BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          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.
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          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  

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          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:kd  8/7/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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