AB 2689,
as amended, Gray. Schoolbegin delete district funds: expenditures and appropriations: excess funds.end deletebegin insert districts: annual budgets: reserve balance.end insert
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.
end insertbegin insertThis bill would instead prohibit a school district’s adopted or revised budget from containing a combined assigned or unassigned ending fund balance that is in excess of an unspecified multiple of the minimum recommended reserve for economic uncertainties adopted by the state board. The bill would also repeal an obsolete provision.
end insertExisting law requires any amounts added to the general reserve of the school district in excess of the amount already budgeted to not be available for the appropriation by the school district for the current fiscal year, except as provided.
end deleteThis bill would make nonsubstantive changes to this law.
end deleteVote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 42127.01 of the end insertbegin insertEducation Codeend insertbegin insert is
2amended to read:end insert
(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 with fewer than 400,000 units of average
10daily attendance, the sum of the school district’s applicable
11minimum recommended reserve for economic uncertainties adopted
12by the state board pursuant to subdivision (a) of Section 33128,
13multiplied bybegin delete two.end deletebegin insert ____.end insert
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 bybegin delete three.end deletebegin insert ____.end insert
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:
P3 1(1) Provide a statement that substantiates the need for an
2assigned and unassigned ending fund balance that is in excess of
3the minimum recommended reserve for economic uncertainties.
4(2) Identify the funding amounts in the budget adopted by the
5school district that are associated with the extraordinary fiscal
6circumstances.
7(3) Provide documentation that no other fiscal resources are
8available to fund the extraordinary fiscal circumstances.
9(c) This section shall become operative on December 15, 2014,
10only if Assembly Constitutional Amendment No. 1 of the 2013-14
11Second Extraordinary Session is approved by the voters at the
12November 4, 2014, statewide general election. If Assembly
13Constitutional Amendment No. 1 of the 2013-14 Second
14Extraordinary Session is not approved by the voters at the
15
November 4, 2014, statewide general election, this section shall
16not become operative and is repealed on January 1, 2015.
Section 42610 of the Education Code is amended
18to read:
(a) Any amounts added to the general reserve of the
20school district in excess of the amount already budgeted shall not
21be available for appropriation by the school district for the current
22fiscal year except by the following procedure. The governing board
23of the school district shall, by formal action of the board, pass a
24resolution setting forth the need according to major classification
25of school district expenditures to be met from a portion of the
26general reserve derived from assured income in excess of the total
27amount anticipated in the budget. The resolution shall be submitted
28to the county superintendent of schools.
29(b) The county superintendent
of schools shall approve a
30
resolution for the appropriation of income to the extent that the
31income was not anticipated in the budget of the school district.
32(c) On the first day of July of each year, the general reserve
33together with unexpended balances of appropriations and income
34in excess of anticipated income for the preceding fiscal year shall
35be placed to the credit of the school district, and the school district
36shall include all money so credited in the balance shown in the
37
budget for the ensuing fiscal year.
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