CA AB1640

Requires local governments with budget reserves exceeding 30 percent of total expenditures to submit annual written reports to the State Controller's office by September 1, 2020, and each September 1 thereafter.

Reports must detail how the local government plans to spend budget reserves over the next five fiscal years on eight specified priorities: mental and behavioral healthcare, affordable housing, homelessness, foster youth programs, LGBTQ+ centers, veterans services, special needs services, and in-home supportive services.

Defines "budget reserves" as the difference between a local government's total revenue (including taxes, assessments, and fees) and total expenditures in a fiscal year.

Applies only to cities (including charter cities) and counties that meet the 30 percent budget reserve threshold.

Provides that if the Commission on State Mandates determines the bill imposes state-mandated costs, reimbursement shall be made pursuant to existing statutory procedures.