AB 3

Bill Subjects

Abstract

(1) The California Constitution requires the state to apply a minimum amount of funding for each fiscal year for the support of school districts and community college districts. The amount of that minimum funding obligation is required to be determined pursuant to one of three tests, depending on specified factors. The California Constitution provides that school districts and community college districts are entitled to a maintenance factor equal to the amount of a reduction of the minimum funding obligation due to specified circumstances. The California Constitution requires that a specified amount of the maintenance factor be allocated in a manner determined by the Legislature in each fiscal year in which the percentage growth in per capita General Fund revenues exceeds the percentage growth in California per capita personal income. Commencing with the 2010–11 fiscal year, this bill would require the Controller, on March 28 of each fiscal year in which the percentage growth in per capita General Fund revenues exceeds the percentage growth in California per capita personal income, to transfer an amount of moneys, determined by performing a specified calculation, from the General Fund to the State School Fund. The bill would require the Controller to transfer 92% of that amount to Section A of the State School Fund for allocation by the Superintendent of Public Instruction, as specified, and the remaining 8% to Section B of the State School Fund for allocation by the Chancellor of the Community Colleges, as specified. By requiring the Controller to transfer funds to the State School Fund, which is continuously appropriated for purposes of providing funding apportionments to school districts and community college districts, this bill would make an appropriation. (2) The bill would declare that the minimum state educational funding obligation for school districts and community college districts for the 2005–06 fiscal year is $53,345,420,000, with an outstanding balance of $1,110,516,000; for the 2006–07 fiscal year is $55,251,266,000, with an outstanding balance of $211,533,000; for the 2007–08 fiscal year is $56,577,491,000, with no outstanding balance; and for the 2008–09 fiscal year is $49,102,041,000. The bill would declare that a maintenance factor obligation is created for the 2008–09 fiscal year, and that the outstanding maintenance factor balance through the 2008–09 fiscal year is $11,212,909,000. The bill would require that the computations of the minimum funding obligation for the 2009–10 fiscal year be based on the amounts identified for the minimum funding obligation and the maintenance factor obligation for the 2008–09 fiscal year. (3) The bill would revert to the General Fund specified amounts from appropriations for the 2008–09 fiscal year that were unallocated, unexpended, or not liquidated as of June 30, 2009. The bill would reduce revenue limit apportionments for the 2009–10 fiscal year by $1,516,000,000, and would appropriate $1,516,000,000 from the General Fund to the Superintendent of Public Instruction for the 2009–10 fiscal year to increase various apportionments to local educational agencies and other recipient entities for the same purposes of those 2008–09 fiscal year appropriations. (4) The bill would provide that any judicial action or proceeding to challenge, review, set aside, void, or annul the provisions of the bill, or any portion of the bill, may proceed only by application or complaint filed within 45 days of the effective date of the bill. (5)  The bill would provide that if any section or part of the bill is for any reason held unconstitutional, unenforceable, or otherwise invalid, the entire act shall become inoperative, except under specified circumstances relating to the validity of the above provisions relating to the maintenance factor and related payments. (6) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on July 1, 2009. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution. (7) This bill would declare that it is to take effect immediately as an urgency statute.