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AN AMENDMENT TO THE A. THE PEOPLE OF THE CITY OF SANTA MONICA HEREBY AMEND THE CHARTER OF THE CITY OF SANTA MONICA BY ADDING ARTICLE XXII, TO READ AS FOLLOWS: "ARTICLE XXII - EXCELLENT PUBLIC SCHOOLS Section 22.00. Statement of Purpose and Intent. The People of the City of Santa Monica find and declare: (a) The purpose of this Article is to enable and ensure that the City of Santa Monica provides the Santa Monica-Malibu Unified School District with stable financial support on an on-going basis. This Article is intended to ensure that the children of our community and the institution that most directly affects and shapes their lives, our public schools, share directly in the prosperity of our City. (b) This Article establishes the funding of local public schools as a local priority and a municipal affair without raising taxes, and requires the City of Santa Monica to allocate a limited amount of funds to the Santa Monica-Malibu Unified School District annually in a way that will not materially impair the operational services of the City of Santa Monica or the basic fiscal authority of the City Council. (c) Nothing in this Article shall be construed as requiring or approving an increase or imposition of any local tax. (d) California's public schools generally lack sufficient funds to provide excellent educational opportunities for their students. California's public schools are under-funded, with very limited opportunities for generating additional revenues locally. The quality of educational opportunities at public schools in the Santa Monica-Malibu Unified School District suffers from this basic lack of sufficient funding and the uncertainty of the State's budget prospects from year-to-year. A stable level of local support from the City of Santa Monica to the School District will help to alleviate this uncertainty and lack of funding. If the State solves this funding deficiency in local public schools so that Santa Monica schools are funded at a level comparable to better-funded school districts in California, this Article would allow the City to reduce its funding responsibilities under this Article. (e) The City of Santa Monica has the financial capacity to provide the Santa Monica-Malibu Unified School District with financial assistance beyond what it currently provides. This Article requires that the City contribute only a small portion of the City's total budget to the School District; yet it is an amount that would greatly benefit local public schools. Because the City of Santa Monica has multiple significant revenue streams from a variety of sources, the People find and declare that the amount of "Funds for Excellent Public Schools" established in this Article for the "Base Year" and subsequent "Funding Years" is a realistic and fiscally prudent amount that the City of Santa Monica can allocate to the public schools without significantly impacting the City's fiscal ability to provide for the health, safety or welfare needs of the City. (f) The City Charter already recognizes the value of schools in the community by providing for the establishment of a Board of Education, specifying the City's authority to financially support local public schools, and by increasing the City's expenditure limits in part for the purpose of allowing financial aid to the public schools. Further, the City of Santa Monica has in the past lawfully expended City funds that were used to enhance public education. The people interpret references to public schools in this Article and elsewhere in this Charter to mean the public school system serving the children of Santa Monica, whether created and/or operated by the City or another public entity. (g) The entire community benefits from ensuring that the Santa Monica-Malibu Unified School District has the financial resources necessary to provide excellent educational opportunities for its students. Excellent public schools attract quality businesses to the community, increase property values, generate local tax revenues, help to deter criminal activity, reduce community problems such as poverty, drug use and teen pregnancy, and contribute to the overall quality of life in the City. In addition, the Santa Monica-Malibu Unified School District regularly makes its facilities available for after-hours community use including its auditoriums, gymnasiums, playing fields, and classrooms. All of these community benefits, and more, will represent a substantial beneficial return on the City's investment in local public schools as enabled and required by this Article. (h) Providing a stable source of municipal resources to the public school system will help all children achieve success in public schools. (i) The People of the City of Santa Monica recognize the importance of existing City-sponsored early childhood, after school, and youth and family services. It is the intent of the voters that the purpose of this Article is to supplement and not supplant those and other efforts. This Article shall not be interpreted in a way that would divert funding from human services. (j) The People intend that the funds dedicated herein will be transferred to the School District without additional restrictions, to be spent at the discretion of the Board of Education pursuant to an annually published expenditure plan for any lawful purpose including, without limitations: improving student achievement; class size reduction; retaining and attracting high quality teachers; campus safety and cleanliness; libraries; programs in music and the arts; health, physical education and sports; early childhood education and support services. (k) The People find and declare that the purpose of this Article is to enable and require the City of Santa Monica to annually contribute to the local public school district a minimum amount of 4% of the herein defined Designated General Fund Revenues or $6 million, whichever is greater. In order to ensure that the children of our community share directly in the City's prosperity, the annual City allocation to the School District will increase by 1% of the Designated General Fund Revenues, after each year that the City's Designated General Fund Revenues increase by at least 3.5%. The People hereby adopt an 8% cap on the City's annual allocation of Designated General Fund Revenues to the School District, and also designate herein specific circumstances under which the City's annual allocation may be reduced in a given year to protect the basic fiscal management authority of the City Council. (l) This Article shall not be construed to relieve the City of Santa Monica from a responsibility to provide financial support to the Santa Monica-Malibu Unified School District beyond the minimum required by this measure when the District faces a fiscal crisis that threatens its ability to provide an excellent education to all of our community's children. Section 22.01. Definitions. For the purposes of this Article, the following words and phrases shall have the following meaning: (a) City. The term "City" shall mean the City of Santa Monica. (b)
District. The terms "District" and "School District" shall mean the
Santa Monica-Malibu
(c) Base Year. The term "Base Year" shall
mean the Funding Year that commences on July 1 (d) Funding Year.
The term "Funding Year" shall mean a City fiscal year commencing on July 1 (e) Base Percentage. The term "Base Percentage" shall mean four percent (4.0%).
(f) Funding Percentage. The term
"Funding Percentage" shall mean the percentage of (g) First Reference
Year. The term "First Reference Year" shall mean the City fiscal year (h)
Second Reference Year. The term "Second Reference Year" shall mean
the City fiscal
(i) Designated General Fund Revenues.
The term "Designated General Fund Revenues"
(j) School Funding Index. The term "School
Funding Index" shall mean the average of the
(k) Funds for Excellent Public Schools.
The "Funds for Excellent Public Schools" shall be
(l) District Allocation. The term
"District Allocation" shall mean the City General Fund
(m) District Grants. The term "District Grants"
shall mean targeted City departmental grant Section 22.02 Municipal Affair. Preserving and enhancing an excellent system of local public education serves the best interests of the City of Santa Monica. The People of Santa Monica find and declare that the provision of stable and specific amounts of additional local funding for local public schools is a municipal affair, promotes the public health, safety and welfare, and is a permissible expenditure of City revenues. Section 22.03. Base Year Funds for Excellent Public Schools. Beginning in the Base Year the City shall provide the District with annual funding in a minimum amount equal to six million dollars ($6,000,000.00), or the Base Percentage multiplied by the Designated General Fund Revenues for the First Reference Year, whichever amount is greater (hereinafter "Base Year Funds for Excellent Public Schools"). The Base Year Funds for Excellent Public Schools shall be a replacement of the District Allocation and not an augmentation of the District Allocation. The Base Year Funds for Excellent Public Schools shall supplement and not supplant District Grants and other early childhood, after-school, youth and social services programs funded by the City in the 2003-2004 fiscal year. Base Year Funds for Excellent Public Schools shall be payable to the District in calendar quarterly installments beginning October 1 of the Base Year, unless otherwise agreed to by the City and the District in accordance with Section 22.07. The District shall be permitted to expend such funds for any lawful purpose of the District that preserves and enhances excellence in public education. Not later than February 1 prior to the commencement of the Base Year, the City shall prepare, provide to the District, and make available for public review the details of the calculation of the Base Year Funding to be disbursed to the District in the Base Year. Section 22.04 Funds for Excellent Public Schools. In each Funding Year following the Base Year, the City shall provide to the District an amount equal to the Funding Percentage multiplied by the Designated General Fund Revenues for the First Reference Year applicable to the Funding Year, as increased or reduced pursuant to Section 22.05 (hereinafter "Funds for Excellent Public Schools"). Funds for Excellent Public Schools shall be payable to the District in calendar quarterly installments beginning October 1 of the Funding Year unless otherwise agreed to by the City and the District in accordance with Section 22.07 herein. The District shall be permitted to expend Funds for Excellent Public Schools for any lawful purpose of the District that preserves and enhances the excellence of public education. Not later than February 1 of each year, the City shall prepare, provide to the District, and make available for public review the details of the calculation of the Funds for Excellent Public Schools to be disbursed to the District in the subsequent Funding Year. Section 22.05. Increase or Reduction of Funds for Excellent Public Schools. (a) Increase of Funding Percentage. (1) When City Budget Growth is 3.5% or more. If the Designated General Fund Revenues in the First Reference Year increased by at least three and one-half percent (3.5%) over the Designated General Fund Revenues in the Second Reference Year, the Funding Percentage for the pending Funding Year shall be computed by adding one (1.0) percentage point to the Funding Percentage that was used to calculate the Funds for Excellent Public Schools in the preceding Funding Year. For example, if the Base Year Percentage is four percent, and Designated General Fund Revenues grew by four percent between the First and Second Reference Years applicable to the Funding Year following the Base Year, the Funding Percentage in that Funding Year would be five percent (i.e., four percent for the Base Year plus one percentage point). (2) When City Budget Growth is Less Than 3.5%. If the Designated General Fund Revenues in the First Reference Year did not increase by at least three and one-half percent (3.5%) over the Designated General Fund Revenues in the Second Reference Year, the Funding Percentage used to calculate the Funds for Excellent Public Schools in that Funding Year shall be the same as the Funding Percentage used to calculate the Funds for Excellent Public Schools in the preceding Funding Year. For example, if the Base Percentage is four percent, and Designated General Fund Revenues grew by two percent between the First and Second Reference Years applicable to the Funding Year following the Base Year, the Funding Percentage for that Funding Year would remain four percent. (3) Maximum Funding Percentage. In no event shall the Funding Percentage be required to exceed eight percent (8.0%) in any Funding Year. (4) Use of Audited Financial Statements. The City shall use audited financial statements for the First Reference Year and Second Reference Year to calculate the Funds for Excellent Public Schools amount for each Funding Year. If audited financial statements are not available in sufficient time to allow calculation prior to making a quarterly payment on October 1 of the Funding Year the City may calculate the Funds for Excellent Public Schools amount for that Funding Year initially using the most complete statement of City financial results available, but shall recalculate the Funds for Excellent Public Schools amount for that Funding Year using audited financial statements when available and shall make any necessary adjustments in the amounts paid prior to the final quarterly payment for the Funding Year. (b) Decrease of Base Year Funding or Ongoing Funding. This Article is not intended, and shall not be interpreted, to impair either the basic fiscal management authority of the City Council, or the ability of the District to receive its full funding from the State of California or any other federal, state or local source. Once the Base Year Funding and/or Funds for Excellent Public Schools is established, the City may contribute less than the amounts required in a particular Funding Year only in one of the following circumstances: (1) In any Funding Year, the District may notify the City that the School District's receipt or expenditure of all or part of the City's contribution could impair the School District's ability to receive funds from the State of California. In such a case, the City shall adjust its contribution to the School District accordingly and shall not be required to pay the full amount required by this Article for that Funding Year. (2) The funding requirements of this Article may be temporarily reduced in any City fiscal year in which the City Council finds, after a noticed public hearing and by at least a 6/7 roll call vote of its entire membership, that a local fiscal emergency exists in the City and that a reduction in that Funding Year's Funds for Excellent Public Schools is necessary to maintain basic City services at an acceptable level. In such a case, the Funds for Excellent Public Schools may be reduced in that Funding Year only. Funds for Excellent Public Schools shall be calculated in subsequent years as if the City had disbursed the full amount of Funds for Excellent Public Schools due in the Funding Year for which the reduction was made. The District shall not be required to repay any Funds for Excellent Public Schools already disbursed to the District in such a Funding Year. In making a finding to support a reduction in Funds for Excellent Public Schools in any Funding Year, the City Council shall heed the People's finding in Section 22.00(e) of this Article and shall determine whether reserve funds or other designated but not legally encumbered City funds can be used to make up the shortfall for that Funding Year. (3) In the event that all or part of the Funds for Excellent Public Schools required by this Article in a Funding Year would result in general fund revenues per ADA for the District that exceed the School Funding Index, the City may, at its discretion, reduce the Funds for Excellent Public Schools in that Funding Year by an amount equal to the amount by which the District's general fund revenues per ADA would exceed the School Funding Index. Section 22.06. Accountability and Expenditure Plan. Prior to disbursing any funds to the District in any Funding Year, the City Manager or his/her designee shall certify that the District has prepared and supplied to the City a written expenditure plan for that Funding Year's funds. In addition to the foregoing, not less than seventy-five (75) calendar days following the close of the School District's fiscal year, the City shall require that the School District provide a written report to the City Council and the public of the general purposes and programs for which City-contributed funds were expended in the prior fiscal year. The City shall obtain audited financial statements from the District annually. The reports required by this Section shall be for the information of the public, and shall not be subject to any approval or content requirement by the City. Section 22.07. Agreement Between City And District. The City and District may, in their sole and absolute discretion, negotiate an agreement governing all or any portion of their relationship that includes within its scope the funding required by this Article. However, the funding required by this Article shall not be contingent upon such an agreement nor shall such an agreement establish conditions or contingencies potentially limiting the City's obligations under this Article to provide such funding. Any such agreement shall ensure that City complies with its minimum funding obligations to the District, as set forth in this Article, without condition. Any such agreement may provide for additional City funding to the District in excess of the minimum funding required by this Article on terms and conditions unaffected by this Article. Section 22.08. Civil Remedies. Any resident of the City of Santa Monica may bring an action in the Superior Court to enforce the City's obligations under the provisions of the Article. In any such action, a prevailing plaintiff or petitioner shall be entitled to recover his or her costs of suit, including reasonable attorneys' fees. Section 22.09. Interpretation. This Article shall be interpreted liberally to affect its purpose of enabling and requiring the City of Santa Monica to dedicate a stable and significant amount of revenue to the local public schools. Section 22.10. Severability. Should a court of competent jurisdiction find, order or rule that any Section, subsection, clause, phrase, word or provision of this Article is invalid, unconstitutional or prohibited by law, it is the intent of the People of the City of Santa Monica that the remaining portions and provisions of this Article shall remain in full force and effect, and that the remaining portions and provisions of this Article shall be fully enforced and complied with by the City. Should a court of competent jurisdiction fine, order or rule that funds of the City of Santa Monica may not lawfully be expended in a geographic area outside the City limits, it is the intent of the People of the City of Santa Monica that the City make the payments required by this Article only for use by the District within the City limits. Section 22.11. Amendment or Repeal. This Article may be amended or repealed only by the voters of the City through a majority vote of those voting on the question at a City Election."
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