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AB 2509

Education finance: average daily attendance: apportionments.

2025-2026 Regular Session Introduced by Nick Schultz and 1 co-sponsor

AB 2509 allows districts to use the five-year average ADA (instead of three-year) for LCFF funding if higher, and to exclude up to five low-attendance days in ADA calculations.

Read second time and amended.
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Bill Summary · AB 2509

Summary of AB 2509 (2025-2026) — Education finance: average daily attendance: apportionments

Purpose and intent

AB 2509, introduced by Assembly Members Schultz and Solache, amends California’s Education Code to modify how school districts’ fiscal-year average daily attendance (ADA) is calculated for purposes of the Local Control Funding Formula (LCFF). The bill aims to adjust the method for determining regular ADA used in apportionments, potentially affecting state funding allocated to school districts, county superintendents, and charter schools.

Key change: when computing a district’s fiscal-year ADA for LCFF funding, the average may be taken from up to five prior fiscal years if that five-year average exceeds the current three-year average alternatives. Additionally, it allows districts to exclude up to the five lowest-attendance days from the current and prior year when calculating regular ADA.

Key provisions and changes

  1. Section 42238.05 (ADA for LCFF)
  2. Currently, the second principal apportionment regular ADA is the greatest of:
    • The current fiscal year ADA
    • The prior fiscal year ADA
    • The average of the three most recent prior fiscal years
  3. AB 2509 adds a fourth option: the average of the five most recent prior fiscal years.
  4. If the five-year average is greater than the other options, it becomes the ADA used for LCFF calculations.
  5. The ADA used must exclude units of attendance from pupils attending schools funded under Article 4 (schools that are not part of standard district/charter funding).

  6. ADA for prior fiscal years may be adjusted for loss or gain due to territory reorganizations or transfers.

  7. Section 42238.051 (Sponsoring district ADA – second principal apportionment)

  8. For sponsoring districts, the regular ADA used to calculate the second principal apportionment for the three- and five-year prior periods can be computed excluding charter-school attendance.

  9. The section details adjustments when pupils transfer between charter and noncharter settings (and interactions between districts and charter schools) to ensure proper counting across periods.

  10. It includes specific provisions for adjustments, reporting requirements, and certain year-specific restrictions (e.g., no adjustments in 2022–23 and 2023–24 for some prior years).

  11. It also allows excluding the five lowest-attendance days from the current and prior year when computing the regular ADA for purposes of the three- and five-year averages.

Who is affected

  • School districts (including their noncharter operations and, to a limited extent, charter-school attendance interactions).
  • Charter schools (indirectly affected through ADA calculations and how pupil attendance is counted and apportioned).
  • County superintendents of schools and the California Department of Education, which administer LCFF funding and ADA calculations.
  • Students and families, to the extent that funding levels influence district programs and resources.

Procedural and timeline notes

  • The bill text indicates standard legislative timelines: introduced February 20, 2026; read first time, referred to committee, with successive amendments and readings culminating in a second reading and final passage.
  • Action history shows committee amendments and passage activities in 2026, with amendments and re-refer to Appropriations as part of the process.
  • If enacted, the changes would apply to LCFF funding calculations moving forward, affecting the fiscal years referenced for averaging ADA (three- vs. five-year lookbacks) and the treatment of attendance days.

Practical impact

  • Potentially higher ADA used for LCFF funding if the five-year average exceeds the three-year average options. This could increase state funding allocations to districts in some years.
  • The ability to exclude up to five low-attendance days could slightly raise regular ADA in districts that experience dips on certain days, potentially increasing funding in those years.
  • The adjustments for charter-vs-noncharter attendance aim to ensure more accurate cross-year funding calculations when students move between charter and district schools.

Note: This summary reflects the bill language as filed and amended through the 2025–2026 session. For implementation, the final enacted text and any associated fiscal analyses or amendments would govern actual application.

Compiled from official sources — confirm details with the bill’s official record.

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