Enacted<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
ASSEMBLY BILL No. 1200
CHAPTER 1213
Eastin
An act to amend Sections 1240, 35035, 39602, 39603, 41320.1, 42100,
42103, 42127, 42127.1, 42127.2, 42127.3, and 42127.4 of, to amend and
renumber Section 35014 of, to add Sections 42127.6, 42127.8, 42127.9,
42132, 42133, and 42134 to, to add Article 2.5 (commencing with Section
41325) to Chapter 3 of Part 24 of, to add Article 3 (commencing with
Section 42130) to Chapter 6 of Part 24 of, to repeal and add Article 2
(commencing with Section 1620) of Chapter 5 of Part 2 of, and to repeal
Sections 35015, 42102, and 42120 of, the Education Code, and to add
Section 3547.5 to the Government Code, relating to school finance, and
making an appropriation therefor.
[Approved by Governor October 14, 1991. Filed with
Secretary of State October 14, 1991.]
LEGISLATIVE COUNSEL'S DIGEST
AB 1200, Eastin. School district budget review.
(1) Under existing law, each county superintendent of schools is required annually to submit to the county board of education certain reports regarding the financial and budgetary status of the county board
of education.
This bill would revise the reporting dates for those annual reports,and would make related changes,thereby imposing a state‑mandated local program.
Under existing law, each county board of education is required annually to submit its budget for approval to the Superintendent of Public Instruction, in accordance with specified procedures and criteria.
This bill would require that the public hearing on that budget be held prior to the submittal of the budget to the Superintendent of Public Instruction on or before July 1, and that the budget be filed also with the county board of supervisors and the county auditor,
thereby imposing a state‑mandated local program. The bill would require that the Superintendent of Public Instruction approve or disapprove the budget no later than August 1, and would make related changes.
The bill also would require, except as specified, that, on or before September 1 of each year, the county board of education make certain revisions to the county office of education budget, adopt the revised budget, and file the revised budget for review by the Superintendent of Public Instruction. The bill would thereby impose a state‑mandated local program.
Under existing law, if a budget review committee recommends approval of the budget of the county office of education, the Superintendent of Public Instruction is required to approve that budget. If the budget
review committee disapproves that budget, the superintendent, with the agreement of the budget review committee, may adopt an alternative budget for the county office of education.
This bill would authorize the Superintendent of Public Instruction to approve or disapprove the budget of a county office of education whether or not the budget review committee recommends approval of that
budget. If the Superintendent of Public Instruction disapproves the budget, this bill would authorize the superintendent or his or her designee, for the remainder of the fiscal year, to adopt a fiscal plan and budget to govern the county office of education, to stay or rescind actions of the county office of education that are inconsistent with the fiscal plan or budget, and otherwise to monitor and review the operation of the county office of education. This bill also would authorize the Superintendent of Public Instruction or his or her designee to exercise those powers as to any county office of education having a negative or
qualified certification pursuant to the annual reports described above.
The requirement that a county office of education comply with that authority, including the payment of resulting administrative costs,would impose a state‑mandated local program.
The bill also would direct the Superintendent of Public Instruction to monitor the operation of each county office of education pursuant to an adopted budget and, if he or she determines that the county office of
education will be unable to meet its financial obligations, to recommend appropriate remedial action. The bill would authorize the superintendent, subsequent to that notification, to revise the county office of education budget, as specified, and to stay or rescind any action that is inconsistent with those revisions. The requirement that a county office of education comply with that authority, including the payment of resulting administrative costs, would impose a state‑mandated
local program.
(2) Under existing law, each school district is required annually,no later than July 1, to submit a tentative budget for the current fiscal year for review and approval, pursuant to designated deadlines,by the county superintendent of schools, the Superintendent of Public Instruction and, under specified circumstances, by a budget review committee established for that purpose. Existing law requires each district to adopt a final budget no later than September 15.
This bill would eliminate the requirement that each school district submit a tentative budget and, instead, would require each school district to submit an adopted budget no later than July 1. The bill would revise the deadlines for the approval or disapproval of the budget
by the county superintendent of schools. The bill would require, except as specified, that, on or before September 1 each year, the school district governing board make certain revisions to the budget, adopt the
revised budget, and file the revised budget for review by the county superintendent of schools. The bill would thereby impose a state‑mandated local program. The bill also would require that the budget review committee complete its review of the school district budget no later than October 31, except as specified. The bill would thereby impose a state‑mandated local program.
(3) Existing law authorizes the Superintendent of Public Instruction, in the event that a school district budget is disapproved by the budget review committee, to either approve the budget or prepare an alternative budget to be agreed to jointly by the county office of education and the budget review committee.
This bill would repeal that authority and would authorize the school district governing board to respond to recommendations of the budget review committee made pursuant to its disapproval of the budget. The bill also would require, if a school district budget is disapproved by the Superintendent of Public Instruction, that the county superintendent of schools exercise certain governance over the school district for the current fiscal year, thus imposing a state‑mandated local program, with the authority to monitor and review the operation of the district, to develop and adopt a fiscal plan and budget for the district, and to stay and rescind actions that are inconsistent with that budget, as specified. The bill would impose a state‑mandated local program by requiring the district to pay for the resulting administrative costs.That governance would be subject to a specified appeal procedure. In addition, the bill would revise the procedure for the selection and convening of a budget review committee, including the alternative that a regional review committee be appointed for this purpose by the county superintendent of schools.
The bill also would impose a state‑mandated local program by directing the county superintendent of schools to monitor the operation of each school district pursuant to an adopted budget and, if he or she
determines that a school district will be unable to meet its financial obligations, to recommend appropriate remedial action and, if necessary,to notify the Superintendent of Public Instruction. The bill would
authorize the county superintendent of schools, subsequent to that notification, to request additional information regarding the district's budget or operations, to revise the school district budget, as
specified, and to stay or rescind any action that is inconsistent with those revisions. The bill would impose a state‑mandated local program by requiring the district to pay for the resulting administrative costs.
The bill would appropriate $500,000 for the 1991‑92 fiscal year for apportionment to county superintendents of schools for the above
purposes.
(4) Under existing law, the governing board of each school district is required in each fiscal year, within 45 days after the close of each of 2 designated reporting periods, to certify to the Controller and the
Superintendent of Public Instruction whether it is able to meet its financial obligations for the remainder of the fiscal year. Existing law also requires each county superintendent of schools, within 75 days ofthe close of each reporting period, to comment to those entities as to any district certification that is classified as qualified or negative, as specified.
The bill would impose a state‑mandated local program by requiring the superintendent of each school district annually to submit 2 periodic reports to the school district governing board regarding the financial
and budgetary status of the district, as specified, to serve as the basis for the certification described above.
This bill would revise that certification, and would require that each school district governing board that files a certification that is qualified or negative, as specified, provide a financial statement of projected year‑end funding balances to the county superintendent of schools, the Controller, and the Superintendent of Public Instruction no later than June 1. The bill would thereby impose a state‑mandated local program.
As to any school district having a negative certification, as specified, the bill would authorize a county superintendent of schools,for the remainder of the current fiscal year, to develop and adopt a budget to govern the school district, to stay or rescind any action that is consistent with that budget, and to exercise other specified powers.The requirement that a school district comply with that authority would impose a state‑mandated local program.
The bill also would specify that certain authority that is currently exercised in this regard by the State Department of Education be exercised by the Superintendent of Public Instruction.
The bill also would impose a state‑mandated local program by revising the reporting and commenting responsibilities of the county superintendent of schools, as described above, to occur no later than 60
days after the close of each reporting period.
(5) The bill would prohibit a school district having a qualified or negative certification, as described above, in any fiscal year from issuing, in that year or the next fiscal year, certain debt instruments,or submitting certain information reports regarding the debt instruments, unless the county superintendent of schools determines that the repayment of the indebtedness is probable. The bill similarly would
prohibit a county office of education having a qualified or negative certification in any fiscal year from issuing, in that year or the next fiscal year, debt instruments, or submitting certain information reports
regarding the debt instruments, unless the Superintendent of Public Instruction determines that the repayment of the indebtedness is probable. The bill would require the Superintendent of Public Instruction, no later than March 31, 1992, to develop and adopt criteria and standards to govern that determination.
(6) Under existing law, as set forth in the California Constitution,
state and local governments, including school districts, are prohibited,
as specified, from expending during any fiscal year an amount that
exceeds the appropriations limit for that governmental entity for that
fiscal year.
This bill would require each school district and county office of
education annually to adopt a resolution to identify its estimated
appropriations limit for the current fiscal year and its actual
appropriations limit for the preceding fiscal year, as specified.
(7) Existing law permits the governing board of any school district
to request an emergency loan through the Superintendent of Public
Instruction, subject to specified conditions including the appointment of a trustee to supervise the district. That trustee serves at the pleasure of, and reports directly to, the Superintendent of Public Instruction, until the loan is repaid.
This bill would require the Superintendent of Public Instruction to exercise, through an administrator appointed by the superintendent, the powers and responsibilities of the governing board of any school
district that accepts an emergency loan in an amount equal to 200% of
the amount of the fiscal reserve recommended for the district under
designated state standards. The bill would grant that authority for not
less than one complete fiscal year, pursuant to specified conditions.
The bill would require the preparation of a management review and
recovery plan and a financial recovery plan for the district, and would
require the repayment of any state loans to the district over a 10‑year
period.
In addition, as of the date of that acceptance, the bill would
authorize the administrator to terminate the employment of any district
superintendent of schools, or deputy, associate, or assistant
superintendent of schools for the district, pursuant to specified
criteria and appropriate notice and hearing procedures.
The bill would make related changes to existing law.
(8) The bill would require a governing board having designated
membership to establish a unit of persons having extensive experience in
school district finance and operations to provide assistance as
requested to participating county offices of education, which could be
required to pay an annual fee, and to school districts, which would be
charged for certain of the costs incurred by the unit pursuant to
established rates. The bill would direct the Superintendent of Public
Instruction and the Secretary of Child Development and Education to
select a county office of education to direct that unit.
The bill would appropriate $500,000 for the 1991‑92 fiscal year for
apportionment to county offices of education to meet the costs of that
participation.
The bill also would require the Superintendent of Public Instruction
to publish annually a multiyear projection of the revenues that will be
available to school districts and county offices of education from state
and local sources, as specified, to be made available to those entities
for the preparation of annual budgets and financial certifications.
(9) Under existing law, school districts are authorized to establish
a self‑insurance fund for various losses, payments, and liabilities, as
specified, and for employee health and welfare benefits. Existing law
requires a school district, prior to funding health and welfare benefits
in that manner, to secure the services of an actuary to evaluate the
future annual costs of those benefits.
This bill would direct that, upon commencing the funding of health
and welfare benefits pursuant to that authority, a school district
secure the services of an actuary to evaluate the annual costs of those
benefits every 3 years.
(10) Existing law sets forth standards and procedures that govern the collective bargaining process between local educational agencies and their employees.
This bill would require that, prior to entering into a written agreement pursuant to that process, the local educational agency disclose at a public meeting the major provisions of the agreement,including the costs that would be incurred by the agency under the
agreement. This requirement would impose a state‑mandated local program.
(11) The bill would make related technical changes to existing law.
(12) 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates which do not exceed $1,000,000 statewide and
other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that this bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to those statutory
procedures and, if the statewide cost does not exceed $1,000,000, shall
be made from the State Mandates Claims Fund.
Appropriation: yes.
The people of the State of California do enact as follows:
SECTION 1. Section 1240 of the Education Code is amended to read:
1240. The superintendent of schools of each county shall:
(a) Superintend the schools of his or her county.
(b) Visit and examine each school in his or her county at reasonable
intervals to observe its operation and to learn of its problems. He or
she may annually present a report of the state of the schools in his or
her county, and of his or her office, including, but not limited to, his
or her observations while visiting the schools, to the board of
education and the board of supervisors of his or her county.
(c) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.
(d) Keep in his or her office the reports of the Superintendent of
Public Instruction.
(e) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of the
standing, in each study, of all applicants for certificates who have
been examined, which shall be open to the inspection of any applicant or
his or her authorized agent.
(f) Enforce the course of study.
(g) Enforce the use of state textbooks and of high school textbooks
regularly adopted by the proper authority.
(h) Preserve carefully all reports of school officers and teachers.
(i) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
State Department of Education.
(j) Submit two reports during the fiscal year to the county board of
education in accordance with the following:
(1) The first report shall cover the financial and budgetary status
of the county office of education for the period ending October 31. The
second report shall cover the period ending January 31. Both reports
shall be reviewed by the county board of education and approved by the
county superintendent of schools no later than 45 days after the close
of the period being reported.
(2) As part of each report, the superintendent shall certify in
writing whether or not the county office of education is able to meet
its financial obligations for the remainder of the fiscal year and,
based on current forecasts, for the subsequent fiscal year. The
certifications shall be classified as positive, qualified, or negative,
pursuant to standards prescribed by the Superintendent of Public
Instruction, for the purposes of determining subsequent state agency
actions pursuant to Section 1240.1. For purposes of this subdivision, a
negative certification shall be assigned to any county office of
education that likely will be unable to meet its financial obligations
for the remainder of the fiscal year or for which existing expenditures
practices jeopardize the ability of the county office of education to
meet its multiyear financial commitments. In accordance with those
standards, the Superintendent of Public Instruction may reclassify any
certification. As to any county office of education having a negative
certification, the Superintendent of Public Instruction or his or her
designee may exercise the authority set forth in subdivision (b) of
Section 1630. Copies of each certification, and of the report containing
that certification, shall be sent to the Superintendent of Public
Instruction at the time the certification is submitted to the county
board of education. Copies of each qualified or negative certification,
and of the report containing that certification, shall be sent to the
Controller at the time the certification is submitted to the county
board of education.
(3) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent of
Public Instruction, and shall be based on standards and criteria for
fiscal stability adopted by the State Board of Education pursuant to
Section 33127. The reports, and supporting data, shall be made available
by the county superintendent of schools to any interested party upon
request.
(4) This subdivision does not preclude the submission of additional
budgetary or financial reports by the superintendent to the county board
of education or to the Superintendent of Public Instruction.
(k) When so requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
(l) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of any certificated person who
knowingly and willingly reports false fiscal expenditure data relative
to the conduct of any educational program. This requirement applies only
if, in the course of his or her normal duties, the county superintendent
of schools discovers information that gives him or her reasonable cause
to believe that false fiscal expenditure data relative to the conduct of
any educational program has been reported.
SEC. 2. Article 2 (commencing with Section 1620) of Chapter 5 of
Part 2 of the Education Code is repealed.
SEC. 3. Article 2 (commencing with Section 1620) is added to
Chapter 5 of Part 2 of the Education Code, to read:
Article 2. County Office of Education Budget Approval
1620. On or before July 1 each fiscal year, the county board of
education shall hold a public hearing on the proposed county school
service fund budget for that fiscal year (the "budget year"). The public
hearing shall be held prior to the adoption of the budget by the county
board of education, and shall occur not less than three days following
the availability of the proposed budget for public inspection. At the
hearing, any taxpayer directly affected by the county school service
fund budget may appear before the county board of education and speak on
the proposed budget or any item therein.
1621. (a) The single‑fund budget shall be prepared in the form
prescribed and furnished by the Superintendent of Public Instruction and
shall be the county school service fund budget. The budget shall show a
complete plan and itemized statement of all proposed expenditures in
each fund of the county office of education, of estimated cash balances,
and of all estimated revenues for the budget year, and shall include an
estimate of those figures, unaudited, for the fiscal year immediately
preceding the budget year.
(b) The budget may contain an amount to be known as the general
reserve, in such sum as the county board of education may deem
sufficient to meet the cash requirements of the fiscal year next
succeeding the budget year until adequate proceeds of the taxes levied
or of the apportionment of state funds are available.
(c) The budget may contain a fund balance designated for any
specific purpose as determined by the county board of education. Those
funds shall be available for appropriation by a majority vote of the
members of the county board of education.
1622. (a) On or before July 1 each fiscal year, the county board of
education shall adopt an annual budget for the budget year and shall
file that budget with the Superintendent of Public Instruction, the
county board of supervisors, and the county auditor. The budget, and
supporting data, shall be maintained and made available for public
review. The budget shall indicate the date, time, and location at which
the county board of education held the public hearing required under
Section 1620.
(b) The Superintendent of Public Instruction shall examine the
budget to determine whether it complies with the standards and criteria
adopted by the State Board of Education pursuant to Section 33127 for
application to final local educational agency budgets, and shall
identify any technical corrections to the budget that must be made. On
or before August 1, the Superintendent of Public Instruction shall
approve or disapprove the budget and, in the event of a disapproval,
transmit to the county office of education in writing his or her
recommendations regarding revision of the budget and the reasons for
those recommendations.
(c) On or before September 1, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent of Public
Instruction, shall adopt the revised budget, and shall file the revised
budget with the Superintendent of Public Instruction, the county board
of supervisors, and the county auditor. Prior to revising the budget,
the county board of education shall hold a public hearing regarding the
proposed revisions, which shall be made available for public inspection
not less than three working days prior to the hearing. The revised
budget, and supporting data, shall be maintained and made available for
public review.
(d) The Superintendent of Public Instruction shall examine the
revised budget to determine whether it complies with the standards and
criteria adopted by the State Board of Education pursuant to Section
33127 for application to final local educational agency budgets and, no
later than September 15, shall approve or disapprove the revised budget.
If the Superintendent of Public Instruction disapproves the budget, he
or she shall call for the formation of a budget review committee
pursuant to Section 1623.
(e) Notwithstanding any other provision of this section, the budget
review for a county office of education shall be governed by paragraphs
(1), (2), and (3) of this subdivision, rather than by subdivisions (c)
and (d), if the county board of education so elects, and notifies the
Superintendent of Public Instruction in writing of that decision, no
later than October 31 of the immediately preceding calendar year.
(1) In the event of the disapproval of the budget of a county office
of education pursuant to subdivision (b), on or before September 1, the
county superintendent of schools and the county board of education shall
review the recommendations of the Superintendent of Public Instruction
at a regularly scheduled meeting of the county board of education and
respond to those recommendations. That response shall include the
proposed actions to be taken, if any, as a result of those
recommendations.
(2) No later than five working days after receiving the response
required under paragraph (1), the Superintendent of Public Instruction
shall review that response and either approve or disapprove the budget
of the county office of education. If the Superintendent of Public
Instruction disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 1623.
(3) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that Budget
Act.
1623. (a) The budget review committee shall be composed of three
persons and shall be selected by the county superintendent of schools
and the county board of education solely from a list of no fewer than
five candidates provided by the Superintendent of Public Instruction.
The candidates shall be persons who have expertise in the management of
a school district or county office of education, including, but not be
limited to, the fiscal and educational aspects of that management.
(b) No later than five working days after the receipt of the
candidate list described in subdivision (a), the county superintendent
of schools and the county board of education shall select the budget
review committee. If the county superintendent of schools and the county
board of education fail to select a committee within the period of time
permitted by this subdivision, the Superintendent of Public Instruction
instead shall select and convene the budget review committee no later
than 10 working days after the receipt by the county superintendent of
schools and the county board of education of the candidate list.
(c) No later than October 31, the budget review committee shall
review the proposed budget of the county office of education and the
underlying fiscal policies of that county office of education, and shall
transmit to the Superintendent of Public Instruction, the county
superintendent of schools, and the county board of education either of
the following:
(1) The recommendation that the budget be approved.
(2) A report disapproving the budget and setting forth
recommendations for revisions to the budget that would enable the county
office of education to meet its financial obligations both in the budget
year and with regard to multiyear financial commitments.
(d) Upon the request of the budget review committee, the
Superintendent of Public Instruction may extend the deadline set forth
in subdivision (c) for a period of not more than 15 working days.
(e) The Superintendent of Public Instruction shall develop criteria
and procedures governing the performance by budget review committees of
their duties under this section.
(f) The members of the budget review committee shall be reimbursed
for their services and associated expenses while on official business,
at rates established by the State Board of Education.
1624. (a) If the budget review committee established pursuant to
Section 1623 disapproves the budget of the county office of education,
within five working days following the receipt of the committee's
report, the county superintendent of schools and the county board of
education may submit a response to the Superintendent of Public
Instruction, including any revisions to the adopted budget and any other
proposed action to be taken as a result of the recommendations of the
budget review committee.
(b) Based upon the recommendations of the budget review committee
provided pursuant to subdivision (c) of Section 1623, and any response
provided pursuant to subdivision (a), the Superintendent of Public
Instruction shall either approve or disapprove the budget of the county
office of education. If the Superintendent of Public Instruction
disapproves the budget, the superintendent or his or her designee may do
any of the following for the remainder of the current fiscal year:
(1) On or before November 30, develop and adopt, in consultation
with the county superintendent of schools and the county board of
education, a fiscal plan and budget for the county office of education
that will allow the county office of education to meet its financial
obligations both in the budget year and with regard to the multiyear
financial commitments. The county board of education and the county
superintendent of schools shall govern the operation of the county
office of education for the budget year in accordance with that fiscal
plan and budget. The deadline set forth in this paragraph shall be
modified to reflect any extension granted under subdivision (d) of
Section 1623.
(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is inconsistent
with the fiscal plan and budget adopted pursuant to paragraph (1). The
Superintendent of Public Instruction shall inform the county board of
education and the county superintendent of schools in writing of his or
her justification for any exercise of authority under this paragraph.
(3) Monitor and review the operation of the county office of
education.
(c) The county office of education shall pay reasonable fees charged
by the Superintendent of Public Instruction for actual administrative
expenses incurred pursuant to subdivision (b).
(d) This section shall not be construed to authorize the
Superintendent of Public Instruction to abrogate any provision of a
collective bargaining agreement that was entered into by a county office
of education prior to the date upon which the Superintendent of Public
Instruction disapproved the budget of the county office of education
pursuant to subdivision (b).
(e) As he or she deems necessary for the purposes set forth in
subdivision (b), the Superintendent of Public Instruction may seek from
the county office of education, or otherwise obtain, additional
information regarding the budget or operations of the county office of
education, through a financial or management review of the county office
of education, a cash‑flow projection, or other appropriate means.
1625. The county superintendent of schools for any county office of
education that reports a negative unrestricted fund balance or a
negative cash balance in the annual report required by Section 1622 or
in the audited annual financial statements required by Section 41020
shall include, with the budget submitted in accordance with Section 1622
and the certifications required by subdivision (e) of Section 1241, a
statement identifying the reasons for the negative unrestricted fund
balance or negative cash balance and the steps that will be taken to
ensure that the negative balance will not occur at the end of the budget
year.
1626. Until the time the county office of education receives
approval of its budget under this article, the county office of
education shall continue to operate on the basis of the last budget
adopted or revised for the county office of education for the fiscal
year immediately preceding the budget year.
1627. The county school service fund shall be audited annually by a
public accountant or a certified public accountant selected by the
county superintendent of schools. The cost of the audit shall be a legal
charge against the county school service fund.
1628. On or before September 15 each year, the county
superintendent of schools shall prepare and file with the Superintendent
of Public Instruction a statement of all receipts and expenditures of
the county office of education for the preceding fiscal year. The
statement shall be in a format or on forms prescribed by the
Superintendent of Public Instruction.
1629. On or before September 15 each year, the county board of
education shall adopt a resolution to identify, pursuant to Division 9
(commencing with Section 7900) of Title 1 of the Government Code, the
estimated appropriations limit for the county office of education for
the current fiscal year and the actual appropriations limit for the
county office of education for the preceding fiscal year. That
resolution shall be adopted at a regular or special meeting of the
board. The documentation used in the identification of the
appropriations limits shall be made available to the public not less
than 15 days prior to the date of that meeting.
1630. (a) The Superintendent of Public Instruction shall monitor
the operation of each county office of education pursuant to the budget
adopted for that agency. If the Superintendent of Public Instruction
determines that a county office of education will be unable to meet its
financial obligations for the current or subsequent fiscal year, he or
she shall notify the county board of education and the county
superintendent of schools in writing of that determination, and of the
basis for the determination. In addition, subsequent to that
determination, the Superintendent of Public Instruction may do either or
both of the following:
(1) Assign a fiscal advisor to assist the county office of
education.
(2) Conduct a study of the finances of the county office of
education and recommend to the county board of education and the county
superintendent of schools actions to enable the county office of
education to meet those obligations.
(b) If, subsequent to the receipt of recommendations provided
pursuant to paragraph (2) of subdivision (a), the county board of
education and the county superintendent of schools fail to take
appropriate action to enable the county office of education to meet its
financial obligations, the Superintendent of Public Instruction or his
or her designee, in consultation with the county board of education and
the county superintendent of schools, may do one or more of the
following for the remainder of the current fiscal year:
(1) Develop and impose, in consultation with the county board of
education and the county superintendent of schools, revisions to the
county office of education budget that will enable the county office of
education to meet its financial obligations.
(2) Stay or rescind any action that is inconsistent with any
revision adopted pursuant to paragraph (1). The Superintendent of Public
Instruction shall inform the county board of education and the county
superintendent of schools in writing of his or her justification for any
exercise of authority under this paragraph.
(c) The county office of education shall pay reasonable fees charged
by the Superintendent of Public Instruction for actual administrative
expenses incurred pursuant to subdivision (b).
(d) This section does not authorize the Superintendent of Public
Instruction to abrogate any provision of a collective bargaining
agreement that was entered into by a county office of education prior to
the date upon which the Superintendent of Public Instruction assumed
authority pursuant to subdivision (b).
SEC. 4. Section 35014 of the Education Code is amended and
renumbered to read:
42131. (a) (1) Pursuant to the reports required by Section 42130,
the governing board of each school district shall certify, in writing,
within 45 days after the close of the period being reported, whether or
not the school district is able to meet its financial obligations for
the remainder of the fiscal year and, based on current forecasts, for
the subsequent fiscal year. These certifications shall be based upon the
board's assessment, on the basis of standards and criteria for fiscal
stability adopted by the State Board of Education pursuant to Section
33127, of the district budget, as revised to reflect current information
regarding the adopted state budget, district property tax revenues
pursuant to Sections 95 to 100, inclusive, of the Revenue and Taxation
Code, and ending balances for the preceding fiscal year as reported
pursuant to Section 42100. The certifications shall be classified as
positive, qualified, or negative, as prescribed by the Superintendent of
Public Instruction for the purposes of determining subsequent actions by
the Superintendent of Public Instruction, the Controller, or the county
superintendent of schools, pursuant to subdivisions (b) and (c). These
certifications shall be based upon the financial and budgetary reports
required by Section 42130 but may include additional financial
information known by the governing board to exist at the time of each
certification. For purposes of this subdivision, a negative
certification shall be assigned to any school district that likely will
be unable to meet its financial obligations for the remainder of the
fiscal year or for which existing expenditures practices jeopardize the
ability of the district to meet its multiyear financial commitments.
(2) A copy of each certification and a copy of the report submitted
to the governing board pursuant to Section 42130 shall be filed with the
county superintendent of schools. If a county office of education
receives a positive certification when it determines a negative or
qualified certification should have been filed, the county
superintendent of schools shall change the certification to negative or
qualified, as appropriate, and, no later than 60 days after the close of
the period being reported, shall provide notice of that action to the
governing board of the school district and to the Superintendent of
Public Instruction. No later than five days after a school district
receives notice of a change by the county superintendent of schools in
the district's certification to negative or qualified, the governing
board of the district may submit an appeal to the Superintendent of
Public Instruction regarding the validity of that change, in accordance
with the criteria applied to those designations pursuant to this
subdivision. No later than 30 days after receiving that appeal, the
Superintendent of Public Instruction shall determine the certification
to be assigned to the district, and shall notify the school district
governing board and the county superintendent of schools of that
determination.
Copies of any certification in which the governing board is unable
to certify unqualifiedly that these financial obligations will be met
and a copy of the report submitted to the governing board pursuant to
Section 42130 shall be sent to the Controller and the Superintendent of
Public Instruction at the time of the certification, together with a
completed transmittal form provided by the Superintendent of Public
Instruction. Within 60 days after the close of the reporting period on
all school district certifications that are classified as qualified or
negative pursuant to this section, the appropriate county superintendent
of schools shall submit to the Superintendent of Public Instruction and
the Controller his or her comments on those certifications and report
any action proposed or taken pursuant to subdivision (b).
(3) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent of
Public Instruction, and shall be based on standards and criteria for
fiscal stability adopted by the State Board of Education pursuant to
Section 33127.
(4) This subdivision shall not preclude the submission of additional
budgetary or financial reports by the county superintendent of schools
to the district governing board, or to the Superintendent of Public
Instruction.
(b) As to any school district having a negative or qualified
certification, the county superintendent of schools may do one or more
of the following:
(1) Exercise the authority granted in Section 42637, in accordance
with the provisions of that section.
(2) Direct the district to submit to the county superintendent of
schools a proposal for addressing the fiscal conditions that resulted in
the negative or qualified certification.
(3) As to any school district having a negative certification,
exercise the authority granted in subdivision (c) of Section 42127.6, in
accordance with the provisions of that section.
(c) Whenever a district governing board transmits to the Controller
and the Superintendent of Public Instruction a qualified or negative
certification as required by subdivision (a), the Superintendent of
Public Instruction, in cooperation with the Controller's office, shall
review the certification and the attached report together with the
comments of the county superintendent of schools and any other pertinent
information available to them, and shall review the actions proposed or
taken by the county superintendent of schools pursuant to subdivision
(b). After consulting with the county superintendent of schools, the
Superintendent of Public Instruction, in cooperation with the
Controller's office, may take the following actions, or other actions as
appropriate:
(1) With respect to qualified certifications, direct the county
superintendent of schools to exercise his or her authority as prescribed
in Section 42637.
(2) With respect to negative certifications, conduct an onsite
review, direct the county superintendent of schools to exercise the
authority granted in Section 42637 or in subdivision (c) of Section
42127.6, or direct the district to prepare alternative plans for
resolving the identified fiscal problems.
(d) Within 60 days after the close of each reporting period, each
county superintendent of schools shall report to the Controller and the
Superintendent of Public Instruction as to whether the governing board
of each of the school districts under his or her jurisdiction has
submitted the certification required by subdivision (a). That report
shall account for all districts under the jurisdiction of the county
office of education and indicate the type of certification filed by each
district.
(e) The Controller's office may conduct an audit or review of the
fiscal condition of any district having a negative or qualified
certification.
(f) The governing board of each school district that files a
qualified or negative certification for the second report required for
any fiscal year under Section 42130, or for which the second report is
classified as qualified or negative by the county superintendent of
schools, shall provide to the county superintendent of schools, the
Controller, and the Superintendent of Public Instruction no later than
June 1, a financial statement that projects the fund and cash balances
of the district as of June 30. The governing boards of all other school
districts are encouraged to develop a similar financial statement for
use in developing the beginning fund balances of the district for the
ensuing fiscal year.
(g) Any school district for which the county board of education
serves as the governing board is not subject to subdivisions (a) to (f),
inclusive, but is governed instead by the interim report, monitoring,
and review procedures set forth in subdivision (j) of Section 1240 and
in Article 2 (commencing with Section 1620) of Chapter 5 of Part 2.
SEC. 5. Section 35015 of the Education Code is repealed.
SEC. 6. Section 35035 of the Education Code is amended to read:
35035. The superintendent of each school district shall, in
addition to any other powers and duties granted to or imposed upon him
or her:
(a) Be the chief executive officer of the governing board of the
district.
(b) Except in a district where the governing board has appointed or
designated an employee other than the superintendent, or a deputy, or
assistant superintendent, to prepare and submit a budget, prepare and
submit to the governing board of the district, at the time it may
direct, the budget of the district for the next ensuing school year, and
revise and take other action in connection with the budget as the board
may desire.
(c) Subject to the approval of the governing board, assign all
employees of the district employed in positions requiring certification
qualifications, to the positions in which they are to serve. This power
to assign includes the power to transfer a teacher from one school to
another school at which the teacher is certificated to serve within the
district when the superintendent concludes that the transfer is in the
best interest of the district.
(d) Upon adoption, by the district board, of a district policy
concerning transfers of teachers from one school to another school
within the district, have authority to transfer teachers consistent with
that policy.
(e) Determine that each employee of the district in a position
requiring certification qualifications has a valid certificated document
registered as required by law authorizing him or her to serve in the
position to which he or she is assigned.
(f) Enter into contracts for and on behalf of the district pursuant
to Section 39656.
(g) Submit financial and budgetary reports to the governing board as
required by Section 42130.
SEC. 7. Section 39602 of the Education Code is amended to read:
39602. (a) The governing board of any school district, by
resolution, may establish a fund or funds for losses, and payments,
including, but not limited to, health and welfare benefits for its
employees as defined by Section 53200 of the Government Code, school
district property, any liability, and workers' compensation, in the
county treasury for the purpose of covering the deductible amount under
deductible types of insurance policies, losses or payments arising from
self‑insurance programs, or losses or payments due to noninsured perils.
In the fund or funds shall be placed those sums, to be provided in the
budget of the school district, that will create an amount that, together
with investments made from the fund or funds, will be sufficient in the
judgment of the governing board to protect the school district from
those losses or to provide for payments on the deductible amount under
deductible types of insurance policies, losses or payments arising from
self‑insurance programs, or losses or payments due to noninsured perils.
Nothing in this section shall be construed to prohibit the governing
board from providing protection against those losses or liability for
the payment of claims partly by means of the fund or funds and partly by
means of insurance written by acceptable insurers as provided in Section
39601.
The fund or funds shall be considered as separate and apart from all
other funds of the school district, and the balance therein shall not be
considered to be part of the working cash of the school district in
compiling annual budgets.
Warrants may be drawn on or transfers made from the fund or funds so
created only to reimburse or indemnify the school district for losses as
herein specified, and for the payment of claims, administrative costs,
and related services, and to provide for deductible insurance amounts
and purchase of excess insurance. The warrants or transfers shall be
within the purpose of the fund or funds as established by resolution of
the governing board.
The cash placed in the fund or funds may be invested and reinvested
by the county treasurer, with the advice and consent of the governing
board of the school district, in securities that are legal investments
for surplus county funds in this state. The income derived from the
investments, together with interest earned on uninvested funds, shall be
considered revenue of, and be deposited in, the fund. The cost of
contracts or services authorized by this section are appropriate charges
against the respective fund.
The governing board may contract for investigative, administrative,
and claims adjustment services relating to claims. The contract may
provide that the contracting firm may reject, settle, compromise, and
approve claims against the district, or its officers or employees,
within the limits and for amounts that the governing board may specify,
and may provide that the contracting firm may execute and issue checks
in payment of those claims, which checks shall be payable only from a
trust account that may be established by the governing board. Funds in
the trust account established by the board pursuant to this section
shall not exceed a sum that is sufficient, as determined by the
governing board to provide for the settlement of claims for a 30‑day
period. The rejection or settlement and approval of a claim by the
contracting firm in accordance with the terms of the contract shall have
the same effect as would the rejection or settlement and approval of
such a claim by the governing board.
The contract may also provide that the contracting firm may employ
legal counsel, subject to terms and limitations that the board may
prescribe, to advise the contracting firm concerning the legality and
advisability of rejecting, settling, compromising, and paying claims
referred to the contracting firm by the board for investigation and
adjustment, or to represent the board in litigation concerning the
claims. The compensation and expenses of the attorney for services
rendered to the board shall be an appropriate charge against the
appropriate fund.
The contract provided for in this section may contain other terms
and conditions that the governing board may consider necessary or
desirable to effectuate the board's self‑insured programs.
In lieu of, or in addition to, contracting for the services
described in this section, the governing board may authorize an employee
or employees to perform any or all of the services and functions for
which the board may contract under the provisions of this section.
(b) As used in this section:
(1) "Firm" includes a person, corporation, or other legal entity,
including a county superintendent of schools.
(2) "Governing boards" includes governing boards of school districts
and county superintendents of schools.
(3) "School district" includes a county superintendent of schools
who may participate in or administer insurance or self‑insurance
programs for the county office of education or for one or more school
districts.
(c) A county superintendent of schools may participate in or
administer insurance for one or more school districts pursuant to this
section or for one or more community college districts pursuant to
Section 81602, for any combination of school districts and community
college districts pursuant to this section and Section 81602.
(d) Prior to funding health and welfare benefits pursuant to this
section, the school district shall secure the services of an actuary
enrolled under subtitle C of Title III of the federal Employee
Retirement Income Security Act of 1974, to provide actuarial evaluations
of the future annual costs of those benefits. The future annual costs as
determined by the actuary shall be made public at a public meeting at
least two weeks prior to the commencement of funding health and welfare
benefits pursuant to this section.
(e) Upon commencing the funding of health and welfare benefits
pursuant to this section, the school district shall secure the services
of an actuary enrolled as described in subdivision (d) to complete,
every three years, an actuarial evaluation of the annual costs of those
benefits. A copy of the results of that evaluation shall be submitted by
the district to the county superintendent of schools.
SEC. 8. Section 39603 of the Education Code is amended to read:
39603. Nothing in this code shall be construed to prohibit two or
more school districts from exercising, through a joint powers agreement
made pursuant to Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code, the powers prescribed
in Section 39602 in accordance with the terms and conditions set forth
in that section and in Section 39601.
SEC. 9. Section 41320.1 of the Education Code is amended to read:
41320.1. Acceptance by the district of the apportionments made
pursuant to Section 41320 shall constitute agreement by the district to
all of the following conditions:
(a) The Superintendent of the Public Instruction shall appoint a
trustee who shall have recognized expertise in management and finance,
and who shall be bonded. The expenses incurred by the trustee and the
costs of the bonding shall be borne by the district. The superintendent
shall establish the terms and conditions of the employment, including
the remuneration of the trustee. The trustee shall serve at the pleasure
of, and report directly to, the superintendent. The trustee shall serve
until the loan called for by this section is repaid, the district has
adequate fiscal systems and controls in place, and the superintendent
has determined that the district's future compliance with the fiscal
plan approved for the district under Section 41320 is probable. Before
the district repays the loan, including interest, the recipient of the
loan shall select an auditor from a list established by the
superintendent and the Controller to conduct an audit of its fiscal
systems. If the fiscal systems are deemed to be inadequate, the
superintendent may retain the trustee until the deficiencies are
corrected. The cost of this audit and any additional cost of the trustee
shall be borne by the district.
Notwithstanding any other provision of law, all reports submitted to
the trustee shall be public records.
(b) The trustee appointed by the superintendent shall monitor and
review the operation of the district. During the period of his or her
service, the trustee may stay or rescind any action of the local
district governing board that, in the judgment of the trustee, may
affect the financial condition of the district. The Superintendent of
Public Instruction may establish timelines and prescribe formats for
reports and other materials to be used by the trustee to monitor and
review the operations of the district. The trustee shall approve or
reject all reports and other materials required from the district as a
condition of receiving the apportionment. The superintendent, upon the
recommendation of the trustee, may reduce any apportionment to the
district in an amount up to two hundred dollars ($200) per day for each
late or unacceptable report or other material required under Part 24
(commencing with Section 41000) of the Education Code, and shall report
to the Legislature any failure of the district to comply with the
requirements of this section. If the Superintendent of Public
Instruction determines, at any time, that the fiscal plan approved for
the district under Section 41320 is unsatisfactory, he or she may modify
the plan as necessary, and the district shall comply with the plan as
modified.
(c) At the request of the Superintendent of Public Instruction, the
Controller shall transfer to the State Department of Education, from any
apportionment to which the district would otherwise have been entitled
pursuant to Section 42238, the amount necessary to pay the expenses
incurred by the trustee, the costs of the trustee's bonding, and any
associated costs incurred by the county superintendent of schools.
(d) For the fiscal year in which the apportionments are disbursed
and each year thereafter, the Controller, or his or her designee, shall
cause an audit to be conducted of the books and accounts of the
district, in lieu of the audit required by Section 41020. At the
Controller's discretion, the audit may be conducted by the Controller,
his or her designee, or an auditor selected by the district and approved
by the Controller. The costs of these audits shall be borne by the
district. These audits shall be required until the Controller
determines, in consultation with the Superintendent of Public
Instruction, that the district is financially solvent, but in no event
earlier than one year following the implementation of the plan or later
than the time the apportionment made is repaid, including interest.
(e) For all purposes of errors and omissions liability insurance,
the trustee appointed pursuant to this section shall be deemed to be an
employee of the local education agency to which he or she is assigned.
SEC. 10. Article 2.5 (commencing with Section 41325) is added to
Chapter 3 of Part 24 of the Education Code, to read:
Article 2.5. Conditions on Emergency Apportionments
41325. (a) The Legislature finds and declares that when a school
district becomes insolvent and requires an emergency apportionment from
the state in the amount designated in this article, it is necessary that
the Superintendent of Public Instruction assume control of the district
in order to ensure the district's return to fiscal solvency.
(b) It is the intent of the Legislature that the Superintendent of
Public Instruction, operating through an appointed administrator, do all
of the following:
(1) Implement substantial changes in the district's fiscal policies
and practices, including, if necessary, the filing of a petition under
Chapter 9 of the federal Bankruptcy Act for the adjustment of
indebtedness.
(2) Revise the district's educational program to reflect realistic
income projections, in response to the dramatic effect of the changes in
fiscal policies and practices upon educational program quality and the
potential for the success of all pupils.
(3) Encourage all members of the school community to accept a fair
share of the burden of the district's fiscal recovery.
(4) Consult, for the purposes described in this subdivision, with
the school district governing board, the exclusive representatives of
the employees of the district, parents, and the community.
(5) Consult with and seek recommendations from the county
superintendent of schools for the purposes described in this
subdivision.
41326. (a) Notwithstanding any other provision of this code, the
acceptance by a school district of an apportionment made pursuant to
Section 41320 that exceeds an amount equal to 200 percent of the amount
of the reserve recommended for that district under the standards and
criteria adopted pursuant to Section 33127 shall constitute agreement by
the district to the conditions set forth in this article. Prior to
applying for an emergency apportionment in the amount identified in this
subdivision, a school district governing board shall discuss the need
for that apportionment at a regular or special meeting of the governing
board and, at that meeting, shall receive testimony regarding the
apportionment from parents, exclusive representatives of employees of
the district, and other members of the community. For purposes of this
article, "qualifying school district" means a school district that
accepts a loan as described in this subdivision.
(b) The Superintendent of Public Instruction shall assume all the
legal rights, duties, and powers of the governing board of a qualifying
school district. The Superintendent of Public Instruction may appoint an
administrator to act on his or her behalf in exercising the authority
described in this subdivision. The state‑appointed administrator shall
serve under the direction and supervision of the Superintendent of
"àPublic Instruction until terminated by the Superintendent of Public
Instruction at his or her discretion. The state‑appointed administrator
shall have recognized expertise in management and finance, and shall be
bonded.
(c) For the period of time during which the Superintendent of Public
Instruction exercises the authority described in subdivision (b), the
governing board of the qualifying school district shall serve as an
advisory body reporting to the state‑appointed administrator, in which
capacity no member of the governing board shall be paid or entitled to
any stipend, benefits, or other compensation.
(d) Notwithstanding Section 35031 or any other provision of law, the
employment of any district superintendent of schools, or deputy,
associate, or assistant superintendent of schools, or other person
employed in an equivalent capacity, whose duties include overseeing,
managing, or otherwise directing the fiscal and budgetary operations of
the school district, and who is employed by a school district under a
contract of employment signed or renewed after the effective date of
this article may be terminated by the state‑appointed administrator, in
accordance with appropriate notice and hearing procedures, if the
employee fails to document, to the satisfaction of the state‑appointed
administrator, that prior to the date of that acceptance he or she
either advised the governing board of the district, or his or her
superior, that actions contemplated or taken by the governing board
could result in the fiscal insolvency of the district, or took other
appropriate action to avert that fiscal insolvency.
(e) The authority of the Superintendent of Public Instruction, and
the state‑appointed administrator, under this section shall continue
until all of the following occur:
(1) Two complete fiscal years have elapsed following the district's
acceptance of a loan as described in subdivision (a), or, at any time
after one complete fiscal year has elapsed following that acceptance,
the state‑appointed administrator determines, and so notifies the
Superintendent of Public Instruction, that future compliance by the
school district with the recovery plans approved pursuant to paragraph
(2) is probable.
(2) The Superintendent of Public Instruction has approved all of the
recovery plans referred to in subdivision (a) of Section 41327.
(3) The state‑appointed administrator certifies that all necessary
collective bargaining agreements have been negotiated and ratified, and
that the agreements are consistent with the terms of the recovery plans.
(4) The district has completed all reports required by the
Superintendent of Public Instruction.
(5) The Superintendent of Public Instruction determines that future
compliance by the school district with the recovery plans approved
pursuant to paragraph (2) is probable.
(f) When the conditions stated in subdivision (e) have been met, the
school district governing board shall regain all of its legal rights,
duties, and powers, except for the powers held by the trustee provided
for pursuant to Article 2 (commencing with Section 41320). The
Superintendent of Public Instruction shall then appoint a trustee under
Section 41320.1 to monitor and review the operations of the district
until the conditions of subdivision (b) of that section have been met.
(g) Notwithstanding subdivision (f), in the event that the district
violates any provision of the recovery plans approved by the
Superintendent of Public Instruction pursuant to this article, the
superintendent may reassume, either directly or through an administrator
appointed in accordance with this section, all of the legal rights,
duties, and powers of the governing board of the district. The
Superintendent of Public Instruction shall return to the school district
governing board all of its legal rights, duties, and powers reassumed
under this subdivision when he or she determines that future compliance
with the approved recovery plans is probable, or after a period of one
year, whichever occurs later.
(i) Article 2 (commencing with Section 41320) shall apply except as
otherwise specified in this article.
(j) It is the intent of the Legislature that the legislative budget
subcommittees annually conduct a review of each qualifying school
district that includes an evaluation of the financial condition of the
district, the impact of the recovery plans upon the district's
educational program, and the efforts made by the state‑appointed
administrator to obtain input from the community and the governing board
of the district.
41327. (a) In accordance with timelines, instructions, and a format
established by the Superintendent of Public Instruction, the
state‑appointed administrator shall prepare or obtain the following
reports and plans:
(1) A management review and recovery plan.
(2) A financial recovery plan. The financial recovery plan shall
include a plan to repay to the state any and all loans owed by the
district. Pursuant to the financial recovery plan, the repayment by the
district of any state loans shall comply with all of the following,
notwithstanding any provision of Article 2 (commencing with Section
41320):
(A) The loan or loans shall be repaid over a period of no more than
10 years following the initial disbursement of moneys under a loan as
described in subdivision (a) of Section 41326. The repayment of the loan
or loans shall commence not later than the fiscal year following the
year in which the loan described in that subdivision is made.
(B) Interest shall accrue on the loan or loans as of the date the
funds are received, at the average annual investment rate of the pooled
investment account.
(3) During the period of service by the state‑appointed
administrator, an annual report on the financial condition of the
district, including, but not necessarily limited to, all of the
following information:
(A) Specific actions taken to reduce district expenditures or
increase income to the district, and the amount of the resulting cost
savings and increases in income.
(B) A copy of the adopted district budget for the current fiscal
year.
(C) The amount of the district budgetary reserve.
(D) The status of employee contracts.
(E) Any obstacles to the implementation of the recovery plans
described in paragraphs (1) and (2).
(b) Each of the reports or plans required under this section, or
under any other provision of law that requires the district to prepare
reports or plans, shall be submitted to the Superintendent of Public
Instruction for approval, after his or her consideration of comments and
recommendations of the county superintendent of schools. The
Superintendent of Public Instruction may accept and approve, for the
purposes of this section, any reports or plans that were prepared by or
for the district prior to the district's acceptance of a loan as
described in subdivision (a) of Section 41326.
(c) With the approval of the Superintendent of Public Instruction,
the state‑appointed administrator shall have authority to enter into
agreements on behalf of the district and, subject to any contractual
obligation of the district, to change any existing district rules,
regulations, policies, or practices as necessary for the effective
implementation of the recovery plans referred to in subdivision (a).
41328. (a) All costs associated with implementing the provisions of
this article, including, as to a loan as described in subdivision (a) of
Section 41326, the provisions of Article 2 (commencing with Section
41320), shall be borne by the district.
(b) The state‑appointed administrator shall be deemed an employee of
the qualifying school district for the purposes of all errors and
omissions policies and workers compensation benefits.
SEC. 11. Section 42100 of the Education Code is amended to read:
42100. On or before September 15, the governing board of each
school district shall approve, on a form prescribed by the
Superintendent of Public Instruction, an annual statement of all
receipts and expenditures of the district for the preceding fiscal year
and shall file the statement with the county superintendent of schools.
On or before October 15, the county superintendent of schools shall
verify the mathematical accuracy of the statement and shall transmit a
copy to the Superintendent of Public Instruction.
SEC. 12. Section 42102 of the Education Code is repealed.
SEC. 13. Section 42103 of the Education Code is amended to read:
42103. The governing board of each school district shall hold a
public hearing on the proposed budget in a district facility, or some
other place conveniently accessible to the residents of the district.
The public hearing shall be held any day on or before the date specified
for this purpose in subdivision (f) or (h), respectively, of Section
42127, but not less than three working days following availability of
the proposed budget for public inspection. At the hearing any resident
in the district may appear and object to the proposed budget or any item
in the budget.
The hearing may be concluded on the proposed budget when there are
no requests for further hearing on file, and shall be concluded no later
than the date specified for this purpose in subdivision (f) or (h),
respectively, of Section 42127. The budget shall not be finally adopted
by the governing board of the district until after the public hearing
has been held.
The proposed budget shall show expenditures, cash balances, and all
revenues as required to be tabulated in Sections 42122 and 42123, and
also shall include an estimate of those figures, unaudited, for the
preceding fiscal year. In addition, any tax statement submitted by the
district governing board pursuant to subdivision (a) of Section 42127,
any district tax requirement computed pursuant to subdivision (b) of
Section 42127 for the school year to which the proposed budget is
intended to apply, and any recommendations made by the county
superintendent pursuant to subdivision (d) of Section 42127 shall be
made available by the district for public inspection in a facility of
the district or in some other place conveniently accessible to residents
of the district.
Notification of dates and location or locations at which the
proposed budget may be inspected by the public and the date, time, and
location of the public hearing on the proposed budget shall be published
by the county superintendent of schools in a newspaper of general
circulation in the district, or if there is no such newspaper, then in
any newspaper of general circulation in the county, at least three days
prior to the availability of the proposed budget for public inspection.
The publication of the dates and location shall occur no earlier than 45
days prior to the final date for the hearing as specified in subdivision
(f) or (h), respectively, of Section 42127, nor later than 15 days prior
to that date, but not less than 10 days prior to the date set for
hearing. The cost of the publication shall be a legal and proper charge
against the school district for which the publication is made.
SEC. 14. Section 42120 of the Education Code is repealed.
SEC. 15. Section 42127 of the Education Code is amended to read:
42127. (a) On or before July 1 of each year, the governing board of
each school district shall adopt a budget. No later than five days after
that adoption or by July 1, whichever occurs first, the governing board
shall file that budget with the county superintendent of schools. That
budget, and supporting data, shall be maintained and made available for
public review. If the governing board of the district does not want all
or a portion of the property tax requirement levied for the purpose of
making payments for the interest and redemption charges on indebtedness
as described in paragraph (1) or (2) of subdivision (b) of Section 1 of
Article XIIIA of the California Constitution, the budget shall include a
statement of the amount or portion for which a levy shall not be made.
(b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of the
amount or portion for which a property tax levy shall not be made. The
county superintendent or the county auditor shall compute the actual
amounts to be levied on the property tax rolls of the district for
purposes that exceed apportionments to the district pursuant to Sections
95 to 100, inclusive, of the Revenue and Taxation Code. Each school
district shall provide all data needed by the county superintendent or
the county auditor to compute the amounts. On or before August 15, the
county superintendent shall transmit the amounts so computed to the
county auditor who shall compute the tax rates necessary to produce the
amounts. On or before September 1, the county auditor shall submit the
rate so computed to the board of supervisors for adoption.
(c) The county superintendent of schools shall do all of the
following:
(1) Examine the adopted budget to determine whether it complies with
the standards and criteria adopted by the State Board of Education
pursuant to Section 33127 for application to final local educational
agency budgets. The superintendent shall identify, if necessary, any
technical corrections that must be made to bring the budget into
compliance with those standards and criteria.
(2) Determine whether the adopted budget will allow the district to
meet its financial obligations during the fiscal year and is consistent
with a financial plan that will enable the district to satisfy its
multiyear financial commitments.
(d) On or before August 15, the county superintendent of schools
shall approve or disapprove the adopted budget for each school district.
If, pursuant to the review conducted pursuant to subdivision (c), the
superintendent determines that the adopted budget for a school district
does not satisfy paragraph (1) or (2) of that subdivision, he or she
shall disapprove the budget and, no later than August 15, transmit to
the governing board of the school district, in writing, his or her
recommendations regarding revision of the budget and the reasons for
those recommendations. The county superintendent of schools may assign a
fiscal advisor to assist the district to develop a budget in compliance
with those revisions. In addition, the county superintendent of schools
may appoint a committee to examine and comment on the superintendent's
review and recommendations, subject to the requirement that the
committee report its findings to the superintendent no later than August
20.
(e) No later than August 20, the county superintendent of schools
shall submit a report to the Superintendent of Public Instruction
identifying all school districts for which budgets have been
disapproved, including a copy of the written response transmitted to
each of those districts pursuant to subdivision (d).
(f) On or before September 1, the governing board of the school
district shall revise the adopted budget to reflect changes in projected
income or expenditures subsequent to July 1, and to include any response
to the recommendations of the county superintendent of schools, shall
adopt the revised budget, and shall file the revised budget with the
county superintendent of schools. Prior to revising the budget, the
governing board shall hold a public hearing regarding the proposed
revisions, to be conducted in accordance with Section 42103. The revised
budget, and supporting data, shall be maintained and made available for
public review.
(g) The county superintendent of schools shall examine the revised
budget to determine whether it complies with the standards and criteria
adopted by the State Board of Education pursuant to Section 33127 for
application to final local educational agency budgets and, no later than
September 15, shall approve or disapprove the revised budget. If the
county superintendent of schools disapproves the budget, he or she shall
call for the formation of a budget review committee pursuant to Section
42127.1.
(h) Notwithstanding any other provision of this section, the budget
review for a school district shall be governed by paragraphs (1), (2),
and (3) of this subdivision, rather than by subdivisions (f) and (g), if
the governing board of the school district so elects, and notifies the
Superintendent of Public Instruction in writing of that decision, no
later than October 31 of the immediately preceding calendar year. On or
before July 1, the governing board of a school district for which the
budget review is governed by this subdivision, rather than by
subdivisions (f) and (g), shall conduct a public hearing regarding its
proposed budget in accordance with Section 42103.
(1) In the event of the disapproval of the adopted budget of a
school district pursuant to subdivision (d), on or before September 1,
the governing board of the school district, in conjunction with the
county superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board and respond
to those recommendations. The response shall include any revisions to
the adopted budget and other proposed actions to be taken, if any, as a
result of those recommendations.
(2) No later than five working days after receiving the response
required under paragraph (1), the county superintendent of schools shall
review that response and either approve or disapprove the budget. If the
county superintendent of schools disapproves the budget, he or she shall
call for the formation of a budget review committee pursuant to Section
42127.1.
(3) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public review
any revisions in revenues and expenditures that it has made to its
budget to reflect the funding made available by that Budget Act.
(h) Any school district for which the county board of education
serves as the governing board is not subject to subdivisions (c) to (g),
inclusive, but is governed instead by the budget procedures set forth in
Section 1622.
SEC. 16. Section 42127.1 of the Education Code is amended to read:
42127.1. (a) Pursuant to subdivision (f) of Section 42127, upon the
disapproval of a school district budget by the county superintendent,
the county superintendent shall call for the formation of a budget
review committee.
(b) The budget review committee shall be composed of three persons
selected by the governing board of the school district from a list of
candidates provided to the governing board by the Superintendent of
Public Instruction. The list of candidates shall be composed of persons
who have expertise in the management of a school district or county
office of education. Their experience shall include, but not be limited
to, the fiscal and educational aspects of local educational agency
management.
(c) Notwithstanding subdivision (b) or any other provision of this
article, with the approval of the Superintendent of Public Instruction
and the governing board of the school district, the county
superintendent of schools may select and convene a regional review
committee, consisting of persons having the expertise described in that
subdivision. The regional review committee shall operate in place of the
budget review committee, in accordance with the provisions of this
article governing budget review committees.
(d) Members of the committee shall be reimbursed by the State
Department of Education for their services and associated expenses while
on official business at rates established by the State Board of
Education.
SEC. 17. Section 42127.2 of the Education Code is amended to read:
42127.2. (a) The district governing board shall, no later than five
working days after the receipt of a candidate list from the
Superintendent of Public Instruction pursuant to Section 42127.1, select
a budget review committee, and the Superintendent of Public Instruction
shall convene the committee no later than five working days following
that selection. If the governing board fails to select a committee
within the period of time permitted by this subdivision, the
Superintendent of Public Instruction instead shall select and convene
the budget review committee no later than 10 working days after the
district's receipt of the candidate list.
(b) No later than October 31, the budget review committee shall
review the proposed budget of the district and the underlying fiscal
policies of the district and transmit to the Superintendent of Public
Instruction, the county superintendent of schools, and the district
governing board either of the following:
(1) The recommendation that the school district budget be approved.
(2) A report disapproving the school district budget and setting
forth recommendations for revisions to the school district budget that
would enable the district to meet its financial obligations both in the
current fiscal year and with regard to the district's multiyear
financial commitments.
(c) Upon request of the budget review committee, the Superintendent
of Public Instruction may extend the deadline set forth in subdivision
(b) for a period of not and more than 15 working days.
(d) The Superintendent of Public Instruction shall establish
criteria and procedures governing the performance by budget review
committees of their duties under this section.
(e) Upon request of the county superintendent of schools, the
Controller's office may conduct an audit or review of the fiscal
condition of the school district in order to assist a budget review
committee or regional review committee for the purposes of this section.
SEC. 18. Section 42127.3 of the Education Code is amended to read:
42127.3. (a) If the budget review committee established pursuant to
Sections 42127.1 and 42127.2 recommends approval of the school district
budget, the county superintendent of schools shall accept the
recommendation of the budget review committee and approve the budget.
(b) If the budget review committee established pursuant to Sections
42127.1 and 42127.2 disapproves the school district budget, the school
district governing board, no later than five working days after receipt
of the report described in paragraph (2) of subdivision (b) of Section
42127.2, may submit a response to the Superintendent of Public
Instruction, including any revisions to the adopted final budget and any
other proposed actions to be taken as a result of the recommendations of
the budget review committee. Based upon the recommendations of the
budget review committee, and any response to those recommendations
provided by the school district governing board, the Superintendent of
Public Instruction shall either approve or disapprove the budget. If the
Superintendent of Public Instruction disapproves the budget, he or she
shall notify the school district governing board in writing of the
reasons for that disapproval and, for the remainder of the current
fiscal year, the county superintendent of schools shall do all of the
following:
(1) No later than November 30, develop and adopt, in consultation
with the Superintendent of Public Instruction and the school district
governing board, a fiscal plan and budget that will govern the district
and will allow the district to meet its financial obligations, both in
the current fiscal year and with regard to the district's multiyear
financial commitments. The governing board of the district shall govern
the operation of the district for the current fiscal year in accordance
with that adopted budget.
(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is inconsistent
with the budget adopted pursuant to paragraph (1). The county
superintendent of schools shall inform the school district governing
board in writing of his or her justification for any exercise of
authority under this paragraph.
(3) Monitor and review the operation of the district.
(c) The school district shall pay reasonable fees charged by the
county superintendent of schools for actual administrative expenses
incurred pursuant to subdivision (b). The Superintendent of Public
Instruction shall develop, and distribute to affected school districts
and county offices of education, advisory guidelines regarding the
appropriate amount of any fees charged pursuant to this subdivision.
(d) This section shall not be construed to authorize the county
superintendent of schools to abrogate any provision of a collective
bargaining agreement that was entered into by a school district prior to
the date upon which the county superintendent of schools disapproved the
budget of the school district pursuant to subdivision (b).
(e) As necessary for the purposes of subdivision (b), the county
superintendent of schools may request funding or other assistance from
the Superintendent of Public Instruction as necessary to obtain
additional information regarding the district's budget or operations
through a financial or management review of the district, a cash‑flow
projection for the district, or other appropriate means. Any contract
entered into by a county superintendent of schools for the purposes of
this subdivision is subject to the approval of the Superintendent of
Public Instruction.
SEC. 19. Section 42127.4 of the Education Code is amended to read:
42127.4. Until a school district receives approval of its budget
under this article, the school district shall continue to operate on the
basis of whichever of the following budgets contains a lower total
spending authority:
(a) The last budget adopted or revised by the governing board of the
school district for the prior fiscal year.
(b) The unapproved budget for the current fiscal year, as adopted
and revised by the governing board of the school district.
SEC. 20. Section 42127.6 is added to the Education Code, to read:
42127.6. (a) The county superintendent of schools shall monitor the
operation of each school district pursuant to the budget adopted for
that district. If the county superintendent of schools determines that a
school district will be unable to meet its financial obligations for the
current or subsequent fiscal year, he or she shall notify the school
district governing board in writing of that determination, and of the
basis for the determination. In addition, subsequent to that
determination, the county superintendent of schools may do either or
both of the following:
(1) Assign a fiscal adviser to assist the district.
(2) Conduct a study of the district's finances and recommend to the
governing board of the school district actions to enable the district to
meet those obligations.
(b) Any contract entered into by a county superintendent of schools
for the purposes of subdivision (a) is subject to the approval of the
Superintendent of Public Instruction.
(c) If, subsequent to the receipt of recommendations provided
pursuant to paragraph (2) of subdivision (a), the governing board fails
to take appropriate action to enable the district to meet its financial
obligations, the county superintendent shall so notify the
Superintendent of Public Instruction. Subsequent to that notification,
the county superintendent of schools, in consultation with the
Superintendent of Public Instruction, may do one or more of the
following for the remainder of the current fiscal year:
(1) Request additional information regarding the district's budget
or operations.
(2) Develop and impose, in consultation with the Superintendent of
Public Instruction and the school district governing board, revisions to
the school district budget that will enable the district to meet its
financial obligations.
(3) Stay or rescind any action that is inconsistent with any
revision adopted pursuant to paragraph (2). The county superintendent of
schools shall inform the school district governing board in writing of
his or her justification for any exercise of authority under this
paragraph.
(d) This section does not authorize the county superintendent of
schools to abrogate any provision of a collective bargaining agreement
that was entered into by a school district prior to the date upon which
the county superintendent of schools assumed authority pursuant to
subdivision (b).
(e) The school district shall pay reasonable fees charged by the
county superintendent of schools for actual administrative expenses
incurred pursuant to subdivision (c). The Superintendent of Public
Instruction shall develop, and distribute to affected school districts
and county offices of education, advisory guidelines regarding the
appropriate amount of any fees charged pursuant to this subdivision.
(f) Notwithstanding Section 42647 or 42650, or any other provision
of law, a county treasurer shall not honor any warrant when, pursuant to
Sections 42127 to 42127.6, inclusive, the county superintendent of
schools or the Superintendent of Public Instruction, as appropriate, has
disapproved that warrant, or has disapproved the order on school
district funds for which that warrant was prepared.
SEC. 21. Section 42127.8 is added to the Education Code, to read:
42127.8. (a) The governing board provided for in subdivision (b)
shall establish a unit to be known as the County Office Fiscal Crisis
and Management Assistance Team. The team shall consist of persons having
extensive experience in school district budgeting, accounting, data
processing, risk management, food services, pupil transportation,
purchasing and warehousing, facilities maintenance and operation,
personnel administration, organization, and staffing. The Superintendent
of Public Instruction shall appoint one employee of the State Department
of Education to serve on the unit. The unit shall be operated under the
immediate direction of an appropriate county office of education
selected jointly, in response to an application process, by the
Superintendent of Public Instruction and the Secretary of Child
Development and Education.
(b) The unit established under subdivision (a) shall be selected and
governed by an eleven‑member governing board consisting of one
representative chosen by the California Association of County
Superintendents of Schools from each of the 10 county service regions
designated by the association, and one representative from the State
Department of Education chosen by the Superintendent of Public
Instruction.
(c) The Superintendent of Public Instruction may request the unit to
provide the assistance described in subdivision (b) of Section 1624,
Section 1630, Section 33132, subdivision (b) of Section 42127.3,
subdivision (c) of Section 42127.6, and Section 42127.9, and to review
the fiscal and administrative condition of any county office of
education.
(d) In addition to the functions described in subdivision (c), the
unit shall provide management assistance at the request of any school
district or county office of education. Each district or county office
of education receiving that assistance shall be required to pay the
onsite personnel costs and travel costs incurred by the unit for that
purpose, pursuant to rates determined by the governing board established
under subdivision (b). The governing board annually shall distribute
rate information to each school district and county office of education.
(e) The governing board shall reserve not less than 25 percent, nor
more than 50 percent, of its revenues each year for expenditure for the
costs of contracts and professional services as management assistance to
school districts or county offices of education in which the board
determines a fiscal emergency to exist.
(f) The governing board established under subdivision (b) may levy
an annual assessment against each county office of education that elects
to participate under this section in an amount not to exceed twenty
cents ($0.20) per unit of total average daily attendance for all school
districts within the county. The revenues collected pursuant to that
assessment shall be applied to the expenses of the unit.
(g) The governing board established under subdivision (b) may pay to
the State Department of Education, from any available funds, a
reasonable amount to reimburse the department for actual administrative
expenses incurred in the review of the budgets and fiscal conditions of
school districts and county offices of education.
SEC. 22. Section 42127.9 is added to the Education Code, to read:
42127.9. (a) No later than five days after a school district
receives notice of any change or changes adopted by the county
superintendent of schools in the district's budget pursuant to
subdivision (b) of Section 42127.3, subdivision (c) of Section 42127.6,
or subdivision (b) of Section 42131, the governing board of the district
may submit an appeal to the Superintendent of Public Instruction, based
upon the contention that the change or changes would do one or more of
the following:
(1) Exceed the financial or program changes necessary to allow the
district to meet its financial obligations in the current fiscal year
and with regard to its multiyear financial commitments. It is the intent
of the Legislature that any change or changes adopted by the county
superintendent of schools in a school district's budget minimize, to the
extent possible, any impact upon the educational program of the
district.
(2) Require reductions that are unnecessary in view of other
reductions that are proposed by the governing board of the district and
that reasonably can be expected to be realized.
(3) Make one or more changes in the district's operations that are
inconsistent with any provision of state or federal law.
(b) No later than five days after receiving that appeal, the
Superintendent of Public Instruction shall deny or uphold the appeal. If
the appeal is denied, the district shall implement the change or changes
adopted by the county superintendent of schools. If the appeal is
upheld, the Superintendent of Public Instruction may revise the change
or changes adopted by the county superintendent of schools or issue
guidelines governing the manner in which the governing board of the
district or the county superintendent of schools shall be required to
change the district budget.
SEC. 23. Article 3 (commencing with Section 42130) is added to
Chapter 6 of Part 24 of the Education Code, to read:
Article 3. Financial Reports and Certifications
42130. The superintendent of each school district shall, in
addition to any other powers and duties granted to or imposed upon him
or her, submit two reports to the governing board of the district during
each fiscal year. The first report shall cover the financial and
budgetary status of the district for the period ending October 31. The
second report shall cover the period ending January 31. Both reports
shall be approved by the district governing board no later than 45 days
after the close of the period being reported. All reports required by
this subdivision shall be in a format or on forms prescribed by the
Superintendent of Public Instruction, and shall be based on standards
and criteria for fiscal stability adopted by the State Board of
Education pursuant to Section 33127. The reports, and supporting data,
shall be maintained and made available by the school district for public
review.
SEC. 24. Section 42132 is added to the Education Code, to read:
42132. The governing board of each school district annually, no
later than September 15, shall adopt a resolution to identify, pursuant
to Division 9 (commencing with Section 7900) of Title 1 of the
Government Code, the estimated appropriations limit for the district for
the current fiscal year and the actual appropriations limit for the
district for the preceding fiscal year. That resolution shall be adopted
at a regular or special meeting of the governing board. The
documentation used in the identification of the appropriations limits
shall be made available to the public not less than 15 days prior to the
date of that meeting.
SEC. 25. Section 42133 is added to the Education Code, to read:
42133. (a) A school district that has a qualified or negative
certification in any fiscal year may not issue, in that fiscal year or
in the next succeeding fiscal year, certificates of participation, tax
anticipation notes, revenue bonds, or any other debt instruments that do
not require the approval of the voters of the district, nor may the
district cause an information report regarding the debt instrument to be
submitted pursuant to subdivision (e) of Section 149 of Title 26 of the
United States Code, unless the county superintendent of schools
determines, pursuant to criteria established by the Superintendent of
Public Instruction, that the district's repayment of that indebtedness
is probable. A school district is deemed to have a qualified or negative
certification for purposes of this subdivision if, pursuant to this
article, it files that certification or the county superintendent of
schools classifies the certification for that fiscal year to be
qualified or negative.
(b) A county office of education that has a qualified or negative
certification in any fiscal year may not issue, in that fiscal year or
in the next succeeding fiscal year, certificates of participation, tax
anticipation notes, revenue bonds, or any other debt instruments not
requiring the approval of the voters of the district, nor may the county
office of education cause an information report regarding the debt
instrument to be submitted pursuant to subdivision (e) of Section 149 of
Title 26 of the United States Code, unless the Superintendent of Public
Instruction determines that the repayment of that indebtedness by the
county office of education is probable. A county office of education is
deemed to have a qualified or negative certification for purposes of
this subdivision if, pursuant to this article, it files that
certification or the Superintendent of Public Instruction classifies the
certification for that fiscal year to be qualified or negative. For
purposes of this subdivision, "county office of education" includes a
school district that is governed by a county board of education.
(c) No later than March 31, 1992, the Superintendent of Public
Instruction shall develop and adopt criteria and standards to govern the
determination to be made under subdivisions (a) and (b).
SEC. 26. Section 42134 is added to the Education Code, to read:
42134. The Superintendent of Public Instruction shall publish
annually a multiyear projection of the revenues that will be available
to school districts and county offices of education from state and local
sources, for use by school districts and county offices of education in
determining the multiyear financial condition of those entities for the
purposes of this article and Article 2. That projection shall be based
on revenue forecasts issued by the Department of Finance, the
Legislative Analyst, or the Commission on State Finance, shall be
published in a form that may easily be used by school districts and
county offices of education, and shall be made available to those
entities.
SEC. 27. Section 3547.5 is added to the Government Code, to read:
3547.5. Before a public school employer enters into a written
agreement with an exclusive representative covering matters within the
scope of representation, the major provisions of the agreement,
including, but not limited to, the costs that would be incurred by the
public school employer under the agreement for the current and
subsequent fiscal years, shall be disclosed at a public meeting of the
public school employer in a format established for this purpose by the
Superintendent of Public Instruction.
SEC. 28. Notwithstanding Section 17610 of the Government Code, 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. If
the statewide cost of the claim for reimbursement does not exceed one
million dollars ($1,000,000), reimbursement shall be made from the State
Mandates Claims Fund. Notwithstanding Section 17580 of the Government
Code, unless otherwise specified in this act, the provisions of this act
shall become operative on the same date that the act takes effect
pursuant to the California Constitution.
SEC. 29. (a) The sum of one million dollars ($1,000,000) is hereby
appropriated from the General Fund to the Superintendent of Public
Instruction for the 1991‑92 fiscal year for apportionment as follows:
(1) The sum of five hundred thousand dollars ($500,000) for
apportionment to county superintendents of schools to fund any new
program or higher level of service required by any provisions of this
act that make additions or amendments to Article 2 (commencing with
Section 42120) of Chapter 6 of Part 24 of the Education Code. That
apportionment shall be made on the basis of an equal amount per unit of
average daily attendance for all school districts within each county,
except that the Superintendent of Public Instruction shall establish a
minimum apportionment amount in order to ensure that county
superintendents of schools in counties having a total school district
average daily attendance that is substantially lower than average will
receive adequate funding to carry out their responsibilities under that
article.
(2) The sum of five hundred thousand dollars ($500,000) for apportionment to county offices of education to meet the costs of participation under Section 42127.8 of the Education Code.
(b) It is the intent of the Legislature that, in the 1992‑93 fiscal year and each fiscal year thereafter, funding be made available in an amount that is adequate for the purposes described in subdivision (a).
