AB 224

Under current law, the equalization formula provides three tiers of state

support for school districts. The second tier of support is for costs per pupil between

$1,000 and the secondary cost ceiling. Under current law, the secondary cost ceiling

per pupil is set at 90 percent of the previous school year statewide shared cost per

pupil. Beginning in the 2020-21 school year, this bill increases the secondary cost

ceiling to 100 percent of the previous school year statewide shared cost per pupil.

A school district's shared cost is one of the factors used to calculate a school

district's equalization aid. Generally, under current law, a school district's shared

cost is the sum of the school district's expenditures from its general fund and its debt

service fund. Under this bill, beginning in the 2020-21 school year, expenditures

from either a school district's general fund or debt service fund that are authorized

by an operating or capital referendum held after the date on which this bill becomes

law are excluded from the school district's shared cost if the school district is a

negative tertiary school district. A school district is a negative tertiary school district

if its equalized valuation exceeds the tertiary guaranteed valuation per member. In

other words, under the bill, a negative tertiary school district will not lose

equalization aid for operating and capital expenditures that exceed the tertiary

guarantee and are funded by referenda approved after this bill becomes law.