SB 678 Summary

• Requires school districts and public school academies to submit budgetary assumptions to the Center for Educational Performance and Information (CEPI) by July 7 annually, unless they maintained a positive general fund balance of at least 5% for the two most recently completed fiscal years.

• Authorizes the State Treasurer to declare fiscal stress exists for a school district, intermediate school district, or public school academy based on financial data and analysis, and to notify the governing body and require an administrative review contract with an intermediate school district within 60 days.

• Requires the intermediate school district to complete a comprehensive administrative review within 90 days including examination of financial practices, staffing, wages, benefits, facility utilization, transportation costs, and bargaining agreements.

• Establishes that school districts and public school academies must submit periodic financial status reports to the State Treasurer if fiscal stress is declared and no administrative review contract is established within required timeframes.

• Requires notification to all public school academies operated by the same educational management organization if one academy receives a fiscal stress notice, and allows authorizing bodies to perform administrative reviews as an alternative to intermediate school districts.