SB 130

Bill Subjects

Abstract

(1) Existing law provides for emergency apportionments to school districts subject to specified conditions including, in certain circumstances, the repayment of an emergency loan over a period of no more than 10 years and the appointment by the Superintendent of Public Instruction of an administrator who would exercise the powers and responsibilities of the governing board of the school district. This bill would express the intent of the Legislature to provide emergency apportionment assistance to the King City Joint Union High School District, and require the Superintendent to assume all the rights, duties, and powers of the governing board of the King City Joint Union High School District and to appoint, in consultation with the Monterey County Superintendent of Schools, a state administrator to act on behalf of the Superintendent in exercising the Superintendent's authority over the school district. The bill would continue the authority of the Superintendent and the state administrator over the school district until certain enumerated conditions are met, including the completion of assessment and improvement plans for the school district. The bill would require the County Office Fiscal Crisis and Management Assistance Team (FCMAT) to provide specified assistance relating to the development of a multiyear financial recovery plan, the preparation of budget reports, and the recommendation of activities that could enhance revenue or achieve cost savings. The bill would require the school district to bear 100% of costs associated with implementing the provisions of the bill relating to the administration of the emergency apportionment assistance and the activities of the FCMAT, thereby imposing a state-mandated local program. The bill would appropriate $5,000,000 from the General Fund to the Superintendent for apportionment as an emergency loan to the King City Joint Union High School District, and specify procedures for repayment of the loan. In addition, the bill would authorize the district to augment the emergency loan with an additional $8,000,000 of lease financing in order to increase the emergency loan to a total of no more than $13,000,000. The bill would authorize the school district to sell property owned by the district and use the proceeds from the sale to reduce or retire the emergency loan, and would prohibit the district from being eligible for financial hardship assistance under the Leroy F. Greene School Facilities Act of 1998. (2) This bill would make a legislative finding and declaration that the unique circumstances of the King City Joint Union High School District warrant the enactment of a special statute. (3) 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 no reimbursement is required by this act for a specified reason. (4) This bill would declare that it is to take effect immediately as an urgency statute.