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SB-1388 Education finance: community colleges: general fund balance.(2023-2024)

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Date Published: 03/18/2024 09:00 PM
SB1388:v98#DOCUMENT

Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1388


Introduced by Senator Archuleta

February 16, 2024


An act relating to school employees. to add Section 84041.5 to the Education Code, relating to education finance.


LEGISLATIVE COUNSEL'S DIGEST


SB 1388, as amended, Archuleta. Classified employees: salary data. Education finance: community colleges: general fund balance.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain.
This bill would prohibit, commencing with the 2025–26 fiscal year, a community college district’s annual unrestricted general fund balance, as specified, for a fiscal year from exceeding 16.7% of its unrestricted general fund expenditures for that year, unless the community college district meets specified conditions. The bill would prohibit a community college district from transferring unrestricted general funds to another fund if the receiving fund has an existing balance of 33% or more of the community college district’s unrestricted general fund expenditures for that fiscal year or if the transfer would cause the receiving fund to have a balance of 33% or more of the community college district’s unrestricted general fund expenditures for that fiscal year. For a community college district that violates the above-described prohibitions, the bill would require a community college district to distribute the amount of the annual unrestricted general fund balance that exceeds 16.7% to nonsupervisory and nonmanagement employees of the community college district, as provided. To the extent that the bill would impose new duties on community college districts, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires school districts to employ persons for positions not requiring certification qualifications and to classify, as defined, these persons. Under existing law, these employees make up the classified service. Existing law requires that each position in the classified service have, among other things, a specific statement of the duties required to be performed by the employees in each position, and the regular monthly salary ranges for each position.

This bill would state the intent of the Legislature to enact subsequent legislation related to salary data collection for school staff.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Section 84041.5 is added to the Education Code, to read:

84041.5.
 (a) Commencing with the 2025–26 fiscal year, a community college district’s annual unrestricted general fund balance for a fiscal year, as reported on its annual report filed in compliance with regulations adopted pursuant to Section 84040, shall not exceed 16.7 percent of its unrestricted general fund expenditures for that year, unless the community college district does all of the following:
(1) Participates in the Part-Time Community College Faculty Health Insurance Program, as described in Article 9 (commencing with Sections 87860) of Chapter 3 of Part 51.
(2) Participates in the Community College Part-Time Faculty Office Hours Program, as described in Article 10 (commencing with Section 87880) of Chapter 3 of Part 51.
(3) Has at least 75 percent of hours of credit instruction taught by full-time instructors, as described in subdivision (a) of Section 87482.6.
(b) A community college district shall not transfer unrestricted general funds to another fund for the purpose of complying with subdivision (a) if either of the following applies:
(1) The receiving fund has an existing balance of 33 percent or more of the community college district’s unrestricted general fund expenditures for that fiscal year.
(2) The transfer of the unrestricted general funds would cause the receiving fund to have a balance of 33 percent or more of the community college district’s unrestricted general fund expenditures for that fiscal year.
(c) For a community college district that violates subdivision (a) or (b), the amount of the annual unrestricted general fund balance that exceeds 16.7 percent shall be proportionally distributed to the nonsupervisory and nonmanagement employees of the community college district based solely on the number of hours worked by those employees in the preceding fiscal year, as determined by a collective bargaining agreement between those employees and the governing board of the community college district.

SEC. 2.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.

It is the intent of the Legislature to enact subsequent legislation related to salary data collection for school staff.