BILL ANALYSIS �
AB 2278
Page 1
Date of Hearing: April 25, 2012
ASSEMBLY COMMITTEE ON EDUCATION
Julia Brownley, Chair
AB 2278 (Swanson) - As Introduced: February 24, 2012
SUBJECT : School districts: state administrators
SUMMARY : Authorizes a school district with a state-appointed
administrator to annually evaluate that administrator for the
duration of the administratorship, and requires any such
evaluation to be submitted to the Governor, the Legislature, the
Superintendent of Public Instruction (SPI), and the County
Office Fiscal Crisis and Management Assistance Team (FCMAT).
EXISTING LAW provides for emergency loans to school districts
that are unable to meet their current operating expenses. Such
loans are provided by legislation enacted at the request of the
district. Existing law requires districts that request and
agree to receive an emergency loan to agree to statutory terms
and conditions regarding repayment of the loan and the steps to
be taken to return the district to financial solvency.
If a district receives an emergency loan of up to 200% of its
recommended budget reserve, then the Superintendent of Public
Instruction (SPI) is required to appoint a trustee who has the
authority to stay and rescind any action of the district
governing board and who serves until the loan is repaid and the
district has adequate fiscal systems and controls in place. If
a district receives an emergency loan of more than 200% of its
recommended budget reserve, then the SPI is required to assume
all legal rights, duties, and powers of the governing board and
to appoint an administrator to act on his or her behalf in
exercising this authority. The administrator serves under the
direction and supervision of the SPI until terminated by the SPI
at his or her discretion and after consulting with the county
superintendent of schools. The administrator is authorized to
do all of the following:
1)Implement substantial changes in the fiscal policies and
practices of the district.
2)Revise the educational programs of the district to reflect
realistic income projections and pupil performance relative to
state standards.
3)Encourage all members of the school community to accept a fair
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share of the burden of the fiscal recovery.
4)Consult with the district's governing board, the exclusive
representatives of its employees, parents, and the community.
5)Consult with and seek recommendations from the SPI, FCMAT, and
the county superintendent of schools.
6)Enter into agreements on behalf of the district, subject to
the approval of the SPI, and change any existing district
rules, regulations, policies, or practices as necessary for
the effective implementation of the district's recovery plans.
The authority of the SPI and administrator continue until all of
the following occur:
1)The administrator determines, after one year has elapsed since
the district accepted the emergency loan, that future
compliance by the district with the recovery plans is
probable.
2)The SPI has approved all of the recovery plans and has
completed at least two reports identifying the district's
progress in implementing the plans.
3)The administrator certifies that all necessary collective
bargaining agreements have been negotiated and ratified and
that they are consistent with the terms of the recovery plans.
4)The district has completed all reports required by the SPI and
the administrator.
5)The SPI determines that future compliance by the district with
the recovery plans is probable.
All costs of the administrator and other related oversight and
monitoring activities are borne by the district.
FISCAL EFFECT : This bill is keyed nonfiscal.
COMMENTS : When a district receives an emergency loan in excess
of 200% of its recommended reserve, the SPI, through an
appointed administrator, assumes all legal rights, duties, and
powers of the governing board. This can lead to a sense of
alienation and disenfranchisement among the community that
elected the board and discourage qualified members of the
community from wanting to serve on the board. Yet, an important
part of restoring the district to fiscal solvency is
strengthening community relations and engagement. In some
cases, there can be a lack of trust between the community and
the "outside" state administrator. Allowing the locally-elected
governing board to conduct a formal evaluation of the
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administrator can be a way of holding the administrator
accountable to the local community and fostering positive
community engagement.
REGISTERED SUPPORT / OPPOSITION :
Support
California Teachers Association
Opposition
None received
Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087