A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Section 8.3 to Article XVI thereof, relating to education finance.

The California Constitution requires the state, from all state revenues, to first set apart the moneys to be applied for the support of the public school system and public institutions of higher education. The Constitution requires that the moneys to be applied by the state for the support of school districts and community college districts be not less than the greater of 3 amounts computed pursuant to specified tests. The Constitution provides that school districts and community college districts are entitled to a maintenance factor, as specified, for any fiscal year in which they are allocated a reduced amount of funding pursuant to the 3rd test or pursuant to a suspension of the minimum funding guarantee. This measure would provide, commencing with the 2011–12 fiscal year, that school districts and community college districts are to receive supplemental education payments in the total amount of $9,300,000,000, and would require the Legislature to annually appropriate that amount from a specified account until the full amount of the supplemental education payments has been allocated. The measure would provide that the payments are in lieu of the maintenance factor amounts, if any, that otherwise would be determined for the 2007–08 or 2008–09 fiscal years. The measure would make its operation contingent upon the establishment, under a separate provision of the Constitution, of the specified account from which the payments would be appropriated. The measure would require that, of the appropriations to school districts for this purpose for the 2011–12 fiscal year, an amount not exceeding $200,000,000 be available only for the purposes set forth in a specified statute, as determined pursuant to the funding formula set forth in that statute. The measure would require that any remaining funds from the appropriations made to school districts for the 2011–12 fiscal year, and all of the funds from the appropriations made to school districts for each subsequent fiscal year, be allocated to school districts as an adjustment to revenue limit apportionments, as specified by statute, in a manner that does not limit a recipient school district with regard to the purposes of the district for which the moneys may be expended.