Bill > SB743

This bill establishes the Equalization Reserve Account in the General Fund to help address funding disparities among school districts. Under current law, some school districts (called "basic aid" districts) receive more local tax revenue than the state's Local Control Funding Formula (LCFF) provides, while others (called "non-basic aid" districts) receive less funding. The bill would require the Controller to transfer money to this new account in years when state education funding increases, specifically transferring an amount equal to what is deposited into the existing Public School System Stabilization Account. The interest earned on funds in the new account would be available, upon legislative appropriation, to increase per-pupil funding specifically for non-basic aid school districts. However, these provisions would only become operative if voters approve a constitutional amendment that excludes these funds from certain state funding calculations and requires the Legislature to allocate a percentage of the account's interest to non-basic aid districts. The bill's intent is to create a dedicated funding source to reduce spending gaps between school districts without reducing any district's existing funding, and to ensure the account continues to grow over time.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB743