SECTIONS 42130-42134 - California Statutes

EDUCATION CODE

SECTION 42130-42134

42130. The superintendent of each school district shall, in
addition to any other powers and duties granted to or imposed upon
him or her, submit two reports to the governing board of the district
during each fiscal year. The first report shall cover the financial
and budgetary status of the district for the period ending October
31. The second report shall cover the period ending January 31. Both
reports shall be approved by the district governing board no later
than 45 days after the close of the period being reported. All
reports required by this subdivision shall be in a format or on forms
prescribed by the Superintendent of Public Instruction, and shall be
based on standards and criteria for fiscal stability adopted by the
State Board of Education pursuant to Section 33127. The reports, and
supporting data, shall be maintained and made available by the school
district for public review.

42131. (a) (1) Pursuant to the reports required by Section 42130,
the governing board of each school district shall certify, in
writing, within 45 days after the close of the period being reported,
whether the school district is able to meet its financial
obligations for the remainder of the fiscal year and, based on
current forecasts, for the subsequent fiscal year. These
certifications shall be based upon the board's assessment, on the
basis of standards and criteria for fiscal stability adopted by the
State Board of Education pursuant to Section 33127, of the district
budget, as revised to reflect current information regarding the
adopted State Budget, district property tax revenues pursuant to
Sections 95 to 100, inclusive, of the Revenue and Taxation Code, and
ending balances for the preceding fiscal year as reported pursuant to
Section 42100. The certifications shall be classified as positive,
qualified, or negative, as prescribed by the Superintendent of Public
Instruction for the purposes of determining subsequent actions by
the Superintendent of Public Instruction, the Controller, or the
county superintendent of schools, pursuant to subdivisions (b) and
(c). These certifications shall be based upon the financial and
budgetary reports required by Section 42130 but may include
additional financial information known by the governing board to
exist at the time of each certification. For purposes of this
subdivision, a negative certification shall be assigned to any school
district that, based upon current projections, will be unable to
meet its financial obligations for the remainder of the fiscal year
or the subsequent fiscal year. A qualified certification shall be
assigned to any school district that, based upon current projections,
may not meet its financial obligations for the current fiscal year
or two subsequent fiscal years. A positive certification shall be
assigned to any school district that, based upon current projections,
will meet its financial obligations for the current fiscal year and
subsequent two fiscal years.
(2) A copy of each certification and a copy of the report
submitted to the governing board pursuant to Section 42130 shall be
filed with the county superintendent of schools. If a county office
of education receives a positive certification when it determines a
negative or qualified certification should have been filed, the
county superintendent of schools shall change the certification to
negative or qualified, as appropriate, and, no later than 75 days
after the close of the period being reported, shall provide notice of
that action to the governing board of the school district and to the
Superintendent of Public Instruction. No later than five days after
a school district receives notice from the county superintendent of
schools of a change in the district's certification to negative or
qualified, the governing board of the district may submit an appeal
to the Superintendent of Public Instruction regarding the validity of
that change, in accordance with the criteria applied to those
designations pursuant to this subdivision. No later than 10 days
after receiving that appeal, the Superintendent of Public Instruction
shall determine the certification to be assigned to the district,
and shall notify the school district governing board and the county
superintendent of schools of that determination.
Copies of any certification in which the governing board is unable
to certify unqualifiedly that these financial obligations will be
met and a copy of the report submitted to the governing board
pursuant to Section 42130 shall be sent by the county office of
education to the Controller and the Superintendent of Public
Instruction at the time of the certification, together with a
completed transmittal form provided by the Superintendent of Public
Instruction. Within 75 days after the close of the reporting period
on all school district certifications that are classified as
qualified or negative pursuant to this section, the appropriate
county superintendent of schools shall submit to the Superintendent
of Public Instruction and the Controller his or her comments on those
certifications and report any action proposed or taken pursuant to
subdivision (b).
(3) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent of
Public Instruction, and shall be based on standards and criteria for
fiscal stability adopted by the State Board of Education pursuant to
Section 33127.
(4) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent of schools to the district governing board, or to the
Superintendent of Public Instruction.
(b) As to any school district having a negative or qualified
certification, the county superintendent of schools shall exercise
his or her authority, as necessary, pursuant to Section 42127.6.
(c) Within 75 days after the close of each reporting period, each
county superintendent of schools shall report to the Controller and
the Superintendent of Public Instruction as to whether the governing
board of each of the school districts under his or her jurisdiction
has submitted the certification required by subdivision (a). That
report shall account for all districts under the jurisdiction of the
county office of education and indicate the type of certification
filed by each district.
(d) The Controller's office may conduct an audit or review of the
fiscal condition of any district having a negative or qualified
certification.
(e) The governing board of each school district filing a qualified
or negative certification for the second report required under
Section 42130, or classified as qualified or negative by the county
superintendent of schools, shall provide to the county superintendent
of schools, the Controller, and the Superintendent of Public
Instruction no later than June 1, financial statement projections of
the district's fund and cash balances through June 30 for the period
ending April 30. The governing boards of all other school districts
are encouraged to develop a similar financial statement for use in
developing the beginning fund balances of the district for the
ensuing fiscal year.
(f) Any school district for which the county board of education
serves as the governing board is not subject to subdivisions (a) to
(f), inclusive, but is governed instead by the interim report,
monitoring, and review procedures set forth in subdivision (l) of
Section 1240 and in Article 2 (commencing with Section 1620) of
Chapter 5 of Part 2.

42132. On or before September 15 of each year, the governing board
of each school district shall adopt a resolution to identify,
pursuant to Division 9 (commencing with Section 7900) of Title 1 of
the Government Code, the estimated appropriations limit for the
district for the current fiscal year and the actual appropriations
limit for the district for the preceding fiscal year. That resolution
shall be adopted at a regular or special meeting of the governing
board. Notwithstanding Section 7910 of the Government Code,
documentation used in the identification of the appropriations limits
shall be made available to the public on the date of the meeting.

42133. (a) A school district that has a qualified or negative
certification in any fiscal year may not issue, in that fiscal year
or in the next succeeding fiscal year, certificates of participation,
tax anticipation notes, revenue bonds, or any other debt instruments
that do not require the approval of the voters of the district, nor
may the district cause an information report regarding the debt
instrument to be submitted pursuant to subdivision (e) of Section 149
of Title 26 of the United States Code, unless the county
superintendent of schools determines, pursuant to criteria
established by the Superintendent of Public Instruction, that the
district's repayment of that indebtedness is probable. A school
district is deemed to have a qualified or negative certification for
purposes of this subdivision if, pursuant to this article, it files
that certification or the county superintendent of schools classifies
the certification for that fiscal year to be qualified or negative.
(b) A county office of education that has a qualified or negative
certification in any fiscal year may not issue, in that fiscal year
or in the next succeeding fiscal year, certificates of participation,
tax anticipation notes, revenue bonds, or any other debt instruments
not requiring the approval of the voters of the district, nor may
the county office of education cause an information report regarding
the debt instrument to be submitted pursuant to subdivision (e) of
Section 149 of Title 26 of the United States Code, unless the
Superintendent of Public Instruction determines that the repayment of
that indebtedness by the county office of education is probable. A
county office of education is deemed to have a qualified or negative
certification for purposes of this subdivision if, pursuant to this
article, it files that certification or the Superintendent of Public
Instruction classifies the certification for that fiscal year to be
qualified or negative. For purposes of this subdivision, "county
office of education" includes a school district that is governed by a
county board of education.
(c) No later than March 31, 1992, the Superintendent of Public
Instruction shall develop and adopt criteria and standards to govern
the determination to be made under subdivisions (a) and (b).

42133.5. Regardless of the certification of the budgetary status of
a school district or county office of education under subdivision
(l) of Section 1240 or Section 42131, the proceeds obtained by a
school district from the sources listed in subdivisions (a) to (d),
inclusive, shall not be used for general operating purposes of the
school district.
(a) The sale of a saleback or leaseback agreement, or interests in
the agreement.
(b) A debt instrument payable from payments under a saleback or
leaseback agreement.
(c) Certificates of participation.
(d) Other debt instruments that meet both of the following
criteria:
(A) They are secured by real property.
(B) They do not require the approval of the voters of the school
district.

42134. The Superintendent of Public Instruction shall publish
annually a multiyear projection of the revenues that will be
available to school districts and county offices of education from
state and local sources, for use by school districts and county
offices of education in determining the multiyear financial condition
of those entities for the purposes of this article and Article 2.
That projection shall be based on revenue forecasts issued by the
Department of Finance, the Legislative Analyst, or the Commission on
State Finance, shall be published in a form that may easily be used
by school districts and county offices of education, and shall be
made available to those entities.