SECTIONS 42238-42250.1 - California Statutes

EDUCATION CODE

SECTION 42238-42250.1

42238. (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
(b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
(1) The inflation adjustment specified in Section 42238.1.
(2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
(3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
(4) For the 1985-86 fiscal year, the amount per unit of average
daily attendance received in the 1984-85 fiscal year pursuant to
Section 42238.7.
(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
(6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
(7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
(8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
(c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
(B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
(2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5 by the total adjustments in funding for
each district made for the 2007-08 fiscal year pursuant to Section
42238.22 as it read on January 1, 2009.
(d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
(e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
(f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
(g) The reduction required by subdivision (f) shall be calculated
as follows:
(1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
(2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
(A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
(B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
(3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
(A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
(B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
(4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
(h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
(1) The district's property tax revenue received pursuant to
Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except for any amount received
pursuant to Section 33401 or 33676 of the Health and Safety Code that
is used for land acquisition, facility construction, reconstruction,
or remodeling, or deferred maintenance, except for any amount
received pursuant to Section 33492.15 of, paragraph (4) of
subdivision (a) of Section 33607.5 of, or Section 33607.7 of, the
Health and Safety Code that is allocated exclusively for educational
facilities.
(7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the district is the sponsoring local educational agency, as defined
in Section 47632, and who reside in and would otherwise have been
eligible to attend a noncharter school of the district.
(i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving district receiving a revenue limit apportionment for those
pupils that exceeds 105 percent of the statewide average revenue
limit for the type and size of the receiving school district.

42238.1. (a) For the 1986-87 fiscal year and each fiscal year up to
and including the 1998-99 fiscal year, the Superintendent of Public
Instruction shall compute an inflation adjustment equal to the
product of paragraphs (1) and (2):
(1) Compute the sum of the following:
(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
(B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 1 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 1 of the second preceding fiscal year, as reported by the
Department of Finance.
(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent of Public Instruction shall compute an inflation
adjustment equal to the product of paragraphs (1) and (2):
(1) Compute the sum of the following:
(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
(B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as report by the Department
of Finance.
(c) This section shall become operative July 1, 1986.

42238.2. (a) (1) Notwithstanding Section 42238.5 or any other
provision of law, a school district that meets any of the following
conditions shall be entitled to an adjustment to its units of average
daily attendance pursuant to this section:
(A) The school district experiences a decline in the number of
units of average daily attendance in excess of 8 percent of its total
average daily attendance as a result of the closure of a facility
operated by a branch of the United States Armed Forces in the school
district's boundaries.
(B) The school district experiences a decline in the number of
units of average daily attendance that is less than 8 percent but at
least 5 percent of its total average daily attendance as a result of
the closure of a facility operated by a branch of the United States
Armed Forces in that school district's boundaries, upon a finding by
both the Superintendent of Public Instruction and the Director of
Finance that both of the following conditions exist:
(i) The school district demonstrates that at the end of a
three-year period the school district will experience a 10-percent
reduction in the amount of funding that the school district would
otherwise have received from state apportionments, funding received
pursuant to the California State Lottery Act of 1984 (Chapter 12.5
(commencing with Section 8880) of Division 1 of Title 2 of the
Government Code), and funding received pursuant to Title VIII of
Public Law 103-382, as a result of the loss of pupils related to the
closure of a facility operated by a branch of the United States Armed
Forces.
(ii) The fiscal crisis and management assistance team established
pursuant to Section 42127.8 has reviewed the school district's
finances and has found that the school district has taken significant
steps to reduce expenditure.
(C) The school district experiences a decline in the number of
units of average daily attendance in excess of 5 percent of its total
average daily attendance and the Director of Finance determines that
the school district is likely, within eight years of that decline,
to maintain a number of units of average daily attendance that is
equivalent to the number of units of average daily attendance
maintained by the school district prior to the decline.
Notwithstanding subdivision (b), loan repayments shall commence no
later than the fourth year after the base year or at a later time, as
determined by the Director of Finance.
(2) For purposes of this section, the year preceding a decline
shall be the base year.
(b) In the second year after the base year, the district average
daily attendance pursuant to Section 42238.5 may, if the district
chooses, be increased by 75 percent of the difference between the
base year units of average daily attendance and the units of average
daily attendance in the first year of decline. In the third year
after the base year, the district average daily attendance pursuant
to Section 42238.5 may, if the district chooses, be increased by 50
percent of the difference between the base year units of average
daily attendance and the units of average daily attendance in the
first year of decline. The amount of money represented by these
increases shall be considered a loan to the school district. Loan
repayments shall commence no later than the fourth year after the
base year.
(c) (1) The Superintendent of Public Instruction, in consultation
with a school district subject to this section, shall determine a
schedule for repayment of the total amount loaned pursuant to this
section which may not exceed 10 years. Payments shall include
interest charged at a rate based on the most current investment rate
of the Pooled Money Investment Account in the General Fund as of the
date of the disbursement of funds to the school district.
(2) Upon written notification by the Superintendent of Public
Instruction that the school district has not made one or more of the
payments required by the schedule established pursuant to paragraph
(1), the Controller shall withhold from Section A of the State School
Fund the defaulted payment which shall not exceed the amount of any
apportionment entitlement of the district to moneys in Section A of
the State School Fund. In that regard, the Controller shall withhold
the amount of any payment made under this subdivision, including
reimbursement of the Controller's administrative costs as determined
under a schedule approved by the California Debt Advisory Commission,
from subsequent apportionments to the school district from Section A
of the State School Fund.
(3) Any apportionments made by the Controller pursuant to
paragraph (2) shall be deemed to be an allocation to the school
district for purposes of subdivision (b) of Section 8 of Article XVI
of the California Constitution, and for purposes of Chapter 2
(commencing with Section 41200) of Part 24.
(d) In no event shall the adjustment provided by this section
cause the apportionment to a school district to exceed the amount
that would otherwise be calculated for apportionment to the district
pursuant to Sections 42238 and 42238.1.
(e) This section does not apply to a school district that
experiences a decline in enrollment as a result of a school district
reorganization pursuant to Chapter 3 (commencing with Section 35500)
of Part 21 or any other law.

42238.3. (a) For each year during the loan repayment period
provided for in Section 42238.2, any district utilizing the
adjustment pursuant to Section 42238.2 may adjust its revenue limit
computed pursuant to Section 42238 to the statewide average revenue
limit per unit of average daily attendance for its size and type of
district in proportion to the percentage of the loan that the school
district has repaid up to and including the year in which the revenue
limit adjustment is made.
(b) This section does not apply to a school district that
experiences a decline in enrollment as a result of a school district
reorganization pursuant to Chapter 3 (commencing with Section 35500)
of Part 21 or any other law.

42238.4. (a) For the 1995-96 fiscal year, the county superintendent
of schools shall compute an equalization adjustment for each school
district in the county, so that no district's base revenue limit per
unit of average daily attendance is less than the prior fiscal year
statewide average base revenue limit for the appropriate size and
type of district listed in subdivision (b) plus the inflation
adjustment specified in Section 42238.1 for the current fiscal year
for the appropriate type of district.
For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary....................... less than 101
Elementary....................... more than 100
High School...................... less than 301
High School...................... more than 300
Unified.......................... less than
1,501
Unified.......................... more than
1,500

(c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.
(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
(d) For the purposes of this section, the 1994-95 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent for the 1995-96 second
principal apportionment shall be final, and shall not be calculated
as subsequent apportionments. In no event shall the fraction computed
pursuant to paragraph (2) of subdivision (c) exceed 1.00. For the
purposes of determining the size of a district used in subdivision
(b), the Superintendent shall use a school district's revenue limit
average daily attendance for the 1994-95 fiscal year determined
pursuant to Section 42238.5 and Article 4 (commencing with Section
42280).
(e) This section shall only be operative if the Director of
Finance certifies that a settlement agreement in California Teachers
Association v. Gould (Sacramento County Superior Court Case CV
373415) is effective. No funds shall be disbursed under this section
for this purpose before August 1, 1996, and any apportionment or
allocation of funds appropriated for purposes of this section shall
be accounted for in the 1995-96 fiscal year.
(f) Appropriations for the 1995-96 fiscal year as a result of the
implementation of this section shall be deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202, for the 1995-96 fiscal year and "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated to Article XIII B," as defined in
subdivision (e) of Section 41202, for that fiscal year, for purposes
of Section 8 of Article XVI of the California Constitution.

42238.41. (a) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent of
Public Instruction, shall compute an equalization adjustment for each
school district in the county, so that no district's 1995-96 base
revenue limit per unit of average daily attendance is less than the
1995-96 fiscal year statewide average base revenue limit for the
appropriate size and type of district listed in subdivision (b).
For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary....................... less than 101
Elementary ...................... more than 100
High School...................... less than 301
High School...................... more than 300
Unified.......................... less than
1,501
Unified.......................... more than
1,500

(c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's base
revenue limit per unit of average daily attendance as follows:
(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.
(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
(d) For the purposes of this section, the 1995-96 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent of Public Instruction for
the 1995-96 second principal apportionment shall be final, and shall
not be recalculated at subsequent apportionments. In no event shall
the fraction computed pursuant to paragraph (2) of subdivision (c)
exceed 1.00. For the purposes of determining the size of a district
used in subdivision (b), county superintendents of schools, in
conjunction with the Superintendent of Public Instruction, shall use
a school district's revenue limit average daily attendance for the
1995-96 fiscal year as determined pursuant to Section 42238.5 and
Article 4 (commencing with Section 42280).

42238.42. (a) In the event that the amount required to be
appropriated for the purpose of the state's minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
for the 1996-97 fiscal year, as determined in paragraph (1) of
subdivision (b), exceeds the amount appropriated for that purpose for
the 1996-97 fiscal year, as determined pursuant to paragraph (2) of
subdivision (b), the amount computed pursuant to subdivision (d), is
hereby appropriated from the General Fund to the Superintendent of
Public Instruction for the purposes of equalizing the revenue limits
of school districts pursuant to subdivision (e) and Section 42238.43
and for the purpose of reducing the deficit factor applied to the
revenue limits of county superintendents of schools pursuant to
Section 2558.45 and reducing the deficit factor applied to the
revenue limits of the school districts pursuant to Section 42238.145.
(b) To determine the amounts available for the purposes of this
section, the Department of Finance shall make the following
computations:
(1) At the first principal apportionment for the 1997-98 fiscal
year, compute the level of General Fund revenues that meets the state'
s minimum funding obligation to school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution for the 1996-97 fiscal year based upon the
most current determination of data as defined in subdivision (a) of
Section 41206 of the Education Code.
(2) Subtract from the amount determined in paragraph (1) an amount
equal to the total amount of General Fund revenues that have been
appropriated for the purpose of meeting the state's minimum funding
obligation for the 1996-97 fiscal year to school districts and
community college districts pursuant to Section 8 of Article XVI of
the California Constitution as of February 1, 1998.
(3) If the amount computed in paragraph (2) is greater than zero,
that amount is the total amount available for the purposes of this
section.
(c) To determine the portion of the amount computed in subdivision
(a) to set aside for community college districts pursuant to this
section, the Department of Finance shall make the following
computations:
(1) Add the total General Fund allocations to school districts and
community college districts for the purposes of meeting the state's
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the 1996-97 fiscal year to the total statewide
amount of "allocated local proceeds of taxes," as defined in
subdivisions (g) and (h) of Section 41202, allocated to school
districts and community college districts for the 1996-97 fiscal
year.
(2) Divide the sum of the General Fund allocations made to
community college districts for the purposes of meeting the state's
minimum funding obligation to community college districts pursuant to
Section 8 of Article XVI of the California Constitution for the
1996-97 fiscal year and the total statewide amount of "allocated
local proceeds of taxes," as defined in subdivision (h) of Section
41202, allocated to community college districts for the 1996-97
fiscal year by the sum computed pursuant to paragraph (1).
(3) Multiply the amount computed pursuant to subdivision (b) by
the percentage determined in paragraph (2). Community college
districts shall be entitled to receive an amount equal to the amount
computed pursuant to this paragraph and that amount shall be set
aside from the General Fund for appropriation to community college
districts by the Legislature.
(d) The amount of the appropriation made pursuant to subdivision
(a) of this section shall be computed by subtracting the amount
computed in paragraph (3) of subdivision (c) from the amount computed
pursuant to subdivision (b). The Director of the Department of
Finance shall certify to the Controller the amount of the
appropriation computed pursuant to this subdivision and under no
circumstances shall funds be released by the Controller for purposes
of this section before that certification is received by the
Controller.
(e) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to school
districts for the purpose of making equalization adjustments to the
base revenue limit of school districts for the 1996-97 fiscal year,
as follows:
(1) The Superintendent of Public Instruction shall perform the
computations set forth in Section 42238.43 for the purpose of
equalization adjustments to the base revenue limits of school
districts for the 1996-97 fiscal year to determine the amount to
allocate to each school district pursuant to this paragraph.
(2) The Superintendent of Public Instruction shall repeat the
process of computing equalization adjustments to the base revenue
limits of school districts for the 1996-97 fiscal year pursuant to
Section 42238.43 until the total amount of funds available for that
purpose pursuant to this subdivision is allocated to school
districts.
(3) If the total amount of funds available for allocation pursuant
to this subdivision is insufficient to fully fund the amounts
computed pursuant to paragraph (1) or the amount computed pursuant to
any of the iterations made pursuant to paragraph (2), the
allocations computed pursuant to those paragraphs shall be reduced
proportionately.
(f) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to county
superintendents of schools for the purpose of reducing the 1996-97
and 1997-98 deficit factors applied to the revenue limits of county
superintendent of schools and school districts pursuant to Sections
2558.45 and 42238.145, respectively. The amount of the allocation
made to each school district and county superintendent of schools for
the purpose of reducing their respective deficit factors shall be
computed in proportion to their respective shares of the total
statewide amount of the revenue limits after adjustment for deficit
factors for school districts and county superintendents of schools.
(g) In no event shall this section be construed to require an
appropriation that would cause the aggregate amount required to be
appropriated from the General Fund for the 1996-97 fiscal year
pursuant to Section 8 of Article XVI of the California Constitution
to be exceeded.

42238.43. (a) (1) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent of
Public Instruction, shall compute an equalization adjustment for each
school district in the county, so that no district's base revenue
limit per unit of average daily attendance is less than the 1996-97
fiscal year statewide average base revenue limit for the appropriate
size and type of district listed in subdivision (b).
(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary..................... less than 101
Elementary .................... more than 100
High School.................... less than
301
High School.................... more than 300
Unified........................ less than
1,501
Unified........................ more than
1,500

(c) The equalization adjustment computed pursuant to this section
shall only be funded from amounts appropriated for that purpose
pursuant to Section 42238.42.
(d) (1) For the purposes of the computation made pursuant to
paragraph (1) of subdivision (e) of Section 42238.42, the 1996-97
statewide average base revenue limits determined for the purposes of
subdivision (a) and the fraction, if any, computed pursuant to
paragraph (3) of subdivision (e) of Section 42238.42 by the
Superintendent of Public Instruction for the 1996-97 second principal
apportionment shall be final, and shall not be calculated as
subsequent apportionments. In no event shall the fraction computed
pursuant to paragraph (3) of subdivision (e) of Section 42238.42
exceed 1.00. If any iterations are required pursuant to paragraph (2)
of Section 42238.42, the Superintendent of Public Instruction shall
recompute the 1996-97 statewide average base revenue limit to include
any adjustments made by the immediately preceding iteration.
(2) (A) For the purposes of determining the size of a school
district under subdivision (b), the Superintendent of Public
Instruction shall use a school district's revenue limit average daily
attendance for the 1996-97 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
(B) Notwithstanding subparagraph (A), for the purposes of
determining the size of a school district under subdivision (b) with
respect to any elementary, high, or unified school district that was
funded in the 1996-97 school year as a large elementary, high, or
unified school district, as determined pursuant to subdivision (a) of
Section 42238.5, the school district's actual revenue limit average
daily attendance for the 1996-97 school year may be used. The actual
revenue limit average daily attendance for the 1996-97 school year
shall be used to calculate the 1996-97 revenue limit of a school
district exercising the authority granted under this subparagraph.
The governing board of a school district to which this subparagraph
is applicable may exercise the authority granted under this
subparagraph by enacting a resolution to that effect and transmitting
a copy of that resolution to the Superintendent of Public
Instruction on or before a date designated by the Superintendent of
Public Instruction for that school year. After the Superintendent of
Public Instruction receives the resolution, the superintendent shall
make the necessary adjustments to the school district's revenue limit
calculation.

42238.44. (a) This section shall be known and may be cited as, the
Fairness in Education Funding Act.
(b) (1) For the 2004-05 fiscal year, the Superintendent of Public
Instruction shall compute an equalization adjustment for each school
district, so that the 2003-04 base revenue limit per unit of average
daily attendance of a district is not less than the 2003-04 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (c).
(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(c) Subdivision (b) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary...................... less than 101
Elementary ..................... more than 100
High School..................... less than 301
High School..................... more than 300
Unified......................... less than 1,501
Unified......................... more than 1,500

(d) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's base
revenue limit per unit of average daily attendance as follows:
(1) Multiply the amount computed for each school district pursuant
to subdivision (b) by the average daily attendance used to calculate
the revenue limit for the 2004-05 fiscal year of a district.
(2) Divide the amount appropriated for purposes of this section
for the 2004-05 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (b) by the amount computed pursuant
to paragraph (2).
(e) (1) For the purposes of this section, the 2003-04 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (b), and the fraction computed pursuant to
paragraph (2) of subdivision (d) for the 2003-04 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (d) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (c), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2003-04 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district
pursuant to subdivision (c), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
(3) For the purposes of computing the target amounts pursuant to
subdivision (b), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.

42238.445. (a) (1) For the 2002-03 fiscal year, the Superintendent
of Public Instruction shall compute an equalization adjustment for
each school district by determining the amount that would be
necessary to assure that no district's 2001-02 base revenue limit per
unit of average daily attendance is less than the 2001-02 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary...................... less than 101
Elementary ..................... more than 100
High School..................... less than 301
High School..................... more than 300
Unified......................... less than 1,501
Unified......................... more than 1,500

(c) The Superintendent of Public Instruction shall determine and
allocate, on a one-time basis, an amount for each school district as
follows:
(1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the district's revenue limit for the 2002-03 fiscal year.
(2) Divide forty-two million dollars ($42,000,000) appropriated
pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of the
Budget Act of 2002 by the statewide sum of the amount computed
pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to paragraph (1) by the amount computed pursuant to paragraph (2).
(d) (1) For the purposes of this section, the 2001-02 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2001-02 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (b), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2001-02 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
(3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.
(e) Allocations pursuant to this section do not represent
adjustments to school district base revenue limits.

42238.45. (a) (1) For the 2001-02 fiscal year, the Superintendent
of Public Instruction shall compute an adjustment for each school
district, so that no district's 2000-01 base revenue limit per unit
of average daily attendance is less than the 2000-01 base revenue
limit per unit of average daily attendance above which fall not more
than 10 percent of the total statewide units of average daily
attendance for each category of school district set forth in
subdivision (b).
(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary...................... less than 101
Elementary ..................... more than 100
High School..................... less than 301
High School..................... more than 300
Unified......................... less than 1,501
Unified......................... more than 1,500

(c) For the 2001-02 fiscal year, the Superintendent of Public
Instruction shall determine and allocate on a one-time basis for each
school district amounts as follows:
(1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the district's revenue limit for the 2001-02 fiscal year.
(2) Divide forty million dollars ($40,000,000) appropriated for
purposes of this section for the 2001-02 fiscal year by the statewide
sum of the amount computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
(d) (1) For the purposes of calculating the size of a school
district pursuant to subdivision (b), the Superintendent of Public
Instruction shall include units of average daily attendance of any
charter school for which the school district is the chartering
agency.
(2) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.
(e) Allocations for purposes of this section do not represent
adjustments to school district base revenue limits.

42238.46. (a) For the 2003-04 fiscal year, the Superintendent of
Public Instruction shall compute an equalization adjustment for each
school district so that no district's 2002-03 adjusted base revenue
limit per unit of average daily attendance is less than the 2002-03
fiscal year adjusted base revenue limit above which fall not more
that 8.25 percent of the total statewide units of average daily
attendance for the appropriate size and type of district listed in
subdivision (b).
For purposes of this section, the district adjusted base revenue
limit and the statewide average adjusted base revenue limit may not
include any amounts attributable to Section 45023.4, 46200, or 46201.
(b) Subdivision (a) applies to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary....................... less than 101
Elementary ...................... more than 100
High School...................... less than 301
High School...................... more than 300
Unified.......................... less than
1,501
Unified.......................... more than
1,500

(c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's
adjusted base revenue limit per unit of average daily attendance as
follows:
(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year.
(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
(d) (1) For purposes of this section only, prior to computing the
equalization adjustment pursuant to this section, the Superintendent
of Public Instruction shall calculate an adjusted base revenue limit
for each district by revising the 2002-03 base revenue limit of the
district to eliminate that portion of the one-time adjustment to its
base revenue limit related to excused absences made pursuant to
Section 42238.8.
(2) For the purposes of this section, the 2002-03 statewide
average adjusted base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent of Public Instruction for
the 2002-03 second principal apportionment shall be final, and shall
not be recalculated at subsequent apportionments. In no event shall
the fraction computed pursuant to paragraph (2) of subdivision (c)
exceed 1.00. For the purposes of determining the size of a district
used in subdivision (b), county superintendents of schools, in
conjunction with the Superintendent of Public Instruction, shall use
a school district's revenue limit average daily attendance for the
2002-03 fiscal year as determined pursuant to Section 42238.5 and
Article 4 (commencing with Section 42280).
(3) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
(4) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance towards the average
daily attendance of the school district that is the chartering
agency.

42238.48. (a) (1) For the 2006-07 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district, so
that the 2005-06 base revenue limit per unit average daily
attendance of a school district is not less than the 2005-06 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
(2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary...................... less than 101
Elementary...................... more than 100
High School..................... less than 301
High School..................... more than 300
Unified......................... less than 1,501
Unified......................... more than 1,500

(c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
(1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2006-07 fiscal year of a school district.
(2) Divide the amount appropriated for purposes of this section
for the 2006-07 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
(d) (1) For the purposes of this section, the 2005-06 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2005-06 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2005-06 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
(3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.

42238.485. (a) For the 2010-11 fiscal year, the Superintendent
shall compute an adjustment for each school district by dividing each
school district's 2007-08 fiscal year average daily attendance into
the sum of the following:
(1) Funding for Meals for Needy Pupils programs received by the
school district for the 2007-08 fiscal year pursuant to Section
42241.2, as it read on January 1, 2009.
(2) Funding incentives to increase beginning teachers' salaries
received by the school district for the 2007-08 fiscal year pursuant
to Sections 45023.1 and 45023.4, as those sections read on January 1,
2009.
(b) For purposes of this section, average daily attendance shall
be computed pursuant to Section 42238.5.
(c) Notwithstanding any other provision of this section, no
funding specified in this section shall be added to the adjustment
computed pursuant to subdivision (a) if that funding is currently
included in a school district's base revenue limit calculated
pursuant to Section 42238.

42238.49. (a) (1) For the 2011-12 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district, so
that the 2010-11 base revenue limit per unit of average daily
attendance of a school district is not less than the 2010-11 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
(2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

District ADA
Elementary...................... less than
101
Elementary...................... more than 100
High School..................... less than 301
High School..................... more than 300
Unified......................... less than 1,501
Unified......................... more than 1,500

(c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
(1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2011-12 fiscal year of a school district.
(2) Divide the amount appropriated from the Supplemental Education
Payment Account for purposes of this section for the 2011-12 fiscal
year by the statewide sum of the amounts computed pursuant to
paragraph (1).
(3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
(d) (1) For the purposes of this section, the 2010-11 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2010-11 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2010-11 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
(3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.

42238.5. (a) For purposes of Section 42238, the fiscal year average
daily attendance shall be computed pursuant to paragraph (1) or (2).
(1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory, or, commencing in the
1993-94 fiscal year, and each fiscal year thereafter, for any change
in average daily attendance for pupils who are concurrently enrolled
in adult programs and classes pursuant to Section 52616.17.
(2) Any school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of Section 42238 by
subtracting the amount determined in subparagraph (B) from the amount
determined in subparagraph (A).
(A) The units of average daily attendance computed pursuant to
paragraph (1).
(B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
(b) For purposes of this article, regular average daily attendance
shall be the base revenue limit average daily attendance, excluding
summer school average daily attendance.
(c) For purposes of this section, for the 1998-99 fiscal year
only, the prior year average daily attendance shall be the 1997-98
regular average daily attendance, excluding absences excused pursuant
to subdivision (b) of Section 46010, as that subdivision read on
July 1, 1996.

42238.51. (a) For purposes of paragraph (1) of subdivision (a) of
Section 42238.5, a sponsoring school district's average daily
attendance shall be computed as follows:
(1) Compute the sponsoring school district's regular average daily
attendance in the current year, excluding the attendance of pupils
in charter schools.
(2) (A) Compute the regular average daily attendance used to
calculate the second principal apportionment of the school district
for the prior year, excluding the attendance of pupils in charter
schools.
(B) Compute the attendance of pupils who attended one or more
noncharter schools of the school district between July 1, and the
last day of the second period, inclusive, in the prior year, and who
attended a charter school sponsored by the school district between
July 1, and the last day of the second period, inclusive, in the
current year. For the purposes of this paragraph, a pupil enrolled in
a grade at a charter school sponsored by the school district shall
not be counted if the school district does not offer classes for
pupils enrolled in that grade. The amount of the attendance counted
for any pupil for the purpose of this subparagraph may not be greater
than the attendance claimed for that pupil by the charter school in
the current year.
(C) Compute the attendance of pupils who attended a charter school
sponsored by the school district in the prior year and who attended
one or more noncharter schools of the school district in the current
year. The amount of the attendance counted for any pupil for the
purpose of this subparagraph may not be greater than the attendance
claimed for that pupil by the school district in the current year.
(D) From the amount determined pursuant to subparagraph (B),
subtract the amount determined pursuant to subparagraph (C). If the
result is less than zero, the amount shall be deemed to be zero.
(E) The prior year average daily attendance determined pursuant to
subparagraph (A) shall be reduced by the amount determined pursuant
to subparagraph (D).
(3) To the greater of the amounts computed pursuant to paragraphs
(1) and (2), add the regular average daily attendance in the current
year of all pupils attending charter schools sponsored by the
district that are not funded pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.
(b) For the purposes of this section, a "sponsoring school
district" shall mean a "sponsoring local educational agency," as
defined in Section 47632.
(c) This section shall become operative on July 1, 2007.

42238.52. (a) Notwithstanding any other provision of law, the prior
year average daily attendance for a school district determined
pursuant to subdivision (b) of Section 42238.51 shall be increased by
the prior year second principal apportionment average daily
attendance of district residents only of any school that meets the
following description:
(1) The school was a district noncharter school in any year prior
to the prior year.
(2) The school was operated as a district-approved charter school
in the prior year.
(3) The school is again operated as a district noncharter school
in the current year.
(b) An adjustment to prior year average daily attendance pursuant
to this section may not be made for the attendance of pupils who were
not residents of the school district in the prior year.
(c) This section applies to the 2000-01 fiscal year and subsequent
fiscal years.

42238.53. (a) Sections 42238.51 and 42238.52 do not apply to
resident pupils in charter schools operating under the districtwide
charter of a district that has converted all of its schools to
charter status pursuant to Section 47606 and has elected not to be
funded pursuant to Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.
(b) For the purposes of this section, "resident pupils" means
pupils who reside in, and are otherwise eligible to attend, a school
in the specified district.

42238.6. (a) The fiscal year average daily attendance computed
under Section 42238.5 shall be increased, for each school district
that operates any school that meets the eligibility requirements set
forth in subdivision (b), by the number of child days of attendance
of pupils enrolled in eligible schools in the district who are
currently migratory children, as defined by Section 54441, and who
are residing in state-operated migrant housing projects between the
second principal apportionment and the end of the regular school
year, divided by the number of days school was actually taught in the
regular day schools of the district, excluding Saturdays and
Sundays.
(b) For a school to be eligible for the purposes of this section,
the following conditions shall apply:
(1) One or more state-operated migrant housing projects are
located within the attendance area of the school.
(2) The maximum number of pupils enrolled in the school in the
relevant fiscal year who are currently migratory children, as
calculated under subdivision (a), constitutes not less than one-third
of the total pupil enrollment of the school.
(c) The Superintendent of Public Instruction shall establish rules
and regulations for the implementation of this section.

42238.7. The governing board of each school district, as a
condition of apportionment, shall report to the Superintendent of
Public Instruction, not later than May 1, 1998, and September 1,
1998, respectively, the portion of the attendance in the schools and
classes maintained by the district that was reported for each of the
1996-97 and 1997-98 school years pursuant to Section 41601 that
consisted of absences excused pursuant to subdivision (b) of Section
46010 and to Section 46015, as those sections read on July 1, 1996.

42238.75. Notwithstanding any other provision of law:
(a) All completed audits, including those on appeal, of school
districts, charter schools, and county offices of education funded by
Item 8860-025-0001 of Section 2.00 of Chapter 50 of the Statutes of
1999, Item 8860-025-0001 of Section 2.00 of Chapter 52 of the
Statutes of 2000, and Item 8860-025-0001 of Section 2.00 of Chapter
106 of the Statutes of 2001, and any findings of those audits, are
withdrawn, and no loss of apportionment arising from the findings of
those audits shall be realized.
(b) All audits funded by Item 8860-025-0001 of Section 2.00 of
Chapter 50 of the Statutes of 1999, Item 8860-025-0001 of Section
2.00 of Chapter 52 of the Statutes of 2000, and Item 8860-025-0001 of
Section 2.00 of Chapter 106 of the Statutes of 2001, shall be
discontinued.
(c) The Controller shall notify all school districts, charter
schools, and county offices of education that it is no longer
necessary to retain records supporting pupil attendance and excused
absences used for purposes of calculating average daily attendance
during the 1996-97 fiscal year.

42238.8. (a) Effective July 1, 1998, the Superintendent of Public
Instruction shall make a one-time adjustment to the revenue limit per
unit of average daily attendance of each school district. This
one-time adjustment shall apply for the 1998-99 fiscal year, and for
each fiscal year thereafter, but not for any year prior to 1998-99,
and shall be accomplished by revision of the prior fiscal year
revenue limit per unit of average daily attendance, as follows:
(1) Determine a revised revenue limit per unit of average daily
attendance for the 1996-97 fiscal year as follows:
(A) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1996-97
average daily attendance pursuant to paragraph (1) of subdivision (a)
of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted average
daily attendance determined pursuant to subparagraph (A) of paragraph
(3).
(B) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1995-96
average daily attendance pursuant to paragraph (1) of subdivision (a)
of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted average
daily attendance determined pursuant to subparagraphs (B), (C), and
(D) of paragraph (3).
(2) Determine the amount of the 1996-97 total base revenue limit
funding received pursuant to Section 42238 for growth and nongrowth
average daily attendance, including, as nongrowth average daily
attendance, attendance in necessary small schools in the year
determined to be the greater pursuant to paragraph (1) of subdivision
(a) of Section 42238.5 for the 1996-97 fiscal year, but excluding
attendance in nonpublic, nonsectarian schools, county office operated
special education, and county community school programs.
(3) (A) Reduce the average daily attendance figure used to make
the determination set forth in paragraph (2) by the amount of average
daily attendance included in that figure for excused absences
pursuant to subdivision (b) of Section 46010 as that subdivision read
on July 1, 1996.
(B) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools and attendance for excused absences pursuant
to subdivision (b) of Section 46010 as it read on July 1, 1996, but
excluding attendance, including attendance for excused absences, in
nonpublic, nonsectarian schools, county-operated special education
programs, and county community schools.
(C) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools, but excluding attendance in nonpublic,
nonsectarian schools, county-operated special education programs, and
county community schools and for excused absences pursuant to
subdivision (b) of Section 46010 as it read on July 1, 1996.
(D) Calculate the adjusted revenue limit average daily attendance
by multiplying the average daily attendance figure used to make the
determination set forth in