School finance: annual budgets.

(1) Existing law, on or before July 1 of each year, requires a county board of education to hold a public hearing on the proposed county school service fund budget for that fiscal year, requires the county board of education to adopt an annual budget for the budget year, and requires the county board of education to file the budget with the Superintendent of Public Instruction, the county board of supervisors, and the county auditor. Existing law requires the Superintendent to examine the budget, as specified, and, on or before August 15, approve or disapprove the budget. If the budget is disapproved, existing law requires the Superintendent, on or before August 15, to transmit to the county office of education, in writing, his or her recommendations regarding revision of the budget and the reasons for those recommendations. Existing law, on or before September 8, and after a public hearing regarding the proposed revisions to the budget, as specified, requires the county board of education to revise the county office of education budget to reflect certain fiscal changes, to include any response to the recommendations of the Superintendent, to adopt the revised budget, and to file the revised budget with the Superintendent, the county board of supervisors, and the county auditor. Existing law authorizes the county office of education to elect to use an alternative budget review process by providing the Superintendent with written notice, as specified. This bill, if the budget of a county office of education is disapproved, would instead require the county superintendent of schools and the county board of education, on or before September 8, to review the recommendations of the Superintendent at a regularly scheduled meeting of the county board of education and to respond to those recommendations. The bill would require that response to include any revisions to the adopted budget and other proposed actions to be taken, if any, as a result of those recommendations. The bill would repeal the authority of a county office of education to elect to use the alternative budget review process. The bill would also make nonsubstantive changes to these provisions. By requiring a county superintendent of schools to undertake additional responsibilities related to reviewing the recommendations of the Superintendent, the bill would impose a state-mandated local program. (2) Existing law, on or before July 1 of each year, requires a school district to hold a public hearing on, and adopt, a budget for the subsequent fiscal year. Existing law requires the governing board of the school district to file the adopted budget with the county superintendent of schools, as specified. Existing law requires the county superintendent of schools to examine the adopted budget, as specified, to make certain determinations related to the adopted budget, and, on or before August 15, to approve, conditionally approve, or disapprove the adopted budget for each school district. If the adopted budget is conditionally approved or disapproved, existing law requires the county superintendent of schools, on or before August 15, to 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. Existing law, on or before September 8, and after a public hearing regarding the proposed revisions to the budget, as specified, requires the governing board of the school district to revise the adopted budget to reflect certain fiscal changes, to include any response to the recommendations of the county superintendent of schools, to adopt the revised budget, and to file the revised budget with the county superintendent of schools. Existing law, if the adopted budget is disapproved, also requires the governing board of the school district and the county superintendent of schools to review the disapproval and the recommendations of the county superintendent of schools regarding revision of the budget at the public hearing. Existing law authorizes the governing board of a school district to elect to use an alternative budget review process by providing the county superintendent of schools with written notice, as specified. This bill would require the public hearing to be conducted in accordance with a specified provision related to proposed budgets. The bill, if the adopted budget of a school district is conditionally approved or disapproved as described above, would instead require the governing board of the school district, on or before September 8, and in conjunction with the county superintendent of schools, to review and respond to the superintendent's recommendations at a regular meeting of the governing board of the school district. The bill would require the response to include any revisions to the adopted budget and other proposed actions to be taken, if any, as a result of the superintendent's recommendations. The bill would repeal the authority of the governing board of a school district to elect to use the alternative budget review process. The bill would also make nonsubstantive changes to these provisions. By requiring school districts to undertake additional responsibilities related to the conditional approval of budgets, the bill would impose a state-mandated local program. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.