SECTIONS 42600-42606 - California Statutes

EDUCATION CODE

SECTION 42600-42606

42600. The total amount budgeted as the proposed expenditure of the
school district for each major classification of school district
expenditures listed in the school district budget forms prescribed by
the Superintendent of Public Instruction shall be the maximum amount
which may be expended for that classification of expenditures for
the school year. Transfers may be made from the designated fund
balance or the unappropriated fund balance to any expenditure
classification or between expenditure classifications at any time by
written resolution of the board of education of any school district
governed by a board of education, when filed with the county
superintendent of schools and the county auditor, or by written
resolution of the board of trustees of any school district not
governed by a board of education, when approved by the county
superintendent of schools and filed with the county auditor. A
resolution providing for the transfers specified in this section
shall be approved by a majority vote of the members of the governing
board. Nothing in this section shall be construed as affecting
Sections 42204 and 85112.

42601. At the close of any school year a school district may, with
the approval of the governing board, identify and request the county
superintendent of schools to make the transfers between the
designated fund balance or the unappropriated fund balance and any
expenditure classification or classifications, or balance any
expenditure classifications of the budget of the district for that
school year as necessary to permit the payment of obligations of the
district incurred during that school year. For each elementary, high
school, and unified school district that, during the preceding school
year, had an average daily attendance less than the level, as
appropriate, specified in subdivision (a) of Section 41301, the
county superintendent of schools, with the consent of the governing
board of the school district, may identify and make the transfers,
and shall so notify the districts.

42602. Notwithstanding the provisions of Sections 42600 and 42610
or any provision of this code to the contrary, the governing board of
any school district may, by a majority vote of its membership, and
with the approval of the county superintendent of schools, budget and
use any unbudgeted income provided during the fiscal year from any
source.

42603. The governing board of any school district may direct that
moneys held in any fund or account may be temporarily transferred to
another fund or account of the district for payment of obligations.
The transfer shall be accounted for as temporary borrowing between
funds or accounts and shall not be available for appropriation or be
considered income to the borrowing fund or account. Amounts
transferred shall be repaid either in the same fiscal year, or in the
following fiscal year if the transfer takes place within the final
120 calendar days of a fiscal year. Borrowing shall occur only when
the fund or account receiving the money will earn sufficient income,
during the current fiscal year, to repay the amount transferred. No
more than 75 percent of the maximum of moneys held in any fund or
account during a current fiscal year may be transferred.

42604. Notwithstanding any other provisions of law, the computation
of reimbursement for the costs of attendance specified in
contractual agreements through which educational services are
provided by other than the district or county in which a pupil
resides shall be based on the revenue per average daily attendance
received by the school district or county in which the pupil resides
rather than the computed revenue limit or foundation program per
average daily attendance of the district or county of residence.

42605. (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2012-13 fiscal year, inclusive, recipients of funds from the
items listed in paragraph (2) may use funding received, pursuant to
subdivision (b), from any of these items listed in paragraph (2) that
are contained in an annual Budget Act, for any educational purpose.
(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-123-0001, 6110-124-0001, 6110-137-0001,
6110-144-0001, 6110-150-0001, 6110-151-0001, 6110-156-0001,
6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001,
6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-227-0001,
6110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
6110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
6110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
6110-266-0001, 6110-267-0001, 6110-268-0001, and 6360-101-0001 of
Section 2.00.
(b) (1) For the 2009-10 fiscal year to the 2012-13 fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a).
(2) This section and Section 42 of Chapter 12 of the 2009-10 Third
Extraordinary Session do not authorize a school district that
receives funding on behalf of a charter school pursuant to Sections
47634.1 and 47651 to redirect this funding for another purpose unless
otherwise authorized in law or pursuant to an agreement between a
charter school and its chartering authority. Notwithstanding
paragraph (1), for the 2008-09 fiscal year to the 2012-13 fiscal
year, inclusive, a school district that receives funding on behalf of
a charter school pursuant to Sections 47634.1 and 47651 shall
continue to distribute the funds to those charter schools based on
the relative proportion that the school district distributed in the
2007-08 fiscal year, and shall adjust those amounts to reflect
changes in charter school attendance in the district. The amounts
allocated shall be adjusted for any greater or lesser amount
appropriated for the items enumerated in paragraph (2) of subdivision
(a). For a charter school that began operation in the 2008-09 fiscal
year, if a school district received funding on behalf of that
charter school pursuant to Sections 47634.1 and 47651, the school
district shall continue to distribute the funds to that charter
school based on the relative proportion that the school district
distributed in the 2008-09 fiscal year and shall adjust the amount of
those funds to reflect changes in charter school attendance in the
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a).
(3) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2012-13 fiscal year, inclusive, the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
(4) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2012-13 fiscal year, inclusive, the Superintendent shall
apportion from the amounts provided in the annual Budget Act an
amount to a school district, charter school, and county office of
education based on the same relative proportion that the local
educational agency received in the 2007-08 fiscal year for the
programs funded through the following items contained in the annual
Budget Act: 6110-104-0001, 6110-105-0001, 6110-156-0001,
6110-190-0001, Schedule (3) of 6110-193-0001, 6110-198-0001,
6110-232-0001, and Schedule (2) of 6110-240-0001.
(5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
(c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
(2) As a condition of receipt of funds, the governing board of the
school district or board of the county office of education, as
appropriate, at a regularly scheduled open public hearing shall take
testimony from the public, discuss, approve or disapprove the
proposed use of funding, and make explicit for each of the budget
items in paragraph (2) of subdivision (a) the purposes for which the
funds will be used.
(3) Using the Standardized Account Code Structure reporting
process, a local educational agency shall report expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect and provide this
information to the Department of Finance and the appropriate policy
and budget committees of the Legislature by April 15, 2010, and
annually thereafter on April 15 until, and including, April 15, 2014.
(d) For the 2008-09 fiscal year to the 2012-13 fiscal year,
inclusive, local educational agencies that use the flexibility
provision of this section shall be deemed to be in compliance with
the program and funding requirements contained in statutory,
regulatory, and provisional language, associated with the items
enumerated in subdivision (a).
(e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
(1) For Items 6110-105-0001 and 6110-156-0001, the amount
authorized for flexibility shall exclude the funding provided for
instruction of CalWORKs-eligible students pursuant to Schedules (2)
and (3) and Provisions 2 and 4.
(2) (A) Any instructional materials purchased by a local
educational agency shall be the materials adopted by the state board
for kindergarten and grades 1 to 8, inclusive, and for grades 9 to
12, inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
(B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119 and that all pupils
within the local educational agency who are enrolled in the same
course shall have identical textbooks and instructional materials, as
specified in Section 1240.3.
(3) For Item 6110-195-0001, the item shall exclude moneys that are
required to fund awards for teachers that have previously met the
requirements necessary to obtain these awards, until the award is
paid in full.
(4) For Item 6110-266-0001, a county office of education shall
conduct at least one site visit to each of the required schoolsites
pursuant to Section 1240 and shall fulfill all of the duties set
forth in Sections 1240 and 44258.9.
(5) For Item 6110-198-0001, a school district or county office of
education that operates the child care component of the Cal-SAFE
program shall comply with paragraphs (5) and (6) of subdivision (c)
of Section 54746.
(f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.

42606. (a) A local educational agency, including a direct-funded
charter school, may apply for any state categorical program funding
included in the annual Budget Act on behalf of a school that begins
operation in the 2008-09 to the 2012-13 fiscal years, inclusive, but
only to the extent the school or local educational agency is eligible
for funding and meets the provisions of the program that were in
effect as of January 1, 2009, except that charter schools shall not
apply for any of the programs contained in Section 47634.4.
(b) A local educational agency that establishes a new school by
redirecting enrollment from its existing schools to the new school
shall not be eligible to receive funding in addition to the amounts
allocated pursuant to Section 42605 for the categorical programs
specified in that section or for the class size reduction program
pursuant to Sections 52122 and 52124.
(c) The Superintendent shall report the number of new schools and
the programs that these schools are applying for, including an
estimate of the cost for that year. This information shall by
reported by November 11, 2009, and each fiscal year thereafter, to
the appropriate committees of the Legislature, the Legislative
Analyst's Office, and the Department of Finance.
(d) Notwithstanding subdivision (a), for the 2010-11 fiscal year,
the Superintendent shall allocate a supplemental categorical block
grant to a charter school that began operation in the 2008-09,
2009-10, or 2010-11 fiscal year. The supplemental categorical block
grant shall equal one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the 2010-11
second principal apportionment. These supplemental categorical block
grant funds may be used for any educational purpose. A locally
funded charter school that converted from a preexisting school
between the 2008-09 and 2010-11 fiscal years is not eligible for
funding specified in this section. A charter school that receives
funding pursuant to this subdivision shall not receive additional
funding for programs specified in paragraph (2) of subdivision (a) of
Section 42605, with the exception of the program funded pursuant to
Item 6110-211-0001 of Section 2.00 of the annual Budget Act.