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CC SR 20220607 M - SB 830 School Enrollment Based Funding CITY COUNCIL MEETING DATE: 06/07/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to support Senate Bill No. (SB) 830 (Education Finance). RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a letter of support for SB 830, which would provide supplemental funding to local educational agencies based on a calculation of how much additional funding the agency would receive if the student count methodology of the funding formula were based on enrollment instead of attendance. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: McKenzie Bright, Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft letter in support of SB 830 (page A-1) B. Text of SB 830 (as amended April 18, 2022) (page B -1) BACKGROUND AND DISCUSSION: At the City Council meeting on May 3, Councilmember Alegria requested that the City’s support of SB 830, which would incorporate enrollment into school funding allocations, be placed on a future agenda. On November 2, 2021, the City Council adopted the City’s 2022 Legislative Platform, outlining the policy positions of the City.1 While the Legislative Platform does not detail 1 The 2022 Legislative Platform and a record of the bills the City Council has taken a position on during the 2021-2022 legislative session is available at rpvca.gov/LegislationCorner. 1 CITYOF RANCHO PALOS VERDES the City’s position on school funding, the platform is simply intended to help guide Staff in bringing bills for the City Council’s consideration and codifying the policy positions the City Council takes. The City works closely with the Palos Verdes Peninsula Unified School District (PVPUSD), which serves most of the students in Rancho Palos Verdes. Crestwood Elementary School and Dodson Middle School, located on the eastern side of the City, are part of the Los Angeles Unified School District (LAUSD), a co-sponsor of the bill. SB 830 was introduced by Senator Anthony Portantino (La Cañada Flintridge) and would provide supplemental Local Control Funding Formula (LCFF) funding to local educational agencies (LEAs) based on a calculation of how much additional funding the LEA would receive if the student count methodology of the LCFF were based on enrollment instead of attendance. In 2013, the LCFF was enacted, establishing per-pupil funding targets, with adjustments to different student grade levels and includ ing supplemental funding for LEAs serving students who are low-income, English learners, or foster youth. The largest component of the LCFF is a base grant generated by each student — for each disadvantaged student or a concentration of disadvantaged students, districts receive supplemental grants. The LCCF funds LEAs based on their average daily attendance (ADA). Total ADA is defined as the total days of student attendance divided by the total days of instruction. This bill seeks to provide supplemental education funding, in addition to the LCFF entitlement, equal to the difference between what the LEA would have received under the LCFF if it were based on average daily membership instead of ADA, and what the LEA received under the LCFF based on ADA for that fiscal year. Schools receiving this supplement would be required to use at least 30% of the supplemental funds to address chronic absenteeism and habitual truancy by providing services and supports that have been determined to improve school attendance or addressing the root causes that contribute to pupils being chronically absent or habitually truant. If this bill were to pass, the California Department of Education estimates that the overall cost of the LCFF would increase by up to 5% or about $3 billion each year, as typically all LEAs have enrollment that is higher than actual attendance. School districts are required to have the staff and resources to accommodate full enrollment but only receive funding for average daily attendance and the current funding structure inherently creates an inequitable system, as funding is missed when students are absent, regardless of the fixed costs required to continue school operations. This bill would transition from funding based on attendance to enrollment. ADDITIONAL INFORMATION: Staff reached out to the Palos Verdes Peninsula Unified School District to verify it had no concerns with the bill. As of the writing of this report, Staff has not heard back. 2 CONCLUSION: Staff recommends the City Council support SB 830, to include enrollment in school funding allocations and authorize the Mayor to sign a letter of support. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Identify revised language to add to the letter. 2. Do not authorize the Mayor to sign the letter. 3. Take other action, as deemed appropriate. 3 July 7, 2022 Via Email The Honorable Anthony Portantino California State Senate 1021 O Street, Suite 7630 Sacramento, CA 95814 SUBJECT: Notice of Support for SB 830 Dear Senator Portantino: Students in the City of Rancho Palos Verdes are served by the Palos Verdes Unified School District and Los Angeles Unified School District. I am writing on behalf of the City to express our support for SB 830. This bill will include enrollment in the funding allocation for schools, providing more equitable funding distribution. California is one of only seven states that do not use enrollment information for funding K-12 education. If a student’s classmate is habitually absent or truant, the school loses funding that should be used to further education. SB 830 lets school districts pursue a more equitable funding model based on enrollment, allowing them to better meet students’ needs and address the root causes of absenteeism, providing critical resources to ensure all students receive the necessary supports to be in class. For these reasons, the City of Rancho Palos Verdes supports SB 830. Sincerely, David L. Bradley Mayor, City of Rancho Palos Verdes cc: Ben Allen, Senator, 26th State Senate District A-1 rlAVln L. BRAnLEY, MA YOR 8ARrlARA FFRRARO, MAYOR PRO TFM FRIC 1\I FGRIA. COUNCIi MFMrlFR JOHN Ci~Ull<SHANI<, COUNCILME:Ml::lE:I\ l<E:N DYDA, COUNCIL ME:Ml::lrn Senator Portantino July 7, 2022 Page 2 Al Muratsuchi, Assemblymember, 66th State Assembly District Dr. Alex Cherniss, Superintendent, Palos Verdes Unified School District Alberto Carvalho, Superintendent, Los Angeles Unified School District Jacki Bacharach, South Bay Cities Council of Governments Jeff Kiernan, League of California Cities Marcel Rodarte, California Contract Cities Association Sharon Gonsalves, Renne Public Policy Group Rancho Palos Verdes City Council and City Manager A-2 AMENDED IN SENATE APRIL 18, 2022 AMENDED IN SENATE MARCH 9, 2022 SENATE BILL No. 830 Introduced by Senator Portantino (Principal coauthor: Senator Rubio) (Coauthors: Senators Dodd, Hueso, Limón, Newman, Stern, and Wiener) (Coauthors: Assembly Members Mia Bonta, Bryan, Gray, Lackey, Levine, Luz Rivas, Ting, and Valladares) January 3, 2022 An act to add Section 41338 to the Education Code, relating to education finance. legislative counsel’s digest SB 830, as amended, Portantino. Education finance: supplemental education funding. Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified, that includes average daily attendance as a component of that calculation for these local educational agencies. Existing law requires the Superintendent of Public Instruction, on or before February 20 of each year, to make a first principal apportionment of funds and, on or before July 2 of each year, to make a 2nd principal apportionment of funds to each local educational agency. This bill would define “average daily membership” as the quotient of the aggregate enrollment days for all pupils in a school district, county office of education, or charter school, from transitional kindergarten to grade 12, inclusive, as applicable, divided by the total number of 97 B-1 instructional days for the local educational agency in an academic year. The bill would require a local educational agency’s average daily membership to be calculated using data from the same fiscal year or years that the local educational agency used to calculate its average daily attendance for purposes of state apportionment, as provided. For any fiscal year before the 2022–23 fiscal year for which average daily membership data is not available, the bill would require the Superintendent to use a local educational agency’s census day enrollment count, as provided. The bill, commencing with the 2022–23 fiscal year, would require a local educational agency that submits enrollment data to the Superintendent and demonstrates a maintenance of effort to address chronic absenteeism, as provided, to receive as supplemental education funding the difference between what the local educational agency would have received under the local control funding formula based on average daily membership and what the local educational agency received under the local control funding formula based on average daily attendance for that fiscal year, as provided. The bill would make that maintenance of effort requirement subject to an annual audit and would provide that failure to meet the maintenance of effort requirement shall result in the loss of the supplemental education funding. The bill would require local educational agencies to use at least 30% of their supplemental education funding to either supplement or supplant existing for local educational agency expenditures to address chronic absenteeism and habitual truancy, as provided. This bill would, for purposes of calculating a local educational agency’s average daily membership, require the Superintendent to issue directives and guidance on determining the date of withdrawal for a pupil deemed habitually truant. The bill would require the Legislative Analyst’s Office to submit a report to the Legislature, on or before November 1, 2028, on the implementation of the average daily membership funding in local educational agencies selected by the Legislative Analyst’s Office, as provided. The bill would expressly state that funds to implement these provisions would be continuously appropriated in the annual Budget Act. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ 97 — 2 — SB 830 B-2 The people of the State of California do enact as follows: line 1 SECTION 1. Section 41338 is added to the Education Code, line 2 to read: line 3 41338. (a)  For purposes of this section, the following terms line 4 have the following meanings: line 5 (1)  “Average daily membership” means the quotient of the line 6 aggregate enrollment days for all pupils in a local educational line 7 agency, from transitional kindergarten to grade 12, inclusive, as line 8 applicable, divided by the total number of instructional days for line 9 the local educational agency in an academic year. A local line 10 educational agency’s average daily membership shall be calculated line 11 using data from the same fiscal year or years that the local line 12 educational agency used to calculate its average daily attendance line 13 for purposes of state apportionment under Sections 2574 and line 14 42238.02, as applicable. For any fiscal year before the 2022–23 line 15 fiscal year for which average daily membership data is not line 16 available, the Superintendent shall use a local educational line 17 agency’s census day enrollment count, as certified in the California line 18 Longitudinal Pupil Achievement Data System. line 19 (2)  “Local educational agency” means a school district, county line 20 office of education, or charter school. line 21 (b)  Commencing with the 2022–23 fiscal year, and each fiscal line 22 year thereafter, a local educational agency that complies with the line 23 requirements of paragraph (1) of subdivision (c) shall receive as line 24 supplemental education funding funding, in addition to the amount line 25 apportioned pursuant to Section 2574 or 42238.02, as applicable, line 26 an amount equal to the difference between what the local line 27 educational agency would have received under the local control line 28 funding formula if the local funding formula were based on average line 29 daily membership instead of average daily attendance, and what line 30 the local educational agency received under the local control line 31 funding formula based on average daily attendance for that fiscal line 32 year. For the purpose of this calculation, the Superintendent shall line 33 apply the funding difference to the local control funding formula line 34 base, supplemental, and concentration grants for each local line 35 educational agency pursuant to Sections 2574 and 42238.02, as line 36 applicable. In no case shall a local educational agency’s line 37 supplemental education funding be less than zero dollars ($0). 97 SB 830 — 3 — B-3 line 1 (c)  In order to be eligible for supplemental education funding line 2 under this section, a local educational agency shall comply with line 3 both of the following requirements: line 4 (1)  Submit to the Superintendent by January 15 the unduplicated line 5 primary and short-term enrollments for their first term enrollment line 6 totals. Local educational agencies shall submit final enrollment line 7 data for the entire academic year as part of end-of-year submissions line 8 under timeframes and procedures established by the line 9 Superintendent. The Superintendent shall use the second data line 10 submission to help settle-up final prior year funding for in the line 11 following fiscal year. line 12 (2)  Demonstrate a maintenance of effort to address chronic line 13 absenteeism and habitual truancy. To fulfill this requirement, a line 14 local educational agency shall maintain at least the same per-pupil line 15 spending level on staff who address chronic absenteeism and line 16 habitual truancy as the local educational agency did in the 2019–20 line 17 school year. The requirement of this paragraph shall be subject line 18 to the audit required pursuant to Section 41020. Failure to meet line 19 this requirement shall result in the loss of supplemental funding line 20 provided pursuant to this section. line 21 (d)  At least 30 percent of the funds allocated pursuant to this line 22 section shall either supplement or supplant existing be used for line 23 purposes of local educational agency expenditures to address line 24 chronic absenteeism and habitual truancy by providing services line 25 and supports that have been determined to improve school line 26 attendance, or addressing the root causes that contribute to pupils line 27 being chronically absent or habitually truant. line 28 (e)  Consistent with the requirements of Section 48240, local line 29 educational agencies shall continue to implement a system to line 30 accurately track pupil attendance in order to raise the awareness line 31 of the effects of truancy and chronic absenteeism, identify and line 32 address factors contributing to habitual truancy and chronic line 33 absenteeism, and ensure that pupils with attendance problems are line 34 identified as early as possible to provide applicable support services line 35 and interventions. line 36 (f)  The Superintendent shall, for purposes of calculating a local line 37 educational agency’s average daily membership pursuant to line 38 paragraph (1) of subdivision (a), issue directives and guidance on line 39 determining the date of withdrawal for a pupil deemed habitually line 40 truant pursuant to Section 48262. 97 — 4 — SB 830 B-4 line 1 (g)  Nothing in this section shall supersede or otherwise modify line 2 Section 48240, 48260, 52060, or 60901. line 3 (h)  On or before November 1, 2028, the Legislative Analyst’s line 4 Office shall submit a report to the Legislature on the line 5 implementation of the funding provisions of this section that line 6 includes information from local educational agencies selected by line 7 the Legislative Analyst’s Office. The local educational agencies line 8 selected for this analysis shall provide the Legislative Analyst’s line 9 Office any information necessary, including, but not limited to, line 10 expenditure data, staffing information, and data on truancy and line 11 chronic absenteeism that is disaggregated by school and pupil line 12 subgroup. line 13 (i)  Funds to implement this section shall be continuously line 14 appropriated in the annual Budget Act. O 97 SB 830 — 5 — B-5