Report 2019-108 Recommendation Responses
Report 2019-108: Sacramento City Unified School District: Because It Has Failed to Proactively Address Its Financial Challenges, It May Soon Face Insolvency (Release Date: December 2019)
Recommendation for Legislative Action
To help ensure that county office superintendents can prevent school districts under their oversight from becoming insolvent, the Legislature should consider amending state law to require school district boards to obtain approval from their county office superintendents before considering actions that would result in expenditures that exceed 200 percent of their required reserve amount. County office superintendents should disapprove any district action that they determine would cause school districts to do either of the following:
-Project insolvency within the current fiscal year or two subsequent fiscal years.
-Rely on reserves or other one-time resources, such as one-time funds from the State, to remain solvent within the current fiscal year or two subsequent fiscal years.
Description of Legislative Action
AB 961 (McCarty, 2021) would have authorized the county superintendent of schools to stay or rescind any action of a personnel commission for classified school employees that is determined to be inconsistent with the school district's ability to meet its financial obligations. If a school district's subsequent year's budget is disapproved by the county superintendent of schools, the bill would have specified that the county superintendent of schools' authority to stay or rescind actions continues without interruption until the next subsequent year's budget is approved. The bill would have authorized the county superintendent of schools to impose or implement the multiyear financial recovery plan if the governing board of a school district fails to adopt or implement a multiyear financial recovery plan. If the county superintendent of schools prepares a multiyear financial recovery plan for the school district, the bill would have required the county superintendent to consult certain documents and entities and to hold at least two public hearings to receive stakeholder input. The bill would have authorized a school district to appeal to the superintendent a county superintendent of schools' decision to prepare, adopt, or implement a multiyear financial recovery plan. This bill died in the Assembly.
- Legislative Action Current As-of: January 2023
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted
Description of Legislative Action
AB 961 (McCarty, 2021) would authorize the county superintendent of schools to stay or rescind any action of a personnel commission for classified school employees that is determined to be inconsistent with the school district's ability to meet its financial obligations. 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. The bill would authorize the county superintendent of schools to impose or implement the multiyear financial recovery plan if the governing board of a school district fails to adopt or implement a 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 two 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. As of December 10, 2021, this bill is pending in the Assembly Education Committee.
- Legislative Action Current As-of: December 2021
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Introduced
Description of Legislative Action
As of December 10, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: December 2020
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of June 10, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2020
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
As of January 2020, the Legislature has not taken action to address this specific recommendation. However, SB 887 (Wilk) was introduced on January 23, 2020, as a spot bill regarding school district boards.
- Legislative Action Current As-of: February 2020