BILL NUMBER: AB 442	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 30, 2004
	AMENDED IN SENATE  JULY 3, 2003

INTRODUCED BY   Assembly Member Richman

                        FEBRUARY 14, 2003

   An act to  amend Section 42122   add and
repeal Section 42122.5  of the Education Code, relating to
school finance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 442, as amended, Richman.  School finance:  budget disclosures.

   Existing law requires the governing board of a school district to
approve an annual statement of all receipts and expenditures of the
district for the preceding fiscal year and to file the statement with
the county superintendent of schools.  Existing law requires the
board to hold a public hearing on the district's proposed budget and
requires the budget to show a complete plan and itemized statement of
all proposed expenditures.  Existing law requires the governing
board of a school district to issue a school accountability report
card annually.  Existing law requires the school accountability
report card to include, among other things, the estimated
expenditures per pupil and types of services funding, the quality and
currency of textbooks and other instructional materials, the total
number of the school's fully credentialed teachers, and the number of
teachers relying on emergency credentials.
   This bill would impose a state-mandated local program by requiring
the governing board of a school district with a pupil enrollment of
 50,000   250,000  or more to provide to
the public  , until July 1, 2008,  a summary of the plan and
itemized statement of all proposed expenditures of the school
district and to distribute that summary at public hearings where the
budget will be discussed.  The summary would be required to 
provided   provide  specified information on the
prior and  proposed   current  fiscal years
 and proposed budget year  regarding, among other things,
 staffing  expenditures  for personnel services
 , expenditures for facility maintenance, new construction 
,  and modernization, average operating expenses per pupil
 and class,  and  actual 
expenditures for books, supplies, and instructional materials.
  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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   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 42122 of the Education Code is  
  SECTION 1.  Section 42122.5 is added to the Education Code, to
read:
   42122.5.  (a) Commencing with the budget for the 2005-06 fiscal
year, each budget of a school district with a pupil enrollment of
250,000 or more shall also include a summary of the complete plan and
itemized statement required pursuant to Section 42122.  The school
district shall make the summary available to the public and, at a
minimum, distribute it at public hearings.  The summary shall
include, but not be limited to, the following information:
   (1) Itemized detail of the actual expenditures for the prior and
current fiscal years, and the proposed budget year expenditures for
personnel service, separately identifying salaries, benefits,
incentive bonuses, or other forms of remuneration.  Personnel
services detail shall be further separately reported for certificated
staff, segregated by type of credential, and classified staff.
   (2) The number and percentage of classroom teachers who are fully
credentialed and employed by the district for the prior and the
current fiscal years.
   (3) The number and percentage of classroom teachers employed by
the district for the prior and current fiscal years who are serving
without full credentials, including holders of emergency credentials,
university interns, district interns, and preinterns.
   (4) The total expenditures for facility maintenance, new
construction, and modernization for the prior and current fiscal
years.
   (5) The average class size by grade levels.
   (6) Itemized detail of the actual expenditures for the prior and
current fiscal years and the proposed budget year expenditures for
operating expenses, separately identifying contract services, debt
service, and capital expenditures.  Contract services shall be
further separately reported for legal services, engineering services,
real estate services, and financial services.
   (7) The average operating expenses per pupil for the prior and
current fiscal years, and the proposed budget year, separately
identifying the costs of textbooks, other instructional materials,
and instructional supplies.
   (8) All revenues by source, including state, federal, and local
sources, separately identifying tax revenues from other revenues.
Funds derived from the sale of bonds, revenue anticipation notes,
certificates of participation, and other debt instruments shall be
separately identified by issue.
  (b) This section shall become inoperative on July 1, 2008, and, as
of January 1, 2009, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2009, deletes or extends
the dates on which it becomes inoperative and is repealed.  
 amended to read:
   42122.  (a) Each budget shall show a complete plan and itemized
statement of all proposed expenditures of the school district and of
all estimated revenues for the ensuing fiscal year, together with a
comparison of revenues and expenditures for the existing fiscal year.
  The budget shall also include the appropriations limit and the
total annual appropriations subject to limitation as determined
pursuant to Division 9 (commencing with Section 7900) of Title 1 of
the Government Code.  The county superintendent of schools shall from
his or her own records supply to the school district any information
that the school district may need to make the comparisons required
by this section.
   (b) Commencing with the budget for the 2005-06 fiscal year, each
budget of a school district with a pupil enrollment of 50,000 or more
shall also include a summary of the complete plan and itemized
statement required pursuant to subdivision (a).  The school district
shall make the summary available to the public and, at a minimum,
distribute it at public hearings. The summary shall include, but not
be limited to, the following information:
   (1) Itemized detail of the actual expenditures for the immediate
prior fiscal year and proposed current year expenditures on salaries,
benefits, incentive bonuses, expenses, or other forms of
remuneration paid to certificated staff, including administrators,
pupil services personnel, and teachers, and classified staff,
including paraprofessionals, office workers, clerical employees, and
others.
   (2) The actual expenditures in the immediate prior fiscal year,
proposed current year expenditures, and the percentage of any
increase or decrease budgeted for the current fiscal year, segregated
by type of credential, for salaries and benefits paid to employees
assigned to classrooms within the school district.
   (3) The number and percentage of classroom teachers who are fully
credentialed and employed by the district for the immediate prior and
the current fiscal years.
   (4) The average total expenditure for a credentialed teacher and a
noncredentialed teacher, based on salaries and benefit packages, and
the average amount spent for compensation of the 10 percent of the
credentialed teachers who earn the most and the 10 percent who earn
the least.
   (5) The number and percentage of classroom teachers employed by
the district for the immediate prior and current fiscal years who are
serving without full credentials, including holders of emergency
credentials, university interns, district interns, and preinterns.
   (6) The total expenditures for facility maintenance, new
construction and modernization for the immediate prior and current
fiscal years, including the number of completed new facility
projects.
   (7) The average class size by grade levels.
   (8) The average noncapital operating expenses per pupil and class
for the immediate prior fiscal year and proposed current year average
noncapital expenditures per pupil.
   (9) The actual expenditures in the immediate prior fiscal year and
proposed current year expenditures for books and supplies, including
the total cost of textbooks per pupil, and the total cost of
textbooks per class.
   (10) The actual expenditures in the immediate prior fiscal year
and proposed current year expenditures for instructional materials,
excluding textbooks, per pupil and the total cost of instructional
materials per class.
   (11) Total district revenue and expenditures and average district
revenue and expenditures per pupil.  
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, 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.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
                            ____ CORRECTIONS Text -- Pages 3,5.
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