Bill Text: CA SB774 | 2015-2016 | Regular Session | Introduced

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Bill Title: School finance: school districts: annual budgets: reserve balance.

Spectrum: Partisan Bill (Republican 13-0)

Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB774 Detail]

Download: California-2015-SB774-Introduced.html

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BILL NUMBER: SB 774	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Fuller, Bates, Berryhill, Huff, Morrell,
Nielsen, and Vidak
   (Principal coauthors: Assembly Members Baker, Bigelow, Harper,
Lackey, Olsen, and Wilk)

                        FEBRUARY 27, 2015

   An act to repeal Section 42127.01 of the Education Code, relating
to school finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 774, as introduced, Fuller. School finance: school districts:
annual budgets: reserve balance.
   In a fiscal year immediately after a fiscal year in which a
transfer is made into the Public School System Stabilization Account,
existing law prohibits a school district's adopted or revised budget
from containing a combined assigned or unassigned ending fund
balance that is in excess of either 2 or 3 times the minimum
recommended reserve for economic uncertainties adopted by the State
Board of Education, depending on the school district's units of
average daily attendance. Existing law authorizes the county
superintendent of schools to waive the prohibition, pursuant to
specified conditions, for up to 2 consecutive fiscal years within a
3-year period if the school district provides documentation
indicating that extraordinary fiscal circumstances substantiate the
need for the balance.
   This bill would repeal those provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42127.01 of the Education Code is repealed.

   42127.01.  (a) In a fiscal year immediately after a fiscal year in
which a transfer is made into the Public School System Stabilization
Account, a school district budget that is adopted or revised
pursuant to Section 42127 shall not contain a combined assigned or
unassigned ending fund balance that is in excess of the following:
   (1) For school districts with fewer than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
two.
   (2) For school districts with more than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
three.
   (b) A county superintendent of schools may grant a school district
under its jurisdiction an exemption from the requirements of
subdivision (a) for up to two consecutive fiscal years within a
three-year period if the school district provides documentation
indicating that extraordinary fiscal circumstances, including, but
not limited to, multiyear infrastructure or technology projects,
substantiate the need for a combined assigned or unassigned ending
fund balance that is in excess of the minimum recommended reserve for
economic uncertainties. As a condition of receiving an exception, a
school district shall do all of the following:
   (1) Provide a statement that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties.
   (2) Identify the funding amounts in the budget adopted by the
school district that are associated with the extraordinary fiscal
circumstances.
   (3) Provide documentation that no other fiscal resources are
available to fund the extraordinary fiscal circumstances.
   (c) This section shall become operative on December 15, 2014, only
if Assembly Constitutional Amendment No. 1 of the 2013-14 Second
Extraordinary Session is approved by the voters at the November 4,
2014, statewide general election. If Assembly Constitutional
Amendment No. 1 of the 2013-14 Second Extraordinary Session is not
approved by the voters at the November 4, 2014, statewide general
election, this section shall not become operative and is repealed on
January 1, 2015.