be equal to the counts reported for the original charter school.
(ii) The definitions in Section 47654 apply for purposes of this subparagraph.
(6) Notwithstanding subdivision (a) of Section 14002, the data used to determine the percentage of unduplicated pupils shall be final once that data is no longer used in the current fiscal year calculation of the percentage of unduplicated pupils. This paragraph does not apply to a change that is the result of an audit exception, as described in paragraph (2) of subdivision (a) of Section 41341.
(c) Commencing with the 2013–14 fiscal year and each fiscal year thereafter, the Superintendent shall annually calculate a local control funding formula grant for each school district and charter school in the state pursuant to this section.
(d) The Superintendent shall compute a grade span adjusted base grant equal to the total of the following amounts:
(1) For the 2013–14 fiscal year, a base grant of:
(A) Six thousand eight hundred forty-five dollars ($6,845) for average daily attendance in kindergarten and grades 1 to 3, inclusive.
(B) Six thousand nine hundred forty-seven dollars ($6,947) for average daily attendance in grades 4 to 6, inclusive.
(C) Seven thousand one hundred fifty-four dollars ($7,154) for average daily attendance in grades 7 and 8.
(D) Eight thousand two hundred eighty-nine dollars ($8,289) for average daily attendance in grades 9 to 12, inclusive.
(2) In each year the grade span adjusted base grants in paragraph (1) shall be adjusted by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, as reported by the Department of Finance.
(3) (A) The Superintendent shall compute an additional adjustment to the kindergarten and grades 1 to 3, inclusive, base grant as adjusted for inflation pursuant to paragraph (2) equal to 10.4 percent. The additional grant shall be calculated by multiplying the kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by paragraph (2), by 10.4 percent.
(B) Until paragraph (4) of subdivision (b) of Section 42238.03 is effective, as a condition of the receipt of funds in this paragraph, a school district shall make progress toward maintaining an average class enrollment of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative annual average class enrollment for each schoolsite in those grades is agreed to by the school district, pursuant to the following calculation:
(i) Determine a school district’s average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the prior year. For the 2013–14 fiscal year, this amount shall be the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, in the 2012–13 fiscal year.
(ii) Determine a school district’s proportion of total need pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
(iii) Determine the percentage of the need calculated in clause (ii) that is met by funding provided to the school district pursuant to paragraph (3) of subdivision (b) of Section 42238.03.
(iv) Determine the difference between the amount computed pursuant to clause (i) and an average class enrollment of not more than 24 pupils.
(v) Calculate a current year average class enrollment adjustment for each schoolsite for kindergarten and grades 1 to 3, inclusive, equal to the adjustment calculated in clause (iv) multiplied by the percentage determined pursuant to clause (iii).
(C) School districts that have an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24 pupils or less for each schoolsite in the 2012–13 fiscal year, shall be exempt from the requirements of subparagraph (B) so long as the school district continues to maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils, unless a collectively bargained alternative ratio is agreed to by the school district.
(D) Upon full implementation of the local control funding formula, as a condition of the receipt of funds in this paragraph, all school districts shall maintain an average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils for each schoolsite in kindergarten and grades 1 to 3, inclusive, unless a collectively bargained alternative ratio is agreed to by the school district.
(E) The average class enrollment requirement for each schoolsite for kindergarten and grades 1 to 3, inclusive, established pursuant to this paragraph shall not be subject to waiver by the state board pursuant to Section 33050 or by the Superintendent.
(F) The Controller shall include the instructions necessary to enforce this paragraph in the audit guide required by Section 14502.1. The instructions shall include, but are not necessarily limited to, procedures for determining if the average class enrollment for each schoolsite for kindergarten and grades 1 to 3, inclusive, exceeds 24 pupils, or an alternative average class enrollment for each schoolsite pursuant to a collectively bargained alternative ratio. The procedures for determining average class enrollment for each schoolsite shall include criteria for employing sampling.
(4) The Superintendent shall compute an additional adjustment to the base grant for grades 9 to 12, inclusive, as adjusted for inflation pursuant to paragraph (2), equal to 2.6 percent. The additional grant shall be calculated by multiplying the base grant for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6 percent.
(e) The Superintendent shall compute a supplemental grant add-on equal to 20 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school district’s or charter school’s percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b). The supplemental grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in that school district or charter school. The supplemental grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(f) (1) (A) The Superintendent shall compute a concentration grant add-on equal to 50 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school district’s or charter school’s percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district’s or charter school’s total enrollment. The concentration grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 50 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the total enrollment in that school district or charter school.
(B) Commencing with the 2021–22 fiscal year, the concentration grant add-on referenced in subparagraph (A) shall instead be equal to 65 percent of the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for each school district’s or charter school’s percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district’s or charter school’s total enrollment. The concentration grant shall be calculated by multiplying the base grants as specified in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), by 65 percent and by the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the total enrollment in that school district or charter school.
(2) (A) For a charter school physically located in only one school district, the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed the percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school district in which the charter school is physically located. For a charter school physically located in more than one school district, the charter school’s percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent used to calculate concentration grants shall not exceed that of the school district with the highest percentage of unduplicated pupils calculated pursuant to paragraph (5) of subdivision (b) in excess of 55 percent of the school districts in which the charter school has a school facility. The concentration grant shall be expended in accordance with the regulations adopted pursuant to Section 42238.07.
(B) For purposes of this paragraph and subparagraph (A) of paragraph (1) of subdivision (f) of Section 42238.03, a charter school shall report its physical location to the department under timeframes established by the department. For a charter school authorized by a school district, the department shall include the authorizing school district in the department’s determination of physical location. For a charter school authorized on appeal pursuant to subdivision (k) of Section 47605, the department shall include the school district that initially denied the petition in the department’s determination of physical location. Notwithstanding subdivision (a) of Section 14002, the reported physical location of the charter school shall be considered final as of the second principal apportionment for that fiscal year, and, for purposes of this paragraph, the percentage of unduplicated pupils of the school district associated with the charter school pursuant to subparagraph (A) shall be considered final as of the second principal apportionment for that fiscal year.
(g) The Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s base, supplemental, and concentration grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Targeted Instructional Improvement Block Grant program, as set forth in Article 6 (commencing with Section 41540) of Chapter 3.2, for the 2012–13 fiscal year, as that article read on January 1, 2013. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount of funding received by the school district or charter school from that program in the 2012–13 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(h) (1) The Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s base, supplemental, and concentration grants equal to the amount of funding a school district or charter school received from funds allocated pursuant to the Home-to-School Transportation program, as set forth in former Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former Article 10 (commencing with Section 41850) of Chapter 5, and the Small School District Transportation program, as set forth in former Article 4.5 (commencing with Section 42290), as those articles read on January 1, 2013, for the 2012–13 fiscal year. A school district or charter school shall not receive a total funding amount from this add-on greater than the total amount received by the school district or charter school for those programs in the 2012–13 fiscal year. The amount computed pursuant to this subdivision shall reflect the reduction specified in paragraph (2) of subdivision (a) of Section 42238.03.
(2) If a home-to-school transportation joint powers agency, established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing pupil transportation, received an apportionment directly from the Superintendent from any of the funding sources specified in paragraph (1) for the 2012–13 fiscal year, the joint powers agency may identify the member local educational agencies and transfer entitlement to that funding to any of those member local educational agencies by reporting to the Superintendent, on or before September 30, 2015, the reassignment of a specified amount of the joint powers agency’s 2012–13 fiscal year entitlement to the member local educational agency. Commencing with the 2015–16 fiscal year, the Superintendent shall compute an add-on to the total sum of a school district’s or charter school’s base, supplemental, and concentration grants equal to the amount of the entitlement to funding transferred by the joint powers agency to the member school district or charter school.
(i) (1) The sum of the local control funding formula rates computed pursuant to subdivisions (c) to (f), inclusive, shall be multiplied by:
(A) For school districts, the average daily attendance of the school district in the corresponding grade level ranges computed pursuant to Section 42238.05, excluding the average daily attendance computed pursuant to paragraph (2) of subdivision (a) of Section 42238.05 for purposes of the computation specified in subdivision (d).
(B) For charter schools, the total current year average daily attendance in the corresponding grade level ranges.
(2) The amount computed pursuant to Article 4 (commencing with Section 42280) shall be added to the amount computed pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied by subparagraph (A) or (B) of paragraph (1), as appropriate.
(j) The Superintendent shall adjust the sum of each school district’s or charter school’s amount determined in subdivisions (g) to (i), inclusive, pursuant to the calculation specified in Section 42238.03, less the sum of the following:
(1) (A) For school districts, the property tax revenue received pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code.
(B) For charter schools, the in-lieu property tax amount provided to a charter school pursuant to Section 47635.
(2) The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 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, if any, received pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), less 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 and that is not an amount received pursuant to Section 33492.15, or 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.
(7) The amount, if any, received pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(8) Revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(k) A school district shall annually transfer to each of its charter schools funding in lieu of property taxes pursuant to Section 47635.
(l) (1) This section does not authorize a school district that receives funding on behalf of a charter school pursuant to Section 47651 to redirect this funding for another purpose unless otherwise authorized in law pursuant to paragraph (2) or pursuant to an agreement between the charter school and its chartering authority.
(2) A school district that received funding on behalf of a locally funded charter school in the 2012–13 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or a school district that was required to pass through funding to a conversion charter school in the 2012–13 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42606, as that section read on January 1, 2013, may annually redirect for another purpose a percentage of the amount of the funding received on behalf of that charter school. The percentage of funding that may be redirected shall be determined pursuant to the following computation:
(A) (i) Determine the sum of the need fulfilled for that charter school pursuant to paragraph (3) of subdivision (b) of Section 42238.03 in the then current fiscal year for the charter school.
(ii) Determine the sum of the need fulfilled in every fiscal year before the then current fiscal year pursuant to paragraph (3) of subdivision (b) of Section 42238.03 adjusted for changes in average daily attendance pursuant to paragraph (3) of subdivision (a) of Section 42238.03 for the charter school.
(iii) Subtract the amount computed pursuant to paragraphs (1) to (3), inclusive, of subdivision (a) of Section 42238.03 from the amount computed for that charter school under the local control funding formula entitlement computed pursuant to subdivision (i) of this section.
(iv) Compute a percentage by dividing the sum of the amounts computed pursuant to clauses (i) and (ii) by the amount computed pursuant to clause (iii).
(B) Multiply the percentage computed pursuant to subparagraph (A) by the amount of funding the school district received on behalf of the charter school in the 2012–13 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013.
(C) The maximum amount that may be redirected shall be the lesser of the amount of funding the school district received on behalf of the charter school in the 2012–13 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 42605, Section 42606, and subdivision (b) of Section 47634.1, as those sections read on January 1, 2013, or the amount computed pursuant to subparagraph (B).
(3) Commencing with the 2013–14 fiscal year, a school district operating one or more affiliated charter schools shall provide each affiliated charter school schoolsite with no less than the amount of funding the schoolsite received pursuant to the charter school block grant in the 2012–13 fiscal year.
(m) Any calculations in law that are used for purposes of determining if a local educational agency is an excess tax school entity or basic aid school district, including, but not limited to, this section and Sections 41544, 42238.03, 47632, 47660, 47663, 48310, and 48359.5, and Section 95 of the Revenue and Taxation Code, shall exclude the revenue received pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(n) The funds apportioned pursuant to this section and Section 42238.03 shall be available to implement the activities required pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4.
(o) A school district that does not receive an apportionment of state funds pursuant to this section, as implemented pursuant to Section 42238.03, excluding funds apportioned pursuant to the requirements of subparagraph (A) of paragraph (2) of subdivision (e) of Section 42238.03, shall be considered a “basic aid school district” or an “excess tax entity.”

SEC. 4.

 Section 42238.023 is added to the Education Code, to read:

42238.023.
 (a) Notwithstanding any other law, for the 2022–23 fiscal year, the adjustment to the grade span adjusted base grant for a school district or charter school required pursuant to paragraph (2) of subdivision (d) of Section 42238.02 shall instead be 10 15 percent.

(b)For the 2022–23 fiscal year to the 2029–30 fiscal year, inclusive, the Superintendent shall compute and provide an annual local control funding formula transition adjustment for each school district and charter school as follows:

(1)Compute the amount for each school district or charter school under the local control funding formula entitlements computed pursuant to Section 42238.02.

(2)Notwithstanding subdivision (b) of Section 42238.02, compute the amount for each school district or charter school under the local control funding formula entitlements computed pursuant to Section 42238.02 by substituting the following definitions for purposes of Section 42238.02:

(A)“Low-income pupil,” as defined in Section 42238.01, shall replace “eligible for free or reduced-price meals,” as defined in Section 42238.01.

(B)“Unduplicated pupil,” as defined in subdivision (b) of Section 42238.02, shall be replaced by “unduplicated pupil” means a pupil enrolled in a school district or a charter school who is either classified as an English learner, a low-income pupil, a pupil experiencing homelessness, or a foster youth, as those terms are defined in Section 42238.01. A pupil shall be counted only once for purposes of this section if the pupil is classified as only an English learner or only a low-income pupil, or only both an English learner and a low-income pupil. A pupil shall be counted twice for purposes of this section if the pupil is classified as a pupil experiencing homelessness or a foster youth, or both, or if in addition to being classified as a pupil experiencing homelessness or a foster youth, or both, the pupil is also classified as an English learner or a low-income pupil, or both.

(3)Subtract the amount computed pursuant to paragraph (1) from the amount computed pursuant to paragraph (2). School districts and charter schools with a negative difference shall be deemed to have a zero difference.

(4)Multiply the difference computed pursuant to paragraph (3) by each of the following for the applicable fiscal year:

(A)For the 2022–23 fiscal year, by one-eighth.

(B)For the 2023–24 fiscal year, by one-quarter.

(C)For the 2024–25 fiscal year, by three-eighths.

(D)For the 2025–26 fiscal year, by one-half.

(E)For the 2026–27 fiscal year, by five-eighths.

(F)For the 2027–28 fiscal year, by three-quarters.

(G)For the 2029–30 fiscal year, by seven-eighths.

(5)For each applicable fiscal year, a school district’s and charter school’s transition adjustment, as calculated pursuant to paragraphs (1) to (4), inclusive, shall be added to the school district’s or charter school’s local control funding formula amount, as calculated pursuant to Section 42238.02, and shall be continuously appropriated pursuant to Section 14002.

(c)

(b) It is the intent of the Legislature to fully transition the local control funding formula, as computed pursuant to the definitions in paragraph (2) of subdivision (b), commencing with the 2030–31 fiscal year, at which time the Legislature intends to amend Sections 42238.01 and 42238.02 to instead include those definitions. that the adjustment to the grade span-adjusted base grant for a school district or charter school is based on annual cost pressures, including, but not limited to, the Consumer Price Index issued by the United States Department of Labor, employee insurance and retirement costs, and other increased school district and charter school costs.

SEC. 5.

 Section 42238.05 of the Education Code is amended to read:

42238.05.
 (a) For purposes of Sections 42238.02, 42238.025, and 42238.03, the fiscal year average daily attendance for a school district shall be computed pursuant to paragraphs (1) to (3), inclusive, as applicable.
(1) The second principal apportionment regular average daily attendance for the current fiscal year, or the prior fiscal year if the prior year average daily attendance is greater, year, or the average of the three most recent prior fiscal years, whichever is greater, excluding units of average daily attendance resulting from pupils attending schools funded pursuant to Article 4 (commencing with Section 42280).
(2) The units of average daily attendance resulting from pupils attending schools funded pursuant to Article 4 (commencing with Section 42280).
(3) Prior fiscal year average daily attendance shall be adjusted for any loss or gain of average daily attendance due to a reorganization or transfer of territory.
(b) For purposes of this article, regular average daily attendance shall be the base grant average daily attendance.
(c) For purposes of this section, the Superintendent shall distribute total ungraded enrollment and average daily attendance among kindergarten and each of grades 1 to 12, inclusive, in proportion to the amounts of graded enrollment and average daily attendance, respectively, in each of these grades.
(d) Subdivisions (a) to (c), inclusive, shall only apply to average daily attendance generated by school districts and shall not apply to average daily attendance generated by charter schools.
(e) A pupil shall not be counted more than once for purposes of calculating average daily attendance pursuant to this section.
(f) For purposes of Sections 42238.02, 42238.025, and 42238.03, average daily attendance for a charter school shall be the total current year average daily attendance in the corresponding grade level ranges for the charter school.

SEC. 6.

 Section 42238.051 of the Education Code is amended to read:

42238.051.
 (a) For purposes of paragraph (1) of subdivision (a) of Section 42238.05, a sponsoring school district’s average daily attendance shall be computed as follows:
(1) Compute the sponsoring school district’s regular average daily attendance in the current fiscal year, excluding the attendance of pupils in charter schools.
(2) (A) Compute the regular average daily attendance used to calculate the second principal apportionment of the school district for the three most recent prior year, fiscal years, excluding the attendance of pupils in charter schools.

(B)Compute the attendance of pupils who attended one or more noncharter schools of the school district between July 1, and the last day of the second period, inclusive, in the prior year, and who attended a charter school sponsored by the school district between July 1, and the last day of the second period, inclusive, in the current year. For purposes of this subparagraph, a pupil enrolled in a grade at a charter school sponsored by the school district shall not be counted if the school district does not offer classes for pupils enrolled in that grade. The amount of the attendance counted for any pupil for the purpose of this subparagraph shall not be greater than the attendance claimed for that pupil by the charter school in the current year.

(C)Compute the attendance of pupils who attended a charter school sponsored by the school district in the prior year and who attended one or more noncharter schools of the school district in the current year. The amount of the attendance counted for any pupil for the purpose of this subparagraph shall not be greater than the attendance claimed for that pupil by the school district in the current year.

(D)From the amount determined pursuant to subparagraph (B), subtract the amount determined pursuant to subparagraph (C). If the result is less than zero, the amount shall be deemed to be zero.

(E)The prior year average daily attendance determined pursuant to subparagraph (A) shall be reduced by the amount determined pursuant to subparagraph (D).

(B) For the purpose of computing attendance for the three most recent prior fiscal years pursuant to subparagraph (A), the following adjustments shall be made:
(i) For pupils attending a noncharter school of the school district between July 1, and the last day of the second attendance period, inclusive, in the current fiscal year, who attended a charter school sponsored by the school district in any of the three prior fiscal years, the amount of second period attendance generated by that pupil at the charter school shall increase the sponsoring school district’s attendance for the respective prior fiscal year.
(ii) For pupils attending a charter school between July 1, and the last day of the second attendance period, inclusive, in the current fiscal year, inclusive, who attended a noncharter school of the sponsoring district in any of the three prior fiscal years, the amount of second period attendance generated by that pupil shall decrease the sponsoring school district’s attendance for the respective prior fiscal year.
(iii) For purposes of clauses (i) and (ii), a pupil enrolled in a grade at a charter school sponsored by the school district shall not be counted if the school district does not offer classes for pupils enrolled in that grade.
(iv) For the 2022–23 fiscal year, an adjustment shall not be made to attendance in the second and third prior fiscal years.
(v) For the 2023–24 fiscal year, an adjustment shall not be made to attendance in the third prior fiscal year.
(3) To the greater of the amounts computed pursuant to paragraphs (1) and (2), add the regular average daily attendance in the current fiscal year of all pupils attending charter schools sponsored by the school district that are not funded through the charter schools local control funding formula allocation pursuant to Section 42238.02, as implemented by Section 42238.03.
(b) For purposes of this section, a “sponsoring school district” shall mean a “sponsoring local educational agency,” as defined in Section 47632, as that section read on January 1, 2013.

(c)Notwithstanding any other law, this section does not apply to the 2021–22 fiscal year.

SEC. 7.

 Section 42238.052 of the Education Code is amended to read:

42238.052.
 (a) Notwithstanding any other law, the prior year average daily attendance for a school district determined pursuant to subdivision (a) of Section 42238.051 shall be increased by the prior year second principal apportionment average daily attendance of a school district only for a school that meets the following description:
(1) The school was a district noncharter school in any year before the prior year.
(2) The school was operated as a district-approved charter school in the prior year.
(3) The school is again operated as a district noncharter school in the current year.
(b) An adjustment to prior year average daily attendance pursuant to this section may not be made for the attendance of pupils who were not residents of the school district in the prior year.
(c) This section shall remain in effect only until July 1, 2022, and as of that date is repealed.

SEC. 8.

 Section 42280 of the Education Code is amended to read:

42280.
 (a) For each school district that meets, in the current or prior fiscal year, the conditions specified in Section 42282 or 42284 the Superintendent shall compute, for each qualifying school in the school district, an amount pursuant to this article.
(b) The amount of funding for each qualified school district shall equal the greater of either any of the following:
(1) The sum of necessary small elementary school allowances determined pursuant to Section 42282 for the prior fiscal year average daily attendance and the number of full-time teachers, and necessary small high school allowances determined pursuant to Section 42284 for the prior fiscal year average daily attendance and the number of certificated employees.
(2) The sum of necessary small elementary school allowances determined pursuant to Section 42282 for the current fiscal year average daily attendance and the number of full-time teachers, and necessary small high school allowances determined pursuant to Section 42284 for the current fiscal year average daily attendance and the number of certificated employees.
(3) The sum of necessary small elementary school allowances determined pursuant to Section 42282 for the average of the three most recent prior fiscal years’ average daily attendance and the number of full-time teachers, and necessary small high school allowances determined pursuant to Section 42284 for the average of the three most recent prior fiscal years’ average daily attendance and the number of certificated employees.
(c) For purposes of this section, if the average number of full-time teachers or certificated employees is not a whole number, the resulting figure shall be rounded up to the next whole number.

SEC. 5.SEC. 9.

 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.
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REVISIONS:
Heading Lines 1, 3, and 4.
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