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SB 1077: School Funding Equalization (2005)


Because of significant differences in local property tax revenues prior to the passage of Proposition 13 in 1978, great disparities have long existed between the funding that schools receive.

SB 1077 would have continued recent progress, that started with the Serrano decision, toward equalizing revenue limits - the base level of unrestricted funding each school district receives - among California’s school districts. The 2004-05 budget process identified that at that point, some $400 million would be needed to fully fund revenue limit equalization at the 90th percentile target, and $110 million was appropriated as the first step toward that goal. This bill would have served as the vehicle to appropriate the next installment, as determined in budget negotiations, using the most current Average Daily Attendance (ADA) accounting methodology as the basis.

SB 1077 also proposed to include so-called “revenue limit add-ons” in the base used to calculate equalization payments. An anachronism of old funding structures, these initial categoricals are no longer linked to any requirements - for example, districts receiving Meals for Needy Pupils moneys do not necessarily have needy pupils, and are not required to use the money for food services. These are wholly discretionary moneys, and as such, the Legislative Analyst has suggested they be incorporated into districts’ revenue limits. SB 1077 would have included these monies and then further the process of equalization by allocating additional resources to reach 90th percentile targets.

For more information, you can read the SB 1077 "Fact Sheet" prepared by a member of Senator Simitian's staff.

Final Status and Text

SB 1077 is no longer active. Its final status was:
Did not pass the Legislature

You can read its final text on the Legislature's Bill Information site.