BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       AB 442
          AUTHOR:        Richman
          AMENDED:       March 30, 2004
          FISCAL COMM:   Yes            HEARING DATE:  June 9, 2004
          URGENCY:       No             CONSULTANT:James Wilson


           SUBJECT  :  School District Budget Summary
          
           SUMMARY  

          This bill requires a school district with enrollment  
          exceeding 250,000 to prepare a summary of the district's  
          budgets for the 2005-06, 2006-07 and 2007-08 fiscal years  
          and make those summaries available to the public at public  
          hearings. 

           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  

           This bill  :

          1)   Requires the governing board of a school district with  
               enrollment exceeding 250,000 to create a summary in  
               the district budget, to include the following  
               information:

               a)        Actual expenditures for prior and current  
                    fiscal years, and proposed budget year  
                    expenditures for salaries, benefits, incentive  
                    bonuses, or other forms of remuneration and  




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                    further separately identifying expenditures for  
                    certificated staff, segregated by type of  
                    credential, and classified staff. 

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

               c)        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. 

               d)        Total expenditures for facility maintenance,  
                    new construction, and modernization for the prior  
                    and current fiscal years.

               e)        Average class size by grade levels.

               f)        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 are  
                    required to be further separately reported for  
                    legal services, engineering services, real estate  
                    services, and financial services.

               g)        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.

               h)        Revenues by source, including state,  
                    federal, and local sources, separately  
                    identifying tax revenues from other revenues and  
                    separately identifying funds derived from the  
                    sale of bonds, revenue anticipation notes,  
                    certificates of participation, and other debt  
                    instruments.





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          2)   Requires that the district make the budget summary  
               available to the public and distribute it at public  
               hearings.

          3)   Provides that the requirements of this bill commence  
               with the budget for the 2005-06 fiscal year and become  
               inoperative July 1, 2008.

           STAFF COMMENTS  

           1)   Applies to Los Angeles Unified.   The Los Angeles  
               Unified School District is the only school district in  
               the state with enrollment exceeding 250,000.

           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 they shall collect the  
               information.

           SUPPORT  

          California Federation of Teachers
          United Teachers of Los Angeles

           OPPOSITION  
          Los Angeles Unified School District