Cal. Educ. Code § 42127.01
Budget Requirements
Redline — January 1, 2013 → current.View current text →
Current — January 1, 2017
As of January 1, 2013
(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.
(a) In a fiscal year immediately after a fiscal year in which the amount of moneys in the Public School System Stabilization Account is equal to or exceeds 3 percent of the combined total of General Fund revenues appropriated for school districts pursuant to subdivision (c) of Section 41202 and allocated local proceeds of taxes pursuant to subdivision (g) of Section 41202 for that fiscal year, a school district budget that is adopted or revised pursuant to Section 42127 shall not contain a combined assigned or unassigned ending general fund balance that is in excess of 10 percent of those funds.
(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.
(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 general fund balance that is in excess of the amount described in subdivision (a). As a condition of receiving an exemption, a school district shall do all of the following: (1) Provide a statement that substantiates the need for a combined assigned and unassigned ending general fund balance that is in excess of the amount described in subdivision (a). (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.
(c) This section shall not apply to a basic aid school district or to a small school district.
(d) For purposes of this section, the following definitions shall apply:
(1) “Basic aid school district” has the same meaning as in Section 42238.02.
(2) “Combined assigned or unassigned ending general fund balance” refers to assigned and unassigned moneys in the general fund accounts of school districts, including assigned and unassigned moneys in the Special Fund for Other Than Capital Outlay.
(3) “Small school district” means a school district with fewer than 2,501 units of average daily attendance.
(e) The Superintendent shall notify school districts and county offices of education whenever the conditions specified in subdivision (a) are met, and shall notify school districts and county offices of education when those conditions no longer exist.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.