SECTIONS 41200-41209 - California Statutes

EDUCATION CODE

SECTION 41200-41209

41200. (a) The Legislature finds and declares that the California
Constitution, as amended by "The Classroom Instructional Improvement
and Accountability Act" as adopted by the voters on November 8, 1988,
mandates that a specific minimum level of state General Fund
revenues be guaranteed and applied for the support of school
districts, community college districts, and state agencies that
provide direct elementary and secondary level instructional services.
The Legislature further finds and declares that, by defining certain
terms used in establishing a method of calculation for determining
the guaranteed minimum level of funding, Section 14022.3, 14022.5,
and this chapter further the purposes of "The Classroom Instructional
Improvement and Accountability Act."
(b) It is the intent of the Legislature that the annual Budget
Bill, required by Section 12 of Article IV of the California
Constitution, include a section that specifies the respective
percentages and amounts of General Fund revenues that must be set
aside and applied for the support of school districts, community
college districts, and the direct elementary and secondary level
instructional services of state agencies, as required by subdivision
(b) of Section 8 of Article XVI of the California Constitution.

41202. The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
(a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts, shall not be considered to be "moneys to be applied by the
State."
(b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI, means General Fund revenues that are the
proceeds of taxes as defined by subdivision (c) of Section 8 of
Article XIII B of the California Constitution, including, for the
1986-87 fiscal year only, any revenues that are determined to be in
excess of the appropriations limit established pursuant to Article
XIII B for the fiscal year in which they are received. General Fund
revenues for a fiscal year to which paragraph (1) of subdivision (b)
is being applied shall include, in that computation, only General
Fund revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986.
(c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent of Public Instruction, to the
Controller, or to any other fund or state agency for the purpose of
allocation to school districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (1) of subdivision (b) of Article XVI, without regard to
any unexpended balance of any appropriation. Any reappropriation of
funds appropriated in any prior year shall not be included in the sum
of appropriations.
(d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
(e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent of Public
Instruction, to the Chancellor of the California Community Colleges,
or to any other fund or state agency for the purpose of allocation to
school districts and community college districts. The full amount of
any appropriation shall be included in the calculation of the
percentage required by paragraph (2) or (3) of subdivision (b) of
Section 8 of Article XVI, without regard to any unexpended balance of
any appropriation. Any reappropriation of funds appropriated in any
prior year shall not be included in the sum of appropriations.
(f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for the
Child Care and Development Services Act pursuant to Chapter 2
(commencing with Section 8200) of Part 6 and shall not include any of
the following:
(1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for the Child Care and Development Services Act
pursuant to Chapter 2 (commencing with Section 8200) of Part 6.
(2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
(3) Any appropriation made to service any public debt approved by
the voters of this state.
(g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision (h) of Section 42238, that are used to
offset state aid for school districts in calculations performed
pursuant to Sections 2558, 42238, and Chapter 7.2 (commencing with
Section 56836) of Part 30.
(h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college districts in calculations performed pursuant to Section
84700. In no event shall the revenues or receipts derived from
student fees be considered "allocated local proceeds of taxes."
(i) For the purposes of calculating the 4 percent entitlement
pursuant to subdivision (a) of Section 8.5 of Article XVI of the
California Constitution, "the total amount required pursuant to
Section 8(b)" shall mean the General Fund aid required for schools
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution, and shall not include allocated local
proceeds of taxes.

41203. Any calculation of the monies to be applied by the state for
the support of school districts and community college districts,
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution, shall be made as a single, aggregate
calculation for the school districts serving kindergarten and grades
1 to 12, inclusive, for the community college districts, and for the
direct elementary and secondary level instructional services provided
by the State of California.

41203.1. (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for the purposes of this
section, school districts, community college districts, and direct
elementary and secondary level instructional services provided by the
State of California shall be regarded as separate segments of public
education, and each of these three segments of public education
shall be entitled to receive respective shares of the amount
calculated pursuant to Section 41203 as though the calculation made
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution were to be applied separately to each segment
and the base year for the purposes of this calculation under
paragraph (1) of subdivision (b) of Section 8 of Article XVI of the
California Constitution were based on the 1989-90 fiscal year.
Calculations made pursuant to this subdivision shall be made so that
each segment of public education is entitled to the greater of the
amounts calculated for that segment pursuant to paragraph (1) or (2)
of subdivision (b) of Section 8 of Article XVI of the California
Constitution.
(b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
(c) Notwithstanding any other law, this section does not apply to
the 1992-93 to 2010-11 fiscal years, inclusive.

41203.3. On or after the effective date of the act adding this
section to the Education Code, in order for an appropriation that is
not made for allocation to and administration by school districts, as
defined in Section 41302.5 of the Education Code, or to community
college districts to be counted towards the state's minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution,
the appropriation shall, in addition to all other requirements of
law, have statutory authorization independent of the annual Budget
Act that reflects a legislative determination that the appropriation
shall be counted toward satisfying that obligation.

41203.5. (a) In any fiscal year in which the amount of the moneys
that are required to be applied by the state for the support of
school districts and community college districts is determined under
paragraph (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, a supplemental appropriation shall be made
from the General Fund for the support of those entities in that sum
by which the amount determined under that paragraph is exceeded by
the amount computed under subdivision (b) of this section.
(b) The amount of General Fund revenues required to assure that
the rate of growth in total allocations per unit of average daily
attendance to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B of the California Constitution, excluding any revenues allocated
pursuant to subdivision (a) of Section 8.5 of Article XVI of the
California Constitution, and allocated local proceeds of taxes is not
less than the rate of growth in per capita appropriations for all
other programs and services from General Fund proceeds of taxes
appropriated pursuant to Article XIII B of the California
Constitution, excluding any revenues allocated pursuant to
subdivision (a) of Section 8.5 of Article XVI of the California
Constitution.
(c) In no event shall the total amount appropriated in any fiscal
year pursuant to this section and paragraph (3) of subdivision (b) of
Section 8 of Article XVI of the California Constitution exceed the
amount which would have been computed pursuant to paragraph (2) of
subdivision (b) of Section 8 of Article XVI of the California
Constitution.

41203.6. For purposes of subdivision (c) of Section 8 of Article
XVI of the California Constitution, "the amount computed pursuant to
paragraph (2) of subdivision (b)" shall not be deemed to mean either
the amount applied by the state for the support of school districts
and community college districts in a fiscal year for which
subdivision (b) of Section 8 of Article XVI of the California
Constitution is suspended pursuant to subdivision (h) of that
section, or the amount computed pursuant to paragraph (3) of
subdivision (b) of that section.

41203.7. (a) Notwithstanding any other provision of law, a
supplemental appropriation shall be made from the General Fund for
the support of school districts, as defined in Section 41302.5, in
each fiscal year for the purposes set forth in subdivision (c). The
amount of that supplemental appropriation shall be equal to the sum
of the amount allocated to school districts pursuant to this section
in the prior fiscal year and 25 percent of the amount, if any,
allocated to school districts in the prior fiscal year pursuant to
Section 8.5 of Article XVI of the California Constitution. That
amount shall be adjusted annually for changes in enrollment, and for
the change in the cost of living pursuant to paragraph (1) of
subdivision (e) of Section 8 of Article XIII B of the California
Constitution.
(b) The funds appropriated for the purposes of subdivision (a)
shall be allocated to each school district in an equal amount per
unit of enrollment, in accordance with the allocation procedure set
forth in subdivision (c) of Section 8.5 of Article XVI of the
California Constitution.
(c) The amount allocated to each school district pursuant to this
section shall be used only for the reduction of class size in any
grade level or subject area. That class size reduction shall occur in
accordance with Chapter 6.8 (commencing with Section 52080) of Part
28 of the Education Code, or in any other manner determined by the
school district governing board. Not later than 90 days following
each fiscal year in which a school district receives funding pursuant
to this section, the governing board of that school district shall
certify in writing to the Superintendent of Public Instruction that
all expenditures of that funding were in compliance with this
subdivision.

41203.8. (a) Notwithstanding any other provision of law, a
supplemental appropriation shall be made from the General Fund in the
annual Budget Act for the support of community college districts in
each fiscal year for the purposes specified in the Budget Act. The
amount of that supplemental appropriation shall be equal to the sum
of the amount allocated to community college districts pursuant to
this section in the prior fiscal year and 25 percent of the amount,
if any, allocated to community college districts in the prior fiscal
year pursuant to Section 8.5 of Article XVI of the California
Constitution. That amount shall be adjusted annually for changes in
enrollment, and for the change in the cost of living pursuant to
paragraph (1) of subdivision (e) of Section 8 of Article XIII B of
the California Constitution.
(b) The funds appropriated for the purposes of subdivision (a)
shall be allocated to each community college district in an equal
amount per unit of enrollment, in accordance with the allocation
procedure set forth in subdivision (c) of Section 8.5 of Article XVI
of the California Constitution.

41204. (a) It is the intent of the Legislature, pursuant to "The
Classroom Instructional Improvement and Accountability Act," that
school districts, as defined in Section 41302.5, and community
college districts, as constituted during 1986-87 fiscal year,
annually receive a basic minimum portion of the revenues that is
equivalent to the percentage of revenues that were deposited to the
General Fund in that year.
(b) In recognition of this intent, it is further the intent of the
Legislature that both houses and the Governor be guided by the
following:
(1) If the revenues of a tax that were deposited in the General
Fund in the 1986-87 fiscal year are redirected to another fund, or
level of government, then the percentages of General Fund revenues
required to be applied by the state for the support of school
districts, community college districts, and state agencies providing
direct elementary and secondary level instructional services shall be
recalculated as if those revenues were not deposited in the General
Fund in the 1986-87 fiscal year.
(2) If the allocated local proceeds of taxes, as defined by
subdivisions (g) and (h) of Section 41202, received by a school
district or community college district during the 1986-87 fiscal year
are redirected to other entities or statutorily or constitutionally
reduced or eliminated, the additional General Fund support provided
to replace the allocated local proceeds of taxes may not be counted
as General Fund revenues required to be applied for the support of
school districts, community college districts, and state agencies
providing direct elementary and secondary level instructional
services pursuant to paragraph (1) of subdivision (b) of Section 8 of
Article XVI of the California Constitution, unless the percentage of
General Fund revenues appropriated to school districts, community
college districts, and state agencies providing direct elementary and
secondary level instructional services in the 1986-87 fiscal year is
adjusted to reflect the amount of General Fund support that would
have been provided in the 1986-87 fiscal year had the allocated local
proceeds of taxes been correspondingly reduced.
(3) If a program of a school district, as defined in Section
41302.5, or of a community college district was supported by state
funds from a source other than the General Fund during the 1986-87
fiscal year and General Fund moneys are subsequently provided in
support of the program and in lieu of the other source of funds, the
supplanting General Fund revenues shall not be counted as monies to
be applied by the state for the support of school districts or
community college districts pursuant to subdivision (b) of Section 8
of Article XVI of the California Constitution.
(c) Programs that existed in the 1986-87 fiscal year, and were not
the functional responsibility of school districts or community
college districts in that fiscal year, shall not be shifted to the
responsibility or financial support of school districts or community
college districts without appropriate corresponding adjustment to the
calculations made pursuant to subdivision (b) of Section 8 of
Article XVI of the California Constitution. Nothing in this
subdivision shall be construed to prevent the creation of a new
educational program that is supported by a General Fund appropriation
made in conformity with subdivision (b) of Section 8 of Article XVI
of the California Constitution.
(d) Enrollment, average daily attendance, or average daily
attendance equivalents used for the purpose of calculating "increases
in enrollment" pursuant to paragraph (2) of subdivision (b) of
Section 8 of Article XVI of the California Constitution shall not be
redefined, adjusted, or otherwise recalculated unless the appropriate
action is taken to neutralize the effect of the change with respect
to the adjustment required to be made for increases in enrollment.

41204.1. (a) (1) Pursuant to paragraph (2) of subdivision (b) of
Section 41204, the Director of Finance shall annually adjust "the
percentage of General Fund revenues appropriated for school districts
and community college districts, respectively, in fiscal year
1986-87" for purposes of applying paragraph (1) of subdivision (b) of
Section 8 of Article XVI of the California Constitution, to reflect
those property tax revenue allocation modifications required by the
qualifying provisions in a manner that ensures that those
modifications will have no net fiscal impact upon the amounts that
are otherwise required to be applied by the state for the support of
school districts and community college districts pursuant to Section
8 of Article XVI of the California Constitution.
(2) For purposes of this section, "qualifying provisions," means
all of the following:
(A) The amendments made to Chapter 6 (commencing with Section 95)
of Part 0.5 of Division 1 of the Revenue and Taxation Code and
Article 7 (commencing with Section 33680) of Chapter 6 of Part 1 of
Division 24 of the Health and Safety Code during the 1991-92 Regular
Session to the 2003-04 Regular Session, inclusive, and during any
Extraordinary Session concurrently held during those session years,
inclusive.
(B) Section 97.80 of the Revenue and Taxation Code.
(C) Section 100.06 of the Revenue and Taxation Code.
(b) Notwithstanding any other provision of law, for the 2004-05
fiscal year and each fiscal year thereafter, "the percentage of
General Fund revenues appropriated for school districts and community
colleges districts, respectively, in fiscal year 1986-87," for
purposes of paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution, shall be deemed to be the
percentage of General Fund revenues that would have been appropriated
for those entities if the qualifying provisions had been operative
for the 1986-87 fiscal year.
(c) It is the intent of the Legislature in enacting the act adding
this section to ensure both of the following:
(1) That the changes required by the qualifying provisions in the
allocations of ad valorem property tax revenues do not have a net
fiscal impact upon school districts, as defined in Section 41302.5,
or community college districts.
(2) That the changes required by the qualifying provisions in the
allocations of ad valorem property tax revenues do not have a net
fiscal impact upon the amounts of revenue otherwise required to be
applied by the state for the support of school districts and
community college districts pursuant to Section 8 of Article XVI of
the California Constitution.

41204.2. The Director of Finance shall adjust "the percentage of
General Fund revenues appropriated for school districts and community
college districts, respectively, in fiscal year 1986-87" for
purposes of applying paragraph (1) of subdivision (b) of Section 8 of
Article XVI of the California Constitution in a manner that ensures
that the shift in General Fund revenues pursuant to Sections 6051.8,
6201.8, 6357.7, and 7361.1, subdivision (b) of Section 7360, and
subdivision (b) of Section 60050 of the Revenue and Taxation Code, as
those provisions were enacted in the 2009-10 Eighth Extraordinary
Session, shall have no net fiscal impact upon the amounts that are
otherwise required to be applied by the state for the support of
school districts and community college districts pursuant to Section
8 of Article XVI of the California Constitution.

41204.5. (a) The Legislature finds and declares this section to be
in furtherance of the purposes set forth in Section 41204.
(b) Notwithstanding any other provision of law, for the 1992-93
fiscal year, the percentage of "General Fund revenues appropriated
for school districts and community college districts, respectively,
in fiscal year 1986-87," for purposes of paragraph (1) of subdivision
(b) of Section 8 of Article XVI of the California Constitution,
shall be deemed to be the percentage of General Fund revenues that
would have been appropriated for those entities if the amendments
made to Chapter 6 (commencing with Section 95) of Part 0.5 of the
Revenue and Taxation Code by statutes enacted during the 1991-92
Regular Session having the effect that property tax revenues are
shifted from one or more counties, cities, or special districts to
one or more school districts or community college districts, had been
operative for the 1986-87 fiscal year.
(c) Notwithstanding any other provision of law, for the 1993-94
fiscal year and each year thereafter, the percentage of "General Fund
revenues appropriated for school districts and community college
districts, respectively, in fiscal year 1986-87," for purposes of
paragraph (1) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, shall be deemed to be the percentage of
General Fund revenues that would have been appropriated for those
entities if the amendments made to Chapter 6 (commencing with Section
95) of Part 0.5 of the Revenue and Taxation Code by statutes enacted
during the 1991-92 Regular Session and the amendments made to that
chapter by statutes enacted during the 1993-94 Regular Session having
the effect that property tax revenues are shifted from one or more
counties, cities, or special districts to one or more school
districts or community college districts, had been operative for the
1986-87 fiscal year.

41204.6. Notwithstanding any other provisions of law, for the
purposes of determining the minimum state school funding obligation
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution for the 1993-94 fiscal year and the
supplemental appropriation for school districts and community college
districts pursuant to subdivision (a) of Section 41203.5 of the
Education Code for the 1993-94 fiscal year, the 1993-94 fiscal year
"appropriations for all other programs and services from General Fund
proceeds of taxes appropriated pursuant to Article XIII B of the
California Constitution, excluding any revenues allocated pursuant to
subdivision (a) of Section 8.5 of Article XVI of the California
Constitution," as used in subdivision (b) of Section 41203.5, shall
be deemed to be appropriations for all other programs and services
from General Fund proceeds of taxes appropriated pursuant to Article
XIIIB of the California Constitution, excluding any revenues
allocated pursuant to subdivision (a) of Section 8.5 of Article XVI
of the California Constitution, that would have been appropriated for
those entities if the amendments made to Chapter 6 (commencing with
Section 95) of Part 0.5 of the Revenue and Taxation Code by statutes
enacted during the 1993-94 Regular Session having the effect that
property tax revenues are shifted from one or more counties, cities,
or special districts to one or more school districts, county offices
of education, or community college districts, had not been enacted.

41205. The Legislature hereby finds and declares that the only
state agencies that provide direct elementary and secondary level
instructional services within the meaning of Section 41302.5 are
those state agencies enumerated in Section 8880.5 of the Government
Code, or in any successor to that section, not including any agency
enumerated in any of subdivisions (a) to (e), inclusive, of that
section, and California Indian education centers as established
pursuant to Article 6 (commencing with Section 33380) of Chapter 3 of
Part 20. The amount of any appropriation made to a state agency for
direct elementary and secondary level instruction services shall be
determined by applying the definition of those services, as defined
in the California School Accounting Manual, to the expenditures of
the agency. However, for the Diagnostic Schools for Neurologically
Handicapped Children, as established pursuant to Article 1
(commencing with Section 59200) of Chapter 3 of Part 32, all
expenditures of the agency shall be considered appropriations made to
a state agency for direct elementary and secondary level
instruction.

41206. (a) For purposes of subdivision (b) of Section 8 of Article
XVI of the California Constitution, all determinations of
percentages, amounts, revenues, appropriations, allocations, proceeds
of taxes, increases in cost of living, or enrollments shall be based
upon the best available estimate until actual data becomes
available, and then upon actual data when it is available.
(b) (1) Within nine months following the end of any fiscal year,
the Superintendent of Public Instruction and the Director of Finance
shall recalculate, as necessary, and jointly certify all actual data
pertaining to school districts, as defined, for the prior fiscal
year. Any amount of funding required by subdivision (b) of Section 8
of Article XVI of the California Constitution to be appropriated to
school districts for that year, less any amounts already appropriated
for that year including any amounts appropriated for deficiencies
pursuant to paragraph (2), shall be set aside by the Controller and,
if not appropriated to school districts by the Legislature within 90
days, shall be allocated to school districts by the Controller in
proportion to the enrollment in school districts as determined for
purposes of Section 8.5 of Article XVI of the California
Constitution.
(2) For purposes of Section 8 of Article XVI of the California
Constitution, appropriations for deficiencies or prior year
adjustments shall be deemed to be appropriations in the fiscal year
in which the deficiencies or prior year adjustments occurred, unless
otherwise provided by law.
(c) Within nine months following the end of any fiscal year, the
Chancellor of the California Community Colleges and the Director of
Finance shall recalculate, as necessary, and jointly certify all
actual data pertaining to community college districts, as defined,
for the prior fiscal year. Any amount of funding required by
subdivision (b) of Section 8 of Article XVI of the California
Constitution to be appropriated to community college districts for
that year, less any amounts already appropriated for that year, shall
be set aside by the Controller and, if not appropriated to community
college districts by the Legislature within 90 days, shall be
allocated to community college districts by the Controller in
proportion to the enrollment in community college districts as
determined for purposes of Section 8.5 of Article XVI of the
California Constitution.

41206.1. Pursuant to Section 41206, the Superintendent of Public
Instruction, the Chancellor of the California Community Colleges, and
the Controller shall ensure that the General Fund appropriations
transferred to Sections A and B of the State School Fund include
adjustments reflected in the amounts finally certified by the
superintendent or the chancellor, respectively, at the annual
certification of apportionments pursuant to Sections 41336, 41341,
and 84320, for purposes of determining appropriations and allocations
pursuant to Section 8 of Article XVI of the California Constitution.

41206.5. For purposes of paragraph (2) of subdivision (b) of
Section 8 of Article XVI of the California Constitution, "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B and allocated local proceeds of taxes" for any fiscal year shall
include any revenues that are allocated to school districts and
community college districts, as a result of the determination,
pursuant to the two-year calculation set forth in subdivision (a) of
Section 2 of Article XIII B of the California Constitution, that
their allocation would not result in an appropriation by the state in
compliance with Article XIII B of the California Constitution.

41207. (a) Notwithstanding Section 41206, by January 1, 2006, the
Superintendent of Public Instruction and the Director of Finance
shall jointly determine the outstanding balance of the minimum
funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the 1995-96 to 2003-04 fiscal years, inclusive. The
Director of Finance shall notify the Governor and Legislature of the
amount of the outstanding balance for each fiscal year between the
1995-96 and 2003-04 fiscal years, inclusive, and the total amount of
the outstanding balance for those years. This notification does not
constitute a certification for purposes of Section 41206.
(b) If the joint determination required pursuant to subdivision
(a) is not made for any fiscal year by January 1, 2006, the
Controller shall make the determination for that fiscal year or years
and shall notify the Governor and Legislature of that determination
on or before March 1, 2006. This notification does not constitute a
certification for purposes of Section 41206.
(c) For purposes of this section, the outstanding balance of the
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for a fiscal year is the amount, if any, by which the
amount required to be applied by the state for the support of school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution, including any maintenance
factor that should have been allocated in that fiscal year pursuant
to subdivision (e) of Section 8 of Article XVI, exceeds the amount
applied by the state for the support of school districts and
community college districts for that fiscal year.
(d) Commencing with the 2006-07 fiscal year, the sum of one
hundred fifty million dollars ($150,000,000) is hereby annually
appropriated from the General Fund to the Controller for allocation
to school districts and community college districts for the purpose
of discharging in full the outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
identified in subdivision (a) or (b) of this section. This annual
appropriation shall continue until the Director of Finance reports to
the Legislature that the sum of appropriations made and allocated
pursuant to this subdivision equals the total outstanding balance of
the minimum funding obligation to school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution determined pursuant to subdivision (a) or
(b), as applicable.
(1) The amount annually appropriated pursuant to this subdivision
shall be allocated to school districts and community college
districts in a manner that reflects the proportion of regular average
daily attendance in school districts, as defined in subdivision (a)
of Section 41209, to funded full-time equivalent students in
community college districts, as those numbers are reported at the
time of the second principal apportionment for the fiscal year prior
to the fiscal year in which funds are to be received.
(2) The Controller shall allocate funds annually appropriated
pursuant to this subdivision to school districts and community
college districts based on attendance information provided by the
department and Chancellor of the California Community Colleges on
August 15 of each year commencing with the 2006-07 fiscal year,
unless otherwise provided by the Legislature pursuant to subdivision
(g). For purposes of this subdivision a school district includes a
county office of education and a charter school.
(e) For purposes of Section 8 of Article XVI of the California
Constitution, the amounts appropriated and allocated pursuant to this
section shall be applied to the outstanding balance of the minimum
funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the 1995-96 to 2003-04 fiscal years, inclusive, in
chronological order beginning with the 1995-96 fiscal year and shall
be deemed to be appropriations made and allocated in the fiscal year
in which the deficiencies resulting in the outstanding balance were
incurred. When the amount determined to be owed for each fiscal year
pursuant to subdivision (a) or (b) is fully appropriated and
allocated pursuant to subdivision (d), the data used in the
computations made under subdivision (a) or (b) and the total amount
owed by the state for the support of school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution for that fiscal year, including as much of
the maintenance factor for that fiscal year determined pursuant to
subdivision (d) of Section 8 of Article XVI as has been allocated as
required by subdivision (e) of Section 8 of Article XVI by virtue of
the payments made under this section, shall be deemed certified for
purposes of Section 41206.
(f) Funding received by school districts and community college
districts pursuant to this section shall first be deemed to be paid
in satisfaction of any outstanding claims pursuant to Section 6 of
Article XIII B of the California Constitution for reimbursement of
state-mandated local costs for any fiscal year. Notwithstanding any
amounts that are deemed, pursuant to this subdivision, to be paid in
satisfaction of outstanding claims for reimbursement of
state-mandated local costs, the Controller may audit any claim as
allowed by law and may reduce any amount owed by a local educational
agency pursuant to an audit by reducing amounts owed for any other
mandate claims. The Controller shall apply amounts received by each
school district or community college district against any balances of
unpaid claims for reimbursement of state-mandated local costs and
interest in chronological order beginning with the earliest claim.
The Controller shall report to each local educational agency the
amounts of any claims and interest that are offset from funds
provided pursuant to this section and shall report a summary of the
amounts offset for each mandate for each fiscal year to the
Department of Finance and the fiscal committees of the Legislature.
The governing board of a school district or community college
district may expend funds received pursuant to this section in excess
of amounts offsetting mandate claims for any other one-time
purposes, as determined by the governing board.
(g) The Legislature may specify in the annual Budget Act or other
statute other one-time purposes for which the funds appropriated
pursuant to this section shall be used so long as those
appropriations are made for allocation to school districts or
community college districts.

41207.1. (a) Notwithstanding Section 41206, the minimum state
educational funding guarantee for school districts and community
college districts for the 2004-05 fiscal year, as determined pursuant
to Chapter 213 of the Statutes of 2004, is forty-eight billion six
hundred seventy-five million six hundred seventy-four thousand
dollars ($48,675,674,000), creating an outstanding balance of one
billion six hundred twenty million nine hundred twenty-eight thousand
dollars ($1,620,928,000). The outstanding balance shall be
appropriated and allocated pursuant to Article 3.7 (commencing with
Section 52055.700) of Chapter 6.1 of Part 28.
(b) Notwithstanding Section 41206, the outstanding balance of the
minimum state educational funding requirement for school districts
and community college districts required by subdivision (b) of
Section 8 of Article XVI of the California Constitution in the
2005-06 fiscal year shall be determined using actual data agreed to
by the Superintendent and the Director of Finance no later than
January 31, 2008. The Director of Finance shall provide a written
notification to the Legislature within one month after completion of
the determination, detailing the data of the determination. The
outstanding balance shall be appropriated and allocated pursuant to
Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of
Part 28.
(c) When the amount determined to be owed for the 2004-05 and
2005-06 fiscal years pursuant to subdivision (a) or (b) is fully
appropriated and allocated pursuant to Article 3.7 (commencing with
Section 52055.700) of Chapter 6.1 of Part 28, the data used in the
computations made under subdivisions (a) and (b) and the total amount
owed by the state for the support of school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution and Chapter 213 of the Statutes of 2004 for
those fiscal years, including as much of the maintenance factor for
those fiscal years determined pursuant to subdivision (d) of Section
8 of Article XVI as has been allocated as required by subdivision (e)
of Section 8 of Article XVI by virtue of the payments made under
this section, shall be deemed certified for purposes of Section
41206.

41207.2. (a) Notwithstanding Sections 41203.5 and 41206 and any
other provision of law, the minimum funding obligation for school
districts and community college districts pursuant to subdivision (b)
of Section 8 of Article XVI of the California Constitution for the
2008-09 fiscal year is forty-nine billion one hundred two million
forty-one thousand dollars ($49,102,041,000). The maintenance factor
created pursuant to subdivision (d) of Section 8 of Article XVI of
the California Constitution for the 2008-09 fiscal year, together
with the balances of maintenance factor obligations for prior fiscal
years that are unpaid as of June 30, 2009, totals eleven billion two
hundred twelve million nine hundred nine thousand dollars
($11,212,909,000). The maintenance factor shall be appropriated and
allocated pursuant to subdivision (e) of Section 8 of Article XVI of
the California Constitution.
(b) For the 2009-10 fiscal year, computations of funding
obligations pursuant to Section 8 of Article XVI of the California
Constitution shall be based on the amount of the minimum funding
guarantee for the 2008-09 fiscal year, and the amount of the
maintenance factor obligation set forth in subdivision (a) of this
section.
(c) The computations required by subdivision (b) of Section 8 of
Article XVI of the California Constitution for a fiscal year shall be
performed prior to, and separately from, the computation of the
maintenance factor allocation identified in subdivision (a) of this
section and required by subdivision (e) of Section 8 of Article XVI
of the California Constitution.

41207.3. (a) If the Superintendent and the Director of Finance
jointly determine that, for the 2008-09 fiscal year, the state has
applied moneys for the support of school districts and community
college districts in an amount that exceeds the minimum amount
required for that fiscal year pursuant to Section 8 of Article XVI of
the California Constitution, the excess, up to one billion one
hundred million five hundred ninety thousand dollars
($1,100,590,000), shall be deemed, as of June 30 of that fiscal year,
a payment in satisfaction of the outstanding balance of the minimum
funding obligation under that section for the 2002-03 and 2003-04
fiscal years in accordance with the following:
(1) The first four hundred eighty-three million sixteen thousand
dollars ($483,016,000) in payment of the outstanding balance of the
minimum funding obligation for the 2002-03 fiscal year.
(2) The next six hundred seventeen million five hundred
seventy-four thousand dollars ($617,574,000) in payment of the
outstanding balance of the minimum funding obligation for the 2003-04
fiscal year.
(b) For purposes of this section, the outstanding balance of the
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for a fiscal year is the amount, if any, by which the
amount required to be applied by the state for the support of school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution, including any maintenance
factor that should have been allocated in that fiscal year pursuant
to subdivision (e) of Section 8 of Article XVI, exceeds the amount
applied by the state for the support of school districts and
community college districts for that fiscal year.
(c) The amounts allocated pursuant to this section shall be
deemed, for purposes of Section 8 of Article XVI of the California
Constitution, to be appropriations made and allocated in the fiscal
year in which the deficiencies resulting in the outstanding balance
were incurred. When the amount determined to be owed for each such
fiscal year is fully allocated pursuant to this subdivision, the data
used in the computations made under this section with regard to the
total amount owed by the state for the support of school districts
and community college districts pursuant to Section 8 of Article XVI
of the California Constitution for that fiscal year, including as
much of the maintenance factor for that fiscal year determined
pursuant to subdivision (d) of Section 8 of Article XVI as has been
allocated as required by subdivision (e) of Section 8 of Article XVI
by virtue of the allocations made under this section, shall be deemed
certified for purposes of Section 41206.
(d) The amount described in subdivision (a) shall be deemed a
payment in full satisfaction of the amounts owed pursuant to Section
41207.

41207.3. (a) Notwithstanding Section 41206, the minimum state
educational funding obligation for school districts and community
college districts pursuant to subdivision (b) of Section 8 of Article
XVI of the California Constitution is determined to be the
following:
(1) Fifty-three billion three hundred forty-five million four
hundred twenty thousand dollars ($53,345,420,000) for the 2005-06
fiscal year, with an outstanding balance of one billion one hundred
ten million five hundred sixteen thousand dollars ($1,110,516,000).
The outstanding balance is appropriated and allocated pursuant to
Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of
Part 28.
(2) Fifty-five billion two hundred fifty-one million two hundred
sixty-six thousand dollars ($55,251,266,000) for the 2006-07 fiscal
year, with an outstanding balance of two hundred eleven million five
hundred thirty-three thousand dollars ($211,533,000). Commencing with
the 2014-15 fiscal year, the Legislature shall appropriate the
outstanding balance and specify in the annual Budget Act or other
statute making such appropriations that the funds shall be used for
any one-time purpose so long as those appropriations are made for
allocation to school districts or community college districts.
(3) Fifty-six billion five hundred seventy-seven million four
hundred ninety-one thousand dollars ($56,577,491,000) for the 2007-08
fiscal year, with no outstanding balance.
(b) (1) The amount determined pursuant to paragraph (1) of
subdivision (a) of this section shall be deemed certified for
purposes of Section 41206 when the conditions set forth in
subdivision (c) of Section 41207.1 are met.
(2) The amount determined pursuant to paragraph (2) of subdivision
(a) of this section shall be deemed certified for purposes of
Section 41206 upon appropriation of the full amount of the
outstanding balance determined for that year.
(3) The amount determined pursuant to paragraph (3) of subdivision
(a) of this section is deemed to be certified for purposes of
Section 41206 upon enactment of this section.

41207.4. (a) The sum of two hundred ten million one hundred
thousand dollars ($210,100,000) is hereby appropriated in the 2010-11
fiscal year from the General Fund to the Controller for allocation
to school districts and community college districts for the purpose
of offsetting the 2009-10 outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution.
(1) The amount appropriated pursuant to this subdivision shall be
allocated to school districts and community college districts as
defined in subdivision (a) of Section 41203.1.
(2) The amount allocated to school districts pursuant to this
subdivision shall be distributed in a manner that reflects the
proportion of regular average daily attendance in school districts,
as defined in subdivision (a) of Section 41209, as those numbers are
reported at the time of the second principal apportionment for the
fiscal year prior to the fiscal year in which funds are to be
received.
(3) The amount annually allocated to community college districts
pursuant to this subdivision shall be distributed based on enrolled
full-time equivalent students, as those numbers are reported at the
time of the second principal apportionment for the fiscal year prior
to the fiscal year in which funds are to be received.
(4) For purposes of this subdivision a school district includes a
county office of education and a charter school.
(b) For purposes of Section 8 of Article XVI of the California
Constitution, the amounts appropriated and allocated pursuant to this
section shall be applied to the outstanding balance of the minimum
funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the 2009-10 fiscal year, and shall be deemed to be
appropriations made and allocated in that fiscal year in which the
deficiencies resulting in the outstanding balance were incurred.
(c) Funding received by school districts and community college
districts pursuant to this section shall first be deemed to be paid
in satisfaction of any outstanding claims pursuant to Section 6 of
Article XIII B of the California Constitution for reimbursement of
state-mandated local costs for any fiscal year. Notwithstanding any
amounts that are deemed, pursuant to this subdivision, to be paid in
satisfaction of outstanding claims for reimbursement of
state-mandated local costs, the Controller may audit any claim as
allowed by law and may reduce any amount owed by school districts and
community college districts pursuant to an audit by reducing amounts
owed for any other mandate claims. The Controller shall apply
amounts received by each school district or community college
district against any balances of unpaid claims for reimbursement of
state-mandated local costs and interest in chronological order
beginning with the earliest claim. The Controller shall report to
each school district and community college district the amounts of
any claims and interest that are offset from funds provided pursuant
to this section and shall report a summary of the amounts offset for
each mandate for each fiscal year to the Department of Finance and
the fiscal committees of the Legislature. The governing board of a
school district or community college district may expend funds
received pursuant to this section in excess of amounts offsetting
mandate claims for any other one-time purposes, as determined by the
governing board.

41207.5. There is hereby established in the General Fund the
Proposition 98 Reversion Account. The Legislature shall, from time to
time, transfer into the Proposition 98 Reversion Account moneys
previously appropriated in satisfaction of the requirements of
Section 8 of Article XVI of the California Constitution that have not
been disbursed or otherwise encumbered for the purposes for which
they were appropriated. Moneys that are appropriated in satisfaction
of the minimum funding obligation under Section 8 of Article XVI of
the California Constitution that would otherwise revert to the
unexpended balance of the General Fund shall instead be deposited in
the Proposition 98 Reversion Account.

41208. To ensure that the changes to average daily attendance
resulting from the revision of the calculation of apportionments for
high school pupils concurrently enrolled in adult education pursuant
to Assembly Bill 1891 of the 1991-92 Regular Session do not result in
unintended reductions to the minimum funding guarantee established
by Section 8 of Article XVI of the California Constitution, the
following shall be used to determine the average daily attendance
computed pursuant to paragraph (1) of subdivision (a) of Section
14022.3, for the purpose of determining "changes in enrollment" for
the 1992-93 and 1993-94 fiscal years and for subsequent fiscal years
pursuant to paragraph (2) of subdivision (b) of Section 8 of Article
XVI of the California Constitution:
(a) For the 1992-93 fiscal year, Section 42238.5 is hereby deemed
to refer to that section as it existed on July 1, 1992, for the
purpose of calculating average daily attendance for both the 1991-92
and 1992-93 fiscal years.
(b) For the 1993-94 fiscal year, Section 42238.5 is hereby deemed
to refer to that section as amended by Assembly Bill 1891 of the
1991-92 Regular Session for the purposes of calculating the average
daily attendance for both the 1992-93 and 1993-94 fiscal years.
(c) For the 1994-95 and each fiscal year thereafter, Section
42238.5 is hereby deemed to refer to that section as amended by
Assembly Bill 1891 of the 1991-92 Regular Session for the purposes of
calculating the average daily attendance for both the prior and
current fiscal years.

41209. (a) Except as provided in subdivision (b), and
notwithstanding any other provision of law, in any fiscal year when,
in addition to any allocations required pursuant to Section 42238.42,
an appropriation is made for the purposes of meeting the minimum
funding requirements for public education, as set forth in Section 8
of Article XVI of the California Constitution, because these
requirements were not sufficiently funded in a prior fiscal year, and
the appropriation is apportioned on the basis of equal payments for
each unit of each school district's average daily attendance, it is
the intent of the Legislature that average daily attendance shall
include the average daily attendance for regular education, adult
education, and regional occupational programs and centers, as claimed
in the school year in which the funding deficiency occurred. It is
not the intent of the Legislature to interfere with, or to change,
the application of Section 42238.42.
(b) Nothing in this section shall be construed to limit the
flexibility of the Legislature or Governor to propose budget
appropriations apportioned on the basis of equal payments for each
unit of each school district's average daily attendance that exclude
funds for adult education programs or regional occupational programs
and centers.
(c) A district receiving funds distributed as described in
subdivision (a) shall, consistent with Section 52501.5, use any funds
allocated for average daily attendance of adult education programs
or regional occupational centers or programs only for purposes of
adult education programs or regional occupational centers or
programs.