SB 751 headed to Senate Floor

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CSBA reserve cap bill will receive a floor vote in the Senate

SB 751 headed to Senate Floor after passing Senate Appropriations Committee today, 7-0

Senate Bill 751 (Hill & Glazer), CSBA’s sponsored reserve cap bill, passed the Senate Appropriations Committee this morning with a 7-0 vote. This is the second unanimous approval vote for SB 751 in as many weeks after a 7-0 vote in the Senate Education Committee on April 19.

SB 751 will now be heard on the Senate Floor; the exact date will be determined soon. Please continue to follow CSBA communications for a forthcoming Floor Action Alert. Phone calls and letters from board members to Senators asking for an “aye” vote on the Senate Floor will be critical to keeping up the momentum of SB 751.

Thank you to the dozens of CSBA members who made phone calls and sent letters to members of the Senate Education and Appropriations Committees in support of SB 751. Your voice has been heard!

Senators who have voted “aye” on SB 751

As soon as possible, CSBA members who’s Senators have already voted “aye” should send thank you notes or phone calls. Please see below for a list of “aye” votes and contact information. A thank you can be as brief as “Thank you for supporting SB 751, CSBA’s reserve cap bill, in committee!”

How we got here

On April 19, CSBA’s sponsored bill SB 751, was passed by the Senate Education Committee on a unanimous 7-0 vote. The bill makes substantial changes to the current reserve cap law by narrowing the definition of funds which the reserve cap would apply to, raising the level of the cap from 6 percent to 17 percent and exempting all small districts (less than 2,501 ADA) and all basic aid districts.

On April 26, another bill in the Senate, SB 590 (Moorlach, R-Costa Mesa) sought to repeal the reserve cap law outright. SB 590 was held in the Senate Education Committee on a 2-2 vote and is unlikely to advance. This leaves CSBA’s SB 751 as the only reserve cap bill moving on the Senate side.

Also on April 26, AB 235 by Assembly Education Committee Chair Patrick O’Donnell (D-Long Beach) was passed by the Assembly Appropriations Committee. AB 235 does not raise the level of the cap nor does it narrow the definition of funds to which the cap applies to. It does exempt small school districts (defined pursuant to Education Code 44046, as unified school districts of ADA less than 1,501, and ADA of less than 901 and 301 for elementary and high school districts, respectively) and basic aid districts, and also amends the reserve cap “trigger.” Currently, if a deposit of any amount (even $1) is made to a state rainy day fund specifically for schools, the cap would be triggered – under AB 235, the school-specific rainy day fund would need a minimum balance of 3 percent of Proposition 98 funding (about $1.9 billion in the current fiscal year) to trigger the cap.

CSBA has a “support if amended” position on AB 235 and is seeking amendments to align the bill closer to SB 751.

Questions? Email Governmental Relations.

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California School Boards Association | 3251 Beacon Blvd., West Sacramento, CA 95691
Phone: (800) 266-3382 | Fax: (916) 371-3407
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