Senate BillNo. 223


Introduced by Senator Liu

February 11, 2013


An act to amend, repeal, and add Section 42605 of, and to add and repeal Chapter 3 (commencing with Section 63060) of Part 35 of Division 4 of Title 2 of, the Education Code, relating to education finance, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 223, as introduced, Liu. Education finance: Maximum Categorical Funding Flexibility and Accountability Program.

Existing law establishes various categorical education programs and appropriates the funding for those programs in the annual Budget Act. Existing law requires the Superintendent of Public Instruction, for the 2009-10 to the 2014-15 fiscal year, inclusive, to apportion from the amount provided in the annual Budget Act for specified categorical education programs an amount based on the same relative proportion that the local educational agency received in the 2008-09 fiscal year for those programs and authorizes those agencies, for those fiscal years, to use these funds, with specified exceptions, for any educational purpose, to the extent permitted by federal law.

Existing law, as a condition of receiving the categorical education program funds that may be used for any educational purpose, requires school districts and county offices of education, at a regularly scheduled open public hearing, to take testimony from the public, discuss, and approve or disapprove the proposed use of funding. Existing law requires a local educational agency to report expenditures, as specified, to indicate the activities for which these funds were expended and requires the State Department of Education annually to collect and provide this information to the appropriate legislative policy and budget committees and the Department of Finance. Existing law, for those fiscal years, deems local educational agencies that use these categorical education program funds for any educational purpose to be in compliance with the program and funding requirements of those categorical education programs.

This bill would establish the Maximum Categorical Funding Flexibility and Accountability Program, to be implemented from the 2015-16 fiscal year to the 2019-20 fiscal year, inclusive. The bill would extend the operation of the provisions that authorize the expenditure of funds provided for specified categorical education programs for any educational purpose by 5 fiscal years. The bill would thereby make an appropriation by allowing the expenditure of appropriated funds for additional purposes for that extended period.

To be eligible for selection for participation in this program, and in order to utilize the provisions allowing the expenditure of funds appropriated for specified categorical programs for any educational purpose for any of the fiscal years from 2015-16 to 2019-20, inclusive, a school district would be required to meet certain preconditions, including developing a plan to accelerate pupils’ progress to proficiency that includes specified goals. A school district selected by the Superintendent to participate in the program would be required to agree to demonstrate significant progress toward accelerating pupils’ progress toward proficiency in California’s academic standards over a 3-year period, a narrowing of the achievement gap in its federally recognized subgroups, fiscal solvency, positive growth on the school district’s Academic Performance Index, an increase in its graduation rate, and improvement in its college entrance rate.

The bill would require the Superintendent, for the 2015-16 to 2019-20 fiscal years, inclusive, to apportion to the participating school districts an increase or decrease of the amounts apportioned under the provisions authorizing the expenditure of funds appropriated for specified categorical programs for any educational purpose in accordance with specified criteria. The bill would require the additional funds apportioned to school districts under this program to be expended for any purpose related to improving pupil achievement and academic instruction, except as specified.

The bill would require that a participating school district would be deemed to be in compliance with the program and funding requirements associated with the categorical education programs.

The bill would require that a participating school district would be required to submit an evaluative annual report and an annual expenditure report, including prescribed information, to the State Department of Education. The bill would require the Superintendent to contract for an interim evaluation report and a final evaluation report that identifies the success and failures of the program and makes recommendations regarding improving the program and whether the program should be continued. The provisions establishing the program would become inoperative on July 1, 2020, and would be repealed on January 1, 2021.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California school districts are facing immeasurable
4challenges managing reductions in state funding, and need
5maximum flexibility in the ways they can utilize restricted funding
6from the state.

7(b) However, the current tiers of categorical program
8appropriations, coupled with lack of accountability, provide no
9assurances that categorical funding will be used for purposes related
10to improving pupil achievement and academic instruction.

11(c) Merging the concept of funding flexibility with locally
12governed planning processes with the goal of improving pupil
13achievement and academic instruction will allow state money for
14categorical education programs to be managed more efficiently
15and effectively by school districts to meet the academic needs of
16all pupils and result in progress in closing the achievement gap.

17(d) Maximum categorical program flexibility will enhance a
18school district’s ability to support academic and career goals for
19all pupils and provide systematic, differentiated instruction and
20interventions to accelerate pupils’ progress to proficiency.

21(e) Allowing the state to evaluate the benefits of maximum
22categorical program flexibility, and ensuring that program
23flexibility is used correctly, will result in gains in pupil
24achievement.

P4    1

SEC. 2.  

Section 42605 of the Education Code, as amended by
2Section 2 of Chapter 668 of the Statutes of 2012, is amended to
3read:

4

42605.  

(a) (1) Unless otherwise prohibited under federal law
5or otherwise specified in subdivision (e), for the 2008-09 fiscal
6year to the 2014-15 fiscal year, inclusive, recipients of funds from
7the items listed in paragraph (2) may use funding received, pursuant
8to subdivision (b), from any of these items listed in paragraph (2)
9that are contained in Section 2.00 of the annual Budget Act, for
10any educational purpose.

11(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
126110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
136110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
146110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
156110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
166110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
176110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
186110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
196110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
206110-267-0001, 6110-268-0001, and 6360-101-0001 of Section
212.00.

22(b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
23inclusive, the Superintendent or other administering state agency,
24as appropriate, shall apportion from the amounts provided in the
25annual Budget Act for the items enumerated in paragraph (2) of
26subdivision (a) an amount to recipients based on the same relative
27proportion that the recipient received in the 2008-09 fiscal year
28for the programs funded through the items enumerated in paragraph
29(2) of subdivision (a).

30(2) This section and Section 42 of Chapter 12 of the Third
31Extraordinary Session of the Statutes of 2009 do not authorize a
32school district that receives funding on behalf of a charter school
33pursuant to Sections 47634.1 and 47651 to redirect this funding
34for another purpose unless otherwise authorized in law or pursuant
35to an agreement between a charter school and its chartering
36authority. Notwithstanding paragraph (1), for the 2008-09 fiscal
37year to the 2014-15 fiscal year, inclusive, a school district that
38receives funding on behalf of a charter school pursuant to Sections
3947634.1 and 47651 shall continue to distribute the funds to those
40charter schools based on the relative proportion that the school
P5    1district distributed in the 2007-08 fiscal year, and shall adjust those
2amounts to reflect changes in charter school attendance in the
3district. The amounts allocated shall be adjusted for any greater
4or lesser amount appropriated for the items enumerated in
5paragraph (2) of subdivision (a). For a charter school that began
6operation in the 2008-09 fiscal year, if a school district received
7funding on behalf of that charter school pursuant to Sections
847634.1 and 47651, the school district shall continue to distribute
9the funds to that charter school based on the relative proportion
10that the school district distributed in the 2008-09 fiscal year and
11shall adjust the amount of those funds to reflect changes in charter
12school attendance in the district. The amounts allocated shall be
13adjusted for any greater or lesser amount appropriated for the items
14enumerated in paragraph (2) of subdivision (a).

15(3) Notwithstanding paragraph (1), for the 2008-09 fiscal year
16to the 2014-15 fiscal year, inclusive, the Superintendent shall
17apportion from the amounts appropriated by Item 6110-211-0001
18of Section 2.00 of the annual Budget Act an amount to a charter
19school in accordance with the per-pupil methodology prescribed
20in subdivision (c) of Section 47634.1.

21(4) Notwithstanding paragraph (1), for the 2008-09 fiscal year
22to the 2014-15 fiscal year, inclusive, the Superintendent shall
23apportion from the amounts provided in the annual Budget Act an
24amount to a school district, charter school, and county office of
25education based on the same relative proportion that the local
26educational agency received in the 2007-08 fiscal year for the
27programs funded through the following items contained in Section
282.00 of the annual Budget Act: 6110-104-0001, 6110-105-0001,
296110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
306110-198-0001, 6110-232-0001, and Schedule (2) of
316110-240-0001.

32(5) For purposes of paragraph (4), if a direct-funded charter
33school began operation in the 2008-09 fiscal year, the amount that
34the charter school was entitled to receive from the items
35enumerated in paragraph (4) for the 2008-09 fiscal year, as certified
36by the Superintendent in March 2009, is deemed to have been
37received in the 2007-08 fiscal year.

38(c) (1) This section does not obligate the state to refund or repay
39reductions made pursuant to this section. A decision by a school
40district to reduce funding pursuant to this section for a
P6    1state-mandated local program shall constitute a waiver of the
2subvention of funds that the school district is otherwise entitled to
3pursuant to Section 6 of Article XIII B of the California
4Constitution on the amount so reduced.

5(2) (A) As a condition of receipt of funds, the governing board
6of the school district or governing board of the county office of
7education, as appropriate, at a regularly scheduled open public
8hearing shall take testimony from the public, discuss, approve or
9disapprove the proposed use of funding, and make explicit for each
10of the budget items in paragraph (2) of subdivision (a) the purposes
11for which the funds will be used.

12(B) The regularly scheduled open public hearing held pursuant
13to subparagraph (A) shall be held before and independent of a
14meeting where the governing board of the school district or
15governing board of the county office of education adopts a budget.
16If the governing board intends to close a program funded by the
17items listed in paragraph (2) of subdivision (a), the governing board
18shall identify, in the notice of the agenda of the public hearing or
19at another public hearing, the program or programs proposed to
20be closed.

21(3) Using the Standardized Account Code Structure reporting
22process, a local educational agency shall report expenditures of
23funds pursuant to the authority of this section by using the
24appropriate function codes to indicate the activities for which these
25funds are expended. The department shall collect and provide this
26information to the Department of Finance and the appropriate
27policy and budget committees of the Legislature by April 15, 2010,
28and annually thereafter on April 15 until, and including, April 15,
292016.

30(d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
31inclusive, local educational agencies that use the flexibility
32provision of this section shall be deemed to be in compliance with
33the program and funding requirements contained in statutory,
34regulatory, and provisional languagebegin delete,end delete associated with the items
35enumerated in subdivision (a).

36(e) Notwithstanding subdivision (d), the following requirements
37shall continue to apply:

38(1) For Item 6110-105-0001 of Section 2.00 of the annual
39Budget Act, the amount authorized for flexibility shall exclude the
40 funding provided to fund remedial educational services pursuant
P7    1to Provision 4. For Item 6110-156-0001 of Section 2.00 of the
2annual Budget Act, the amount authorized for flexibility shall
3exclude the funding provided for instruction of CalWORKs-eligible
4students pursuant to Schedules (2) and (3) and Provisions 2 and
54.

6(2) (A) Any instructional materials purchased by a local
7educational agency for kindergarten and grades 1 to 8, inclusive,
8and for grades 9 to 12, inclusive, shall be aligned with the state
9standards adopted pursuant to Section 60605 or 60605.8, and shall
10also meet the reporting and sufficiency requirements contained in
11Section 60119.

12(B) For purposes of this section, “sufficiency” means that each
13pupil has sufficient textbooks and instructional materials in the
14four core areas as defined by Section 60119 and that all pupils
15within the local educational agency who are enrolled in the same
16course shall have identical textbooks and instructional materials,
17as specified in Section 1240.3.

18(3) For Item 6110-195-0001 of Section 2.00 of the annual
19Budget Act, the item shall exclude moneys that are required to
20fund awards for teachers that have previously met the requirements
21necessary to obtain these awards, until the award is paid in full.

22(4) For Item 6110-266-0001 of Section 2.00 of the annual
23Budget Act, a county office of education shall conduct at least one
24site visit to each of the required schoolsites pursuant to Section
251240 and shall fulfill all of the duties set forth in Sections 1240
26and 44258.9.

27(5) For Item 6110-198-0001 of Section 2.00 of the annual
28Budget Act, a school district or county office of education that
29operates the child care component of the Cal-SAFE program shall
30comply with paragraphs (5) and (6) of subdivision (c) of Section
3154746.

32(f) This section does not invalidate any state law pertaining to
33teacher credentialing requirements or the functions that require
34credentials.

begin insert

35(g) This section shall become inoperative on July 1, 2015, and,
36as of January 1, 2016, is repealed, unless a later enacted statute,
37that becomes operative on or before January 1, 2016, deletes or
38extends the dates on which it becomes inoperative and is repealed.

end insert
39

SEC. 3.  

Section 42605 is added to the Education Code, to read:

P8    1

42605.  

(a) (1) Unless otherwise prohibited under federal law
2or otherwise specified in subdivisions (d) and (e), for the 2015-16
3fiscal year to the 2019-20 fiscal year, inclusive, recipients of funds
4from the items listed in paragraph (2) may use funding received,
5pursuant to subdivision (b), from any of these items listed in
6paragraph (2) that are contained in Section 2.00 of the annual
7Budget Act, for any educational purpose.

8(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
96110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
106110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
116110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
126110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
136110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
146110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
156110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
166110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
176110-267-0001, 6110-268-0001, and 6360-101-0001 of Section
182.00.

19(b) (1) For the 2015-16 fiscal year to the 2019-20 fiscal year,
20inclusive, the Superintendent or other administering state agency,
21as appropriate, shall apportion from the amounts provided in the
22annual Budget Act for the items enumerated in paragraph (2) of
23subdivision (a) an amount to recipients based on the same relative
24proportion that the recipient received in the 2008-09 fiscal year
25for the programs funded through the items enumerated in paragraph
26(2) of subdivision (a).

27(2) This section and Section 42 of Chapter 12 of the Third
28 Extraordinary Session of the Statutes of 2009 do not authorize a
29school district that receives funding on behalf of a charter school
30pursuant to Sections 47634.1 and 47651 to redirect this funding
31for another purpose unless otherwise authorized in law or pursuant
32to an agreement between a charter school and its chartering
33authority. Notwithstanding paragraph (1), for the 2015-16 fiscal
34year to the 2019-20 fiscal year, inclusive, a school district that
35receives funding on behalf of a charter school pursuant to Sections
3647634.1 and 47651 shall continue to distribute the funds to those
37charter schools based on the relative proportion that the school
38district distributed in the 2007-08 fiscal year, and shall adjust those
39amounts to reflect changes in charter school attendance in the
40district. The amounts allocated shall be adjusted for any greater
P9    1or lesser amount appropriated for the items enumerated in
2paragraph (2) of subdivision (a). For a charter school that began
3operation in the 2008-09 fiscal year, if a school district received
4funding on behalf of that charter school pursuant to Sections
547634.1 and 47651, the school district shall continue to distribute
6the funds to that charter school based on the relative proportion
7that the school district distributed in the 2008-09 fiscal year and
8shall adjust the amount of those funds to reflect changes in charter
9school attendance in the district. The amounts allocated shall be
10adjusted for any greater or lesser amount appropriated for the items
11enumerated in paragraph (2) of subdivision (a).

12(3) Notwithstanding paragraph (1), for the 2015-16 fiscal year
13to the 2019-20 fiscal year, inclusive, the Superintendent shall
14apportion from the amounts appropriated by Item 6110-211-0001
15of Section 2.00 of the annual Budget Act an amount to a charter
16school in accordance with the per-pupil methodology prescribed
17in subdivision (c) of Section 47634.1.

18(4) Notwithstanding paragraph (1), for the 2015-16 fiscal year
19to the 2019-20 fiscal year, inclusive, the Superintendent shall
20apportion from the amounts provided in the annual Budget Act an
21amount to a school district, charter school, and county office of
22education based on the same relative proportion that the local
23educational agency received in the 2007-08 fiscal year for the
24programs funded through the following items contained in Section
252.00 of the annual Budget Act: 6110-104-0001, 6110-105-0001,
266110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
276110-198-0001, 6110-232-0001, and Schedule (2) of
286110-240-0001.

29(5) For purposes of paragraph (4), if a direct-funded charter
30school began operation in the 2008-09 fiscal year, the amount that
31the charter school was entitled to receive from the items
32enumerated in paragraph (4) for the 2008-09 fiscal year, as certified
33by the Superintendent in March 2009, is deemed to have been
34received in the 2007-08 fiscal year.

35(c) (1) This section does not obligate the state to refund or repay
36reductions made pursuant to this section. A decision by a school
37district to reduce funding pursuant to this section for a
38state-mandated local program shall constitute a waiver of the
39subvention of funds that the school district is otherwise entitled to
P10   1pursuant to Section 6 of Article XIII B of the California
2Constitution on the amount so reduced.

3(2) (A) As a condition of receipt of funds, the governing board
4of the school district or governing board of the county office of
5education, as appropriate, at a regularly scheduled open public
6hearing shall take testimony from the public, discuss, approve or
7disapprove the proposed use of funding, and make explicit for each
8of the budget items in paragraph (2) of subdivision (a) the purposes
9for which the funds will be used.

10(B) The regularly scheduled open public hearing held pursuant
11to subparagraph (A) shall be held before and independent of a
12meeting where the governing board of the school district or
13governing board of the county office of education adopts a budget.
14If the governing board intends to close a program funded by the
15items listed in paragraph (2) of subdivision (a), the governing board
16shall identify, in the notice of the agenda of the public hearing or
17at another public hearing, the program or programs proposed to
18be closed.

19(3) Using the Standardized Account Code Structure reporting
20process, a local educational agency shall report expenditures of
21funds pursuant to the authority of this section by using the
22appropriate function codes to indicate the activities for which these
23funds are expended. The department shall collect and provide this
24information to the Department of Finance and the appropriate
25policy and budget committees of the Legislature by April 15, 2016,
26and annually thereafter on April 15 until, and including, April 15,
272021.

28(d) For the 2015-16 fiscal year to the 2019-20 fiscal year,
29inclusive, local educational agencies that use the flexibility
30provision of this section shall be deemed to be in compliance with
31the program and funding requirements contained in statutory,
32regulatory, and provisional language associated with the items
33listed in paragraph (2) of subdivision (a) if the Superintendent
34approves the participation of the local educational agency in the
35Maximum Categorical Funding Flexibility and Accountability
36Program pursuant to Chapter 3 (commencing with Section 63060)
37of Part 35 of Division 4.

38(e) Notwithstanding subdivision (d), the following requirements
39shall continue to apply:

P11   1(1) For Item 6110-105-0001 of Section 2.00 of the annual
2Budget Act, the amount authorized for flexibility shall exclude the
3funding provided to fund remedial educational services pursuant
4to Provision 4. For Item 6110-156-0001 of Section 2.00 of the
5annual Budget Act, the amount authorized for flexibility shall
6exclude the funding provided for instruction of CalWORKs-eligible
7students pursuant to Schedules (2) and (3) and Provisions 2 and
84.

9(2) (A) Any instructional materials purchased by a local
10educational agency for kindergarten and grades 1 to 8, inclusive,
11and for grades 9 to 12, inclusive, shall be aligned with the state
12standards adopted pursuant to Section 60605 or 60605.8, and shall
13also meet the reporting and sufficiency requirements contained in
14Section 60119.

15(B) For purposes of this section, “sufficiency” means that each
16pupil has sufficient textbooks and instructional materials in the
17four core areas as defined by Section 60119 and that all pupils
18within the local educational agency who are enrolled in the same
19course shall have identical textbooks and instructional materials,
20as specified in Section 1240.3.

21(3) For Item 6110-195-0001 of Section 2.00 of the annual
22Budget Act, the item shall exclude moneys that are required to
23fund awards for teachers that have previously met the requirements
24necessary to obtain these awards, until the award is paid in full.

25(4) For Item 6110-266-0001 of Section 2.00 of the annual
26Budget Act, a county office of education shall conduct at least one
27site visit to each of the required schoolsites pursuant to Section
281240 and shall fulfill all of the duties set forth in Sections 1240
29and 44258.9.

30(5) For Item 6110-198-0001 of Section 2.00 of the annual
31Budget Act, a school district or county office of education that
32operates the child care component of the Cal-SAFE program shall
33comply with paragraphs (5) and (6) of subdivision (c) of Section
3454746.

35(f) This section does not invalidate any state law pertaining to
36teacher credentialing requirements or the functions that require
37credentials.

38(g) This section shall become operative on July 1, 2015.

39

SEC. 4.  

Chapter 3 (commencing with Section 63060) is added
40to Part 35 of Division 4 of Title 2 of the Education Code, to read:

 

P12   1Chapter  3. Maximum Categorical Funding Flexibility
2and Accountability Program
3

 

4

63060.  

(a) The Maximum Categorical Funding Flexibility and
5Accountability Program is hereby established. The program shall
6be implemented from the 2015-16 fiscal year to the 2019-20 fiscal
7year, inclusive. The Superintendent shall select school districts to
8participate in the program that meet the preconditions of Section
963061 and agree to demonstrable goals as specified in Section
1063062. A school district may apply to the Superintendent for
11selection to participate in the program.

12(b) As used in this chapter, a “participating school district” is
13a school district selected by the Superintendent to participate in
14the Maximum Categorical Funding Flexibility and Accountability
15Program established by this chapter.

16

63061.  

(a) In order to be deemed in compliance with the
17program and funding requirements contained in statutory,
18regulatory, and provisional language associated with the items
19listed in paragraph (2) of subdivision (a) of Section 42605 for any
20of the fiscal years from 2015-16 to 2019-20, inclusive, a school
21district shall meet all of the following preconditions:

22(1) The school district has a plan, developed in conjunction with
23parents and teachers, to accelerate pupils’ progress to academic
24proficiency. The plan shall include both of the following:

25(A) Measurable metrics to improve pupil performance, close
26the achievement gap, increase college entrance rates, and increase
27career readiness.

28(B) An explanation of the manner in which the objectives of
29each categorical program funded under the items listed in paragraph
30(2) of subdivision (a) of Section 42605 will be met.

31(2) The governing board of the school district, at a regularly
32scheduled public meeting of the board, has approved the plan and
33developed corresponding policies in support of the plan.

34(3) The annual evaluation of the performance of the
35superintendent of the school district is linked to the pupil
36performance goals specified in paragraph (1).

37(4) The school district demonstrates a pattern of stability
38between management and the bargaining units.

39(5) There is community support for the plan.

P13   1(6) The school district has surveyed parents and legal guardians
2in the district to gauge support for participation in the program.
3At least one-half of the permanent teachers and one-half of the
4surveyed parents or legal guardians in the school district support
5participation in the program, and that support is demonstrated in
6writing.

7(7) The standards-based curriculum for English learners is
8cognitively complex, coherent, well articulated, and meaningful,
9and will enable English learners to learn English quickly and
10fluently so that they may participate fully in the grade-level
11curriculum. At a minimum, the program shall provide all of the
12following:

13(A) Support for English learners who are new to the school
14district.

15(B) An English language development program that is
16comprehensive and standards aligned and that has all of the
17following characteristics:

18(i) Actively develops all domains of language.

19(ii) Addresses varying levels of English fluency.

20(iii) Develops age-appropriate and context-appropriate language,
21including an emphasis on academic English.

22(iv) Includes opportunities for English learners to interact with
23native English speaking peers.

24(v) Creates a supportive learning environment for language
25learning.

26(vi) Recognizes the role of primary language development.

27(C) Full access to a challenging curriculum.

28(D) High-quality instruction and materials.

29(E) An inclusive and affirming school climate.

30(F) Valid, reliable, comprehensive, and useful assessments.

31(G) Strong family partnerships.

32(H) A qualified educator workforce.

33(b) At a minimum, the Superintendent shall consider the quality
34and rigor of the manner in which the school districts meet the
35preconditions outlined in subdivision (a).

36(c) If the Superintendent determines that a school district fails
37to meet the preconditions specified in subdivision (a) with respect
38to some of the categorical education programs funded under the
39items listed in paragraph (2) of subdivision (a) of Section 42605,
40the Superintendent may select that school district as a participant,
P14   1but restrict the participation of that school district to a subset of
2the categorical education programs and budget items.

3(d) Nothing in this section shall be construed as imposing new
4mandates on school districts.

5

63062.  

A school district that participates in the Maximum
6Categorical Funding Flexibility and Accountability Program shall
7agree to demonstrate all of the following goals:

8(a) Significant progress toward accelerating pupils’ progress
9toward proficiency in California’s academic standards over a
10three-year period, as measured by the annual assessments
11administered pursuant to Article 4 (commencing with Section
1260640) of Chapter 5 of Part 33 and any other local, state, or
13national assessments.

14(b) A narrowing of the achievement gap in the school district’s
15federally recognized subgroups, as measured by the annual
16assessments administered pursuant to Article 4 (commencing with
17Section 60640) of Chapter 5 of Part 33 and any other local, state,
18or national assessments.

19(c) Fiscal solvency, as measured by the standards and criteria
20adopted by the state board pursuant to Section 33127 and
21implementing regulations.

22(d) Positive growth, as measured by the school district’s
23Academic Performance Index score, the annual assessments
24administered pursuant to Article 4 (commencing with Section
2560640) of Chapter 5 of Part 33, and any other local, state, or
26national assessments.

27(e) An increase in the school district’s graduation rate, as
28measured by the California Longitudinal Pupil Achievement Data
29System and the school district level data system.

30(f) Improvement in the school district’s college entrance rate,
31as measured by the National Student Clearinghouse or other
32 state-approved pupil data tracking system.

33(g) Improvement in the number of pupils who enter technical
34school after graduation, as measured by the National Student
35Clearinghouse or other state-approved pupil data tracking system,
36or who graduate prepared to enter high-wage, high-skill
37occupations.

38

63063.  

(a) For the 2015-16 fiscal year to the 2019-20 fiscal
39year, inclusive, the Superintendent shall do all of the following:

P15   1(1) Increase or decrease the amounts apportioned pursuant to
2paragraph (2) of this subdivision proportional to any increase or
3decrease in the amounts appropriated in Section 2.00 of the annual
4Budget Act for the budget items listed in paragraph (2) of
5subdivision (a) of Section 42605.

6(2) Provide an apportionment schedule to each participating
7school district that separately itemizes and differentiates the amount
8apportioned for each budget item listed in paragraph (2) of
9subdivision (a) of Section 42605.

10(3) Allocate the amounts apportioned pursuant to paragraph (2)
11of subdivision (a) of Section 42605 to the school districts selected
12for participation in the program on the same timeline that
13apportionments related to those budget items are apportioned to
14other school districts.

15(b) Each apportionment made pursuant to subdivision (a) to the
16school districts participating shall be in lieu of funding that those
17school districts would have received from the same budget items
18if not participating. A school district shall not receive duplicated
19funding as a result of participation in the program.

20

63064.  

(a) Notwithstanding any other law, a participating
21school district may use the funds that it receives pursuant to Section
2263063 for any purpose related to improving pupil achievement
23and academic instruction, except as provided in subdivision (b).

24(b) (1) With respect to funds received pursuant to Item
256110-128-0001 of Section 2.00 of the annual Budget Act, a
26participating school district shall use these funds to supplement
27the base program provided to English learners and economically
28disadvantaged pupils, as those terms are defined in Section 54026.

29(2) With respect to funds received pursuant to Item
306110-119-0001 of Section 2.00 of the annual Budget Act, a
31 participating school district shall use these funds to supplement
32the base program provided to foster youth.

33(3) With respect to funds received pursuant to Item
346110-196-0001 of Section 2.00 of the annual Budget Act, a
35participating school district shall use these funds to ensure that
36child care and development services continue to be provided to
37subsidized low-income children.

38(c) It is the intent of the Legislature that the educational needs
39of pupils served by the categorical programs funded by the items
40listed in paragraph (2) of subdivision (a) of Section 42605 be
P16   1served by a school district selected for participation in the pilot
2project.

3(d) It is not the intent of the Legislature to waive requirements
4of any educational programs enacted through the initiative process.

5(e) A participating school district shall implement an open and
6transparent process that allows public input at no less than two
7regularly scheduled meetings of the governing board of the school
8district so as to notify parents, staff, and the community of
9discussions and pending decisions related to the flexible use of
10funds apportioned pursuant to subdivision (a) of Section 63063.
11The school district shall seek input from parents, staff, and the
12community regarding the option or options most suitable for the
13school district and schools in the district. The governing board of
14the school district shall not take action on this item at the first
15meeting at which the item appears on the agenda.

16

63065.  

(a) Notwithstanding any other law, a participating
17school district shall be deemed to be in compliance with the
18program and funding requirements contained in statutory,
19regulatory, and provisional language associated with the items
20listed in paragraph (2) of subdivision (a) of Section 42605.

21(b) Notwithstanding subdivision (a), a participating school
22district that receives funds pursuant to Item 6110-128-0001 of
23Section 2.00 of the annual Budget Act shall continue to designate
24staff to coordinate services and programs, including the home
25language survey, for English learners and shall continue in
26existence parent advisory committees and schoolsite councils, as
27required pursuant to Section 62002.5.

28

63066.  

(a) A participating school district shall submit an
29evaluative annual report to the department that details the progress
30made during the immediately prior school year toward the goals
31set forth in Section 63062, including details of the academic
32progress made by pupil subgroups.

33(b) As part of the annual report pursuant to subdivision (a), a
34participating school district also shall submit to the department an
35annual expenditure report detailing the expenditure of specific
36categorical program funds and the purposes for which those funds
37were expended. The report shall do all of the following:

38(1) Identify the weighting of per pupil expenditures from all
39funds spent on low-socioeconomic, limited-English-proficient,
P17   1and special education pupils, as compared to other pupils in the
2school district.

3(2) Compare the identified weightings of per pupil expenditures
4reported pursuant to paragraph (1) to the weightings of per pupil
5expenditures spent in the 2009-10 fiscal year on pupils in the pupil
6subgroups listed in paragraph (1).

7(3) Be in a format designated by the Superintendent, using the
8Standardized Account Code Structure and consistent with the
9California School Accounting Manual, and shall provide the ability
10to track each of the amounts apportioned pursuant to subdivision
11(a) of Section 63063 with respect to resource, program, function,
12and object.

13(4) Be submitted by the date designated as the deadline for
14submission of school district annual financial statements.

15(c) The Superintendent shall provide guidance to the
16participating school districts so as to ensure that the expenditure
17reports submitted pursuant to subdivision (b) conform to the
18requirements placed on those reports.

19(d) By June 1, 2017, the Superintendent shall contract for the
20completion of an independent evaluation of the program utilizing
21available federal and other nonstate funding.

22(1) The contracted independent evaluator shall provide the
23Legislature, the Governor, the Superintendent, the state board, and
24the participating school districts with both of the following:

25(A) An interim report no later than 18 months after the
26Superintendent apportions funding pursuant to Section 63063.

27(B) By December 31, 2019, a final evaluation report that
28identifies the success and failures of the program and makes
29recommendations regarding improving the program and whether
30the program should be continued.

31(2) The evaluation shall make use of school district expenditure
32reports submitted pursuant to subdivision (b), school district plans
33as described in Section 63061, and any other available financial,
34programmatic, and pupil outcome data currently collected and
35available.

36(3) Upon request by the evaluator, the department and the
37participating school districts shall provide any available data that
38the evaluator deems necessary to meaningfully evaluate the
39program.

P18   1(4) This subdivision does not relieve a school district or any
2other party from obligations under state or federal law to protect
3pupil privacy.

4

63067.  

This chapter shall become inoperative on July 1, 2020,
5and, as of January 1, 2021, is repealed, unless a later enacted
6statute, that becomes operative on or before January 1, 2021,
7deletes or extends the dates on which it becomes inoperative and
8is repealed.



O

    99