Local control funding formula: school districts and charter schools: pupils experiencing homelessness: supplemental and concentration grants: regional adjustment factors: grade-span adequacy adjustments.

(1) Existing law establishes a public school financing system that requires state funding for school districts and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires funding pursuant to the local control funding formula to include a base grant that in each fiscal year is adjusted for inflation by 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 specified. If the inflation adjustment for the base grant for a school district or charter school is calculated to be less than 4%, this bill would require the inflation adjustment for the base grant for a school district or charter school to instead be 4%. The bill would require the State Department of Education, on or before January 1, 2030, to establish and publish on its internet website regional cost adjustment factors in order address regional cost differences in housing and labor, and, commencing with the 2030–31 fiscal year, would require the adjustment to the base grant, whether calculated by the inflation adjustment or 4%, as applicable, to be further adjusted by multiplying that calculation by the applicable regional cost adjustment factor. (2) Existing law requires the local control funding formula to include, in addition to the base grant, supplemental and concentration grant add-ons that are based on the percentage of pupils who are unduplicated pupils, as defined to include English learners, pupils eligible for free or reduced-price meals, and foster youth, as specified. Existing law requires school districts and charter schools to annually report their enrollment of unduplicated pupils to the Superintendent of Public Instruction, as specified, and requires county superintendents of schools to review and validate that pupil data, as provided. Existing law requires pupils who are classified in more than one of these groups to be counted only once for these purposes. The bill would add pupils experiencing homelessness, as defined, to the categories of pupils who are unduplicated pupils for purposes of determining eligibility for supplemental and concentration grants. The bill would place reporting requirements on school districts and charter schools to implement these provisions. By imposing additional duties on county superintendents of schools, school districts, and charter schools related to reporting unduplicated pupils, the bill would impose a state-mandated local program. (3) Existing law requires the supplemental grant add-on to be equal to 20% of the base grants, as adjusted, for each school district's or charter school's percentage of unduplicated pupils, as specified, and requires the concentration grant add-on to be equal to 65% of the base grants, as adjusted, for each school district's or charter school's percentage of unduplicated pupils in excess of 55% of the school district's or charter school's total enrollment, as specified. Existing law requires the State Board of Education to adopt regulations that govern the expenditure of funds apportioned on the basis of the number and concentration of unduplicated pupils, as provided. This bill, commencing with the 2030–31 fiscal year, would require the supplemental grant add-on to instead be equal to 35% of the base grants, as adjusted, for each school district's or charter school's percentage of unduplicated pupils, as specified, and would require the concentration grant add-on to instead be equal to 65% of the base grants, as adjusted, for each school district's or charter school's percentage of unduplicated pupils in excess of 45% of the school district's or charter school's total enrollment, as specified. The bill would establish transition adjustments for the 2025–26 fiscal year to the 2029–30 fiscal years, inclusive, to be calculated by the Superintendent of Public Instruction for each school district and charter school based on increased funding that would have been generated by the changes to supplemental and concentration grant eligibility and percentages described above, as provided. The bill would continuously appropriate the moneys necessary to implement those adjustments and would require the Superintendent to add those transition amounts to the school district's and charter school's local control funding formula amounts. The bill, notwithstanding any other law, would require any increase in apportionment to a school district or charter school due to the bill's changes to the local control funding formula to be demonstrated to be used to support additional services for the targeted pupil group. To the extent the bill would impose additional duties on school districts and charter schools, the bill would impose a state-mandated local program. The bill, commencing with the 2025–26 fiscal year, would prohibit each school district and charter school from receiving less state aid under the local control funding formula for the then current fiscal year than they received in the 2024–25 fiscal year under the local control funding formula, as calculated on a per average daily attendance basis. (4) Existing law requires the Legislative Analyst's Office, on or before January 1, 2026, to submit a report to the Legislature on the effects of changing the pupil count methodology of the local control funding formula from average daily attendance to pupil enrollment, as provided. This bill would require the Legislative Analyst's Office, on or before January 1, 2027, to submit a report to the Legislature that studies the impact of the changes to the local control funding formula made by the bill within and between geographic regions of the state. (5) This bill would require the department, on or before January 1, 2028, to develop recommendations for adequacy adjustments to the grade span adjusted base grants in order to address the unique costs for each grade span and to account for the revisions to supplemental and concentration grants described above, and to report those recommendations to the appropriate policy and fiscal committees of the Legislature, as provided. The bill would state the intent of the Legislature to fully transition the local control funding formula commencing with the 2030–31 fiscal year consistent with those recommendations. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (7) Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.