Ed. Code, § 35735

(a) Each proposal for the reorganization of school districts shall include a computation of the local control funding formula entitlement determined pursuant to Section 42238.02, as implemented by Section 42238.03, for the districts. That computation shall be an integral part of the proposal, and shall not be considered separately from the proposal. The funding computations for the reorganized school districts shall be made consistent with the calculations established in this article, and shall be based on the current information available for each affected school district for the second principal apportionment period for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.

(b) The county superintendent of schools shall compute the local control funding formula entitlement pursuant to this article for a school district involved in an action to reorganize.

(c) (1) For a former school district that has been wholly included in more than one new or acquiring district, the county superintendent of schools with jurisdiction over the reorganized school district shall compute the local control funding formula entitlement pursuant to this article. As part of this computation, and except as otherwise provided in this article, the county superintendent of schools may determine both of the following:

(2) (A) The prior year funded average daily attendance as of the second principal apportionment from each affected school district that will be served by each reorganized school district.

(B) Consistent with paragraph (1), the division of all of the following types of funding attributed to a former district when all of the territory of that former district is made part of two or more new or acquiring districts:

(i) Categorical program funding provided pursuant to subdivisions (g) and (h) of Section 42238.02, paragraph (2) of subdivision (a) of Section 42238.03, and subdivision (e) of Section 42238.03.

(ii) Economic recovery target payments computed pursuant to paragraph (2) of subdivision (d) of Section 42238.025.

(iii) Necessary small school allowances provided for minimum state aid pursuant to subparagraph (D) of paragraph (1) of subdivision (e) of Section 42238.03, except that in no case shall the allowance attributed to a single necessary small elementary or necessary small high school be divided among more than one new or acquiring district.

(3) The funding calculated pursuant to this subdivision shall be incorporated by the Superintendent into the new or acquiring district’s calculations as if it were a former district that is wholly included in the new district, provided that the required information is submitted to the Superintendent within the timeframe established by the Superintendent. If the county superintendent of schools does not provide all of the information in paragraphs (1) and (2), the funding shall not be included in the new or acquiring district’s calculations.

(d) For all actions to reorganize, except for those actions approved pursuant to subdivision (b) of Section 35710, or appealed pursuant to subdivision (c) of Section 35710, Section 35710.5, or Section 35711, the Superintendent shall compute the local control funding formula entitlement for a reorganized school district pursuant to Section 42238.02, as implemented by Section 42238.03.

(e) The Superintendent may make adjustments to the local control funding formula entitlements computed pursuant to subdivisions (b) and (c), if those adjustments are necessary to cause those entitlements to be consistent with this article.

(f) For purposes of this article, a lapse pursuant to Section 35780.1 shall be considered an action to reorganize pursuant to subdivision (b) of Section 35511.

(g) Any costs incurred by the county superintendent of schools in preparing reports pursuant to this section or Sections 35735.1 to 35735.9, inclusive, may be billed to the affected school districts on a proportionate basis.