Education finance: school districts in fiscal distress: remedial actions.

Existing law establishes a process in which the county superintendent of schools proposes remedial actions necessary to ensure that those school districts showing fiscal distress can meet their financial obligations. Existing law establishes that if, after taking the remedial actions, the county superintendent determines that a school district will be unable to meet its financial obligations for the current or subsequent fiscal year, the county superintendent must notify specified parties. Existing law provides appeal rights for school districts to challenge a determination that they will be unable to meet their financial obligations. If an appeal by a school district is denied or not filed, or if the school district has a negative financial certification, existing law requires the county superintendent of schools to take one or more specified remedial actions, and all actions necessary to ensure that the school district meets its financial obligations. Existing law specifies that one of the remedial actions the county superintendent of schools may take is to stay or rescind any action determined to be inconsistent with the school district's ability to meet its financial obligations. Existing law also authorizes the county superintendent of schools to assist in developing a multiyear financial recovery plan that will enable the school district to meet its future obligations. Existing law requires the school district to pay 75% and the county office of education to pay 25% of administrative expenses incurred in taking certain remedial actions or costs associated with improving the school district's financial management practices. This bill also would authorize the county superintendent of schools to stay or rescind any action of a personnel commission for classified school employees. If a school district's subsequent year's budget is disapproved by the county superintendent of schools, the bill would specify that the county superintendent of schools' authority to stay or rescind actions continues without interruption until the next subsequent year's budget is approved. If the governing board of a school district fails to adopt or implement a multiyear financial recovery plan, the bill would authorize the county superintendent of schools to impose or implement the multiyear financial recovery plan. If the county superintendent of schools prepares a multiyear financial recovery plan for the school district, the bill would require the county superintendent to consult certain documents and entities, and to hold at least 2 public hearings to receive stakeholder input. The bill would authorize a school district to appeal to the Superintendent a county superintendent of schools' decision to prepare, adopt, or implement a multiyear financial recovery plan. To the extent the bill would impose additional obligations on school districts and county superintendents of schools, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.