HB 5290 Summary

• Requires school districts and public school academies to submit budgetary assumptions to CEPI by July 7 each year, unless they maintained a positive general fund balance of at least 5% for the two most recent fiscal years.

• Authorizes the state treasurer to declare fiscal stress exists for schools based on financial data, enrollment trends, and other indicators, and to require affected schools to enter contracts with intermediate school districts for administrative financial reviews.

• Mandates schools with deficits notify the superintendent of public instruction and state treasurer immediately, and submit amended budgets and deficit elimination plans within 30 days.

• Requires schools under fiscal stress to submit periodic financial status reports to the state treasurer, with enhanced reporting and plans required for those with persistent or deteriorating financial conditions.

• Adds requirement that authorizing bodies of public school academies notify other academies under their authority if any academy with an educational management organization receives a fiscal stress declaration.