California - AB235
January 30, 2017
Enacted as part of the 2014 state budget, a cap on school district reserves would be imposed whenever any transfer is made into the state Public School System Stabilization Account (PSSSA). While the Legislative Analyst Office and the Department of Finance do not foresee the reserve cap being triggered in the foreseeable future since four conditions would need to be met, education management groups have been trying to repeal or modify the cap requirements in the event it ever gets triggered. This bill changes the conditions under which the cap on local school district reserves is imposed and exempts basic aid districts and small districts (unified school districts with ADAs below 1,501, high school districts with ADAs below 301, and elementary districts with ADAs below 901) from the restrictions imposed on schools regarding district reserves.