BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2585| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 2585 Author: Daly (D) Amended: 3/25/14 in Assembly Vote: 21 SENATE EDUCATION COMMITTEE : 6-0, 6/11/14 AYES: Liu, Wyland, Block, Correa, Hancock, Huff NO VOTE RECORDED: Monning SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 73-0, 5/8/14 (Consent) - See last page for vote SUBJECT : School finance: annual budgets SOURCE : Author DIGEST : 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. ANALYSIS : Existing law: 1.Provides for external financial oversight of COEs by the Superintendent of Public Instruction (SPI), and of school districts by county superintendents. CONTINUED AB 2585 Page 2 2.Requires local educational agency's (LEAs) to adopt a budget prior to July 1 of each year, and requires that budget to be approved by the county superintendent (for districts) or the SPI (for COEs) by August 15. Under the dual budget cycle an LEA needs to file a revised and readopted budget, at a public hearing, based on projected income and expenses budget by September 8; this differs from a single budget cycle where the budget is readopted only if it is disapproved or as needed, and no later than 45 days after the Governor signs the Budget Act. Both single and dual budget cycles processes require specified oversight and interventions if the budget is not approved by specified dates. 3.Requires all LEAs to provide two interim reports each fiscal year by specified due dates, and requires each LEA to self-certify as to whether the LEA will meet or may not meet its financial obligations for the current and two subsequent fiscal years, or will be unable to do so for the current and one subsequent year; also requires specified oversight and interventions if a LEA may not meet or will be unable to meet its financial obligations. This bill eliminates the dual budget adoption option for school districts and COEs, revises and recasts provisions related to approval of conditional or disapproved budgets, and makes other technical and clarifying changes. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/5/14) Superintendent of Public Instruction, Tom Torlakson California Federation of Teachers ARGUMENTS IN SUPPORT : According to the author's office, the number of school districts and county offices of education electing to use the dual budget adoption option has been dwindling for many years. For fiscal year 2014-15, only 13 of the approximately 1,100 school districts and COEs that elected to use this budget adoption option. Eliminating the dual budget adoption option will not create new responsibilities for districts or COEs, nor will it prohibit school districts or COEs CONTINUED AB 2585 Page 3 from modifying their budgets throughout the year. In addition, this bill does not prevent districts or COEs from holding additional public hearings to elicit feedback from parents, community leaders, and other important stakeholders. ASSEMBLY FLOOR : 73-0, 5/8/14 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Donnelly, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Grove, Hagman, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Eggman, Gorell, Gray, Hall, Mansoor, V. Manuel Pérez, Vacancy PQ:k 8/5/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED