School finance: annual budgets: reserve balance.

Existing law, in a fiscal year immediately after a fiscal year in which a transfer is made into the Public School System Stabilization Account, which would be created by an Assembly Constitutional Amendment, prohibits a school district's adopted or revised budget from containing a combined assigned or unassigned ending fund balance that is in excess of either 2 or 3 times the minimum recommended reserve for economic uncertainties adopted by the State Board of Education, depending on the school district's units of average daily attendance. Existing law authorizes the county superintendent of schools to waive this prohibition, pursuant to specified conditions, for up to 2 consecutive fiscal years within a 3-year period if the school district provides documentation indicating that extraordinary fiscal circumstances substantiate the need for the balance. Existing law provides that the operation of these provisions is contingent on voter approval of the Assembly Constitutional Amendment that creates the Public School System Stabilization Account at the November 4, 2014, statewide general election. This bill would repeal the provisions prohibiting excess reserve balances in school district budgets. This bill would declare that it is to take effect immediately as an urgency statute.