Section 41060 Of Article 4. Miscellaneous Provisions From California Education Code >> Division 3. >> Title 2. >> Part 24. >> Chapter 1. >> Article 4.

. (a) The enactment of Article XIII A of the California Constitution by the voters of California at the June 6, 1978, primary election severely reduced the property taxing authority of local school districts. The California Legislature has replaced that local property taxing authority with state revenues derived from state taxing authority. It is the intent of the Legislature that local property tax revenues replaced by state funds are to continue to be considered local effort for purposes of federal grants pursuant to Public Law 81-874.
  (b) For purposes of computing federal grants pursuant to Public Law 81-874 which requires a local tax effort or maintenance of effort, the fiscal year 1977-78 shall be used as a base year. The percentage of local effort for fiscal year 1977-78 shall be calculated as follows:
  (1) The total amount of state and local funds earned by school districts, as determined by Article 2 (commencing with Section 42230) of Chapter 7 of Part 24 as it read prior to repeal by Chapter 282 of the Statutes of 1979 shall be divided into the amount of local tax receipts including tax relief subventions.
  (2) The resultant percentage shall be used as the percent of local effort or contribution.