The proposed change aims to facilitate local governments and school districts in claiming reimbursements for mandated programs, ideally easing their financial burden. This reduction in the claim threshold may allow smaller local entities that previously found the $1,000 requirement to be prohibitively high to submit claims that can now be heard, thus improving their fiscal liquidity and ability to comply with state mandates.
Assembly Bill 2395, introduced by Assembly Member Lackey, amends Section 17564 of the Government Code, which addresses the reimbursement of claims related to state mandates. Currently, the California Constitution stipulates that when the state mandates new programs or services on local governments, including school districts, it must provide financial subventions to cover related costs. This bill proposes a significant change to the reimbursement process by lowering the minimum claim amount required for state reimbursement from $1,000 to $900.
While proponents of AB 2395 argue that the lower threshold would increase access to funding for local governments and school districts, critics could express concerns about potential fiscal impacts on the state budget. There may also be apprehensions regarding the administrative processes involved in assessing a larger number of smaller claims which could lead to increased bureaucratic overhead and inefficiencies. Moreover, opinions may vary on whether this amendment adequately addresses the needs of local governments or if it merely shifts the responsibilities without providing substantial relief.