BILL ANALYSIS �
SB 821
Page 1
Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 821 (Fuller) - As Amended: June 30, 2011
Policy Committee: Education
Vote:10-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill establishes additional fiscal oversight requirements
for newly formed or reorganized school districts during the
period between the date of approval and the effective date of
the reorganization. Specifically, this bill:
1)Requires the interim board or the governing board of an
existing district(s) and administrators (if applicable) to
notify the county superintendent of schools (CSS) before
taking any action that could have a material fiscal impact
and/or impose a debt/liability on the newly formed or newly
organized school district, as specified.
2)Authorizes the CSS to review the above action and if he or she
determines that a material fiscal impact exists, the CSS may
stay or rescind that action, as specified. Further requires
the CSS to inform the affected governing board or
administrators in writing of his or her justification for the
action.
3)Requires a school district to provide any documentation or
information requested by CSS in a timely manner related to
proposed actions referenced above.
4)Requires these provisions to apply regardless of a district's
budget or fiscal certification status.
FISCAL EFFECT
Minor, absorbable GF/98 costs to county offices of education to
implement the requirements of this bill. Actual costs will
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depend on the number of school districts involved in
reorganization and the extent to which a CSS chooses to exercise
the authority provided in this measure.
According to the State Department of Education, three
unification/consolidation of school districts in the state
occurred in the 2010-11. The largest closure of
schools/districts and consolidated into another district
occurred in Santa Barbara County. Each one of these
unification/consolidations will become effective in the 2011-12
school year.
COMMENTS
1)Background . Existing law establishes a county committee on
school district organization in each county to consider
locally developed reorganization petitions to transfer
territory among districts, including unifying, merging, or
creating new districts or revising the boundaries of trustee
areas.
Statute also authorizes the CSS, upon the election of a newly
organized school district, to implement any of its current
fiscal oversight authority, including staying or rescinding
any action that he or she determines is inconsistent with the
district's ability to meet its financial obligations;
developing a financial plan for the school district; and
assisting in developing a budget for the subsequent fiscal
year.
2)Purpose . Statute specifies how the fiscal administrative
duties of one district are transferred to the newly organized
district. These processes take place on the date the new
district becomes operative with its new governing board. This
date is different from the election date in which the newly
formed district was approved. As such, there is a gap in
which the existing school board is responsible for
administrative oversight of the district before the newly
formed school district, with its new governing board, becomes
responsible for these duties.
According to the author, "Decisions that lapsing governing
boards make during the transition can commit the newly-formed
school district's governing board and administration to the
consequences of those contracts and policy choices. Such
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decisions, made by a lame-duck board and over which the
incoming board of the newly formed district may have had no
say, can result in significant long-term financial commitments
and operational constraints that will affect the district for
years to come."
This legislation is prompted by events that occurred in
Sacramento County around the reorganization of the Grant Union
High School District and some of its feeder elementary
districts into the Twin Rivers Unified School District. The
outgoing governing board approved a transition plan that
included providing severance buyout packages for certain
administrators who would, in fact, have no lapse in service
and would be continuing to work for the Twin Rivers Unified
School District.
The Sacramento CSS Dave Gordon refused to issue warrants for
the payment of the administrators' severance packages and was
sued by administrators and the previous district. The suit
alleged the CSS did not have statutory authority to make this
determination. Ultimately, the CSS prevailed in court.
The author states, "This bill would provide unambiguous
authority for specific checks and balances to take effect
during the period of a pending unification."
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081