AB 2585, as amended, Daly. School finance: annual budgets.
(1) Existing law, on or before July 1 of each year, requires a county board of education to hold a public hearing on the proposed county school service fund budget for that fiscal year, requires the county board of education to adopt an annual budget for the budget year, and requires the county board of education to file the budget with the Superintendent of Public Instruction, the county board of supervisors, and the county auditor. Existing law requires the Superintendent to examine the budget, as specified, and, on or before August 15, approve or disapprove the budget. If the budget is disapproved, existing law requires the Superintendent, on or before August 15, to transmit to the county office of education, in writing, his or her recommendations regarding revision of the budget and the reasons for those recommendations. Existing law, on or before September 8, and after a public hearing regarding the proposed revisions to the budget, as specified, requires the county board of education to revise the county office of education budget to reflect certain fiscal changes, to include any response to the recommendations of the Superintendent, to adopt the revised budget, and to file the revised budget with the Superintendent, the county board of supervisors, and the county auditor. Existing law authorizes the county office of education to elect to use an alternative budget review process by providing the Superintendent with written notice, as specified.
This bill, if the budget of a county office of education is disapproved, would instead require the county superintendent of schools and the county board of education, on or before September 8, to review the recommendations of the Superintendent at a regularly scheduled meeting of the county board of education and to respond to those recommendations. The bill would require that response to include any revisions to the adopted budget and other proposed actions to be taken, if any, as a result of those recommendations. The bill would repeal the authority of a county office of education to elect to use the alternative budget review process. The bill would also make nonsubstantive changes to these provisions. By requiring a county superintendent of schools to undertake additional responsibilities related to reviewing the recommendations of the Superintendent, the bill would impose a state-mandated local program.
(2) Existing law, on or before July 1 of each year, requires a school district to hold a public hearing on, and adopt, a budget for the subsequent fiscal year. Existing law requires the governing board of the school district to file the adopted budget with the county superintendent of schools, as specified. Existing law requires the county superintendent of schools to examine the adopted budget, as specified, to make certain determinations related to the adopted budget, and, on or before August 15, to approve, conditionally approve, or disapprove the adopted budget for each school district. If the adopted budget is conditionally approved or disapproved, existing law requires the county superintendent of schools, on or before August 15, to transmit to the governing board of the school district, in writing, his or her recommendations regarding revision of the budget and the reasons for those recommendations. Existing law, on or before September 8, and after a public hearing regarding the proposed revisions to the budget, as specified, requires the governing board of the school district to revise the adopted budget to reflect certain fiscal changes, to include any response to the recommendations of the county superintendent of schools, to adopt the revised budget, and to file the revised budget with the county superintendent of schools. Existing law, if the adopted budget is disapproved, also requires the governing board of the school district and the county superintendent of schools to review the disapproval and the recommendations of the county superintendent of schools regarding revision of the budget at the public hearing. Existing law authorizes the governing board of a school district to elect to use an alternative budget review process by providing the county superintendent of schools with written notice, as specified.
This bill would require the public hearing to be conducted in accordance with a specified provision related to proposed budgets. The bill, if the adopted budget of a school district is conditionally approved or disapproved as described above, would instead require the governing board of the school district, on or before September 8, and in conjunction with the county superintendent of schools, to review and respond to the superintendent’s recommendations at a regular meeting of the governing board of the school district. The bill would require the
response to include any revisions to the adopted budget and other proposedbegin delete actionend deletebegin insert actionsend insert to be taken, if any, as a result of the superintendent’s recommendations. The bill would repeal the authority of the governing board of a school district to elect to use the alternative budget review process. The bill would also make nonsubstantive changes to these provisions. By requiring school districts to undertake additional responsibilities related to the conditional approval of budgets, the bill would impose a state-mandated local program.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 1622 of the Education Code is amended
2to read:
(a) On or before July 1 of each fiscal year, the county
4board of education shall adopt an annual budget for the budget
5year and shall file the budget with the Superintendent, the county
6board of supervisors, and the county auditor. The budget, and
7supporting data, shall be maintained and made available for public
P4 1review. The budget shall indicate the date, time, and location at
2which the county board of education held the public hearing
3required under Section 1620. For the 2014-15 fiscal year and each
4fiscal year thereafter, the county board of education shall not adopt
5a budget before the county board of education adopts a local control
6and accountability plan or approves an update to an existing local
7control and accountability plan if an existing
local control and
8accountability plan or update to a local control and accountability
9plan is not effective during the budget year. The county board of
10education shall not adopt a budget that does not include the
11expenditures identified in the local control and accountability plan
12and any annual update to the local control and accountability plan
13that will be effective for the budget year. Notwithstanding any
14other provision of this article, for the 2014-15 fiscal year and each
15fiscal year thereafter, the budget shall not be adopted or approved
16by the Superintendent before a local control and accountability
17plan or update to an existing local control and accountability plan
18for the budget year is approved.
19(b) (1) The Superintendent shall examine the budget to
20determine if it (A) complies with the standards and criteria
adopted
21by the state board pursuant to Section 33127 for application to
22final local educational agency budgets, (B) allows the county office
23of education to meet its financial obligations during the fiscal year,
24and (C) is consistent with a financial plan that will enable the
25county office of education to satisfy its multiyear financial
26commitments. In addition, the Superintendent shall identify any
27technical corrections to the budget that must be made. On or before
28August 15, the Superintendent shall approve or disapprove the
29budget and, in the event of a disapproval, transmit to the county
30office of education in writing his or her recommendations regarding
31revision of the budget and the reasons for those recommendations.
32(2) For the 2014-15 fiscal year and each fiscal year thereafter,
33the Superintendent shall disapprove a budget if any
of the following
34occur:
35(A) The Superintendent has not approved a local control and
36accountability plan or an annual update to the local control and
37accountability plan filed by a countybegin delete superintendent of schoolsend delete
38begin insert board of educationend insert pursuant to Section 52070.5 that is effective
39for the budget year.
P5 1(B) The Superintendent determines that the budget does not
2include the expenditures necessary to implement the local control
3and accountability plan or an annual update to the local control
4and accountability plan that is effective for that budget year.
5(c) In the event of the disapproval of the budget of a county
6office of education pursuant to subdivision (b), on or before
7September 8, the county superintendent of schools and the county
8board of education shall review the recommendations of the
9Superintendent at a regularly scheduled meeting of the county
10board of education and respond to those recommendations. That
11response shall include any revisions to the adopted budget and
12other proposed actions to be taken, if any, as a result of those
13recommendations.
14(d) (1) The Superintendent shall examine the revised budget
15as provided in subdivision (c) to determine if it complies with the
16standards and criteria adopted by the state board pursuant to Section
1733127 for application to final local educational agency budgets
18and, no later than October 8, shall
approve or disapprove the
19revised budget. For the 2014-15 fiscal year and each fiscal year
20thereafter, the Superintendent shall disapprove a revised budget if
21the Superintendent determines that the revised budget does not
22include the expenditures necessary to implement the local control
23and accountability plan or an annual update to the local control
24and accountability plan approved by the Superintendent pursuant
25to Section 52070.5 that is effective for the budget year. If the
26Superintendent disapproves the budget, he or she shall call for the
27formation of a budget review committee pursuant to Section 1623.
28(2) Notwithstanding any other law, for the 2014-15 fiscal year
29and each fiscal year thereafter, if the Superintendent disapproves
30the budget for the sole reason that the Superintendent has not
31approved a local control and
accountability plan or an annual
32update to the local control and accountability plan filed by the
33countybegin delete superintendent of schoolsend deletebegin insert board of educationend insert pursuant to
34Section
52070.5, the Superintendent shall not call for the formation
35of a budget review committee pursuant to Section 1623.
36(e) Not later than 45 days after the Governor signs the annual
37Budget Act, the county office of education shall make available
38for public review any revisions in revenues and expenditures that
39it has made to its budget to reflect the funding made available by
40that Budget Act.
Section 42127 of the Education Code is amended to read:
(a) On or before July 1 of each year, the governing
3board of each school district shall accomplish the following:
4(1) Hold a public hearing conducted in accordance with Section
542103 on the budget to be adopted for the subsequent fiscal year.
6The budget to be adopted shall be prepared in accordance with
7Section 42126. The agenda for that hearing shall be posted at least
872 hours before the public hearing and shall include the location
9where the budget will be available for public inspection.
10(2) Adopt a budget. Not later than five days after that adoption
11or by July 1, whichever occurs first, the governing board of the
12school district shall file that budget with the county superintendent
13of schools. The budget and supporting data shall be maintained
14and made available for public review. If the governing board of
15the school district does not want all or a portion of the property
16tax requirement levied for the purpose of making payments for the
17interest and redemption charges on indebtedness as described in
18paragraph (1) or (2) of subdivision (b) of Section 1 of Article
19XIII A of the California Constitution, the budget shall include a
20statement of the amount or portion for which a levy shall not be
21made. For the 2014-15 fiscal year and each fiscal year thereafter,
22the governing board of the school district shall
not adopt a budget
23before the governing board of the school district adopts a local
24control and accountability plan, if an existing local control and
25accountability plan or annual update to a local control and
26accountability plan is not effective for the budget year. The
27governing board of a school district shall not adopt a budget that
28does not include the expenditures necessary to implement the local
29control and accountability plan or the annual update to a local
30control and accountability plan that is effective for the budget year.
31(b) The county superintendent
of schools may accept changes
32in any statement included in the budget, pursuant to subdivision
33(a), of the amount or portion for which a property tax levy shall
34not be made. The county superintendent of schools or the county
35auditor shall compute the actual amounts to be levied on the
36property tax rolls of the school district for purposes that exceed
37apportionments to the school district pursuant to Chapter 6
38(commencing with Section 95) of Part 0.5 of Division 1 of the
39Revenue and Taxation Code. Each school district shall provide all
40data needed by the county superintendent of schools or the county
P7 1auditor to compute the amounts. On or before August 15, the
2county superintendent of schools shall transmit the amounts
3computed to the county auditor who shall compute the tax rates
4necessary to produce the amounts. On or before September 1, the
5county auditor shall submit the rate computed to the
board of
6supervisors for adoption.
7(c) The county superintendent of schools shall do all of the
8following:
9(1) Examine the adopted budget to determine whether it
10complies with the standards and criteria adopted by the state board
11pursuant to Section 33127 for application to final local educational
12agency budgets. The county superintendent of schools shall
13identify, if necessary, technical corrections that are required to be
14made to bring the budget into compliance with those standards
15and criteria.
16(2) Determine whether the adopted budget will allow the school
17district to meet its financial obligations during the fiscal year and
18is consistent with a financial plan that will enable the school district
19to
satisfy its multiyear financial commitments. In addition to his
20or her own analysis of the budget of each school district, the county
21superintendent of schools shall review and consider studies, reports,
22evaluations, or audits of the school district that were commissioned
23by the school district, the county superintendent of schools, the
24Superintendent, and state control agencies and that contain
25evidence that the school district is showing fiscal distress under
26the standards and criteria adopted in Section 33127 or that contain
27a finding by an external reviewer that more than 3 of the 15 most
28common predictors of a school district needing intervention, as
29determined by the County Office Fiscal Crisis and Management
30Assistance Team, are present. The county superintendent of schools
31shall either conditionally approve or disapprove a budget that does
32not provide adequate assurance that the school district
will meet
33its current and future obligations and resolve any problems
34identified in studies, reports, evaluations, or audits described in
35this paragraph.
36(3) Determine whether the adopted budget includes the
37expenditures necessary to implement the local control and
38accountability plan or annual update to the local control and
39accountability plan approved by the county superintendent of
40schools.
P8 1(d) (1) On or before August 15, the county superintendent of
2schools shall approve, conditionally approve, or disapprove the
3adopted budget for each school district. For the 2014-15 fiscal
4year and each fiscal year thereafter, the county superintendent of
5schools shall disapprove a budget if the county superintendent of
6schools determines that the budget does
not include the
7expenditures necessary to implement a local control and
8accountability plan or an annual update to the local control and
9accountability plan approved by the county superintendent of
10schools. If a school district does not submit a budget to the county
11superintendent of schools, the county superintendent of schools
12shall develop, at school district expense, a budget for that school
13district by September 15 and transmit that budget to the governing
14board of the school district. The budget prepared by the county
15superintendent of schools shall be deemed adopted, unless the
16county superintendent of schools approves any modifications made
17by the governing board of the school district. The approved budget
18shall be used as a guide for the school district’s priorities. The
19Superintendent shall review and certify the budget approved by
20the county. If, pursuant to the review conducted pursuant
to
21subdivision (c), the county superintendent of schools determines
22that the adopted budget for a school district does not satisfy
23paragraph (1), (2), or (3) of that subdivision, he or she shall
24conditionally approve or disapprove the budget and, not later than
25August 15, transmit to the governing board of the school district,
26in writing, his or her recommendations regarding revision of the
27budget and the reasons for those recommendations, including, but
28not limited to, the amounts of any budget adjustments needed
29before he or she can approve that budget. The county
30superintendent of schools may assign a fiscal adviser to assist the
31school district to develop a budget in compliance with those
32revisions. In addition, the county superintendent of schools may
33appoint a committee to examine and comment on the
34superintendent’s review and recommendations, subject to the
35requirement that the
committee report its findings to the county
36superintendent of schools no later than August 20.
37(2) Notwithstanding any other provision of this article, for the
382014-15 fiscal year and each fiscal year thereafter, the budget
39shall not be adopted or approved by the county superintendent of
40schools before a local control and accountability plan or update to
P9 1an existing local control and accountability plan for the budget
2year is approved.
3(3) If the adopted budget of a school district is conditionally
4approved or disapproved pursuant to
paragraph (1), on or before
5September 8, the governing board of the school district, in
6conjunction with the county superintendent of schools, shall review
7and respond to the recommendations of the county superintendent
8of schools at a regular meeting of the governing board of the school
9district. The response shall include any revisions to the adopted
10budget and other proposed actions to be taken, if any, as a result
11of those recommendations.
12(e) On or before September 22, the
county superintendent of
13schools shall provide a list to the Superintendent identifying all
14school districts for which budgets may be disapproved.
15(f) (1) The county superintendent of schools shall examine the
16revised budget as provided in paragraph (3) of subdivision (d) to
17determine whether it (1) complies with the standards and criteria
18adopted by the state board pursuant to Section 33127 for
19application to final local educational agency budgets, (2) allows
20the school district to meet its financial obligations during the fiscal
21year, (3) satisfies all conditions established by the county
22superintendent of schools in the case of a conditionally approved
23budget, and (4) is consistent with a financial plan that will enable
24the school
district to satisfy its multiyear financial commitments,
25and, not later than October 8, shall approve or disapprove the
26revised budget. If the county superintendent of schools disapproves
27the budget, he or she shall call for the formation of a budget review
28committee pursuant to Section 42127.1, unless the governing board
29of the school district and the county superintendent of schools
30agree to waive the requirement that a budget review committee be
31formed and the department approves the waiver after determining
32that a budget review committee is not necessary. Upon the grant
33of a waiver, the county superintendent of schools immediately has
34the authority and responsibility provided in Section 42127.3. Upon
35approving a waiver of the budget review committee, the department
36shall ensure that a balanced budget is adopted for the school district
37by November 30. If no budget is adopted by November 30, the
38Superintendent
may adopt a budget for the school district. The
39Superintendent shall report to the Legislature and the Director of
40Finance by December 10 if any school district, including a school
P10 1district that has received a waiver of the budget review committee
2process, does not have an adopted budget by November 30. This
3report shall include the reasons why a budget has not been adopted
4by the deadline, the steps being taken to finalize budget adoption,
5the date the adopted budget is anticipated, and whether the
6Superintendent has or will exercise his or her authority to adopt a
7budget for the school district.
8(2) Notwithstanding any other law, for the 2014-15 fiscal year
9and each fiscal year thereafter, if the county superintendent of
10schools disapproves the budget for the sole reason that the county
11superintendent of schools has not approved a local control and
12accountability plan or an annual update to the local control and
13accountability plan filed by the school district pursuant to Section
1452061, the county superintendent of schools shall not call for the
15formation of a budget review committee pursuant to Section
1642127.1.
17(g) Not later than October 8, the county superintendent of
18schools shall submit a report to the Superintendent identifying all
19school districts for which budgets have been disapproved or budget
20review committees waived. The report shall include a copy of the
21written response transmitted to each of those school districts
22pursuant to paragraph (1) of subdivision (d).
23(h) Not later than 45 days after the Governor signs the annual
24Budget Act, the school district shall make available for public
25review any revisions in revenues and expenditures that it has made
26to its budget to reflect the funding made available by that Budget
27Act.
28(i) Any school district for which the county board of education
29serves as the governing board of the school district is not subject
30to subdivisions (c) to (h), inclusive, but is governed instead by the
31budget procedures set forth in Section
1622.
begin insertSection 42127 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
33read:end insert
(a) On or before July 1 of each year, the governing
35board of each school district shall accomplish the following:
36(1) Hold a public hearingbegin insert conducted in accordance with Section
3742103end insert on the budget to be adopted for the subsequent fiscal year.
38The budget to be adopted shall be prepared in accordance with
39Section 42126. The agenda for that hearing shall be posted at least
P11 172 hours before the public hearing and shall include the location
2where the budget will be available for public inspection.
3(A) For the 2011-12 fiscal year, notwithstanding any of the
4standards and criteria adopted by the state board pursuant to Section
533127, each school district budget shall project the same level of
6revenue per unit
of average daily attendance as it received in the
72010-11 fiscal year and shall maintain staffing and program levels
8commensurate with that level.
9(B) For the 2011-12 fiscal year, the school district shall not be
10required to demonstrate that it is able to meet its financial
11obligations for the two subsequent fiscal years.
12(2) (A) Adopt a budget. Not later than five days after that
13adoption or by July 1, whichever occurs first, the governing board
14of the school district shall file that budget with the county
15superintendent of schools. The budget and supporting data shall
16be maintained and made available for public review. If the
17governing board of the school district does not want all or a portion
18of the property tax requirement levied for the purpose of making
19payments for the
interest and redemption charges on indebtedness
20as described in paragraph (1) or (2) of subdivision (b) of Section
211 of Article XIII A of the California Constitution, the budget shall
22include a statement of the amount or portion for which a levy shall
23not be made. For the 2014-15 fiscal year and each fiscal year
24thereafter, the governing board of the school district shall not adopt
25a budget before the governing board of the school district adopts
26a local control and accountability plan, if an existing local control
27and accountability plan or annual update to a local control and
28accountability plan is not effective for the budget year. The
29governing board of a school district shall not adopt a budget that
30does not include the expenditures necessary to implement the local
31control and accountability plan or the annual update to a local
32control and accountability plan that is effectivebegin delete duringend deletebegin insert
forend insert the
33begin delete subsequent fiscalend deletebegin insert budgetend insert year.
34(B) Commencing with budgets adopted for the 2015-16 fiscal
35year, the governing board of a school district that proposes to adopt
36a budget, or revise a budget pursuant to subdivision (e), that
37includes a combined assigned and unassigned ending fund balance
38in excess of the minimum recommended reserve for economic
39uncertainties adopted by the state board pursuant to subdivision
40(a) of Section 33128, shall, at the public hearing held pursuant to
P12 1paragraph (1), provide all of the following for public review and
2discussion:
3(i) The minimum recommended reserve for economic
4uncertainties for each fiscal year identified
in the budget.
5(ii) The combined assigned and unassigned ending fund balances
6that are in excess of the minimum recommended reserve for
7economic uncertainties for each fiscal year identified in the budget.
8(iii) A statement of reasons that substantiates the need for an
9assigned and unassigned ending fund balance that is in excess of
10the minimum recommended reserve for economic uncertainties
11for each fiscal year that the school district identifies an assigned
12and unassigned ending fund balance that is in excess of the
13minimum recommended reserve for economic uncertainties, as
14identified pursuant to clause (ii).
15(C) The governing board of a school district shall include the
16information required pursuant to subparagraph (B) in its budgetary
17submission each time it files an adopted or revised budget with
18the county
superintendent of schools. The information required
19pursuant to subparagraph (B) shall be maintained and made
20available for public review.
21(b) The county superintendent of schools may accept changes
22in any statement included in the budget, pursuant to subdivision
23(a), of the amount or portion for which a property tax levy shall
24not be made. The county superintendent of schools or the county
25auditor shall compute the actual amounts to be levied on the
26property tax rolls of the school district for purposes that exceed
27apportionments to the school district pursuant to Chapter 6
28(commencing with Section 95) of Part 0.5 of Division 1 of the
29Revenue and Taxation Code. Each school district shall provide all
30data needed by the county superintendent of schools or the county
31auditor to compute the amounts. On or before August 15, the
32county superintendent of schools shall transmit the amounts
33computed to the county auditor who shall compute the tax rates
34
necessary to produce the amounts. On or before September 1, the
35county auditor shall submit the rate computed to the board of
36supervisors for adoption.
37(c) The county superintendent of schools shall do all of the
38following:
39(1) Examine the adopted budget to determine whether it
40complies with the standards and criteria adopted by the state board
P13 1pursuant to Section 33127 for application to final local educational
2agency budgets. The county superintendent of schools shall
3identify, if necessary, technical corrections that are required to be
4made to bring the budget into compliance with those standards
5and criteria.
6(2) Determine whether the adopted budget will allow the school
7district to meet its financial obligations during the fiscal year and
8is consistent with a financial plan that will enable the school district
9
to satisfy its multiyear financial commitments. In addition to his
10or her own analysis of the budget of each school district, the county
11superintendent of schools shall review and consider studies, reports,
12evaluations, or audits of the school district that were commissioned
13by the school district, the county superintendent of schools, the
14Superintendent, and state control agencies and that contain
15evidence that the school district is showing fiscal distress under
16the standards and criteria adopted in Section 33127 or that contain
17a finding by an external reviewer that more than 3 of the 15 most
18common predictors of a school district needing intervention, as
19determined by the County Office Fiscal Crisis and Management
20Assistance Team, are present. The county superintendent of schools
21shall either conditionally approve or disapprove a budget that does
22not provide adequate assurance that the school district will meet
23its current and future obligations and resolve any problems
24identified in studies, reports,
evaluations, or audits described in
25this paragraph.
26(3) Determine whether the adopted budget includes the
27expenditures necessary to implement the local control and
28accountability plan or annual update to the local control and
29accountability plan approved by the county superintendent of
30schools.
31(4) Determine whether the adopted budget includes a combined
32assigned and unassigned ending fund balance that exceeds the
33minimum recommended reserve for economic uncertainties. If the
34adopted budget includes a combined assigned and unassigned
35ending fund balance that exceeds the minimum recommended
36reserve for economic uncertainties, the county superintendent of
37schools shall verify that the school district complied with the
38requirements of subparagraphs (B) and (C) of paragraph (2) of
39subdivision (a).
P14 1(d) (1) On or before August 15, the county superintendent of
2schools shall approve, conditionally approve, or disapprove the
3adopted budget for each school district. For the 2014-15 fiscal
4year and each fiscal year thereafter, the county superintendent of
5schools shall disapprove a budget if the county superintendent of
6schools determines that the budget does not include the
7expenditures necessary to implement a local control and
8accountability plan or an annual update to the local control and
9accountability plan approved by the county superintendent of
10schools. Ifbegin insert the governing board ofend insert a school district does not submit
11a budget to the county superintendent of schools, the county
12superintendent of schools shall develop, at school district expense,
13a budget for that school district by September 15 and transmit that
14budget to the governing board of the school district. The budget
15prepared by
the county superintendent of schools shall be deemed
16adopted, unless the county superintendent of schools approves any
17modifications made by the governing board of the school district.
18The budget prepared by the county superintendent of schools shall
19also comply with the requirements of subparagraph (B) of
20paragraph (2) of subdivision (a). The approved budget shall be
21used as a guide for the school district’s priorities. The
22Superintendent shall review and certify the budget approved by
23the county. If, pursuant to the review conducted pursuant to
24subdivision (c), the county superintendent of schools determines
25that the adopted budget for a school district does not satisfy
26paragraph (1), (2), (3), or (4) of that subdivision, he or she shall
27conditionally approve or disapprove the budget and, not later than
28August 15, transmit to the governing board of the school district,
29in writing, his or her recommendations regarding revision of the
30budget and the reasons for those recommendations, including, but
31not
limited to, the amounts of any budget adjustments needed
32before he or she can approve that budget. The county
33superintendent of schools may assign a fiscal adviser to assist the
34school district to develop a budget in compliance with those
35revisions. In addition, the county superintendent of schools may
36appoint a committee to examine and comment on the
37superintendent’s review and recommendations, subject to the
38requirement that the committee report its findings to the county
39superintendent of schools no later than August 20.begin delete For the 2011-12
40fiscal year,
notwithstanding any of the standards and criteria
P15 1adopted by the state board pursuant to Section 33127, the county
2superintendent of schools, as a condition on approval of a school
3district budget, shall not require a school district to project a lower
4level of revenue per unit of average daily attendance than it
5received in the 2010-11 fiscal year nor require the school district
6to demonstrate that it is able to meet its financial obligations for
7the two subsequent fiscal years.end delete
8(2) Notwithstanding any other provision of this article, for the
92014-15 fiscal year and each fiscal year thereafter, the budget
10shall not be adopted or approved by the county superintendent of
11schools before a local control and accountability plan or update to
12an existing local control and accountability plan for the budget
13year is approved.
14(e) On or before
end delete
15begin insert(3)end insertbegin insert end insertbegin insertIf the adopted budget of a school district is conditionally
16approved or disapproved pursuant to paragraph (1), on or beforeend insert
17 September 8, the governing board of the schoolbegin delete district shall revise
18the adopted budget to reflect changes in projected income or
19expenditures subsequent to July 1, and to include any responseend delete
20begin insert district, in conjunction with the county superintendent of schools,
21shall review and respondend insert to the recommendations of the county
22superintendent ofbegin delete schools, shall adopt the revised budget, and shall begin insert
schools at a regular meeting of the governing board
23file the revised budget with the county superintendent of schools.
24Before revising the budget, the governing board of the school
25district shall hold a public hearing regarding the proposed revisions,
26to be conducted in accordance with Section 42103. In addition, if
27the adopted budget is disapproved pursuant to subdivision (d), the
28governing board of the school district and the county
29superintendent of schools shall review the disapproval and the
30recommendations of the county superintendent of schools regarding
31revision of the budget at the public hearing. The revised budget
32and supporting data shall be maintained and made available for
33public review.end delete
34of the school district. The response shall include any revisions to
35the adopted budget and other proposed actions to be taken, if any,
36as a result of those recommendations.end insert
37(1) For the 2011-12 fiscal year,
notwithstanding any of the
38standards and criteria adopted by the state board pursuant to Section
3933127, each school district budget shall project the same level of
40revenue per unit of average daily attendance as it received in the
P16 12010-11 fiscal year and shall maintain staffing and program levels
2commensurate with that level.
3(2) For the 2011-12 fiscal year, the school district shall not be
4required to demonstrate that it is able to meet its financial
5obligations for the two subsequent fiscal years.
6(f)
end delete
7begin insert(e)end insert On or before September
22, the county superintendent of
8schools shall provide a list to the Superintendent identifying all
9school districts for which budgets may be disapproved.
10(g)
end delete
11begin insert(f)end insert (1) The county superintendent of schools shall examine the
12revised budgetbegin insert as provided in paragraph (3) of subdivision (d)end insert to
13determine whether it (A) complies with the standards and criteria
14adopted by the state board pursuant to Section 33127 for
15application to final local educational agency budgets, (B) allows
16the school district to meet its financial obligations during the fiscal
17
year, (C) satisfies all conditions established by the county
18superintendent of schools in the case of a conditionally approved
19budget, (D) is consistent with a financial plan that will enable the
20school district to satisfy its multiyear financial commitments, and,
21not later than October 8, shall approve or disapprove the revised
22budget, and (E) whether the revised budget complies with the
23requirements of subparagraph (B) of paragraph (2) of subdivision
24(a). If the county superintendent of schools disapproves the budget,
25he or she shall call for the formation of a budget review committee
26pursuant to Section 42127.1, unless the governing board of the
27school district and the county superintendent of schools agree to
28waive the requirement that a budget review committee be formed
29and the department approves the waiver after determining that a
30budget review committee is not necessary. Upon the grant of a
31waiver, the county superintendent of schools immediately has the
32authority and responsibility provided in
Section 42127.3. Upon
33approving a waiver of the budget review committee, the department
34shall ensure that a balanced budget is adopted for the school district
35by November 30. If no budget is adopted by November 30, the
36Superintendent may adopt a budget for the school district. The
37Superintendent shall report to the Legislature and the Director of
38Finance by December 10 if any school district, including a school
39district that has received a waiver of the budget review committee
40process, does not have an adopted budget by November 30. This
P17 1report shall include the reasons why a budget has not been adopted
2by the deadline, the steps being taken to finalize budget adoption,
3the date the adopted budget is anticipated, and whether the
4Superintendent has or will exercise his or her authority to adopt a
5budget for the school district.begin delete For the 2011-12 fiscal year,
6notwithstanding any of the standards and criteria adopted by the
7state board pursuant to Section 33127, the county superintendent
8of schools, as a condition on approval of a school district budget,
9shall not require a school district to project a lower level of revenue
10per unit of average daily attendance than it received in the 2010-11
11fiscal year nor require the school district to demonstrate that it is
12able to meet its financial obligations for the two subsequent fiscal
13years.end delete
14(2) Notwithstanding any other law, for the 2014-15 fiscal year
15and each fiscal year thereafter, if the county superintendent of
16schools disapproves the budget for the sole reason that the county
17superintendent of schools has not approved a local control and
18accountability plan or an annual update to the local control and
19accountability plan filed by thebegin insert governing board of theend insert school
20district pursuant to Sectionbegin delete 52061,end deletebegin insert 52070,end insert the county
21superintendent of schools shall not call for the formation of a
22budget review committee pursuant to Section 42127.1.
23(h)
end delete
24begin insert(g)end insert Not later than October 8, the county superintendent of
25schools shall submit a report to the Superintendent identifying all
26school districts for which budgets have been disapproved or budget
27review committees waived. The report shall include a copy of the
28written response transmitted to each of those school districts
29pursuant to paragraph (1) of subdivision (d).
30(i) Notwithstanding any other provision of this section, the
31budget review for a school district shall be governed by paragraphs
32(1), (2), and (3), rather than by subdivisions (e) and (g), if the
33governing board of the school district so elects and notifies the
34county superintendent of schools in writing of that decision, not
35later than October 31 of the immediately preceding calendar year.
36On or
before July 1, the governing board of a school district for
37which the budget review is governed by this subdivision, rather
38than by subdivisions (e) and (g), shall conduct a public hearing
39regarding its proposed budget in accordance with Section 42103.
P18 1(1) If the adopted budget of a school district is disapproved
2pursuant to subdivision (d), on or before September 8, the
3governing board of the school district, in conjunction with the
4county superintendent of schools, shall review the superintendent’s
5recommendations at a regular meeting of the governing board of
6the school district and respond to those recommendations. The
7response shall include any revisions to the adopted budget and
8other proposed actions to be taken, if any, as a result of those
9recommendations.
10(2) On or before September 22, the county superintendent of
11schools shall provide a list to the Superintendent
identifying all
12school districts for which a budget may be tentatively disapproved.
13(3) Not later than October 8, after receiving the response
14required under paragraph (1), the county superintendent of schools
15shall review that response and either approve or disapprove the
16budget. Except as provided in paragraph (2) of subdivision (g), if
17the county superintendent of schools disapproves the budget, he
18or she shall call for the formation of a budget review committee
19pursuant to Section 42127.1, unless the governing board of the
20school district and the county superintendent of schools agree to
21waive the requirement that a budget review committee be formed
22and the department approves the waiver after determining that a
23budget review committee is not necessary. Upon the grant of a
24waiver, the county superintendent has the authority and
25responsibility provided to a budget review committee in Section
2642127.3. Upon approving a waiver of the budget
review committee,
27the department shall ensure that a balanced budget is adopted for
28the school district by November 30. The Superintendent shall
29report to the Legislature and the Director of Finance by December
3010 if any school district, including a school district that has received
31a waiver of the budget review committee process, does not have
32an adopted budget by November 30. This report shall include the
33reasons why a budget has not been adopted by the deadline, the
34steps being taken to finalize budget adoption, and the date the
35adopted budget is anticipated. For the 2011-12 fiscal year,
36notwithstanding any of the standards and criteria adopted by the
37state board pursuant to Section 33127, the county superintendent
38of schools, as a condition on approval of a school district budget,
39shall not require a school district to project a lower level of revenue
40per unit of average daily attendance than it received in the 2010-11
P19 1fiscal year nor require the school district to demonstrate that it is
2able to meet its
financial obligations for the two subsequent fiscal
3years.
4(4)
end delete
5begin insert(h)end insert Not later than 45 days after the Governor signs the annual
6Budget Act, the school district shall make available for public
7review any revisions in revenues and expenditures that it has made
8to its budget to reflect the funding made available by that Budget
9Act.
10(j)
end delete
11begin insert(i)end insert Any school district for which the county board of education
12serves as the governing board of the school district is not subject
13to subdivisions (c) to (h), inclusive, but is governed instead by the
14budget procedures set forth in Section 1622.
If the Commission on State Mandates determines that
16this act contains costs mandated by the state, reimbursement to
17local agencies and school districts for those costs shall be made
18pursuant to Part 7 (commencing with Section 17500) of Division
194 of Title 2 of the Government Code.
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97