BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2585
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 2585 (Daly) - As Amended:  March 25, 2014 

          Policy Committee:                              EducationVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill eliminates the dual budget adoption option for school  
          districts and county offices of education (COEs), revises and  
          recasts provisions related to approval of conditional or  
          disapproved budgets, and makes other technical and clarifying  
          changes.

           FISCAL EFFECT  :   

          One-time General Fund and Federal Fund savings of $100,000 to  
          the California Department of Education (CDE) related to not  
          implementing a software systems upgrade.  Estimated annual GF  
          savings of $10,000 to CDE for elimination of workload related to  
          processing dual budget adoption information.

          Minor state-mandated costs to school districts and COEs for  
          activities related to review and response of conditionally  
          approved or disapproved budget revisions.  
           
          COMMENTS  :   

           Purpose.   Existing law allows school districts and COEs to  
          choose either a single or dual budget adoption.  This bill seeks  
          to create efficiencies by eliminating the option for a local  
          education agency (LEA) to formally adopt two budgets.  

          According to CDE, the September 8 dual budget adoption is  
          redundant and minimally used.  Currently, only 13 LEAs use this  
          process.  Districts and COEs that choose the single adoption  
          cycle are subject to the same review and timeline used in dual  
          budget adoption.  The difference is that single adoption  
          districts and COEs revise their budgets by September 8 and  








                                                                  AB 2585
                                                                  Page  2

          submit the revisions for review, but do not formally re-adopt  
          them.  

          CDE further notes that all districts and COEs routinely revise  
          their budgets throughout the year as more accurate information  
          becomes available.  Within 45 days after the state budget is  
          adopted, all districts and COEs must make available for public  
          review any revisions to their budgets to reflect the funding  
          made available by the Budget Act.   The budget review process  
          also requires all districts and COEs to submit two interim  
          budget reports per year, one as of October 31 and another as of  
          January 31.

          The bill also revises and recasts portions of the process for  
          review and modification of conditionally approved or disapproved  
          budgets.  Rather than hold a separate hearing to address  
          concerns, for example, a school district or COE would instead  
          address concerns at a regularly scheduled meeting. 
           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081