SB 1249, as introduced, Bates. 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 repeal those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 42127.01 of the Education Code is
2repealed.
(a) In a fiscal year immediately after a fiscal year
2in which a transfer is made into the Public School System
3Stabilization Account, a school district budget that is adopted or
4revised pursuant to Section 42127 shall not contain a combined
5assigned or unassigned ending fund balance that is in excess of
6the following:
7(1) For school districts with fewer than 400,000 units of average
8daily attendance, the sum of the school district’s applicable
9minimum recommended reserve for economic uncertainties adopted
10by the state board pursuant to subdivision (a) of Section 33128,
11multiplied by two.
12(2) For school districts with more than 400,000
units of average
13daily attendance, the sum of the school district’s applicable
14minimum recommended reserve for economic uncertainties adopted
15by the state board pursuant to subdivision (a) of Section 33128,
16multiplied by three.
17(b) A county superintendent of schools may grant a school
18district under its jurisdiction an exemption from the requirements
19of subdivision (a) for up to two consecutive fiscal years within a
20three-year period if the school district provides documentation
21indicating that extraordinary fiscal circumstances, including, but
22not limited to, multiyear infrastructure or technology projects,
23substantiate the need for a combined assigned or unassigned ending
24fund balance that is in excess of the minimum recommended
25reserve for economic uncertainties. As a condition of receiving an
26exception, a school district shall do all of the following:
27(1) Provide a statement
that substantiates the need for an
28assigned and unassigned ending fund balance that is in excess of
29the minimum recommended reserve for economic uncertainties.
30(2) Identify the funding amounts in the budget adopted by the
31school district that are associated with the extraordinary fiscal
32circumstances.
33(3) Provide documentation that no other fiscal resources are
34available to fund the extraordinary fiscal circumstances.
35(c) This section shall become operative on December 15, 2014,
36only if Assembly Constitutional Amendment No. 1 of the 2013-14
37Second Extraordinary Session is approved by the voters at the
38November 4, 2014, statewide general election. If Assembly
39Constitutional Amendment No. 1 of the 2013-14 Second
40Extraordinary Session is not approved by the voters at the
P3 1November 4, 2014, statewide general election,
this section shall
2not become operative and is repealed on January 1, 2015.
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