SB 437

Under current law, the formula for determining a school district's revenue limit

does not apply to a school district with per pupil revenue that is less than the revenue

ceiling. Instead, the school district is allowed to increase its per pupil revenue up to

the revenue ceiling.

Under current law, the per pupil revenue ceiling is $9,700 in the 2019-20 school

year and $10,000 in each school year thereafter. However, under current law, the

general per pupil revenue ceiling amount does not apply to a school district in which,

in any of the three preceding school years, a referendum question to exceed the

district's revenue limit for operating costs was rejected. For such a school district,

the per pupil revenue ceiling amount is the per pupil revenue ceiling amount that

applied in the school year in which the operating referendum was rejected (revenue

ceiling freeze).

This bill creates an exception to the revenue ceiling freeze. Under the bill, the

revenue ceiling freeze does not apply to an operating referendum that was rejected

at an election held in the 2018-19 school year if (a) the operating referendum was

for the costs of operating and maintaining a new school building and (b) at the same

election, the voters rejected a referendum to incur debt for the purpose of

constructing the new school building.