BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2278|
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THIRD READING
Bill No: AB 2278
Author: Swanson (D)
Amended: 6/21/12 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 7-0, 6/13/12
AYES: Lowenthal, Alquist, Hancock, Huff, Liu, Price,
Simitian
NO VOTE RECORDED: Runner, Blakeslee, Vargas, Vacancy
ASSEMBLY FLOOR : 72-0, 5/3/12 - See last page for vote
SUBJECT : School districts: state administrators
SOURCE : California School Boards Association
DIGEST : This bill authorizes a school district with a
state-appointed administrator to conduct an annual advisory
evaluation of an administrator for the duration of the
administratorship, as specified, 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).
ANALYSIS : 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
CONTINUED
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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 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/her behalf in exercising this authority. The
administrator serves under the direction and supervision of
the SPI until terminated by the SPI at his/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 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.
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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.
This bill authorizes a school district with a
state-appointed administrator to conduct an annual advisory
evaluation of an administrator for the duration of the
administratorship, as specified, and requires any such
evaluation to be submitted to the Governor, the
Legislature, the SPI, and the County Office FCMAT.
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
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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 administrator
can be a way of holding the administrator accountable to
the local community and fostering positive community
engagement.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/7/12)
California School Boards Association (source)
California Teachers Association
ARGUMENTS IN SUPPORT : California School Boards
Association, the sponsor of this bill, states:
AB 2278 pertains to school districts that have
determined they lack resources to pay for their current
year obligations and have requested an emergency loan
from the state. For loan amounts over a certain
threshold the Superintendent of Public Instruction (SPI)
assumes all the legal rights, duties and powers of the
governing board of the school district, which becomes
advisory only. In such instances, the SPI appoints an
administrator to act on their behalf and direct the
daily responsibilities and functions of the school
district and reports solely to the SPI.
AB 2278 would provide a means for the governing board to
provide their own insight into the performance of the
state administrator. With the loss of the authority of
board, this will create a means for the community to
engage more directly in the performance of the state
administrator. Additionally, with the requirement that
any such voluntary evaluation be submitted to the SPI,
Legislature, Governor and the Fiscal Crisis Management
and Assistance Team it will provide additional
information on the performance of the school district in
meeting the goal of attaining fiscal solvency.
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ASSEMBLY FLOOR : 72-0, 5/3/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman,
Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma,
Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
P�rez, Portantino, Silva, Skinner, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Yamada, John A.
P�rez
NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger
Hern�ndez, Jones, Smyth, Williams
PQ:k 6/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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