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SB-590 School finance: school districts: annual budgets: reserve balance.(2017-2018)

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Date Published: 04/17/2017 09:00 PM

Amended  IN  Senate  April 17, 2017
Amended  IN  Senate  March 30, 2017


Senate Bill
No. 590

Introduced by Senator Moorlach
(Principal coauthor: Senator Bates)
(Coauthors: Senators Berryhill, Gaines, Morrell, Nielsen, and Vidak Vidak, and Wilk)
(Coauthor: Assembly Member Baker)

February 17, 2017

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


SB 590, as amended, 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 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   Local Program: NO  

The people of the State of California do enact as follows:


 Section 42127.01 of the Education Code is repealed.