Question: Our elementary school district is in financial crisis, and the county office of education has an on-site advisor working with the district. Is the district required to have a budget ready for the county to approve by January 30?

Response: Education Code 42127(a)(2) states that school districts shall adopt a budget on or before July 1 of each year. There are additional steps and deadlines for districts and county offices to meet after that date, but until the district’s budget is approved, the district will operate on the lesser of its proposed budget for the current fiscal year or the last budget adopted or revised for the prior fiscal year (EC 42127.4). If the governing board neglects or refuses to provide a budget, the County Superintendent of Schools shall not make any apportionment of state or county school money to the district or approve any warrant issued by the school district (EC 42128).

2/02/04