BILL NUMBER: AB 1318	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Gray and Olsen

                        FEBRUARY 27, 2015

   An act relating to school finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1318, as introduced, Gray. School finance: school districts:
annual budgets: reserve balance.
   In a fiscal year immediately after a fiscal year in which a
transfer is made into the Public School System Stabilization Account,
existing law prohibits a school district's adopted or revised budget
from containing a combined assigned or unassigned ending fund
balance that is in excess of either 2 or 3 times the minimum
recommended reserve for economic uncertainties adopted by the State
Board of Education, depending on the school district's units of
average daily attendance. Existing law authorizes the county
superintendent of schools to waive the prohibition, pursuant to
specified conditions, for up to 2 consecutive fiscal years within a
3-year period if the school district provides documentation
indicating that extraordinary fiscal circumstances substantiate the
need for the balance.
   This bill would express the intent of the Legislature to enact
legislation regarding adequate levels of school district reserves, as
specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation that would modify Section 42127.01 of the Education Code,
by adding new provisions covering adequate levels of school district
reserves that (a) provide local communities with transparency on
issues relating to the amounts of, and reasons for, school district
reserves, including minimum reserves for economic uncertainty as well
as assigned and unassigned ending balances, (b) provide school
boards with adequate guidance on the reasons for, and uses of,
reserve levels, including minimum reserves for economic uncertainty
as well as assigned and unassigned ending balances, and (c)
prioritize pupil needs and support.