Report 2019-108 Recommendation Responses

Report 2019-108: Sacramento City Unified School District: Because It Has Failed to Proactively Address Its Financial Challenges, It May Soon Face Insolvency (Release Date: December 2019)

Recommendation for Legislative Action

To help ensure that county office superintendents can prevent school districts under their oversight from becoming insolvent, the Legislature should consider amending state law to require school district boards to obtain approval from their county office superintendents before considering actions that would result in expenditures that exceed 200 percent of their required reserve amount. County office superintendents should disapprove any district action that they determine would cause school districts to do either of the following:
-Project insolvency within the current fiscal year or two subsequent fiscal years.
-Rely on reserves or other one-time resources, such as one-time funds from the State, to remain solvent within the current fiscal year or two subsequent fiscal years.

Description of Legislative Action

As of January 2020, the Legislature has not taken action to address this specific recommendation. However, SB 887 (Wilk) was introduced on January 23, 2020, as a spot bill regarding school district boards.

  • Legislative Action Current As-of: February 2020

California State Auditor's Assessment of 60-Day Status: No Action Taken

All Recommendations in 2019-108