BILL NUMBER: AB 2544INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Roger Hernndez FEBRUARY 21, 2014 An act to add Section 42238.035 to the Education Code, relating to school finance. LEGISLATIVE COUNSEL'S DIGEST AB 2544, as introduced, Roger Hernndez. School finance: preschool funding. Existing law establishes a public school system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires the Superintendent of Public Instruction to calculate, for each county superintendent of schools, school district, and charter school, a base entitlement for the transition to the local control funding formula that includes, among other things, the sum of the amount of funding received from appropriations contained in certain budget items of the Budget Act of 2012. This bill would establish the school district and charter school preschool funding formula. The bill would require the Superintendent, commencing with the 2015-16 fiscal year, and each year thereafter, to calculate and apportion, a preschool funding grant for each school and charter school in the state pursuant to a specified funding formula. The bill would require the school district and charter school to use the money to fund either existing or startup preschools in the district or at the charter school. The funding formula would be based on the number of 4 year olds who reside in a school district who are economically disadvantaged, an English learner, or a foster youth, as defined, or a combination thereof, as provided by each school district. By imposing new mandates on a school district, the bill would establish a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42238.035 is added to the Education Code, to read: 42238.035. (a) The amount computed pursuant to this section shall be known as the school district and charter school preschool funding formula. (b) For purposes of this section, the following terms have the following meanings: (1) "Economically disadvantaged child" means a child that is eligible to receive a free or reduced-price meal pursuant to Section 49552. (2) "English learner" has the same meaning as it does in Section 52164. (3) "Foster youth" has the same meaning as it does in Section 300 and 601 of the Welfare and Institutions Code. (c) (1) Commencing with the 2015-16 fiscal year and each fiscal year thereafter, the Superintendent shall annually calculate a preschool funding grant for each school district and charter school in the state pursuant to this section, equal to the base grant calculated pursuant to subparagraph (A) of paragraph (1) of subdivision (d) of Section 42238.02. The school district and charter school shall use the money to fund either existing or startup preschools in the school district or at the charter school. (2) For purposes of making the calculations in subdivisions (d) and (e), the Superintendent shall use information obtained from each school district on the number of economically disadvantaged children, English learners, and foster youth who are four years old at the time of making the calculation and residing in the school district. (3) For purposes of calculating the grant pursuant to this section, a child may be counted more than once if the child meets more than one of the definitions in subdivision (b). (d) The Superintendent shall compute a supplemental preschool grant add-on equal to 35 percent of the base grant as specified in subdivision (c) for each school district's percentage of four year olds residing in the district, or in the case of a charter school, the percentage of four year olds residing in the school district in which the charter school is physically located, in each of the categories specified in subdivision (b). The supplemental preschool grant shall be calculated by multiplying the base grants specified in subdivision (c) by 35 percent and by the sum of the percentages of four year olds in the categories specified in subdivision (b) in that school district. For purposes of calculating the grant for a charter school physically located in more than one school district, the Superintendent shall use the school district with the highest number of four year olds residing in the school district where the charter school is physically located. (e) The Superintendent shall compute a concentration preschool grant add-on equal to 35 percent of the base grant as specified in subdivision (c) for each school district's percentage of four year olds residing in the district, or in the case of the charter school, the percentage of four year olds residing in the school district in which the charter school is physically located, in each of the categories specified in subdivision (b). The concentration preschool grant shall be calculated by determining the amount by which the sum of these percentages exceeds 50 percent and by multiplying the base grant as specified in subdivision (c) by 35 percent and by any positive percentage so determined. For purposes of calculating the grant for a charter school physically located in more than one school district, the Superintendent shall use the school district with the highest number of four year olds residing in the school district where the charter school is physically located. For a charter school physically located in only one school district, the percentage of four year olds in excess of 50 percent used to calculate concentration preschool grants shall not exceed the percentage of four year olds in excess of 50 percent of the school district in which the charter school is physically located. If the charter school is physically located in more than one school district, the charter school's percentage of four year olds in excess of 50 percent used to calculate concentration preschool grants shall not exceed that of the school district with the highest percentage of four year olds in excess of 50 percent within the charter school's physical location. (f) The Superintendent shall apportion funding to a school district and charter school equal to the sum of the amounts computed pursuant to subdivisions (c), (d), and (e), multiplied for each school district and charter school by the number of four-year-old children served by each. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.