BILL ANALYSIS Ó AB 2585 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2585 (Daly) - As Amended: March 25, 2014 Policy Committee: EducationVote:7-0 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill eliminates the dual budget adoption option for school districts and county offices of education (COEs), revises and recasts provisions related to approval of conditional or disapproved budgets, and makes other technical and clarifying changes. FISCAL EFFECT : One-time General Fund and Federal Fund savings of $100,000 to the California Department of Education (CDE) related to not implementing a software systems upgrade. Estimated annual GF savings of $10,000 to CDE for elimination of workload related to processing dual budget adoption information. Minor state-mandated costs to school districts and COEs for activities related to review and response of conditionally approved or disapproved budget revisions. COMMENTS : Purpose. Existing law allows school districts and COEs to choose either a single or dual budget adoption. This bill seeks to create efficiencies by eliminating the option for a local education agency (LEA) to formally adopt two budgets. According to CDE, the September 8 dual budget adoption is redundant and minimally used. Currently, only 13 LEAs use this process. Districts and COEs that choose the single adoption cycle are subject to the same review and timeline used in dual budget adoption. The difference is that single adoption districts and COEs revise their budgets by September 8 and AB 2585 Page 2 submit the revisions for review, but do not formally re-adopt them. CDE further notes that all districts and COEs routinely revise their budgets throughout the year as more accurate information becomes available. Within 45 days after the state budget is adopted, all districts and COEs must make available for public review any revisions to their budgets to reflect the funding made available by the Budget Act. The budget review process also requires all districts and COEs to submit two interim budget reports per year, one as of October 31 and another as of January 31. The bill also revises and recasts portions of the process for review and modification of conditionally approved or disapproved budgets. Rather than hold a separate hearing to address concerns, for example, a school district or COE would instead address concerns at a regularly scheduled meeting. Analysis Prepared by : Misty Feusahrens / APPR. / (916) 319-2081