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CSBA Hails Passage of Proposition 2, Renews Call for Repeal of School District Budget Reserve Cap

November 13, 2014

The California School Boards Association (CSBA) responded to voter approval of Proposition 2 (establishing a state “Rainy Day” budget reserve) by releasing a statement calling for repeal of the school district budget reserve cap:

“Now that the Rainy Day Fund has been enacted (by voters), we are asking the legislature to act immediately and repeal the reserve cap statutory trailer bill language restricting school district reserves (approved by the California Legislature in June),” said CSBA CEO & Executive Director Vernon M. Billy. “The arbitrary implementation of reserve limits puts school districts at risk of financial insolvency just as the State of California is moving to insulate itself from uncertain future economic circumstances. CSBA continues to aggressively advocate for the repeal of thi egregious statute.”

CSBA President and Cupertino Union School District board member Josephine Lucey added that, “Local reserves are critical for district solvency and, more importantly, for the stability of educational programs for each and every student in California. Capping district reserves limits school districts to days, not months, of cash flow and payroll. It’s fiscally irresponsible, and inconsistent with the principle of subsidiarity. CSBA remains determined in our efforts to repeal the statutory limit on district reserves.”

For more information on CSBA’s efforts to repeal to the reserve cap, click here.

Source:  California School Boards Association