BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                            John Vasconcellos, Chair
                           2003-2004 Regular Session
                                        

          BILL NO:       AB 442
          AUTHOR:        Richman
          AMENDED:       July 3, 2003
          FISCAL COMM:   Yes            HEARING DATE:  July 9, 2003
          URGENCY:       No             CONSULTANT:James Wilson


          SUBJECT  :  School District Budget Summary
          
           SUMMARY  

          This bill requires the governing boards of school districts  
          with enrollments exceeding 50,000 to make a summary of the  
          district budget available to the public at budget hearings  
          of the board.

           BACKGROUND  

          Current law requires the governing board of each school  
          district 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.  
          Current law also requires school districts to annually  
          issue a school accountability report card for each school,  
          reporting estimated per pupil expenditures among other  
          things.

           ANALYSIS  

          Commencing in 2005-06, this bill requires the governing  
          board of each school district with enrollment exceeding  
          50,000 to include a summary in the district budget.  The  
          summary is required, at a minimum, to include the following  
          specified information:

          1)   Past year actual 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,  




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               clerical employees, and others."

          2)   Immediate prior year actual and proposed current year  
               expenditures and percentage change, for salaries and  
               benefits paid to employees assigned to classrooms  
               segregated by type of credential.

          3)   The number and percentage of fully credentialed  
               classroom teachers who are employed by the district  
               for the immediate prior and the current fiscal years.

          4)   The average total expenditure for a credentialed  
               teacher and a non- credentialed 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  
               pre-interns. 

          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 non-capital operating expenses per pupil  
               and class for the immediate prior fiscal year and  
               proposed current year average non-capital 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  




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               per class.

          11)  Total district revenue and expenditures and average  
               district revenue and expenditures per pupil.
                                                                     
           STAFF COMMENTS  

           1)   Which year is that?   In state budgeting three years  
               are displayed.  The year for which the budget is being  
               proposed or "budget year", the "current" year that is  
               in progress and the "prior year" that has been  
               completed and for which one should able to display   
               "past year actual" expenditures. It is not possible to  
               have "actual" numbers for a "current" year that is not  
               finished. This bill uses terms such as "proposed  
               current year" and "immediate prior fiscal year".  Such  
               terms may cause confusion regarding which years are to  
               be compared.  Is the "current year" meant to be the  
               budget year"?  Is the "immediate prior fiscal year"  
               meant to be what the state calls "current year", for  
               which "actual" figures cannot be obtained?  Staff  
               recommends that these terms be clarified.

           2)   State mandated costs.   The Legislative Counsel notes  
               that this bill would mandate costs on school districts  
               that may already be collecting this 

          information, but will be able to collect reimbursement from  
               the state once they are told that the shall collect  
               the information.

           3)   Only ten, or twelve, districts.   The bill is limited  
               in its application to only those school districts with  
               enrollments exceeding 50,000 pupils.  The current list  
               based on October 2001 data, shows ten districts  
               meeting that criteria.  However, the rapidly growing  
               Elk Grove and Garden Grove school districts were  
               within 200 pupils of the 50,000 threshold, and would  
               likely qualify by the time the bill becomes law.  
           
          SUPPORT  

          California Federation of Teachers
          United Teachers of Los Angeles

           OPPOSITION  




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          California School Boards Association
          County Superintendents of Schools
          Los Angeles County Office of Education