Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

Other Code Provisions

Education Code

TITLE 2. ELEMENTARY AND SECONDARY EDUCATION

DIVISION 3. LOCAL ADMINISTRATION

PART 24. SCHOOL FINANCE

Chapter 2. Determination of Minimum Level of Education Funding

Section 41207.2

41207.2. Minimum funding obligation and maintenance factor allocation. (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.

History.—Added by Stats. 2009, Ch. 3 of the Fourth Extraordinary Session (AB 3), in effect July 28, 2009.

Note.—Section 1 of Stats. 2009, Ch. 3 of the Fourth Extraordinary Session (AB 3) provided that the Legislature finds and declares all of the following:

(a) The fiscal crisis of 2008–09 has caused extraordinary volatility in state General Fund revenues and local property tax receipts. The volatility has led to numerous revisions to the Budget Act of 2008 and related education funding statutes and to numerous revisions in the estimated funding required by Section 8 of Article XVI of the California Constitution for the 2008–09 fiscal year. School districts and community college districts need to know with certainty the total amount of funding to which they are entitled for the 2008–09 fiscal year and the state's plan for providing all of that funding.

(b) Existing law requires the creation of a maintenance factor when certain conditions are met. The fiscal circumstances of 2008–09 have resulted in the creation of a substantial maintenance factor which calls for prudent fiscal planning. The state must know with certainty the amount of that maintenance factor to plan for its future allocation and to determine the level of state support required for school districts and community college districts in coming years.

(c) The American Recovery and Reinvestment Act of 2009 has provided significant federal funding to assist with the state's educational funding needs for two years. However, continued receipt of that funding is predicated on reconciling the state's minimum educational funding guarantee calculations with the federal maintenance of effort calculations and ensuring that state funding does not fall below that maintenance of effort level.

(d) The Budget Act of 2009 must be revised to accommodate the continued weakness of the state and national economies, and to ensure that the acceptance of federal stimulus funds does not have a deleterious effect on the minimum funding level set by Section 8 of Article XVI of the California Constitution for the 2009–10 fiscal year and future fiscal years.

(e) The provisions of this act are intended to be interrelated provisions that address the fiscal crisis of 2008–09 by accomplishing all of the following when implemented:

(1) Set the final calculation of the minimum funding guarantee level for the 2008–09 fiscal year based on the best available calculations of General Fund revenues and local property tax receipts as of the close of the 2008–09 fiscal year.

(2) Ensure that any subsequent changes to technical data do not cause changes in the state funding obligations for school districts and community college districts for the 2008–09 fiscal year.

(3) Plan for and ensure full repayment of the maintenance factor created through the 2008–09 fiscal year.

(4) Revert to the General Fund certain unallocated appropriations made to school districts and community college districts for the 2008–09 fiscal year.

(5) Compensate school districts and community college districts for the reversions described in paragraph (4) in their funding for the 2009–10 fiscal year and reduce revenue limits accordingly for school districts, county offices of education, and community college districts.