1620-1630

EDUCATION CODE
SECTION 1620-1630




1620.  On or before July 1 of each fiscal year, the county board of
education shall hold a public hearing on the proposed county school
service fund budget for that fiscal year (the "budget year"). The
public hearing shall be held prior to the adoption of the budget by
the county board of education, and shall occur not less than three
days following the availability of the proposed budget for public
inspection. The agenda for that hearing shall be posted at least 72
hours prior to the hearing and shall include the location of where
the budget will be available for inspection. At the hearing, any
taxpayer directly affected by the county school service fund budget
may appear before the county board of education and speak on the
proposed budget or any item therein.



1621.  (a) The single-fund budget shall be prepared in the form
prescribed and furnished by the Superintendent of Public Instruction
and shall be the county school service fund budget. The budget shall
show a complete plan and itemized statement of all proposed
expenditures in each fund of the county office of education, of
estimated cash balances, and of all estimated revenues for the budget
year, and shall include an estimate of those figures, unaudited, for
the fiscal year immediately preceding the budget year.
   (b) The budget may contain an amount to be known as the general
reserve, in such sum as the county board of education may deem
sufficient to meet the cash requirements of the fiscal year next
succeeding the budget year until adequate proceeds of the taxes
levied or of the apportionment of state funds are available.
   (c) The budget may contain a fund balance designated for any
specific purpose as determined by the county board of education.
Those funds shall be available for appropriation by a majority vote
of the members of the county board of education.



1622.  (a) On or before July 1 of each fiscal year, the county board
of education shall adopt an annual budget for the budget year and
shall file that budget with the Superintendent of Public Instruction,
the county board of supervisors, and the county auditor. The budget,
and supporting data, shall be maintained and made available for
public review. The budget shall indicate the date, time, and location
at which the county board of education held the public hearing
required under Section 1620.
   (b) The Superintendent of Public Instruction shall examine the
budget to determine whether it (1) complies with the standards and
criteria adopted by the State Board of Education pursuant to Section
33127 for application to final local educational agency budgets, (2)
allows the county office of education to meet its financial
obligations during the fiscal year, and (3) is consistent with a
financial plan that will enable the county office of education to
satisfy its multiyear financial commitments. In addition, the
Superintendent shall identify any technical corrections to the budget
that must be made. On or before August 15, the Superintendent of
Public Instruction shall approve or disapprove the budget and, in the
event of a disapproval, transmit to the county office of education
in writing his or her recommendations regarding revision of the
budget and the reasons for those recommendations.
   (c) On or before September 8, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent of Public
Instruction, shall adopt the revised budget, and shall file the
revised budget with the Superintendent of Public Instruction, the
county board of supervisors, and the county auditor. Prior to
revising the budget, the county board of education shall hold a
public hearing regarding the proposed revisions, which shall be made
available for public inspection not less than three working days
prior to the hearing. The agenda for that hearing shall be posted at
least 72 hours prior to the public hearing and shall include the
location where the budget will be available for public inspection.
The revised budget, and supporting data, shall be maintained and made
available for public review.
   (d) The Superintendent of Public Instruction shall examine the
revised budget to determine whether it complies with the standards
and criteria adopted by the State Board of Education pursuant to
Section 33127 for application to final local educational agency
budgets and, no later than October 8, shall approve or disapprove the
revised budget. If the Superintendent of Public Instruction
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623.
   (e) Notwithstanding any other provision of this section, the
budget review for a county office of education shall be governed by
paragraphs (1), (2), and (3) of this subdivision, rather than by
subdivisions (c) and (d), if the county board of education so elects,
and notifies the Superintendent of Public Instruction in writing of
that decision, no later than October 31 of the immediately preceding
calendar year.
   (1) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
September 8, the county superintendent of schools and the county
board of education shall review the recommendations of the
Superintendent of Public Instruction at a regularly scheduled meeting
of the county board of education and respond to those
recommendations. That response shall include the proposed actions to
be taken, if any, as a result of those recommendations.
   (2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent of Public Instruction shall
review that response and either approve or disapprove the budget of
the county office of education. If the Superintendent of Public
Instruction disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 1623.
   (3) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that
Budget Act.



1623.  (a) The budget review committee shall be composed of three
persons and shall be selected by the county superintendent of schools
and the county board of education solely from a list of no fewer
than five candidates provided by the Superintendent of Public
Instruction. The candidates shall be persons who have expertise in
the management of a school district or county office of education,
including, but not be limited to, the fiscal and educational aspects
of that management.
   (b) No later than five working days after the receipt of the
candidate list described in subdivision (a), the county
superintendent of schools and the county board of education shall
select the budget review committee. If the county superintendent of
schools and the county board of education fail to select a committee
within the period of time permitted by this subdivision, the
Superintendent of Public Instruction instead shall select and convene
the budget review committee no later than 10 working days after the
receipt by the county superintendent of schools and the county board
of education of the candidate list.
   (c) No later than October 31, the budget review committee shall
review the proposed budget of the county office of education and the
underlying fiscal policies of that county office of education, and
shall transmit to the Superintendent of Public Instruction, the
county superintendent of schools, and the county board of education
either of the following:
   (1) The recommendation that the budget be approved.
   (2) A report disapproving the budget and setting forth
recommendations for revisions to the budget that would enable the
county office of education to meet its financial obligations both in
the budget year and with regard to multiyear financial commitments.
   (d) Upon the request of the budget review committee, the
Superintendent of Public Instruction may extend the deadline set
forth in subdivision (c) for a period of not more than 15 working
days.
   (e) The Superintendent of Public Instruction shall develop
criteria and procedures governing the performance by budget review
committees of their duties under this section.
   (f) The members of the budget review committee shall be reimbursed
for their services and associated expenses while on official
business, at rates established by the State Board of Education.



1624.  (a) If the budget review committee established pursuant to
Section 1623 disapproves the budget of the county office of
education, within five working days following the receipt of the
committee's report, the county superintendent of schools and the
county board of education may submit a response to the Superintendent
of Public Instruction, including any revisions to the adopted budget
and any other proposed action to be taken as a result of the
recommendations of the budget review committee.
   (b) Based upon the recommendations of the budget review committee
provided pursuant to subdivision (c) of Section 1623, and any
response provided pursuant to subdivision (a), the Superintendent of
Public Instruction shall either approve or disapprove the budget of
the county office of education. If the Superintendent of Public
Instruction disapproves the budget, the superintendent or his or her
designee may do any of the following for the remainder of the current
fiscal year:
   (1) On or before November 30, develop and adopt, in consultation
with the county superintendent of schools and the county board of
education, a fiscal plan and budget for the county office of
education that will allow the county office of education to meet its
financial obligations both in the budget year and with regard to the
multiyear financial commitments. The county board of education and
the county superintendent of schools shall govern the operation of
the county office of education for the budget year in accordance with
that fiscal plan and budget. The deadline set forth in this
paragraph shall be modified to reflect any extension granted under
subdivision (d) of Section 1623.
   (2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is
inconsistent with the fiscal plan and budget adopted pursuant to
paragraph (1). The Superintendent of Public Instruction shall inform
the county board of education and the county superintendent of
schools in writing of his or her justification for any exercise of
authority under this paragraph.
   (3) Monitor and review the operation of the county office of
education.
   (4) Determine the need for additional staff and may employ, at
county office of education expense, short-term analytical assistance
or expertise to validate financial information if the county does not
have the expertise or staff.
   (5) Require the county office of education to encumber all
contracts and other obligations, to prepare appropriate cash flow
analyses and monthly or quarterly budget revisions, and to
appropriately record all receivables and payables.
   (6) Determine whether there are any financial problem areas and
may employ, at county office of education expense, a certified public
accounting firm to investigate financial problem areas.
   (7) Withhold compensation of the members of the county board of
education and the county superintendent for failure to provide
requested financial information.
   (c) The county office of education shall pay reasonable fees
charged by the Superintendent of Public Instruction for actual
administrative expenses incurred pursuant to subdivision (b), or
costs associated with improving the county office of education's
financial management practices.
   (d) This section shall not be construed to authorize the
Superintendent of Public Instruction to abrogate any provision of a
collective bargaining agreement that was entered into by a county
office of education prior to the date upon which the Superintendent
of Public Instruction disapproved the budget of the county office of
education pursuant to subdivision (b).
   (e) As he or she deems necessary for the purposes set forth in
subdivision (b), the Superintendent of Public Instruction may seek
from the county office of education, or otherwise obtain, additional
information regarding the budget or operations of the county office
of education, through a financial or management review of the county
office of education, a cash-flow projection, or other appropriate
means.



1625.  The county superintendent of schools for any county office of
education that reports a negative unrestricted fund balance or a
negative cash balance in the annual report required by Section 1622
or in the audited annual financial statements required by Section
41020 shall include, with the budget submitted in accordance with
Section 1622 and the certifications required by subdivision (l) of
Section 1240, a statement identifying the reasons for the negative
unrestricted fund balance or negative cash balance and the steps that
will be taken to ensure that the negative balance will not occur at
the end of the budget year.


1626.  Until the time the county office of education receives
approval of its budget under this article, the county office of
education shall continue to operate on the basis of the last budget
adopted or revised for the county office of education for the fiscal
year immediately preceding the budget year.



1627.  The county school service fund shall be audited annually by a
public accountant or a certified public accountant selected by the
county superintendent of schools. The cost of the audit shall be a
legal charge against the county school service fund.



1628.  On or before October 15 of each year, the county
superintendent of schools shall prepare and file with the
Superintendent, along with the statements received pursuant to
subdivision (b) of Section 42100, a statement of all receipts and
expenditures of the county office of education for the preceding
fiscal year. The statement shall be in a format or on forms
prescribed by the Superintendent, in accordance with regulations
adopted by the State Board of Education. These forms may be amended
periodically by the Superintendent to accommodate changes in statute
or government reporting standards.



1629.  On or before October 15 of each year, the county board of
education 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 county office of education
for the current fiscal year and the actual appropriations limit for
the county office of education for the preceding fiscal year. That
resolution shall be adopted at a regular or special meeting of the
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 at
which the resolution is adopted.


1630.  (a) The Superintendent shall review and consider studies,
reports, evaluations, or audits of the county office of education
that contain evidence that the county office of education is
demonstrating fiscal distress according to the standards and criteria
developed pursuant to Section 33127 or that contain a finding by an
external reviewer that more than 3 of the 15 most common predictors
of school agencies needing intervention, as determined by the County
Office Fiscal Crisis and Management Assistance Team, are present. If
those findings are made, the Superintendent shall investigate the
financial condition of the county office of education and determine
if the county office of education may be unable to meet its financial
obligations for the current or two subsequent fiscal years, or
should receive a qualified or negative interim financial
certification pursuant to Section 1240.
   (b) If at any time during the fiscal year the Superintendent
determines that the county office of education may be unable to meet
its financial obligations for the current or two subsequent fiscal
years or if the county office has a qualified certification pursuant
to Section 1240, he or she shall notify the county board of education
and the county superintendent in writing of that determination and
the basis for the determination. The notification shall include the
assumptions used in making the determination and shall be available
to the public. The Superintendent shall do the following, as
necessary, to ensure that the county office meets its financial
obligations:
   (1) Assign a fiscal expert, paid for by the Superintendent, to
advise the county office on its financial problems.
   (2) Conduct a study of the financial and budgetary conditions of
the county office. If, in the course of this review, the
Superintendent determines that his or her office requires analytical
assistance or expertise that is not available through the county
office, he or she may employ, at county office expense, on a
short-term basis, staff, including certified public accountants, to
provide the assistance and expertise.
   (3) Direct the county office to submit a financial projection of
all fund and cash balances of the county office as of June 30 of the
current year and subsequent fiscal years as he or she requires.
   (4) Require the county office to encumber all contracts and other
obligations, to prepare appropriate cashflow analyses and monthly or
quarterly budget revisions, and to appropriately record all
receivables and payables.
   (5) Direct the county office to submit a proposal for addressing
the fiscal conditions that resulted in the determination that the
county office may not be able to meet its financial obligations.
   (6) Withhold compensation of the county board of education and the
county superintendent for failure to provide requested financial
information.
   (c) If, after taking the actions identified in subdivision (a),
the Superintendent determines that a county office will be unable to
meet its financial obligations for the current or subsequent fiscal
year, he or she shall notify the county board of education and the
county superintendent in writing of that determination and the basis
for that determination. The notification shall include the
assumptions used in making the determination and shall be available
to the public.
   (d) If the Superintendent of Public Instruction makes that
determination, or if the county office has a negative certification
pursuant to Section 1240, the Superintendent, shall, as necessary to
enable the county office to meet its financial obligations, do one or
more of the following:
   (1) Develop and impose, in consultation with the county board of
education and the county superintendent, budget that will enable the
county to meet its financial obligations.
   (2) Stay or rescind any action that is determined to be
inconsistent with the ability of the county office to meet its
obligations for the current or subsequent fiscal year and may, as
necessary, appoint a fiscal adviser to perform any or all of the
duties prescribed by this paragraph on his or her behalf. This
includes any actions up to the point that the subsequent year's
budget is approved by the Superintendent. The Superintendent shall
inform the county board of education in writing of his or her
justification for any exercise of authority under this paragraph.
   (3) Assist in developing, in consultation with the county board of
education and the county superintendent, a financial plan that will
enable the county office to meet its future obligations.
   (4) Assist in developing, in consultation with the county board of
education and the county superintendent, a budget for the subsequent
fiscal year. If necessary, the Superintendent shall continue to work
with the county board of education and the county superintendent
until the budget for the subsequent year is adopted.
   (e) Any actions taken by the Superintendent pursuant to paragraph
(1) or (2) of subdivision (d) shall be accompanied by a notification
that includes the actions to be taken, the reasons for the actions,
and the assumptions used to support the necessity for those actions.
That notification shall be available to the public.
   (f) This section does not authorize the Superintendent to abrogate
any provision of a collective bargaining agreement that was entered
into by a county office prior to the date upon which the
Superintendent assumed authority pursuant to subdivision (d).
   (g) The county office shall pay reasonable fees charged by the
Superintendent for any administrative expenses incurred pursuant to
subdivision (d) or costs associated with improving the office's
financial management practices.
   (h) Notwithstanding any other provision of law, a county treasurer
shall not honor any warrant when the Superintendent, as appropriate,
has disapproved that warrant, or has disapproved the order on county
office funds for which a warrant was prepared.
   (i) For all purposes of errors and liability insurance policies, a
fiscal expert appointed pursuant to this section shall be deemed to
be an employee of the county office of education. The Superintendent
may require that the fiscal adviser be placed on the county office of
education payroll for the purposes of remuneration, benefits, and
payroll deductions.
   (j) If staff persons are hired pursuant to paragraph (2) of
subdivision (a), the Superintendent may certify to the Controller an
amount to be transferred to the State Department of Education, from
the funds that otherwise would be apportioned to the county office of
education pursuant to Section 2558, for the purpose of paying all
costs incurred by that staff in performing their respective services.
The Controller, upon receipt of that certification, shall transfer
that amount.
   (k) To facilitate the appointment of a county office fiscal
officer and the employment of additional staff pursuant to paragraphs
(1) and (2), respectively, of subdivision (a), for the purposes of
those paragraphs, the Superintendent of Public Instruction is exempt
from the requirements of Article 6 (commencing with Section 999) of
Chapter 6 of Division 4 of the Military and Veterans Code and Part 2
(commencing with Section 10100) of the Public Contracts Code.