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NOTES

[1] We are indebted to the work of the Public Policy Institute of California (PPIC), which has prepared a series of essays at the request of the Joint Committee to Develop a Master Plan for Education – Kindergarten through University. Two papers, “The Concept of Adequacy and School Finance” by Heather Rose and “Towards Cost and Quality Models for California’s Public Schools” by Jon Sonstelie, provide a strong base for this part of the report. These papers and others are compiled in the PPIC publication, School Finance and California’s Master Plan for Education, 2001.
[2] Local education agencies receiving funding directly for the provision of a full range of educational services are generally school districts and county offices of education.
[3] Michael A. Rebell. Education, Adequacy, Democracy and the Courts. November 21, 2000.
[4] American School Board Journal, December 2001. “How Much is Enough?”
[5] Heather Rose. The Concept of Adequacy and School Finance. Public Policy Institute of California, November 2000, prepared for the Joint Committee to Develop a Master Plan for Education – Kindergarten through University.
[6] National Conference of State Legislatures, Task Force on Education Finance.
[7] For further elaboration and discussion of the approaches taken by these other states, see “The Concept of Adequacy and School Finance”, Heather Rose, Ch. 3 of School Finance and California’s Master Plan for Education; PPIC 2001.
[8] PPIC essays on Teacher Salaries in California (Kim Rueben and Jane Leber Herr) and Resources and Student Achievement: An Assessment (Julian Betts and Anne Danenberg) have been invaluable in assessing this component of an adequacy model, as well as the extensive work presented in the Texas report, A Study of Uncontrollable Variations in the Costs of Texas Public Education.
[9] See Appendix A for our review of price adjustments.
[10] Julian Betts and Anne Danenberg, Resources and Student Achievement: An Assessment, Public Policy Institute of California, March 2001.
[11] Revenue limit add-ons should be reviewed separately and assigned to appropriate categories.
[12] N/A indicates major categorical programs that would not be consolidated into one of the four groupings proposed in this paper.
[13] We would propose to streamline CSR now, and consolidate funding into the adequacy base in the future.
[14] Propose standards and accountability system used to assure student instructional materials needs are met.
[15] Partnership Academies to phase-out as initiatives, but we propose funding High School Innovation grants through the initiative process.
[16] Identify low-incidence and severely disabled student funding separately; remainder goes into the adequacy base.
[17] Local property tax revenues account for nearly one-fourth of total school funding, and often a much larger share of annual increases. However, as discussed later in this section, property tax revenues for schools are under state, not local, control and simply offset state General Fund requirements for increased education spending.
[18] A tax assessed on the basis of monetary value.
[19] Data: Legislative Analyst, 2001-02 Budget Analysis, 1999-2000 budgeted revenues.
[20] Framework to Develop a Master Plan for Education
[21] Sonstelie, Is There a Better Response to Serrano?
[22] See Elizabeth G. Hill, Legislative Analyst, California’s Tax System – A Primer, January 2001, to reference criteria for a well designed tax system.
[23] The optional local income tax surcharge is discussed in Appendix B. Based on our review, we believe that the personal income tax is not a viable option for local school funding.
[24] School Finance and California’s Master Plan, Chapter 9, “The Parcel Tax”. p. 190.
[25] E. Hill. California’s Tax System – A Primer, January 2001.
[26] Additional tax levies are authorized for local voter-approved general obligation debt.
[27] Capital outlay includes new construction, modernization, and deferred maintenance.
[28] In earlier sections of this report, a case has been made for adequacy in financing school operations largely on a per-pupil basis. In making that case, the working group was guided by research as well as the experience of other states where various forms of adequacy models have been implemented. Similarly, the Facilities subgroup has benefited from work done by the Legislative Analyst proposing a new model for financing school facilities to ensure that funding is available when needed (A New Blueprint for California School Facility Finance, May 1, 2001). We also examined a report published by the Public Policy Institute of California (Financing New School Construction and Modernization: Evidence from California, Brunner, E. and Rueben, K., June 2001.)
[29] Examples of adjustments discussed by the working group include toxic contamination mitigation, high land costs, severe climate conditions, geologic challenges, technology infrastructure inadequacies and other unique site preparation requirements.
[30] It is recommended that the state provide a Facilities Master Plan template for districts that need technical assistance with consideration that funding assistance may be necessary to help those districts create a facilities master plan. This may involve developing a cost estimate upon which to gauge appropriate level of state financial assistance.
[31] Appendix C outlines the responsibilities of various state agencies to clarify the relationship of local education agency and state agency roles in the provision of educational facilities.
[32] Kim Rueben and Jane Leber Herr, Teacher Salaries in California, Public Policy Institute of California, November 15, 2000.
[33] Charles A. Dana Center, University of Texas at Austin, A Study of Uncontrollable Variations in the Costs of Texas Public Education, November 1, 2000.

Table of Contents
Summary 1. Finance 2. Equity 3. Community
4. Accountability 5. Facilities Appendices Members