AB1391 - Education finance: transitional kindergarten: funding for basic aid school districts and necessary small schools.

Amended IN Assembly April 21, 2025 Amended IN Assembly March 24, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1391 Introduced by Assembly Member Addis February 21, 2025 An act to amend Section 42238.03 of, and to add Section 42238.027 to to, the Education Code, relating to education finance, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1391, as amended, Addis. Education finance: transitional kindergarten: funding for basic aid school districts and necessary small schools. Existing law establishes a public school financing 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 (LCFF), as specified. Existing law requires funding pursuant to the LCFF to include, among other things, the sum of a base grant based on grant, supplemental grant, and concentration grant, if applicable, multiplied by average daily attendance. attendance, as provided. Existing law authorizes a school district or charter school to maintain a transitional kindergarten program. Existing law requires a school district or a charter school, as a condition of receipt of apportionment for pupils in a transitional kindergarten program, to ensure that, beginning with the 2025–26 school year, a child who will have their 4th birthday by September 1 of a school year be admitted to a transitional kindergarten program maintained by the school district or charter school. Under existing law, pursuant to the LCFF, school districts and charter schools receive, as funding for transitional kindergarten, the sum of a base grant amount, an additional adjustment to that amount, grant, a supplemental grant, a concentration grant, if applicable, and a transitional kindergarten add-on, all of which are based on add-on, multiplied by transitional kindergarten average daily attendance, as provided. Under existing law, school districts that receive local revenues that exceed the LCFF amount do not receive an a specified apportionment of LCFF funds, as provided, and are known as “basic aid school districts” or “excess tax entities.” Existing law provides for the funding of necessary small schools and high schools, as specified. Existing law requires that funding to include, among other things, various specified per-pupil and per-teacher amounts for different tiers based on the number of pupils and teachers, as specified. Under existing law, these necessary small school calculations modify the LCFF calculations for school districts with necessary small schools, as provided. law, notwithstanding those provisions, requires charter schools and school districts, including basic aid districts, to receive a minimum level of state-aid funding, as provided. This bill would, commencing with the 2025–26 fiscal year, require the minimum level of state funding for basic aid districts to include both the above-described sum of the LCFF base, supplemental, and concentration grants for transitional kindergarten, and an unspecified add-on amount for transitional kindergarten, multiplied by transitional kindergarten average daily attendance, as provided. Existing law provides for the funding of necessary small schools and high schools, as specified. Existing law requires that funding to be based on, among other things, the necessary small school’s average daily attendance and the number of full-time teachers, as specified. Existing law requires these necessary small school amounts to be added to the LCFF calculations for school districts with necessary small schools, as provided. This bill would, commencing with the 2025–26 fiscal year, and for each fiscal year thereafter, require the Superintendent of Public Instruction to allocate funding for pupils attending transitional kindergarten in basic aid school districts or in certain necessary small schools, as provided. The bill would require this allocation to include, for any average daily attendance generated by pupils attending a transitional kindergarten program in the basic aid school district, or the necessary small school, the sum of the above-described LCFF base grant, base grant adjustment, supplemental grant, and concentration grant, if applicable, and transitional kindergarten add-on amounts, as provided. The bill would, commencing with the 2025–26 fiscal year, and for each fiscal year thereafter, appropriate each fiscal year the amount of funding necessary to implement the required allocations for the applicable fiscal year from the General Fund to the Superintendent for allocation to necessary small schools under these provisions. Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution. Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. It is the intent of the Legislature to ensure that basic aid school districts and necessary small schools are able to provide quality transitional kindergarten programs for their pupils without the need to make substantial reductions in other parts of their budgets. SECTION 1. SEC. 2. Section 42238.027 is added to the Education Code, immediately following Section 42238.026, to read: 42238.027. (a) It is the intent of the Legislature to ensure that basic aid school districts and necessary small schools are able to provide quality transitional kindergarten programs for their pupils without the need to make substantial reductions in other parts of their budgets. (b) 42238.027. (a) Commencing with the 2025–26 fiscal year, and each fiscal year thereafter, the Superintendent shall allocate funding received pursuant to subdivision (c) (b) for any average daily attendance generated by pupils attending a transitional kindergarten program in a basic aid school district or in a necessary small school of a necessary small school district the sum of the amounts in paragraphs (1) to (3), (5), inclusive, to the applicable school district: (1) The amount set forth in subparagraph (A) of paragraph (1) of subdivision (d) of Section 42238.02 for the applicable fiscal year. (2) The amount set forth in subparagraph (A) of paragraph (3) of subdivision (d) of Section 42238.02 for the applicable fiscal year. (3) The amount set forth in subdivision (e) of Section 42238.02 for the applicable fiscal year. (4) The amount set forth in subparagraph (A) of paragraph (1) of subdivision (f) of Section 42238.02 for the applicable fiscal year, as adjusted by subparagraph (B) of paragraph (1) of subdivision (f) of Section 42238.02. (3) (5) The amount set forth in paragraph (2) of subdivision (g) of Section 42238.02 for the applicable fiscal year. (c) (b) Commencing with the 2025–26 fiscal year, and each fiscal year thereafter, the amount necessary to implement subdivision (b) (a) for the applicable fiscal year is hereby appropriated in that fiscal year from the General Fund to the Superintendent for allocation as described in this section. (d) (c) For purposes of this section, the following definitions apply: (1) “Basic aid school district” has the same meaning as defined in subdivision (o) of Section 42238.02. (2) (1) “Necessary small school” has the same meaning as defined in Section 42283. (3) (2) “Necessary small school district” means a school district that (A) is not a basic aid district, as that term is defined in subdivision (o) of Section 42238.02, (B) includes one or more necessary small schools, and (C) receives funding pursuant to Article 4 (commencing with Section 42280). (4) (3) “Transitional kindergarten program” means a transitional kindergarten program that operates pursuant to the rules and conditions of Section 48000. SEC. 3. Section 42238.03 of the Education Code is amended to read: 42238.03. (a) Commencing with the 2013–14 fiscal year and each fiscal year thereafter, the Superintendent shall calculate a base entitlement for the transition to the local control funding formula for each school district and charter school equal to the sum of the amounts computed pursuant to paragraphs (1) to (4), inclusive. The amounts computed pursuant to paragraphs (1) to (4), inclusive, shall be continuously appropriated pursuant to Section 14002. (1) The current fiscal year base entitlement funding level shall be the sum of all of the following: (A) For school districts, revenue limits in the 2012–13 fiscal year as computed pursuant to Article 2 (commencing with Section 42238), as that article read on January 1, 2013, divided by the 2012–13 average daily attendance of the school district computed pursuant to Section 42238.05. That quotient shall be multiplied by the current fiscal year average daily attendance of the school district computed pursuant to Section 42238.05. A school district’s 2012–13 fiscal year revenue limit funding shall exclude amounts computed pursuant to Article 4 (commencing with Section 42280). For purposes of this subparagraph, 2012–13 fiscal year average daily attendance and 2012–13 fiscal year revenue limits shall be considered final as of the annual apportionment for the 2012–13 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339. (B) (i) For charter schools, general purpose funding in the 2012–13 fiscal year as computed pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that article read on January 1, 2013, and the amount of in-lieu property tax provided to the charter school pursuant to Section 47635, as that section read on June 30, 2013, divided by the 2012–13 average daily attendance of the charter school computed pursuant to Section 42238.05. That quotient shall be multiplied by the current fiscal year average daily attendance of the charter school computed pursuant to Section 42238.05. For purposes of this subparagraph, 2012–13 fiscal year average daily attendance and 2012–13 fiscal year general purpose funding, as computed pursuant to Article 2 (commencing with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that article read on January 1, 2013, shall be considered final as of the annual apportionment for the 2012–13 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339. (ii) The amount computed pursuant to clause (i) shall exclude funds received by a charter school pursuant to Section 47634.1, as that section read on January 1, 2013. (C) The amount computed pursuant to subparagraph (A) shall exclude funds received pursuant to Section 47633, as that section read on January 1, 2013. (D) For school districts, funding for qualifying necessary small high schools and necessary small elementary schools shall be adjusted to reflect the funding levels that correspond to the 2012–13 necessary small high school and necessary small elementary school allowances pursuant to Article 4 (commencing with Section 42280) and former Section 42238.146, as those provisions read on January 1, 2013. (2) (A) Entitlements from items contained in Section 2.00, as adjusted pursuant to Section 12.42, of the Budget Act of 2012 for Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001, and 6360-101-0001, 2012–13 fiscal year funding for the Class Size Reduction Program pursuant to former Chapter 6.10 (commencing with Section 52120) of Part 28 of Division 4, as it read on January 1, 2013, and 2012–13 fiscal year funding for pupils enrolled in community day schools who are mandatorily expelled pursuant to subdivision (d) of Section 48915. The entitlement for basic aid school districts shall include the reduction of 8.92 percent as applied pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 89 of Chapter 38 of the Statutes of 2012. For purposes of this subparagraph, 2012–13 fiscal year entitlements shall be considered final as of the annual apportionment for the 2012–13 fiscal year, as calculated for purposes of the certification required on or before February 20, 2014, pursuant to Sections 41332 and 41339. (B) Commencing with the 2014–15 fiscal year, the entitlements identified in subparagraph (A) shall be adjusted to reflect the exclusion of one-time redevelopment agency liquid asset recovery revenue, pursuant to Section 34179.5 and following, of the Health and Safety Code, before the application of the 8.92-percent reduction applied pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012. (3) The allocations pursuant to Sections 42606 and 47634.1, as those sections read on January 1, 2013, divided by the 2012–13 average daily attendance of the charter school computed pursuant to Section 42238.05. That quotient shall be multiplied by the current fiscal year average daily attendance of the charter school computed pursuant to Section 42238.05. (4) The amount allocated to a school district or charter school pursuant to paragraph (3) of subdivision (b) for the fiscal years before the current fiscal year divided by the average daily attendance of the school district or charter school for the fiscal years before the current fiscal year computed pursuant to Section 42238.05. That quotient shall be multiplied by the current fiscal year average daily attendance of the school district or charter school computed pursuant to Section 42238.05. For purposes of this paragraph, the amount allocated pursuant to paragraph (3) of subdivision (b) for the fiscal years before the current fiscal year, and the average daily attendance of the school district or charter school for the fiscal years before the current fiscal year, as computed pursuant to Section 42238.05, shall be considered final as of the third recertification of the annual apportionment. (5) (A) For the 2013–14 and 2014–15 fiscal years only, a school district that, in the 2012–13 fiscal year, from any of the funding sources identified in paragraph (1) or (2), received funds on behalf of, or provided funds to, a regional occupational center or program joint powers agency established in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for purposes of providing instruction to secondary pupils shall [Text truncated for display. Full text available on Congress.gov.]