AB 531, as introduced, O'Donnell. School finance: budget calculations.
Existing law, unless the school district is granted an exemption, limits the amount of the combined assigned or unassigned ending fund balance contained in a school district’s annual budget in any fiscal year immediately after a fiscal year in which a transfer is made into the Public School System Stabilization Account, and establishes a formula for calculating the maximum amount allowable for school districts with less than 400,000 units of average daily attendance, and a formula for school districts with more than 400,000 units of average daily attendance, as specified.
This bill would instead make the formula for school districts with less than 400,000 units of average daily attendance applicable to school districts with 400,000 units of average daily attendance or less. The bill would also make a technical change by deleting an obsolete provision. To the extent the bill would impose additional duties on school districts, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 42127.01 of the Education Code is
2amended to read:
(a) In a fiscal year immediately after a fiscal year
4in which a transfer is made into the Public School System
5Stabilization Account, a school district budget that is adopted or
6revised pursuant to Section 42127 shall not contain a combined
7assigned or unassigned ending fund balance that is in excess of
8the following:
9(1) For school districts withbegin delete fewer thanend delete 400,000begin insert or fewerend insert units
10of average daily attendance, the sum of the school district’s
11applicable minimum recommended reserve for economic
12uncertainties adopted by the state board pursuant to subdivision
13(a) of Section
33128, multiplied by two.
14(2) For school districts with more than 400,000 units of average
15daily attendance, the sum of the school district’s applicable
16minimum recommended reserve for economic uncertainties adopted
17by the state board pursuant to subdivision (a) of Section 33128,
18multiplied by three.
19(b) A county superintendent of schools may grant a school
20district under its jurisdiction an exemption from the requirements
21of subdivision (a) for up to two consecutive fiscal years within a
22three-year period if the school district provides documentation
23indicating that extraordinary fiscal circumstances, including, but
24not limited to, multiyear infrastructure or technology projects,
25substantiate the need for a combined assigned or unassigned ending
26fund balance that is in excess of the minimum recommended
27reserve for economic uncertainties. As a condition of receiving an
28exception,
a school district shall do all of the following:
29(1) Provide a statement that substantiates the need for an
30assigned and unassigned ending fund balance that is in excess of
31the minimum recommended reserve for economic uncertainties.
P3 1(2) Identify the funding amounts in the budget adopted by the
2school district that are associated with the extraordinary fiscal
3circumstances.
4(3) Provide documentation that no other fiscal resources are
5available to fund the extraordinary fiscal circumstances.
6(c) This section shall become operative on December 15, 2014,
7only if Assembly Constitutional Amendment No. 1 of the 2013-14
8Second Extraordinary Session is approved by the voters at the
9November 4, 2014, statewide general election. If Assembly
10Constitutional Amendment No. 1 of the 2013-14 Second
11Extraordinary Session is not approved by the voters at the
12November 4, 2014, statewide general election,
this section shall
13not become operative and is repealed on January 1, 2015.
If the Commission on State Mandates determines that
15this act contains costs mandated by the state, reimbursement to
16local agencies and school districts for those costs shall be made
17pursuant to Part 7 (commencing with Section 17500) of Division
184 of Title 2 of the Government Code.
O
99