An act to amend Section 42238.02 of the Education Code, relating to school finance.
Summary
AB 1062 would amend California’s Local Control Funding Formula (LCFF) to create a waiver process for certain charter schools that are otherwise capped in how much of their “unduplicated pupil” share can be used to calculate concentration grants. Under current law, a charter school’s concentration grant is limited so that the percentage of unduplicated pupils used for the grant cannot exceed the percentage in the surrounding school district, or the highest such percentage among districts where the charter operates. The bill would allow a charter school to ask the Superintendent of Public Instruction to waive that limitation and instead calculate the concentration grant using the charter school’s own unduplicated pupil percentage above the 55% threshold.
The bill also directs the Superintendent to develop application guidelines and procedures and to approve a waiver when the charter school shows two things: that the existing limitation would create a significant funding shortfall that harms its ability to serve pupils, and that the waiver would provide a direct material benefit to students. In practical terms, the measure is aimed at increasing funding flexibility for charter schools serving high-need student populations, especially where the current district-based cap may reduce the amount of concentration funding they can receive.
AB 1062 would make a targeted change to Education Code Section 42238.02, which governs LCFF calculations for school districts and charter schools. It would not change the overall structure of LCFF, base grants, or supplemental grants, but it would alter how concentration grants are calculated for eligible charter schools that obtain a waiver. The bill therefore affects state apportionment formulas and could increase state aid to some charter schools, while leaving existing rules in place for districts and for charter schools that do not qualify or do not apply.
The general sentiment reflected in the available voting history is mixed to negative in committee, with the bill failing on a 2-4 vote in the Assembly Education Committee before a later reconsideration vote passed 9-0. That pattern suggests the proposal drew some support, but also enough concern to stall it at first. Because there are no transcript excerpts, the record does not show detailed floor or committee debate, but the structure of the bill indicates its supporters likely view it as a fairness and adequacy fix for charter schools serving high concentrations of disadvantaged students.
The main point of contention is the waiver itself: whether charter schools should be allowed to bypass the district-based cap on concentration funding. Opponents may worry that the bill would increase state costs, weaken the existing locality-based funding guardrails, or give charter schools a special exception not available to districts. Supporters, by contrast, appear to argue that some charter schools face real funding shortfalls under the current cap and should be able to demonstrate that higher concentration funding would directly benefit students.
Impact
AB 1062 would amend Education Code Section 42238.02, which is a core provision of the LCFF. The bill would add a new waiver pathway for certain charter schools to receive concentration grant funding based on their own unduplicated pupil percentage rather than the lower district-based cap currently imposed by law. This could increase state apportionments for qualifying charter schools and would require the Superintendent of Public Instruction to create implementation guidelines and approve waivers when statutory findings are met. The bill would not alter the LCFF base grant or supplemental grant formulas, but it would change how concentration grants are calculated for a subset of charter schools and could affect state school finance obligations.
Sentiment
The available record suggests cautious or divided sentiment rather than broad consensus. The bill was introduced and moved through Assembly Education, but it initially failed on a 2-4 vote on April 30, 2025, indicating resistance or unresolved concerns among committee members. A subsequent reconsideration vote passed unanimously 9-0, which suggests the measure remained alive procedurally and may have had some support after further discussion, even though no transcript is available. Overall, the bill appears to have attracted interest as a targeted funding fix, but also enough concern about its policy and fiscal implications to prevent an easy committee approval.
Contention
The central controversy is whether charter schools should be allowed to override the LCFF concentration-grant cap tied to the surrounding school district’s unduplicated pupil percentage. Supporters are likely focused on equity and adequacy, arguing that some charter schools serving high-need students are underfunded by the current cap and need a waiver to avoid harmful shortfalls. Opponents are likely concerned that the waiver could increase state costs, create a special exception for charter schools, and weaken the existing district-based limitation that was designed to tie concentration funding to local demographics. The bill’s requirement that the Superintendent find both a significant funding shortfall and a direct material benefit to pupils is intended to narrow the waiver, but that same discretion may also be a point of concern.
An act to amend Sections 44671 and 49600 of, and to add Chapter 8 (commencing with Section 52210) to Part 28 of Division 4 of Title 2 of, the Education Code, relating to pupil instruction.
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