Code Section Group

CHAPTER 2. Determination of Minimum Level of Education Funding [41200 - 41211]

41200.

(a) This chapter shall be known, and may be cited, as the John B. Mockler School Finance Act.

(b) The Legislature finds and declares that the California Constitution, as amended by “The Classroom Instructional Improvement and Accountability Act” as adopted by the voters on November 8, 1988, mandates that a specific minimum level of state General Fund revenues be guaranteed and applied for the support of school districts, community college districts, and state agencies that provide direct elementary and secondary level instructional services. The Legislature further finds and declares that, by defining certain terms used in establishing a method of calculation for determining the guaranteed minimum level of funding, Sections 14022.3 and 14022.5 and this chapter further the purposes of “The Classroom Instructional Improvement and Accountability Act.”

(c) It is the intent of the Legislature that the annual Budget Bill, required by Section 12 of Article IV of the California Constitution, include a section that specifies the respective percentages and amounts of General Fund revenues that must be set aside and applied for the support of school districts, community college districts, and the direct elementary and secondary level instructional services of state agencies, as required by subdivision (b) of Section 8 of Article XVI of the California Constitution.

(Amended (as added by Stats. 1989, Ch. 83, Sec. 8) by Stats. 2015, Ch. 3, Sec. 2. (AB 158) Effective January 1, 2016.)

41202.

The words and phrases set forth in subdivision (b) of Section 8 of Article XVI of the Constitution of the State of California shall have the following meanings:

(a) “Moneys to be applied by the State,” as used in subdivision (b) of Section 8 of Article XVI of the California Constitution, means appropriations from the General Fund that are made for allocation to school districts, as defined, or community college districts. An appropriation that is withheld, impounded, or made without provisions for its allocation to school districts or community college districts shall not be considered to be “moneys to be applied by the State.”

(b) “General Fund revenues which may be appropriated pursuant to Article XIII B,” as used in paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means General Fund revenues that are the proceeds of taxes as defined by subdivision (c) of Section 8 of Article XIII B of the California Constitution, including, for the 1986–87 fiscal year only, any revenues that are determined to be in excess of the appropriations limit established pursuant to Article XIII B of the California Constitution for the fiscal year in which they are received. General Fund revenues for a fiscal year to which paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution is being applied shall include, in that computation, only General Fund revenues for that fiscal year that are the proceeds of taxes, as defined in subdivision (c) of Section 8 of Article XIII B of the California Constitution, and shall not include prior fiscal year revenues. Commencing with the 1995–96 fiscal year, and each fiscal year thereafter, “General Fund revenues that are the proceeds of taxes,” as defined in subdivision (c) of Section 8 of Article XIII B of the California Constitution, includes any portion of the proceeds of taxes received from the state sales tax that are transferred to the counties pursuant to, and only if, legislation is enacted during the 1995–96 fiscal year the purpose of which is to realign children’s programs. The amount of the proceeds of taxes shall be computed for any fiscal year in a manner consistent with the manner in which the amount of the proceeds of taxes was computed by the Department of Finance for purposes of the Governor’s Budget for the Budget Act of 1986 (Chapter 186 of the Statutes of 1986).

(c) “General Fund revenues appropriated for school districts,” as used in paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means the sum of appropriations made that are for allocation to school districts, as defined in Section 41302.5, regardless of whether those appropriations were made from the General Fund to the Superintendent, to the Controller, or to any other fund or state agency for the purpose of allocation to school districts. The full amount of any appropriation shall be included in the calculation of the percentage required by paragraph (1) of subdivision (b) of Article XVI of the California Constitution, without regard to any unexpended balance of any appropriation. Any reappropriation of funds appropriated in any prior year shall not be included in the sum of appropriations.

(d) “General Fund revenues appropriated for community college districts,” as used in paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means the sum of appropriations made that are for allocation to community college districts, regardless of whether those appropriations were made from the General Fund to the Controller, to the Chancellor of the California Community Colleges, or to any other fund or state agency for the purpose of allocation to community college districts. The full amount of any appropriation shall be included in the calculation of the percentage required by paragraph (1) of subdivision (b) of Article XVI of the California Constitution, without regard to any unexpended balance of any appropriation. Any reappropriation of funds appropriated in any prior year shall not be included in the sum of appropriations.

(e) “Total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as used in paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means the sum of appropriations made that are for allocation to school districts, as defined in Section 41302.5, and community college districts, regardless of whether those appropriations were made from the General Fund to the Controller, to the Superintendent, to the Chancellor of the California Community Colleges, or to any other fund or state agency for the purpose of allocation to school districts and community college districts. The full amount of any appropriation shall be included in the calculation of the percentage required by paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, without regard to any unexpended balance of any appropriation. Any reappropriation of funds appropriated in any prior year shall not be included in the sum of appropriations.

(f) “General Fund revenues appropriated for school districts and community college districts, respectively” and “moneys to be applied by the state for the support of school districts and community college districts,” as used in Section 8 of Article XVI of the California Constitution, shall include funds appropriated to local educational agencies, as defined in Section 8208, for part-day California state preschool programs under Article 7 (commencing with Section 8235) of Chapter 2 of Part 6 of Division 1 of Title 1, funds appropriated to local educational agencies, as defined in Section 8208, to create a full day of care for children participating in the California state preschool program, and funds appropriated for the After School Education and Safety Program established pursuant to Article 22.5 (commencing with Section 8482) of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not include any of the following:

(1) Any appropriation that is not made for allocation to a school district, as defined in Section 41302.5, or to a community college district, regardless of whether the appropriation is made for any purpose that may be considered to be for the benefit to a school district, as defined in Section 41302.5, or a community college district. This paragraph shall not be construed to exclude any funding appropriated to local educational agencies, as defined in Section 8208, for part-day California state preschool programs under Article 7 (commencing with Section 8235) of Chapter 2 of Part 6 of Division 1 of Title 1, to local educational agencies, as defined in Section 8208, to create a full day of care for children participating in the California state preschool program, or for the After School Education and Safety Program established pursuant to Article 22.5 (commencing with Section 8482) of Chapter 2 of Part 6 of Division 1 of Title 1.

(2) Any appropriation made to the Teachers’ Retirement Fund or to the Public Employees’ Retirement Fund except those appropriations for reimbursable state mandates imposed on or before January 1, 1988.

(3) Any appropriation made to service any public debt approved by the voters of this state.

(4) With the exception of the programs identified in paragraph (1), commencing with the 2011–12 fiscal year, any funds appropriated for the Child Care and Development Services Act, pursuant to Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.

(5) Any amount recognized for budgetary and financial reporting purposes pursuant to the requirements of paragraph (1) of subdivision (c) of, and paragraph (5) of subdivision (d) of, Section 41206.04.

(g) “Allocated local proceeds of taxes,” as used in paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means, for school districts as defined, those local revenues, except revenues identified pursuant to paragraph (5) of subdivision (j) of Section 42238.02, that are used to offset state aid for school districts in calculations performed pursuant to Sections 2558 and 42238 and Chapter 7.2 (commencing with Section 56836) of Part 30.

(h) “Allocated local proceeds of taxes,” as used in paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, means, for community college districts, those local revenues that are used to offset state aid for community college districts. In no event shall the revenues or receipts derived from student fees be considered “allocated local proceeds of taxes.”

(i) For purposes of calculating the 4-percent entitlement pursuant to subdivision (a) of Section 8.5 of Article XVI of the California Constitution, “the total amount required pursuant to Section 8(b)” shall mean the General Fund aid required for schools pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution, and shall not include allocated local proceeds of taxes.

(j) This section shall become inoperative on December 15, 2012, and, as of January 1, 2013, is repealed, only if the Schools and Local Public Safety Protection Act of 2012 (Attorney General reference number 12-0009) is not approved by the voters at the November 6, 2012, statewide general election, or if the provisions of that act that modify personal income tax rates do not become operative due to a conflict with another initiative measure that is approved at the same election and receives a greater number of affirmative votes.

(Amended by Stats. 2024, Ch. 38, Sec. 13. (SB 153) Effective June 29, 2024. Note: Conditions, in subd. (j), for inoperation and repeal failed; Prop. 30 was approved on Nov. 6, 2012.)

41202.5.

(a) The Legislature finds and declares both of the following:

(1) The Legislature acted to implement Proposition 98 soon after its passage by defining “total allocations to school districts and community college districts from General Fund proceeds of taxes” to include the entirety of programs funded under the Child Care and Development Services Act (Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1).

(2) In California Teachers Assn. v. Hayes (1992) 5 Cal.App.4th 1513, the Court of Appeal permitted the inclusion of childcare within the Proposition 98 minimum funding guarantee but left open the possibility of excluding particular childcare programs that did not directly advance and support the educational mission of school districts.

(b) It is the intent of the Legislature to clarify that the part-time state preschool programs administered by local educational agencies and the After School Education and Safety Program fall within the Proposition 98 minimum guarantee and to fund other childcare programs less directly associated with school districts from appropriations that do not count toward the Proposition 98 minimum guarantee.

(c) Notwithstanding any other law, for purposes of making the computations required by subdivision (b) of Section 8 of Article XVI of the California Constitution in the 2011–12 fiscal year and each subsequent fiscal year, both of the following apply:

(1) For purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, “General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87” does not include General Fund revenues appropriated for any program within Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1, with the exception of (A) funds appropriated to local educational agencies, as defined in Section 8208, for the part-day California state preschool programs set forth in Article 7 (commencing with Section 8235), (B) funds appropriated to local educational agencies, as defined in Section 8208, to create a full day of care for children participating in the California state preschool program, and (C) the After School Education and Safety Program in Article 22.5 (commencing with Section 8482). The Director of Finance shall adjust accordingly “the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of applying that percentage in the 2011–12 fiscal year and each subsequent fiscal year in making the calculations required under paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution.

(2) General Fund revenues appropriated in the 2010–11 fiscal year or any subsequent fiscal year for any program within Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1, with the exception of (A) funds appropriated to local educational agencies, as defined in Section 8208, for the part-day California state preschool programs set forth in Article 7 (commencing with Section 8235), (B) funds appropriated to local educational agencies, as defined in Section 8208, to create a full day of care for children participating in the California state preschool program, and (C) the After School Education and Safety Program in Article 22.5 (commencing with Section 8482), are not included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B” for purposes of paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution.

(Amended by Stats. 2019, Ch. 51, Sec. 21. (SB 75) Effective July 1, 2019.)

41203.

Any calculation of the moneys to be applied by the state for the support of school districts and community college districts, pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be made as a single, aggregate calculation for the school districts serving kindergarten and grades 1 to 12, inclusive, for the community college districts, and for the direct elementary and secondary level instructional services provided by the State of California.

(Amended (as added by Stats. 1989, Ch. 83) by Stats. 2011, Ch. 296, Sec. 62. (AB 1023) Effective January 1, 2012.)

41203.1.

(a) For the 1990–91 fiscal year and each fiscal year thereafter, allocations calculated pursuant to Section 41203 shall be distributed in accordance with calculations provided in this section. Notwithstanding Section 41203, and for purposes of this section, school districts, community college districts, and direct elementary and secondary level instructional services provided by the State of California shall be regarded as separate segments of public education, and each of these three segments of public education shall be entitled to receive respective shares of the amount calculated pursuant to Section 41203 as though the calculation made pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution were to be applied separately to each segment and the base year for purposes of this calculation under paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution were based on the 1989–90 fiscal year. Calculations made pursuant to this subdivision shall be made so that each segment of public education is entitled to the greater of the amounts calculated for that segment pursuant to paragraph (1) or (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution.

(b) If the single calculation made pursuant to Section 41203 yields a guaranteed amount of funding that is less than the sum of the amounts calculated pursuant to subdivision (a), the amount calculated pursuant to Section 41203 shall be prorated for the three segments of public education.

(c) Notwithstanding any other law, this section does not apply to the 1992–93 to the 2024–25 fiscal years, inclusive.

(Amended by Stats. 2024, Ch. 38, Sec. 14. (SB 153) Effective June 29, 2024. Section inapplicable until July 1, 2025, pursuant to subd. (c).)

41203.3.

On or after the effective date of the act adding this section to the Education Code, in order for an appropriation that is not made for allocation to and administration by school districts, as defined in Section 41302.5 of the Education Code, or to community college districts to be counted towards the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, the appropriation shall, in addition to all other requirements of law, have statutory authorization independent of the annual Budget Act that reflects a legislative determination that the appropriation shall be counted toward satisfying that obligation.

(Added by Stats. 1996, Ch. 78, Sec. 3. Effective June 28, 1996.)

41203.5.

(a) In any fiscal year in which the amount of the moneys that are required to be applied by the state for the support of school districts and community college districts is determined under paragraph (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, a supplemental appropriation shall be made from the General Fund for the support of those entities in that sum by which the amount determined under that paragraph is exceeded by the amount computed under subdivision (b) of this section.

(b) The amount of General Fund revenues required to assure that the rate of growth in total allocations per unit of average daily attendance to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B of the California Constitution, excluding any revenues allocated pursuant to subdivision (a) of Section 8.5 of Article XVI of the California Constitution, and allocated local proceeds of taxes is not less than the rate of growth in per capita appropriations for all other programs and services from General Fund proceeds of taxes appropriated pursuant to Article XIII B of the California Constitution, excluding any revenues allocated pursuant to subdivision (a) of Section 8.5 of Article XVI of the California Constitution.

(c) In no event shall the total amount appropriated in any fiscal year pursuant to this section and paragraph (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution exceed the amount that would have been computed pursuant to paragraph (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution.

(d) Notwithstanding any other law, this section does not apply to the 2016–17 fiscal year to the 2020–21 fiscal year, inclusive.

(Amended by Stats. 2017, Ch. 15, Sec. 24. (AB 99) Effective June 27, 2017.)

41203.6.

For purposes of subdivision (c) of Section 8 of Article XVI of the California Constitution, “the amount computed pursuant to paragraph (2) of subdivision (b)” shall not be deemed to mean either the amount applied by the state for the support of school districts and community college districts in a fiscal year for which subdivision (b) of Section 8 of Article XVI of the California Constitution is suspended pursuant to subdivision (h) of that section, or the amount computed pursuant to paragraph (3) of subdivision (b) of that section.

(Added by Stats. 1990, Ch. 60, Sec. 2. Applicable from July 1, 1990, pursuant to Secs. 8 and 9 of Ch. 60.)

41203.7.

(a) Notwithstanding any other law, a supplemental appropriation shall be made from the General Fund for the support of school districts, as defined in Section 41302.5, in each fiscal year for the purposes set forth in subdivision (c). The amount of that supplemental appropriation shall be equal to the sum of the amount allocated to school districts pursuant to this section in the prior fiscal year and 25 percent of the amount, if any, allocated to school districts in the prior fiscal year pursuant to Section 8.5 of Article XVI of the California Constitution. That amount shall be adjusted annually for changes in enrollment, and for the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution.

(b) The funds appropriated for the purposes of subdivision (a) shall be allocated to each school district in an equal amount per unit of enrollment, in accordance with the allocation procedure set forth in subdivision (c) of Section 8.5 of Article XVI of the California Constitution.

(c) The amount allocated to each school district pursuant to this section shall be used only for the reduction of class size in any grade level or subject area. That class size reduction shall occur in any manner determined by the governing board of the school district. Not later than 90 days following each fiscal year in which a school district receives funding pursuant to this section, the governing board of the school district shall certify in writing to the Superintendent that all expenditures of that funding were in compliance with this subdivision.

(Amended by Stats. 2015, Ch. 19, Sec. 32. (SB 78) Effective June 24, 2015.)

41203.8.

(a) Notwithstanding any other provision of law, a supplemental appropriation shall be made from the General Fund in the annual Budget Act for the support of community college districts in each fiscal year for the purposes specified in the Budget Act. The amount of that supplemental appropriation shall be equal to the sum of the amount allocated to community college districts pursuant to this section in the prior fiscal year and 25 percent of the amount, if any, allocated to community college districts in the prior fiscal year pursuant to Section 8.5 of Article XVI of the California Constitution. That amount shall be adjusted annually for changes in enrollment, and for the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution.

(b) The funds appropriated for the purposes of subdivision (a) shall be allocated to each community college district in an equal amount per unit of enrollment, in accordance with the allocation procedure set forth in subdivision (c) of Section 8.5 of Article XVI of the California Constitution.

(Added by Stats. 1990, Ch. 61, Sec. 2.)

41204.

(a) It is the intent of the Legislature, pursuant to “The Classroom Instructional Improvement and Accountability Act,” that school districts, as defined in Section 41302.5, and community college districts, as constituted during the 1986–87 fiscal year, annually receive a basic minimum portion of the revenues that is equivalent to the percentage of revenues that were deposited to the General Fund in that year.

(b) In recognition of this intent, it is further the intent of the Legislature that both houses and the Governor be guided by the following:

(1) If the revenues of a tax that were deposited in the General Fund in the 1986–87 fiscal year are redirected to another fund, or level of government, then the percentages of General Fund revenues required to be applied by the state for the support of school districts, community college districts, and state agencies providing direct elementary and secondary level instructional services shall be recalculated as if those revenues were not deposited in the General Fund in the 1986–87 fiscal year.

(2) If the allocated local proceeds of taxes, as defined by subdivisions (g) and (h) of Section 41202, received by a school district or community college district during the 1986–87 fiscal year are redirected to other entities or statutorily or constitutionally reduced or eliminated, the additional General Fund support provided to replace the allocated local proceeds of taxes may not be counted as General Fund revenues required to be applied for the support of school districts, community college districts, and state agencies providing direct elementary and secondary level instructional services pursuant to paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, unless the percentage of General Fund revenues appropriated to school districts, community college districts, and state agencies providing direct elementary and secondary level instructional services in the 1986–87 fiscal year is adjusted to reflect the amount of General Fund support that would have been provided in the 1986–87 fiscal year had the allocated local proceeds of taxes been correspondingly reduced.

(3) If a program of a school district, as defined in Section 41302.5, or of a community college district was supported by state funds from a source other than the General Fund during the 1986–87 fiscal year and General Fund moneys are subsequently provided in support of the program and in lieu of the other source of funds, the supplanting General Fund revenues shall not be counted as moneys to be applied by the state for the support of school districts or community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution.

(c) Programs that existed in the 1986–87 fiscal year, and were not the functional responsibility of school districts or community college districts in that fiscal year, shall not be shifted to the responsibility or financial support of school districts or community college districts without appropriate corresponding adjustment to the calculations made pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution. Nothing in this subdivision shall be construed to prevent the creation of a new educational program that is supported by a General Fund appropriation made in conformity with subdivision (b) of Section 8 of Article XVI of the California Constitution.

(d) Enrollment, average daily attendance, or average daily attendance equivalents used for the purpose of calculating “increases in enrollment” pursuant to paragraph (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution shall not be redefined, adjusted, or otherwise recalculated unless the appropriate action is taken to neutralize the effect of the change with respect to the adjustment required to be made for increases in enrollment.

(Amended (as amended by Stats. 1992, Ch. 427) by Stats. 2011, Ch. 296, Sec. 63. (AB 1023) Effective January 1, 2012.)

41204.1.

(a) (1) Pursuant to paragraph (2) of subdivision (b) of Section 41204, the Director of Finance shall annually adjust “the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87” for purposes of applying paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, to reflect those property tax revenue allocation modifications required by the qualifying provisions in a manner that ensures that those modifications will have no net fiscal impact upon the amounts that are otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(2) For purposes of this section, “qualifying provisions,” means all of the following:

(A) The amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code and Article 7 (commencing with Section 33680) of Chapter 6 of Part 1 of Division 24 of the Health and Safety Code during the 1991–92 Regular Session to the 2003–04 Regular Session, inclusive, and during any Extraordinary Session concurrently held during those session years, inclusive.

(B) Section 97.80 of the Revenue and Taxation Code.

(C) Section 100.06 of the Revenue and Taxation Code.

(b) Notwithstanding any other provision of law, for the 2004–05 fiscal year and each fiscal year thereafter, “the percentage of General Fund revenues appropriated for school districts and community colleges districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the qualifying provisions had been operative for the 1986–87 fiscal year.

(c) It is the intent of the Legislature in enacting the act adding this section to ensure both of the following:

(1) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon school districts, as defined in Section 41302.5, or community college districts.

(2) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon the amounts of revenue otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(Amended by Stats. 2009, 4th Ex. Sess., Ch. 14, Sec. 1. Effective July 28, 2009.)

41204.5.

(a) The Legislature finds and declares this section to be in furtherance of the purposes set forth in Section 41204.

(b) Notwithstanding any other provision of law, for the 1992–93 fiscal year, the percentage of “General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of the Revenue and Taxation Code by statutes enacted during the 1991–92 Regular Session having the effect that property tax revenues are shifted from one or more counties, cities, or special districts to one or more school districts or community college districts, had been operative for the 1986–87 fiscal year.

(c) Notwithstanding any other provision of law, for the 1993–94 fiscal year and each year thereafter, the percentage of “General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of the Revenue and Taxation Code by statutes enacted during the 1991–92 Regular Session and the amendments made to that chapter by statutes enacted during the 1993–94 Regular Session having the effect that property tax revenues are shifted from one or more counties, cities, or special districts to one or more school districts or community college districts, had been operative for the 1986–87 fiscal year.

(Amended by Stats. 1993, Ch. 66, Sec. 9. Effective June 30, 1993.)

41204.6.

Notwithstanding any other provisions of law, for the purposes of determining the minimum state school funding obligation pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution for the 1993–94 fiscal year and the supplemental appropriation for school districts and community college districts pursuant to subdivision (a) of Section 41203.5 of the Education Code for the 1993–94 fiscal year, the 1993–94 fiscal year “appropriations for all other programs and services from General Fund proceeds of taxes appropriated pursuant to Article XIII B of the California Constitution, excluding any revenues allocated pursuant to subdivision (a) of Section 8.5 of Article XVI of the California Constitution,” as used in subdivision (b) of Section 41203.5, shall be deemed to be appropriations for all other programs and services from General Fund proceeds of taxes appropriated pursuant to Article XIIIB of the California Constitution, excluding any revenues allocated pursuant to subdivision (a) of Section 8.5 of Article XVI of the California Constitution, that would have been appropriated for those entities if the amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of the Revenue and Taxation Code by statutes enacted during the 1993–94 Regular Session having the effect that property tax revenues are shifted from one or more counties, cities, or special districts to one or more school districts, county offices of education, or community college districts, had not been enacted.

(Added by Stats. 1993, Ch. 66, Sec. 10. Effective June 30, 1993.)

41204.7.

(a) Notwithstanding any other law, commencing with the 2022–23 fiscal year, the Director of Finance shall annually adjust the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986–87 for purposes of making the calculations required under paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, so that any annual increase in local control funding formula apportionments generated by an increase in average daily attendance due to the implementation of Section 48000 results in a commensurate increase in General Fund proceeds of taxes and allocated local proceeds of taxes that are required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(b) The amount of the adjustment described in subdivision (a) for a given fiscal year shall be considered final as of the final prior year certification pursuant to Section 41206.01.

(Added by Stats. 2022, Ch. 52, Sec. 17. (AB 181) Effective June 30, 2022.)

41205.

The Legislature hereby finds and declares that the only state agencies that provide direct elementary and secondary level instructional services within the meaning of Section 41302.5 are those state agencies enumerated in Section 8880.5 of the Government Code, or in any successor to that section, not including any agency enumerated in any of subdivisions (a) to (e), inclusive, of that section, and California Indian education centers as established pursuant to Article 6 (commencing with Section 33380) of Chapter 3 of Part 20. The amount of any appropriation made to a state agency for direct elementary and secondary level instruction services shall be determined by applying the definition of those services, as defined in the California School Accounting Manual, to the expenditures of the agency. However, for the Diagnostic Schools for Neurologically Handicapped Children, as established pursuant to Article 1 (commencing with Section 59200) of Chapter 3 of Part 32, all expenditures of the agency shall be considered appropriations made to a state agency for direct elementary and secondary level instruction.

(Amended (as amended by Stats. 1994, Ch. 153) by Stats. 2003, Ch. 187, Sec. 2. Effective January 1, 2004.)

41206.

The Legislature finds and declares all of the following:

(a) Proposition 98 was enacted by the voters in 1988 to provide a minimum funding level for schools. The Legislature can exceed the minimum funding level required by Proposition 98 but it cannot provide less funding than the California Constitution requires, unless the Legislature suspends the minimum funding level pursuant to a separately enacted statute, adopted with a two-thirds vote of the Legislature.

(b) The local control funding formula is the primary means of allocating Proposition 98 funds and was enacted to increase local control, to simplify the allocation of school funding to school districts, and to increase school funding across the state, providing the largest increases to school districts serving our neediest pupils.

(c) Now that the transition to the local control funding formula is complete, it is time to enhance the certainty of Proposition 98 by ensuring local control funding formula funds flow to school districts without delay.

(d) Chapter 39 of the Statutes of 2018 furthers the purposes of Proposition 98 through enactment of a continuous appropriation for local control funding formula funding that is automatically adjusted for increases in the cost of living and changes in enrollment to provide the funding guaranteed to school districts under the California Constitution.

(e) With enactment of a continuous appropriation comes a heightened need to know with certainty the amount of funding that is required to be provided to school districts under the California Constitution.

(f) While prior law created a mechanism to certify the Proposition 98 minimum guarantee to provide certainty and to allocate owed funds to schools in a timely manner, the mechanism was unenforceable and rarely implemented.

(g) The Proposition 98 minimum guarantee was last certified in the 2008–09 fiscal year by statute. Outstanding issues, including when a maintenance factor is created, how the maintenance factor is repaid, the impact on the constitutional minimum guarantee of funding and revenue changes, as well as which programs can be funded with Proposition 98 funds, have delayed certification of the Proposition 98 minimum funding guarantee. These delays in certification create uncertainty, lead to questions regarding the level of funding required for certain years, and can lead to delays in payment of settle-up funds. Notwithstanding the significance of outstanding issues, school districts and the state need to know with certainty the total amount of funding to which they are entitled and the state’s plan for providing all of that funding.

(h) Section 41207.31 certifies the Proposition 98 minimum guarantee for the 2009–10 to 2015–16, inclusive, fiscal years based on final school enrollment, personal income, and revenue data. Section 41206.01 replaces the existing certification process with a new transparent, mandatory process to certify the Proposition 98 minimum guarantee and provide settle-up funds on a timely basis commencing with the 2016–17 fiscal year minimum guarantee.

(i) Section 41206.01 is in addition to existing law that provides for calculation and recalculation of the minimum funding obligation to school districts under Section 8 of Article XVI of the California Constitution, as well as provisions in current law that account for necessary revenues being set aside for these obligations.

(Amended by Stats. 2019, Ch. 497, Sec. 47. (AB 991) Effective January 1, 2020.)

41206.01.

(a) For purposes of subdivision (b) of Section 8 of Article XVI of the California Constitution, all determinations of percentages, amounts, revenues, appropriations, allocations, proceeds of taxes, increases in cost of living, or enrollments shall be based upon the best available estimate until actual data becomes available, and then upon actual data when it is available.

(b) Each year, by no later than April 25, the Superintendent shall provide the Director of Finance the latest available school enrollment data, allocated local proceeds of taxes received by school districts, apportionment data calculated and the related funding allocated pursuant to Section 14002, and all other final allocations of funds provided to school districts for the prior fiscal year.

(c) Each year, by no later than April 25, the Chancellor of the California Community Colleges shall provide the Director of Finance final community college enrollment data, allocated local proceeds of taxes received by community college districts, and final allocations of all funds provided to community college districts for the prior fiscal year.

(d) (1) Every year, by no later than May 14 following the end of the prior fiscal year, based on the data provided by the Superintendent and the Chancellor of the California Community Colleges pursuant to subdivisions (b) and (c), and on the Department of Finance’s final projection of General Fund revenues for the prior fiscal year, the Director of Finance shall recalculate the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the prior fiscal year. As part of the May Revision to the Governor’s Budget required by subdivision (e) of Section 13308 of the Government Code, the Director of Finance shall publish the Department of Finance’s calculation and the underlying data supporting the calculation, including the percentage for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, whether paragraph (1), (2), or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution is applicable, any amount that shall not be considered allocations to school districts and community colleges for purposes of computing the amount of state aid in the subsequent fiscal year pursuant to subdivision (c) of Section 8 of Article XVI of the California Constitution, the creation or restoration of the maintenance factor, school district and community college enrollment, General Fund revenues, changes in per capita personal income, changes in per capita General Fund revenues, and property taxes to be provided in satisfaction of the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the prior fiscal year.

(2) Notwithstanding paragraph (1), the Director of Finance shall publish the required calculations and the underlying data supporting the calculations for the 2022–23 fiscal year no later than June 30, 2024.

(e) (1) The Superintendent, the Chancellor of the California Community Colleges, and interested parties shall submit any comments on the Department of Finance’s proposed calculations and published data to the Director of Finance and to the Joint Legislative Budget Committee by no later than June 6 of each year.

(2) Notwithstanding paragraph (1), comments on the Department of Finance’s proposed calculations and published data for the 2022–23 fiscal year shall be submitted no later than July 8, 2024.

(f) (1) The Director of Finance shall review any comments directed at the proposed Proposition 98 certification. Comments not directed at the proposed Proposition 98 certification shall be considered irrelevant and shall not be responded to by the Director of Finance. The Director of Finance shall accept or reject any timely relevant comments. If the Director of Finance accepts a comment, the Director of Finance shall include a written explanation of how the proposed Proposition 98 certification addresses or accommodates the comment. If the Director of Finance rejects a comment, the Director of Finance shall include a written explanation of the reason for the rejection of the comment. These comments and the Director of Finance’s response to the comments shall be provided to the Legislature, consistent with Section 9795 of the Government Code, and published on the Department of Finance’s internet website by no later than June 30 of each year. The Legislature shall consider the comments and responses, may hold public hearings as necessary, and shall provide any additional written comments to the Director of Finance no later than July 31 of each year. The Director of Finance shall take into consideration any comments provided by the Legislature and issue a final certification of the state’s minimum funding obligation to school districts and community college districts required by subdivision (b) of Section 8 of Article XVI of the California Constitution for the fiscal year being certified by no later than August 15 of each year. This information shall be published on the Department of Finance’s internet website by the same date. The final certification, including the underlying data and calculations, shall also be published in a separate schedule of the Governor’s Budget submitted to the Legislature by no later than January 10 of the following year.

(2) Notwithstanding paragraph (1), the Director of Finance shall post the comments and the Director of Finance’s response to the comments regarding the Proposition 98 certification for the 2022–23 fiscal year on the Department of Finance’s internet website by no later than July 30, 2024, and shall publish the final certification, including the underlying data and calculations, by no later than August 15, 2024.

(g) Any judicial action to challenge, review, set aside, void, or annul the Director of Finance’s final certification of the state’s minimum funding obligation pursuant to subdivision (f) shall be filed no later than the 90th day following issuance of the certification. That action shall be given precedence on the court’s docket. The filing of that action shall not stay the appropriation or allocation of any sums deemed by the Director of Finance to be due pursuant to Section 41206.03.

(Amended by Stats. 2024, Ch. 38, Sec. 15. (SB 153) Effective June 29, 2024.)

41206.02.

Notwithstanding Section 41206.01, the process for certifying the state’s minimum funding obligation to school districts and community college districts required by subdivision (b) of Section 8 of Article XVI of the California Constitution for the 2016–17 fiscal year shall follow the process set forth below:

(a) No later than July 6, 2018, the Superintendent shall provide the Director of Finance the latest available school enrollment data, allocated local proceeds of taxes received by school districts, apportionment data calculated and the related funding allocated pursuant to Section 14002, and all other final allocations of funds provided to school districts for the 2016–17 fiscal year.

(b) No later than July 6, 2018, the Chancellor of the California Community Colleges shall provide the Director of Finance final community college enrollment data, allocated local proceeds of taxes received by community college districts, and final allocations of all funds provided to community college districts for the 2016–17 fiscal year.

(c) No later than July 11, 2018, and based on the data provided by the Superintendent and the Chancellor of the California Community Colleges pursuant to subdivisions (a) and (b), and on the Department of Finance’s final projection of 2016–17 fiscal year General Fund revenues included in the 2018 May Revision pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of Section 13308 of the Government Code, the Director of Finance shall recalculate the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2016-17 fiscal year. As part of recalculating the minimum funding obligation, the Director of Finance shall make the supporting data used to make the calculation available on the Department of Finance’s Internet Web site, including the percentage for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, whether paragraph (1), (2), or (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution is applicable, the creation or restoration of the maintenance factor, school and community college enrollment, General Fund revenues, changes in per capita personal income, changes in per capita General Fund revenues, and property taxes.

(d) The Superintendent, the Chancellor of the California Community Colleges, and interested parties shall submit any comments on the Department of Finance’s proposed calculations and published data for the 2016–17 fiscal year to the Director of Finance and to the Joint Legislative Budget Committee by no later than August 1, 2018.

(e) The Director of Finance shall review any comments directed at the proposed Proposition 98 certification. Comments not directed at the proposed Proposition 98 certification shall be considered irrelevant and shall not be responded to by the Director of Finance. The Director of Finance shall accept or reject any timely relevant comments. If the Director of Finance accepts a comment, the Director of Finance shall include a written explanation of how the proposed Proposition 98 certification addresses or accommodates the comment. If the Director of Finance rejects a comment, the Director of Finance shall include a written explanation of the reason for the rejection of the comment. These comments and the Director of Finance’s response to the comments shall be provided to the Legislature, consistent with Section 9795 of the Government Code, and published on the Department of Finance’s Internet Web site by no later than August 15, 2018. The Legislature shall consider the comments and responses, may hold public hearings as necessary, and shall provide any additional written comments to the Director of Finance no later than August 31, 2018. The Director of Finance shall take into consideration any comments provided by the Legislature and issue a final certification of the state’s minimum funding obligation to school districts and community college districts required by subdivision (b) of Section 8 of Article XVI of the California Constitution for the 2016–17 fiscal year, no later than September 15, 2018. This information shall be published on the Department of Finance’s Internet Web site by the same date. The final certification, including the underlying data and calculations, shall also be published in a separate schedule of the Governor’s Budget submitted to the Legislature by no later than January 10, 2019.

(f) Any judicial action to challenge, review, set aside, void, or annul the Director of Finance’s final certification of the state’s minimum funding obligation pursuant to subdivision (e) must be filed no later than the 90th day following issuance of the certification. That action shall be given precedence on the court’s docket. The filing of that action shall not stay the appropriation or allocation of any sums deemed by the Director of Finance to be due pursuant to Section 41206.03.

(Added by Stats. 2018, Ch. 39, Sec. 10. (AB 1825) Effective June 27, 2018.)

41206.03.

(a) Pursuant to the implementing legislation of Proposition 98, for purposes of Section 8 of Article XVI of the California Constitution, appropriations for deficiencies or prior year adjustments shall be deemed to be appropriations in the fiscal year in which the deficiencies or prior year adjustments occurred, unless otherwise provided by law.

(b) If the Director of Finance determines, pursuant to the certification process established in Sections 41206.01 and 41206.02, that the state has applied moneys for the support of school districts and community college districts in an amount that exceeds the minimum amount required pursuant to Section 8 of Article XVI of the California Constitution for the fiscal year being certified, the excess moneys shall be credited to the fiscal year being certified.

(c) If there remains an outstanding balance in the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the fiscal year being certified, notwithstanding Section 13340 of the Government Code, the amounts necessary to satisfy that obligation are hereby appropriated from the General Fund to the Controller, without regard to fiscal years, for purposes of this subdivision. By no later than September 1 of each year, the Director of Finance shall provide in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee a schedule for the allocation of the outstanding balance. By no later than October 1 of each year, the Director of Finance shall provide to the Controller a schedule for the allocation of the outstanding balance pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 13308 of the Government Code. The Controller shall allocate the outstanding balance based on the schedule provided to the Controller by the Director of Finance, unless an alternative plan for repayment of the outstanding obligation has already been adopted as part of the annual budget process, or is enacted in statute by no later than August 31. The plan set forth by the Director of Finance pursuant to this subdivision shall be published on the Department of Finance’s internet website. The outstanding obligation shall be allocated as follows:

(1) To school districts 89.07 percent in proportion to the enrollment in school districts as determined for purposes of Section 8.5 of Article XVI of the California Constitution.

(2) To community college districts 10.93 percent in proportion to the enrollment in community college districts as determined for purposes of Section 8.5 of Article XVI of the California Constitution.

(Amended by Stats. 2019, Ch. 52, Sec. 3. (SB 76) Effective July 1, 2019.)

41206.04.

(a) (1) The Legislature finds and declares all of the following:

(A) The calculation of the state’s minimum funding obligation pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution must be based upon actual tax revenue data when it is available.

(B) Due to winter storms in early 2023, the United States Internal Revenue Service extended the tax filing deadlines for the 2022 tax year to November 16, 2023, for over 99 percent of California taxpayers. The Franchise Tax Board conformed to this action and extended the state income and corporate tax filing deadlines to November 16, 2023. Because of these extensions, the Legislature did not have actual 2022 tax revenue data at the time the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) was enacted upon which to determine the accurate state minimum funding obligation for the 2022–23 fiscal year.

(C) Due to the lack of actual tax revenue data, the minimum funding obligation for the 2022–23 fiscal year funded in the Budget Act of 2023 was in total six billion one hundred ninety-two million nine hundred twenty-nine thousand dollars ($6,192,929,000) over the minimum funding obligation computed with actual tax revenue data.

(2) It is the intent of the Legislature to do all of the following:

(A) Provide a methodology in this section to account for the costs identified in subparagraph (C) of paragraph (1).

(B) Reflect the minimum funding obligation to school districts and community colleges pursuant to Section 8 of Article XVI of the California Constitution in the 2023–24 fiscal year.

(C) Provide a methodology to keep future fiscal years open for the purpose of computing the minimum funding obligation in any fiscal year in which a significant proportion of actual tax revenue data is not available before May 1 due to extraordinary personal and corporate tax filing extensions, without reducing school funding already allocated in an impacted fiscal year.

(b) (1) For purposes of Section 41206.03, five billion four hundred forty-two million one hundred forty-three thousand dollars ($5,442,143,000) allocated in the 2022–23 fiscal year to support school district and charter school local control funding formula apportionments pursuant to Sections 42238.02 and 42238.03 and the associated warrants issued pursuant to Section 14041 shall be considered excess moneys credited to the 2022–23 fiscal year only for the purposes of determining the state’s minimum funding obligation to school districts and community college districts in the 2022–23 and 2023–24 fiscal years pursuant to Section 8 of Article XVI of the California Constitution.

(2) For purposes of Section 41206.03, seven hundred seventy million seven hundred eighty-six thousand dollars ($770,786,000) allocated in the 2022–23 fiscal year to support community college student centered funding formula apportionments pursuant to Section 84750.4 and the associated warrants issued pursuant to Section 84320 shall be considered excess moneys credited to the 2022–23 fiscal year only for the purposes of determining the state’s minimum funding obligation to school districts and community college districts in the 2022–23 and 2023–24 fiscal years pursuant to Section 8 of Article XVI of the California Constitution.

(c) (1) (A) In the 2026–27 fiscal year, and annually for nine fiscal years thereafter through the 2035–36 fiscal year, five hundred forty-four million two hundred fourteen thousand dollars ($544,214,000) of the amount described in paragraph (1) of subdivision (b) shall be recognized for budgetary and financial reporting purposes, pursuant to Section 12460 of the Government Code, as an allocation from the General Fund to the Superintendent for local control funding formula entitlements attributable to the 2022–23 fiscal year pursuant to Sections 42238.02 and 42238.03, and the associated warrants issued pursuant to Section 14041, in the 2022–23 fiscal year.

(B) In the 2026–27 fiscal year, and annually for nine fiscal years thereafter through the 2035–36 fiscal year, seventy-seven million seventy-nine thousand dollars ($77,079,000) of the amount described in paragraph (2) of subdivision (b) shall be recognized for budgetary and financial reporting purposes, pursuant to Section 12460 of the Government Code, as an allocation from the General Fund to the Board of Governors of the California Community Colleges to support student centered funding formula entitlements attributable to the 2022–23 fiscal year pursuant to Section 84750.4, and the associated warrants issued pursuant to Section 84320, in the 2022–23 fiscal year.

(2) Paragraph (1) requires only that the specified portions of the allocations made in the 2022–23 fiscal year be recognized for budgetary and financial reporting purposes in the specified fiscal years, and nothing in paragraph (1) shall be interpreted to make new appropriations of those amounts described in paragraph (1) in the specified fiscal years.

(3) The recognition of the amounts described in paragraph (1) for budgetary and financial reporting purposes shall not be credited as General Fund revenues appropriated to school districts and community colleges to meet the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution in the fiscal year in which the recognition occurs and shall not be included in the total allocations to school districts and community college districts from General Fund proceeds of taxes pursuant to Article XIII B of the California Constitution in the fiscal year in which the recognition occurs.

(d) (1) Commencing with the 2024–25 fiscal year and each fiscal year thereafter, this subdivision applies to any fiscal year in which California personal and corporate income tax filing deadlines are extended to conform with filing extensions announced by the United States Internal Revenue Service, which result in the delay of personal and corporate tax revenue collection until after May 1 in counties that in total contributed more than 50 percent of the state’s total personal and corporate tax revenue in the fiscal year immediately preceding the fiscal year impacted by the tax filing extension.

(2) For any impacted fiscal year for which this subdivision applies pursuant to paragraph (1), the Director of Finance shall, for purposes of Sections 41206.01 and 41206.03, consider the applicable fiscal year to be open until actual tax revenue data is available but no later than January 10 of the subsequent fiscal year. Upon actual tax revenue data being available or the January 10 deadline having passed, whichever occurs first, the Director of Finance shall subtract the total appropriations made to meet the state’s estimated minimum funding obligation for the support of school districts and community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution in the impacted fiscal year from the minimum funding obligation for the support of school districts and community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution calculated with actual tax revenue data for the impacted fiscal year.

(3) If the difference calculated pursuant to paragraph (2) is negative, meaning the total appropriations made to meet the estimated minimum funding obligation for the support of school districts and community college districts in the impacted fiscal year exceeded the minimum funding obligation to school districts and community college districts calculated with actual tax revenue data for the impacted fiscal year, all of the following apply:

(A) The difference shall not be considered General Fund revenues appropriated to school districts and community colleges to meet the state’s minimum funding obligation pursuant to Section 8 of Article XVI of the California Constitution in the impacted fiscal year in which the allocations were made.

(B) The difference shall not be included in the total allocations to school districts and community college districts from General Fund proceeds of taxes pursuant to Article XIII B of the California Constitution made in the impacted fiscal year in which the allocation is made for purposes of calculating the state’s minimum funding obligation pursuant to Section 8 of Article XVI of the California Constitution in the subsequent fiscal year.

(C) The difference shall not be considered excess moneys credited to the fiscal year certified pursuant to subdivision (b) of Section 41206.03.

(4) Of the amount calculated pursuant to paragraph (2), the Department of Finance shall determine the respective amounts that are not to be considered General Fund appropriations to school districts and community colleges to meet the state’s minimum funding obligation pursuant to Section 8 of Article XVI of the California Constitution and that shall be attributable to (A) local control funding formula entitlements pursuant to Sections 42238.02 and 42238.03 and the associated warrants issued pursuant to Section 14041 for the impacted fiscal year and (B) student centered funding formula entitlements pursuant to Section 84750.4 and the associated warrants issued pursuant to Section 84320 for the impacted fiscal year.

(5) (A) If the amount calculated pursuant to paragraph (2) is negative, in the third fiscal year following the impacted fiscal year, and annually for nine fiscal years immediately thereafter, 10 equal shares of the amounts calculated by the Department of Finance pursuant to paragraph (4) shall be recognized for budgetary and financial reporting purposes, pursuant to Section 12460 of the Government Code, as an allocation from the General Fund to both of the following:

(i) The Superintendent, to support local control funding formula entitlements pursuant to Sections 42238.02 and 42238.03, and the associated warrants issued pursuant to Section 14041, for the applicable fiscal year, in an amount equal to 89.07 percent of the total calculated pursuant to paragraph (2).

(ii) The Board of Governors of the California Community Colleges, to support student centered funding formula entitlements pursuant to Section 84750.4, and the associated warrants issued pursuant to Section 84320, for the applicable fiscal year, in an amount equal to 10.93 percent of the total calculated pursuant to paragraph (2).

(B) Subparagraph (A) requires only that the specified portions of the allocations made in the impacted fiscal year be recognized for budgetary and financial reporting purposes in the specified fiscal years, and nothing in subparagraph (A) shall be interpreted to make new appropriations of the amounts described in subparagraph (A) in the specified fiscal years.

(6) The recognition of the amounts described in paragraph (5) for budgetary and financial reporting purposes shall not be considered General Fund revenues appropriated to school districts and community colleges to meet the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution in the fiscal year in which the recognition occurs and shall not be included in the total allocations to school districts and community college districts from General Fund proceeds of taxes pursuant to Article XIII B of the California Constitution in the fiscal year in which the recognition occurs.

(Added by Stats. 2024, Ch. 38, Sec. 16. (SB 153) Effective June 29, 2024.)

41206.1.

Pursuant to Section 41206, the Superintendent of Public Instruction, the Chancellor of the California Community Colleges, and the Controller shall ensure that the General Fund appropriations transferred to Sections A and B of the State School Fund include adjustments reflected in the amounts finally certified by the superintendent or the chancellor, respectively, at the annual certification of apportionments pursuant to Sections 41336, 41341, and 84320, for purposes of determining appropriations and allocations pursuant to Section 8 of Article XVI of the California Constitution.

(Added by Stats. 1993, Ch. 66, Sec. 10.7. Effective June 30, 1993.)

41206.5.

For purposes of paragraph (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution, “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B and allocated local proceeds of taxes” for any fiscal year shall include any revenues that are allocated to school districts and community college districts, as a result of the determination, pursuant to the two-year calculation set forth in subdivision (a) of Section 2 of Article XIII B of the California Constitution, that their allocation would not result in an appropriation by the state in compliance with Article XIII B of the California Constitution.

(Added by Stats. 1990, Ch. 61, Sec. 3.)

41207.

(a) Notwithstanding Section 41206, by January 1, 2006, the Superintendent of Public Instruction and the Director of Finance shall jointly determine the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 1995–96 to 2003–04 fiscal years, inclusive. The Director of Finance shall notify the Governor and Legislature of the amount of the outstanding balance for each fiscal year between the 1995–96 and 2003–04 fiscal years, inclusive, and the total amount of the outstanding balance for those years. This notification does not constitute a certification for purposes of Section 41206.

(b) If the joint determination required pursuant to subdivision (a) is not made for any fiscal year by January 1, 2006, the Controller shall make the determination for that fiscal year or years and shall notify the Governor and Legislature of that determination on or before March 1, 2006. This notification does not constitute a certification for purposes of Section 41206.

(c) For purposes of this section, the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for a fiscal year is the amount, if any, by which the amount required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, including any maintenance factor that should have been allocated in that fiscal year pursuant to subdivision (e) of Section 8 of Article XVI, exceeds the amount applied by the state for the support of school districts and community college districts for that fiscal year.

(d) Commencing with the 2006–07 fiscal year, the sum of one hundred fifty million dollars ($150,000,000) is hereby annually appropriated from the General Fund to the Controller for allocation to school districts and community college districts for the purpose of discharging in full the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution identified in subdivision (a) or (b) of this section. This annual appropriation shall continue until the Director of Finance reports to the Legislature that the sum of appropriations made and allocated pursuant to this subdivision equals the total outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution determined pursuant to subdivision (a) or (b), as applicable.

(1) The amount annually appropriated pursuant to this subdivision shall be allocated to school districts and community college districts in a manner that reflects the proportion of regular average daily attendance in school districts, as defined in subdivision (a) of Section 41209, to funded full-time equivalent students in community college districts, as those numbers are reported at the time of the second principal apportionment for the fiscal year prior to the fiscal year in which funds are to be received.

(2) The Controller shall allocate funds annually appropriated pursuant to this subdivision to school districts and community college districts based on attendance information provided by the department and Chancellor of the California Community Colleges on August 15 of each year commencing with the 2006–07 fiscal year, unless otherwise provided by the Legislature pursuant to subdivision (g). For purposes of this subdivision a school district includes a county office of education and a charter school.

(e) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 1995–96 to 2003–04 fiscal years, inclusive, in chronological order beginning with the 1995–96 fiscal year and shall be deemed to be appropriations made and allocated in the fiscal year in which the deficiencies resulting in the outstanding balance were incurred. When the amount determined to be owed for each fiscal year pursuant to subdivision (a) or (b) is fully appropriated and allocated pursuant to subdivision (d), the data used in the computations made under subdivision (a) or (b) and the total amount owed by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for that fiscal year, including as much of the maintenance factor for that fiscal year determined pursuant to subdivision (d) of Section 8 of Article XVI as has been allocated as required by subdivision (e) of Section 8 of Article XVI by virtue of the payments made under this section, shall be deemed certified for purposes of Section 41206.

(f) Funding received by school districts and community college districts pursuant to this section shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of Article XIII B of the California Constitution for reimbursement of state-mandated local costs for any fiscal year. Notwithstanding any amounts that are deemed, pursuant to this subdivision, to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local costs, the Controller may audit any claim as allowed by law and may reduce any amount owed by a local educational agency pursuant to an audit by reducing amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district or community college district against any balances of unpaid claims for reimbursement of state-mandated local costs and interest in chronological order beginning with the earliest claim. The Controller shall report to each local educational agency the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of the Legislature. The governing board of a school district or community college district may expend funds received pursuant to this section in excess of amounts offsetting mandate claims for any other one-time purposes, as determined by the governing board.

(g) The Legislature may specify in the annual Budget Act or other statute other one-time purposes for which the funds appropriated pursuant to this section shall be used so long as those appropriations are made for allocation to school districts or community college districts.

(Repealed (as added by Stats. 1989, Ch. 83) and added by Stats. 2004, Ch. 216, Sec. 6. Effective August 11, 2004.)

41207.1.

(a) Notwithstanding Section 41206, the minimum state educational funding guarantee for school districts and community college districts for the 2004–05 fiscal year, as determined pursuant to Chapter 213 of the Statutes of 2004, is forty-eight billion six hundred seventy-five million six hundred seventy-four thousand dollars ($48,675,674,000), creating an outstanding balance of one billion six hundred twenty million nine hundred twenty-eight thousand dollars ($1,620,928,000). The outstanding balance shall be appropriated and allocated pursuant to Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of Part 28.

(b) Notwithstanding Section 41206, the outstanding balance of the minimum state educational funding requirement for school districts and community college districts required by subdivision (b) of Section 8 of Article XVI of the California Constitution in the 2005–06 fiscal year shall be determined using actual data agreed to by the Superintendent and the Director of Finance no later than January 31, 2008. The Director of Finance shall provide a written notification to the Legislature within one month after completion of the determination, detailing the data of the determination. The outstanding balance shall be appropriated and allocated pursuant to Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of Part 28.

(c) When the amount determined to be owed for the 2004–05 and 2005–06 fiscal years pursuant to subdivision (a) or (b) is fully appropriated and allocated pursuant to Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of Part 28, the data used in the computations made under subdivisions (a) and (b) and the total amount owed by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution and Chapter 213 of the Statutes of 2004 for those fiscal years, including as much of the maintenance factor for those fiscal years determined pursuant to subdivision (d) of Section 8 of Article XVI as has been allocated as required by subdivision (e) of Section 8 of Article XVI by virtue of the payments made under this section, shall be deemed certified for purposes of Section 41206.

(Amended by Stats. 2007, Ch. 130, Sec. 67. Effective January 1, 2008.)

41207.2.

(a) Notwithstanding Sections 41203.5 and 41206 and any other provision of law, the minimum funding obligation for school districts and community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution for the 2008–09 fiscal year is forty-nine billion one hundred two million forty-one thousand dollars ($49,102,041,000). The maintenance factor created pursuant to subdivision (d) of Section 8 of Article XVI of the California Constitution for the 2008–09 fiscal year, together with the balances of maintenance factor obligations for prior fiscal years that are unpaid as of June 30, 2009, totals eleven billion two hundred twelve million nine hundred nine thousand dollars ($11,212,909,000). The maintenance factor shall be appropriated and allocated pursuant to subdivision (e) of Section 8 of Article XVI of the California Constitution.

(b) For the 2009–10 fiscal year, computations of funding obligations pursuant to Section 8 of Article XVI of the California Constitution shall be based on the amount of the minimum funding guarantee for the 2008–09 fiscal year, and the amount of the maintenance factor obligation set forth in subdivision (a) of this section.

(c) The computations required by subdivision (b) of Section 8 of Article XVI of the California Constitution for a fiscal year shall be performed prior to, and separately from, the computation of the maintenance factor allocation identified in subdivision (a) of this section and required by subdivision (e) of Section 8 of Article XVI of the California Constitution.

(Added by Stats. 2009, 4th Ex. Sess., Ch. 3, Sec. 3. Effective July 28, 2009. Conditionally inoperative as prescribed in Sec. 7 of Ch. 3.)

41207.25.

(a) If the Superintendent and the Director of Finance jointly determine that, for the 2008–09 fiscal year, the state has applied moneys for the support of school districts and community college districts in an amount that exceeds the minimum amount required for that fiscal year pursuant to Section 8 of Article XVI of the California Constitution, the excess, up to one billion one hundred million five hundred ninety thousand dollars ($1,100,590,000), shall be deemed, as of June 30 of that fiscal year, a payment in satisfaction of the outstanding balance of the minimum funding obligation under that section for the 2002–03 and 2003–04 fiscal years in accordance with the following:

(1) The first four hundred eighty-three million sixteen thousand dollars ($483,016,000) in payment of the outstanding balance of the minimum funding obligation for the 2002–03 fiscal year.

(2) The next six hundred seventeen million five hundred seventy-four thousand dollars ($617,574,000) in payment of the outstanding balance of the minimum funding obligation for the 2003–04 fiscal year.

(b) For purposes of this section, the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for a fiscal year is the amount, if any, by which the amount required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, including any maintenance factor that should have been allocated in that fiscal year pursuant to subdivision (e) of Section 8 of Article XVI of the California Constitution, exceeds the amount applied by the state for the support of school districts and community college districts for that fiscal year.

(c) The amounts allocated pursuant to this section shall be deemed, for purposes of Section 8 of Article XVI of the California Constitution, to be appropriations made and allocated in the fiscal year in which the deficiencies resulting in the outstanding balance were incurred. When the amount determined to be owed for each such fiscal year is fully allocated pursuant to this subdivision, the data used in the computations made under this section with regard to the total amount owed by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for that fiscal year, including as much of the maintenance factor for that fiscal year determined pursuant to subdivision (d) of Section 8 of Article XVI of the California Constitution as has been allocated as required by subdivision (e) of Section 8 of Article XVI of the California Constitution by virtue of the allocations made under this section, shall be deemed certified for purposes of Section 41206.

(d) The amount described in subdivision (a) shall be deemed a payment in full satisfaction of the amounts owed pursuant to Section 41207.

(Added by renumbering Section 41207.3 (as added by Stats. 2009, 3rd Ex. Sess., Ch. 12, Sec. 11) by Stats. 2015, Ch. 303, Sec. 79. (AB 731) Effective January 1, 2016.)

41207.3.

(a) Notwithstanding Section 41206, the minimum state educational funding obligation for school districts and community college districts pursuant to subdivision (b) of Section 8 of Article XVI of the California Constitution is determined to be the following:

(1) Fifty-three billion three hundred forty-five million four hundred twenty thousand dollars ($53,345,420,000) for the 2005–06 fiscal year, with an outstanding balance of one billion one hundred ten million five hundred sixteen thousand dollars ($1,110,516,000). The outstanding balance is appropriated and allocated pursuant to Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of Part 28 of Division 4.

(2) Fifty-five billion two hundred fifty-one million two hundred sixty-six thousand dollars ($55,251,266,000) for the 2006–07 fiscal year, with an outstanding balance of two hundred eleven million five hundred thirty-three thousand dollars ($211,533,000). The outstanding balance is appropriated and allocated pursuant to Section 41207.41.

(3) Fifty-six billion five hundred seventy-seven million four hundred ninety-one thousand dollars ($56,577,491,000) for the 2007–08 fiscal year, with no outstanding balance.

(b) (1) The amount determined pursuant to paragraph (1) of subdivision (a) shall be deemed certified for purposes of Section 41206 when the conditions set forth in subdivision (c) of Section 41207.1 are met.

(2) The amount determined pursuant to paragraph (2) of subdivision (a) shall be deemed certified for purposes of Section 41206 upon appropriation of the full amount of the outstanding balance determined for that year.

(3) The amount determined pursuant to paragraph (3) of subdivision (a) is deemed to be certified for purposes of Section 41206 upon enactment of this section.

(Amended (as amended by Stats. 2014, Ch. 32, Sec. 24) by Stats. 2015, Ch. 13, Sec. 20. (AB 104) Effective June 24, 2015.)

41207.31.

The Director of Finance shall, based on the data provided by the Superintendent and the Chancellor of the California Community Colleges, certify the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for fiscal years 2009–10 to 2015–16, inclusive, no later than July 11, 2018. The certification for fiscal years 2009–10 to 2015–16, inclusive, shall be subject to subdivisions (c) to (f), inclusive, of Section 41206.02, including, among other things, that the Director of Finance shall issue a final certification of the state’s minimum funding obligation to school districts and community college districts required by subdivision (b) of Section 8 of Article XVI of the California Constitution for the fiscal years 2009–10 to 2015–16, inclusive, no later than September 15, 2018.

(Added by Stats. 2018, Ch. 39, Sec. 12. (AB 1825) Effective June 27, 2018.)

41207.4.

(a) The sum of two hundred ten million one hundred thousand dollars ($210,100,000) is hereby appropriated in the 2010–11 fiscal year from the General Fund to the Controller for allocation to school districts and community college districts for the purpose of offsetting the 2009–10 outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(1) The amount appropriated pursuant to this subdivision shall be allocated to school districts and community college districts as defined in subdivision (a) of Section 41203.1.

(2) The amount allocated to school districts pursuant to this subdivision shall be distributed in a manner that reflects the proportion of regular average daily attendance in school districts, as defined in subdivision (a) of Section 41209, as those numbers are reported at the time of the second principal apportionment for the fiscal year prior to the fiscal year in which funds are to be received.

(3) The amount annually allocated to community college districts pursuant to this subdivision shall be distributed based on enrolled full-time equivalent students, as those numbers are reported at the time of the second principal apportionment for the fiscal year prior to the fiscal year in which funds are to be received.

(4) For purposes of this subdivision a school district includes a county office of education and a charter school.

(b) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2009–10 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(c) Funding received by school districts and community college districts pursuant to this section shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of Article XIII B of the California Constitution for reimbursement of state-mandated local costs for any fiscal year. Notwithstanding any amounts that are deemed, pursuant to this subdivision, to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local costs, the Controller may audit any claim as allowed by law and may reduce any amount owed by school districts and community college districts pursuant to an audit by reducing amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district or community college district against any balances of unpaid claims for reimbursement of state-mandated local costs and interest in chronological order beginning with the earliest claim. The Controller shall report to each school district and community college district the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of the Legislature. The governing board of a school district or community college district may expend funds received pursuant to this section in excess of amounts offsetting mandate claims for any other one-time purposes, as determined by the governing board.

(Added by Stats. 2010, Ch. 724, Sec. 14. (AB 1610) Effective October 19, 2010.)

41207.41.

(a) The sum of two hundred fifty-six million dollars ($256,000,000) is hereby appropriated from the General Fund to the Controller for allocation to school districts and community college districts for the purpose of offsetting the 2006–07 fiscal year and 2009–10 fiscal year outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(1) The amount appropriated pursuant to this subdivision shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) Eighty-two million four hundred sixty-seven thousand dollars ($82,467,000) for transfer by the Controller to Section A of the State Schools Fund for allocation by the Superintendent pursuant to this section.

(B) Twenty-seven million nine hundred eighty-one thousand dollars ($27,981,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community colleges districts pursuant to this section.

(C) One hundred forty-five million five hundred fifty-two thousand dollars ($145,552,000) for transfer by the Controller to the School Facilities Emergency Repair Account pursuant to Section 17592.71.

(2) The amount allocated to school districts pursuant to subparagraph (A) of paragraph (1) shall be distributed on the basis of an equal amount per unit of regular average daily attendance, as those average daily attendance numbers are reported at the time of the second principal apportionment for the 2014–15 fiscal year.

(3) The amount allocated to community college districts pursuant to this subdivision shall be distributed on the basis of an equal amount per enrolled full-time equivalent student, as those numbers of students are reported at the time of the second principal apportionment for the 2014–15 fiscal year.

(4) For purposes of this subdivision a school district includes a county office of education and a charter school.

(b) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred in accordance with the following:

(1) Two hundred eleven million five hundred thirty-three thousand dollars ($211,533,000) in payment of the outstanding balance of the minimum funding obligation for the 2006–07 fiscal year.

(2) Forty-four million four hundred sixty-seven thousand dollars ($44,467,000) in payment of the outstanding balance of the minimum funding obligation for the 2009–10 fiscal year.

(c) Funding received by school districts and community college districts pursuant to subparagraphs (A) and (B) of paragraph (1) of subdivision (a) shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of Article XIII B of the California Constitution for reimbursement of state-mandated local costs for any fiscal year. Notwithstanding Section 12419.5 of the Government Code and any amounts that are deemed, pursuant to this subdivision, to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local costs, the Controller may audit any claim as allowed by law and may recover any amount owed by school districts and community college districts pursuant to an audit only by reducing amounts owed for any other mandate claims. Under no circumstances shall a school district or community college district be required to remit funding back to the state to pay for disallowed costs identified by a Controller audit of claimed reimbursable state-mandated local program costs. The Controller shall not recover any amount owed by a school district or community college district pursuant to an audit of claimed reimbursable state-mandated local program costs by reducing any amount owed a school district or community college district for any purpose other than amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district or community college district against any balances of unpaid claims for reimbursement of state-mandated local costs and interest in chronological order beginning with the earliest claim. The Controller shall report to each school district and community college district the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of the Legislature.

(d) (1) The governing board of a school district or community college district may expend the one-time funds received pursuant to subparagraphs (A) and (B) of paragraph (1) of subdivision (a) for any purpose, as determined by the governing board.

(2) It is the intent of the Legislature that school districts will prioritize the use of these one-time funds for professional development, induction for beginning teachers with a focus on relevant mentoring, instructional materials, technology infrastructure, and any other investments necessary to support implementation of the common core standards in English language arts and mathematics, the implementation of English language development standards, and the implementation of the Next Generation Science standards.

(Added by Stats. 2015, Ch. 13, Sec. 21. (AB 104) Effective June 24, 2015.)

41207.42.

(a) (1) The sum of two hundred eighteen million dollars ($218,000,000) is hereby appropriated in the 2016–17 fiscal year from the General Fund for allocation to school districts and community college districts for the purpose of offsetting the 2009–10 fiscal year outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(2) The amount appropriated pursuant to paragraph (1) shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) One hundred ninety-four million one hundred seventy-three thousand dollars ($194,173,000) for transfer by the Controller to Section A of the State School Fund for allocation by the Superintendent pursuant to this section.

(B) Twenty-three million eight hundred twenty-seven thousand dollars ($23,827,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community colleges districts for deferred maintenance, instructional materials, and other activities, as specified in Provision 20 of Item 6870-101-0001 of the Budget Act of 2016.

(3) The amount allocated to school districts pursuant to subparagraph (A) of paragraph (2) shall be distributed on the basis of an equal amount per unit of regular average daily attendance, as those average daily attendance numbers are reported at the time of the second principal apportionment for the 2015–16 fiscal year.

(4) The amount allocated to community college districts pursuant to subparagraph (B) of paragraph (2) shall be distributed on the basis of an equal amount per enrolled full-time equivalent student, as those numbers of students are reported at the time of the second principal apportionment for the 2015–16 fiscal year.

(5) For purposes of this section, a school district includes a county office of education and a charter school.

(b) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2009–10 fiscal year and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(c) Funding received by school districts pursuant to subparagraph (A) of paragraph (2) of subdivision (a) shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of Article XIII B of the California Constitution, for reimbursement of state-mandated local program costs for any fiscal year. Notwithstanding Section 12419.5 of the Government Code and any amounts that are deemed pursuant to this subdivision to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local program costs, the Controller may audit any claim as allowed by law and may recover any amount owed by school districts pursuant to an audit only by reducing amounts owed for any other mandate claims. Under no circumstances shall a school district be required to remit funding back to the state to pay for disallowed costs identified by a Controller audit of claimed reimbursable state-mandated local program costs. The Controller shall not recover any amount owed by a school district pursuant to an audit of claimed reimbursable state-mandated local program costs by reducing any amount owed a school district for any purpose other than amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district against any balances of unpaid claims for reimbursement of state-mandated local program costs and interest in chronological order, beginning with the earliest claim. The Controller shall report to each school district the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of the Legislature.

(d) (1) The governing board of a school district may expend the one-time funds received pursuant to subparagraph (A) of paragraph (2) of subdivision (a) for any purpose, as determined by the governing board of the school district.

(2) It is the intent of the Legislature that school districts prioritize the use of these one-time funds for deferred maintenance, professional development for educators, induction for beginning teachers with a focus on relevant mentoring, instructional materials, technology infrastructure, and any other investments necessary to support implementation of California’s academic standards.

(Added by Stats. 2016, Ch. 29, Sec. 8. (SB 828) Effective June 27, 2016.)

41207.43.

(a) (1) The sum of eighty-nine million six hundred thirty-seven thousand dollars ($89,637,000) is hereby appropriated in the 2017–18 fiscal year from the General Fund to the Controller for allocation to school districts and community college districts for the purpose of reducing the 2009–10 fiscal year outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution.

(2) The amount appropriated pursuant to this subdivision shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) Eighty-six million three hundred twenty thousand dollars ($86,320,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community college districts for support of the California Community College Guided Pathways Grant Program pursuant to Part 54.81 (commencing with Section 88920) of Division 7 of Title 3.

(B) Three million three hundred seventeen thousand dollars ($3,317,000) for transfer by the Controller to Section A of the State School Fund for allocation by the Superintendent of Public Instruction for the Career Technical Education Incentive Grant Program pursuant to Section 53070.

(b) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2009–10 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(Added by Stats. 2017, Ch. 15, Sec. 25. (AB 99) Effective June 27, 2017.)

41207.44.

If the Superintendent and the Director of Finance jointly determine that, for the 2016–17 fiscal year, the state has applied moneys for the support of school districts and community college districts in an amount that exceeds the minimum amount required for the 2016–17 fiscal year pursuant to Section 8 of Article XVI of the California Constitution, the excess, up to five hundred thirteen million six hundred forty-three thousand dollars ($513,643,000) shall be deemed, as of June 30, 2017, a payment in satisfaction of the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2009–10 fiscal year.

(Added by Stats. 2017, Ch. 15, Sec. 26. (AB 99) Effective June 27, 2017.)

41207.45.

(a) (1) The sum of one hundred million dollars ($100,000,000) is hereby appropriated in the 2018–19 fiscal year from the General Fund to the Controller for allocation to school districts and community college districts for the purpose of reducing the 2009–10 fiscal year outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(2) The amount appropriated pursuant to paragraph (1) shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) Eighty-nine million seventy thousand dollars ($89,070,000) for transfer by the Controller to Section A of the State School Fund for allocation by the Superintendent pursuant to this section.

(B) Ten million nine hundred thirty thousand dollars ($10,930,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community college districts for deferred maintenance, instructional materials, and other activities, as specified in Provision 22 of Item 6870-101-0001 of Section 2.0 of the Budget Act of 2018.

(3) The amount allocated to school districts pursuant to subparagraph (A) of paragraph (2) shall be distributed on the basis of an equal amount per unit of average daily attendance, as those average daily attendance numbers are reported at the time of the second principal apportionment of the 2017–18 fiscal year.

(4) The amount allocated to community college districts pursuant to subparagraph (B) of paragraph (2) shall be distributed on the basis of an equal amount per enrolled full-time equivalent student, as those numbers of students are reported at the time of the second principal apportionment for the 2017–18 fiscal year.

(5) For purposes of this section, a school district includes a county office of education and a charter school.

(b) (1) If a school district is required to repay claims disallowed under the School-Based Medi-Cal Administrative Activities or Local Educational Agency Medi-Cal Billing Option programs for the 2009–10 to 2015–16 fiscal years, inclusive, the Controller shall, upon notification from the Department of Finance, withhold up to the specified amounts owed by the applicable school districts from the allocations made to those school districts pursuant to subparagraph (A) of paragraph (2) of subdivision (a).

(2) The Controller shall transfer the amounts withheld pursuant to paragraph (1) to the General Fund as reimbursement of the payments made by the state in the 2017–18 and the 2018–19 fiscal years to the federal Centers for Medicare and Medicaid Services on behalf of those school districts.

(c) Funding received by school districts pursuant to subparagraph (A) of paragraph (2) of subdivision (a), less any amount withheld pursuant to subdivision (b), shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of Article XIII   B of the California Constitution for reimbursement of state-mandated local program costs for any fiscal year. Notwithstanding Section 12419.5 of the Government Code and any amounts that are deemed, pursuant to this subdivision, to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local program costs, the Controller may audit any claim as allowed by law and may recover any amount owed by school districts pursuant to an audit only by reducing amounts owed for any other mandate claims. Under no circumstances shall a school district be required to remit funding back to the state to pay for disallowed costs identified by a Controller audit of claimed reimbursable state-mandated local program costs. The Controller shall not recover any amount owed by a school district pursuant to an audit of claimed reimbursable state-mandated local program costs by reducing any amount owed to a school district or community college district for any purpose other than amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district against any balances of unpaid claims for reimbursement of state-mandated local program costs and interest in chronological order beginning with the earliest claim. The Controller shall report to each school district the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of each house of the Legislature.

(d) (1) The governing board of a school district may expend the one-time funds received pursuant to subparagraph (A) of paragraph (2) of subdivision (a) for any purpose, as determined by the governing board.

(2) It is the intent of the Legislature that school districts prioritize the use of these one-time funds for professional development, induction for beginning teachers with a focus on relevant mentoring, instructional materials, technology infrastructure, employee benefits, and any other investments necessary to support implementation of the common core academic content standards in English language arts and mathematics, the implementation of English language development standards, and the implementation of the Next Generation Science standards.

(e) For purposes of Section 8 of Article XVI of the California Constitution, the amounts appropriated pursuant to subdivision (a) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2009–10 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(Amended by Stats. 2019, Ch. 497, Sec. 48. (AB 991) Effective January 1, 2020.)

41207.46.

If the Director of Finance determines that, for the 2018–19 fiscal year, the state has applied moneys for the support of school districts and community college districts in an amount that exceeds the minimum funding obligation required for the 2018–19 fiscal year pursuant to Section 8 of Article XVI of the California Constitution, the excess, up to three hundred sixty-eight million three hundred fifty-five thousand dollars ($368,355,000), shall be deemed, as of June 30, 2019, a payment in satisfaction of the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2009–10 fiscal year.

(Added by Stats. 2019, Ch. 51, Sec. 23. (SB 75) Effective July 1, 2019.)

41207.47.

(a) (1) The sum of two hundred sixty-six million three hundred six thousand dollars ($266,306,000) is hereby appropriated in the 2019–20 fiscal year from the General Fund to the Controller for allocation to school districts and community colleges for purposes of reducing the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for the 2009–10, 2011–12, 2013–14, 2014–15, and 2016–17 fiscal years.

(2) The amount appropriated pursuant to paragraph (1) shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) Ninety-eight million four hundred fifty-four thousand dollars ($98,454,000) to the Controller for allocation by the Superintendent pursuant to Section 42238.02.

(B) Thirteen million four hundred eighty-six thousand dollars ($13,486,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community college districts for deferred maintenance, instructional materials, and other activities, as specified in subdivisions (a) and (b) of Provision 22 of Item 6870-101-0001 of the Budget Act of 2018 (Chapter 29 of the Statutes of 2018 (Senate Bill 840 of the 2017–18 Regular Session)). These funds shall be available for one-time use until June 30, 2021.

(C) Four hundred thirty-eight thousand dollars ($438,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community college districts for the California Community Colleges Strong Workforce Program, as specified in subdivision (b) of Provision 13 of Item 6870-101-001 of the Budget Act of 2018.

(D) Two million five hundred thousand dollars ($2,500,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to support expansion of veteran resource centers at the following community colleges, provided that the colleges commit to meeting or making progress towards meeting the minimum standards developed by the Office of the Chancellor of the California Community Colleges:

(i) One million five hundred thousand dollars ($1,500,000) shall be allocated to MiraCosta College.

(ii) One million dollars ($1,000,000) shall be allocated to Norco College.

(E) Two million four hundred thousand dollars ($2,400,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to support the creation of a basic needs and veteran resource center at Sacramento City College.

(F) Four million five hundred thousand dollars ($4,500,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to support the improvement of workforce development programs at the following colleges:

(i) One million dollars ($1,000,000) shall be allocated to Modesto Junior College.

(ii) One million dollars ($1,000,000) shall be allocated to Bakersfield College.

(iii) One million dollars ($1,000,000) shall be allocated to Fresno City College.

(iv) One million dollars ($1,000,000) shall be allocated to San Bernardino Valley College.

(v) Five hundred thousand dollars ($500,000) shall be allocated to Norco College.

(G) One million dollars ($1,000,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to support startup funds to implement a construction trades program in the Counties of Lake and Mendocino at Mendocino College.

(H) Three million nine hundred thousand dollars ($3,900,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community colleges to address student hunger needs pursuant to Section 66027.8 and student basic needs.

(I) Three million five hundred thousand dollars ($3,500,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to provide support for a one-time reentry grant program.

(J) One million five hundred thousand dollars ($1,500,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to support implementation of the California Community College Teacher Credentialing Partnership Pilot Act pursuant to Chapter 603 of the Statutes of 2018 (Senate Bill 577 of the 2017–18 Regular Session).

(K) Five hundred thousand dollars ($500,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community college districts for a systemwide assessment of college-based food programs.

(L) One million dollars ($1,000,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to Palo Verde College to support the development of a childcare center.

(M) One hundred thirty-three million one hundred twenty-eight thousand dollars ($133,128,000) to the Controller for allocation by the Superintendent pursuant to Section 42238.02 to offset moneys from the General Fund paid to the San Francisco Unified School District and San Francisco County Office of Education as a result of a miscalculation of offsetting property tax revenues in the 2016–17 fiscal year.

(b) (1) For purposes of Section 8 of Article XVI of the California Constitution, of the amount appropriated pursuant to subdivision (a), thirty million five hundred thirty-seven thousand dollars ($30,537,000) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2009–10 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(2) For purposes of Section 8 of Article XVI of the California Constitution, of the amount appropriated pursuant to subdivision (a), forty-seven million six hundred nineteen thousand dollars ($47,619,000) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2011–12 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(3) For purposes of Section 8 of Article XVI of the California Constitution, of the amount appropriated pursuant to subdivision (a), one hundred fifty-six million six thousand dollars ($156,006,000) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2013–14 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(4) For purposes of Section 8 of Article XVI of the California Constitution, of the amount appropriated pursuant to subdivision (a), thirty-one million five hundred eleven thousand dollars ($31,511,000) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2014–15 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(5) For purposes of Section 8 of Article XVI of the California Constitution, of the amount appropriated pursuant to subdivision (a), six hundred thirty-three thousand dollars ($633,000) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2016–17 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(Amended by Stats. 2020, Ch. 110, Sec. 11. (SB 820) Effective September 18, 2020.)

41207.48.

(a) The sum of four hundred six million six hundred sixty-four thousand dollars ($406,664,000) is hereby appropriated in the 2019–20 fiscal year from the General Fund to the State School Fund for allocation by the Superintendent pursuant to Section 42238.02.

(b) (1) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, three hundred ninety-one million four hundred forty-one thousand dollars ($391,441,000) of the amount appropriated in subdivision (a) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2018–19 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202, for the 2018–19 fiscal year.

(2) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, fifteen million two hundred twenty-three thousand dollars ($15,223,000) of the amount appropriated in subdivision (a) shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts, pursuant to Section 8 of Article XVI of the California Constitution, for the 2013–14 fiscal year, and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(Added by Stats. 2020, Ch. 5, Sec. 2. (AB 76) Effective June 26, 2020.)

41207.5.

There is hereby established in the General Fund the Proposition 98 Reversion Account. The Legislature shall, from time to time, transfer into the Proposition 98 Reversion Account moneys previously appropriated in satisfaction of the requirements of Section 8 of Article XVI of the California Constitution that have not been disbursed or otherwise encumbered for the purposes for which they were appropriated. Moneys that are appropriated in satisfaction of the minimum funding obligation under Section 8 of Article XVI of the California Constitution that would otherwise revert to the unexpended balance of the General Fund shall instead be deposited in the Proposition 98 Reversion Account.

(Added by Stats. 2004, Ch. 899, Sec. 2. Effective September 29, 2004.)

41207.6.

If the Superintendent and the Director of Finance jointly determine that, for the 2011–12 fiscal year, the state has applied moneys for the support of school districts and community college districts in an amount that exceeds the minimum amount required for the 2011–12 fiscal year pursuant to Section 8 of Article XVI of the California Constitution, the excess, up to six hundred seventy-one million eight hundred thirty thousand dollars ($671,830,000), shall be deemed, as of June 30, 2012, a payment of the fiscal settlement agreed to by the parties in California Teachers Association, et al. v. Arnold Schwarzenegger (Case Number 05CS01165 of the Superior Court for the County of Sacramento) and Chapter 213 of the Statutes of 2004 for the 2004–05 and 2005–06 fiscal years, as determined in subdivision (a) or (b) of Section 41207.1.

(Added by Stats. 2012, Ch. 38, Sec. 45. (SB 1016) Effective June 27, 2012.)

41208.

To ensure that the changes to average daily attendance resulting from the revision of the calculation of apportionments for high school pupils concurrently enrolled in adult education pursuant to Assembly Bill 1891 of the 1991-92 Regular Session do not result in unintended reductions to the minimum funding guarantee established by Section 8 of Article XVI of the California Constitution, the following shall be used to determine the average daily attendance computed pursuant to paragraph (1) of subdivision (a) of Section 14022.3, for the purpose of determining “changes in enrollment” for the 1992–93 and 1993–94 fiscal years and for subsequent fiscal years pursuant to paragraph (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution:

(a) For the 1992–93 fiscal year, Section 42238.5 is hereby deemed to refer to that section as it existed on July 1, 1992, for the purpose of calculating average daily attendance for both the 1991–92 and 1992–93 fiscal years.

(b) For the 1993–94 fiscal year, Section 42238.5 is hereby deemed to refer to that section as amended by Assembly Bill 1891 of the 1991–92 Regular Session for the purposes of calculating the average daily attendance for both the 1992–93 and 1993–94 fiscal years.

(c) For the 1994–95 and each fiscal year thereafter, Section 42238.5 is hereby deemed to refer to that section as amended by Assembly Bill 1891 of the 1991–92 Regular Session for the purposes of calculating the average daily attendance for both the prior and current fiscal years.

(Added by Stats. 1992, Ch. 1195, Sec. 1. Effective January 1, 1993.)

41210.

(a) The revenues transferred pursuant to Sections 6051.15 and 6201.15 of the Revenue and Taxation Code are not “General Fund revenues” as that term is used in Section 8 of Article XVI of the California Constitution.

(b) This section shall be operative for the 2011–12 fiscal year and subsequent years so long as one or more ballot measures approved before November 17, 2012, authorize the determination in subdivision (a) and provide funding for school districts and community college districts in an amount equal to that which would have been provided if the revenues referenced in subdivision (a) were General Fund revenues for purposes of Section 8 of Article XVI of the California Constitution.

(Amended by Stats. 2011, 1st Ex. Sess., Ch. 15, Sec. 1. (AB 32 1x) Effective September 21, 2011. Section operative for 2011-12 fiscal year, and subsequent years subject to condition in subd. (b).)

41211.

The following shall apply if Section 41210 is rendered inoperative because the ballot measure or measures described in subdivision (b) of that section are not approved:

(a) Before December 17, 2012, the Director of Finance, in consultation with the Superintendent, shall determine the amount of funding that would have been provided in the 2011–12 fiscal year to school districts and community college districts if the revenues described in subdivision (a) of Section 41210 were General Fund revenues for purposes of Section 8 of Article XVI of the California Constitution.

(b) For each of the 2012–13 to 2016–17, inclusive, fiscal years, 17.8 percent of the amount determined in subdivision (a) is appropriated from the General Fund to the Superintendent and shall be distributed in the following priority:

(1) To reduce amounts deferred under Section 14041.6.

(2) To repay obligations to school districts and county offices of education under Section 6 of Article XIII B of the California Constitution.

(3) To use for other one-time purposes as provided by statute enacted after the effective date of this section.

(c) For each of the 2012–13 to 2016–17, inclusive, fiscal years, 2.2 percent of the amount determined in subdivision (a) is appropriated from the General Fund to the Chancellor of the California Community Colleges and shall be distributed in the following priority:

(1) To reduce amounts deferred under Section 84321.6.

(2) To repay obligations to community college districts under Section 6 of Article XIII B of the California Constitution.

(3) To use for other one-time purposes as provided by statute enacted after the effective date of this section.

(d) For the 2011–12 fiscal year and subsequent fiscal years, the computations required by Section 8 of Article XVI of the California Constitution shall include the amount determined in subdivision (a).

(Added by Stats. 2011, Ch. 43, Sec. 16. (AB 114) Effective June 30, 2011. Applicable, by its own provisions, upon inoperation of Section 41210.)