CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 590Introduced by Senator Moorlach(Principal coauthor: Senator Bates)(Coauthors: Senators Berryhill, Gaines, Morrell, Nielsen, and Vidak)February 17, 2017 An act to repeal Section 42127.01 of the Education Code, relating to school finance. LEGISLATIVE COUNSEL'S DIGESTSB 590, as introduced, Moorlach. 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 districts 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 districts 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe 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 Section 42127.01 of the Education Code is repealed.42127.01.(a)In a fiscal year immediately after a fiscal year in which a transfer is made into the Public School System Stabilization Account, a school district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 districts 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 districts 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 201314 Second Extraordinary Session is approved by the voters at the November 4, 2014, statewide general election. If Assembly Constitutional Amendment No. 1 of the 201314 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.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 590Introduced by Senator Moorlach(Principal coauthor: Senator Bates)(Coauthors: Senators Berryhill, Gaines, Morrell, Nielsen, and Vidak)February 17, 2017 An act to repeal Section 42127.01 of the Education Code, relating to school finance. LEGISLATIVE COUNSEL'S DIGESTSB 590, as introduced, Moorlach. 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 districts 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 districts 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 590
Introduced by Senator Moorlach(Principal coauthor: Senator Bates)(Coauthors: Senators Berryhill, Gaines, Morrell, Nielsen, and Vidak)February 17, 2017
Introduced by Senator Moorlach(Principal coauthor: Senator Bates)(Coauthors: Senators Berryhill, Gaines, Morrell, Nielsen, and Vidak)
February 17, 2017
An act to repeal Section 42127.01 of the Education Code, relating to school finance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 590, as introduced, Moorlach. 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 districts 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 districts 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.
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 districts 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 districts 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.
## Digest Key
## Bill Text
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 districts 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 districts 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 201314 Second Extraordinary Session is approved by the voters at the November 4, 2014, statewide general election. If Assembly Constitutional Amendment No. 1 of the 201314 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.
The people of the State of California do enact as follows:
## 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 districts 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 districts 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 201314 Second Extraordinary Session is approved by the voters at the November 4, 2014, statewide general election. If Assembly Constitutional Amendment No. 1 of the 201314 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.
SECTION 1. Section 42127.01 of the Education Code is repealed.
### SECTION 1.
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 districts 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 districts 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 201314 Second Extraordinary Session is approved by the voters at the November 4, 2014, statewide general election. If Assembly Constitutional Amendment No. 1 of the 201314 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.
(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 districts 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 districts 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 201314 Second Extraordinary Session is approved by the voters at the November 4, 2014, statewide general election. If Assembly Constitutional Amendment No. 1 of the 201314 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.