BILL ANALYSIS �
AB 2278
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CONCURRENCE IN SENATE AMENDMENTS
AB 2278 (Swanson)
As Amended June 21, 2012
Majority vote
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|ASSEMBLY: |72-0 |(May 3, 2012) |SENATE: |38-0 |(July 2, 2012) |
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Original Committee Reference: ED.
SUMMARY : Authorizes a school district with a state-appointed
administrator to conduct an annual advisory evaluation of that
administrator after one complete year after the district accepts
an emergency loan, 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).
The Senate amendments :
1)Specify that the evaluation is advisory.
2)Specify that the first advisory evaluation may not occur until
after one complete fiscal year has elapsed following the
district's acceptance of the emergency loan.
3)Require the advisory evaluation to focus on the
administrator's effectiveness in leading the school district
toward fiscal recovery and improved academic achievement.
4)Require the advisory evaluation criteria to be agreed upon by
the governing board of the district and the administrator
before the evaluation.
5)Require the advisory evaluation to include, but not be limited
to:
a) Specified professional and legal standards of fiscal
management practices;
b) Commendations in the areas of the administrator's
strengths and achievements; and,
c) Recommendations for improving the administrator's
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effectiveness in areas of concern and unsatisfactory
performance.
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 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
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
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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 : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
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 an advisory evaluation of the
administrator can be a way of holding the administrator
accountable to the local community and fostering positive
community engagement.
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Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087
FN: 0004182