AB 235 (O’Donnell) now exempts all small school districts of 2,501 ADA or less

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AB 235 (O’Donnell) now exempts all small school districts of 2,501 ADA or less

Reserve cap bill AB 235 passed to Senate Floor with amendments to exempt a greater number of small school districts from the cap

Call your Assemblymember about SB 751, which will be heard Wednesday, Aug. 23

Dear Karen,

Around the same time the eclipse reached its peak over Sacramento, a critically important amendment was made to Assembly Bill 235 (O’Donnell, D-Long Beach) during this morning’s Senate Appropriations Committee hearing.

AB 235 is one of two active bills to address the school district reserve cap – the other is CSBA’s sponsored Senate Bill 751 (Hill & Glazer).

CSBA’s position on AB 235 is “Support if Amended,” and today’s amendment reflects an important adjustment that CSBA has been seeking. CSBA would like to thank those members who made calls to Senate Appropriations Committee members and to Asm. O’Donnell specifically to advocate for this amendment. The bill was approved by the Committee today and passed to the Senate Floor.

With today’s amendment, AB 235 now entirely exempts all school districts of less than 2,501 ADA from the reserve cap. The previous version of AB 235 exempted a more limited number of small districts. AB 235 also exempts all basic aid districts, as does SB 751.

The CSBA-sponsored SB 751 will be heard by the Assembly Appropriations Committee at 9 a.m. on Wednesday, Aug. 23.

Take Action!  


If your Assemblymember sits on the Assembly Appropriations Committee (click here for list of members), please make a call to ask him/her for an “Aye” vote on SB 751 on Wed., Aug. 23.

If your Assemblymember is NOT a member of the Assembly Appropriations Committee, please make a call to ask him/her to:
  1. Encourage Assembly Appropriations Chair Lorena Gonzalez Fletcher (D-San Diego) to support SB 751 in committee on Wed., Aug. 23, and
  2. Vote “Aye” on SB 751 when it comes to the Assembly Floor for a vote
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What CSBA-sponsored bill SB 751 (Hill & Glazer) would do:

  • Raise the level of the statutory reserve limit from 6 percent to 17 percent (a nationally-recognized standard for government agency reserves);
  • Clarify that the reserve cap law would apply only to unassigned ending balances in the school district’s general fund and special reserve fund for other than capital outlay projects, and;
  • Exempt all basic aid districts and small school districts of less than 2,501 ADA entirely.



Questions? Email CSBA Governmental Relations at govrel@csba.org

California School Boards Association | 3251 Beacon Blvd., West Sacramento, CA 95691
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