Ed. Code, § 35735.7

For a new or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to paragraph (4) of subdivision (a) of Section 42238.03 shall be calculated as follows:

(a) If the reorganization took place before December 31, 2013:

(1) For each affected district, divide the amount of funding received in the immediately preceding fiscal year pursuant to paragraph (4) of subdivision (a) of Section 42238.03 as of the second principal apportionment by the units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.

(2) For each affected district, multiply the amount determined in paragraph (1) by the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective.

(3) Add the products determined in paragraph (2), and divide that sum by the sum of the average daily attendance determined in paragraph (2) for all affected districts.

(b) If the reorganization took place after December 31, 2013:

(1) For each affected district, divide the amount of funding received in the immediately preceding fiscal year pursuant to paragraph (4) of subdivision (a) of Section 42238.03 as of the second principal apportionment by the units of average daily attendance for the fiscal year prior to the fiscal year in which the reorganization is to become effective.

(2) For each affected district, multiply the amount determined in paragraph (1) by the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.

(3) Add the products determined in paragraph (2), and divide that sum by the sum of the average daily attendance determined in paragraph (2) for all affected districts.

(c) (1) For purposes of subdivisions (a) and (b), average daily attendance shall be the funded average daily attendance as of the second principal apportionment.

(2) If the reorganization includes a divided district, the following shall apply:

(A) For purposes of subdivision (a), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district.

(B) For purposes of subdivision (b), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the first fiscal year the reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first fiscal year of the reorganization, the divided district’s funding shall not be included in the blending calculation pursuant to paragraph (4) of subdivision (a) of Section 42238.03.

(3) For purposes of subdivisions (a) and (b), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735.