BILL NUMBER: AB 1851INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Norby FEBRUARY 12, 2010 An act to amend Section 42238.1 of the Education Code, relating to education finance. LEGISLATIVE COUNSEL'S DIGEST AB 1851, as introduced, Norby. Education finance: inflation adjustment to revenue limits. Existing law establishes the public elementary and secondary school system in this state, and further establishes a funding system pursuant to which the state apportions funds to local educational agencies in accordance with district revenue limits, the calculation of which is partly based on the average daily attendance of pupils at the schools operated by those agencies. Numerous statutes and regulations govern the calculation and reporting of average daily attendance. Existing law requires the Superintendent of Public Instruction to calculate an annual inflation adjustment to these district revenue limits, and specifies the computations necessary to make this calculation. This bill would make technical, nonsubstantive changes in the provision relating to the calculation of the annual inflation adjustment. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42238.1 of the Education Code is amended to read: 42238.1. (a) For the 1986-87 fiscal year and each fiscal year up to and including the 1998-99 fiscal year, the Superintendentof Public Instructionshall compute an inflation adjustment equal to the product of paragraphs (1) and (2): (1) Compute the sum of the following: (A) The statewide average base revenue limit per unit of average daily attendance for the prior fiscal year for districts of similar type. (B) The amount, if any, per unit of average daily attendance received by the district pursuant to Article 8 (commencing with Section 46200) of Chapter 2 of Part 26 of Division 4 for the prior fiscal year. (2) The percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 1 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 1 of the second preceding fiscal year, as reported by the Department of Finance. (b) For the 1999-2000 fiscal year and each fiscal year thereafter, the Superintendentof Public Instructionshall compute an inflation adjustment equal to the product of paragraphs (1) and (2): (1) Compute the sum of the following: (A) The statewide average base revenue limit per unit of average daily attendance for the prior fiscal year for districts of similar type. (B) The amount, if any, per unit of average daily attendance received by the district pursuant to Article 8 (commencing with Section 46200) of Chapter 2 of Part 26 of Division 4 for the prior fiscal year. (2) The percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, asreportreported by the Department of Finance. (c) This section shall become operative July 1, 1986.