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LAW CODE


California Code
EDUCATION CODE
SECTION 42600-42606




42600. The total amount budgeted as the proposed expenditure of the
school district for each major classification of school district
expenditures listed in the school district budget forms prescribed by
the Superintendent of Public Instruction shall be the maximum amount
which may be expended for that classification of expenditures for
the school year. Transfers may be made from the designated fund
balance or the unappropriated fund balance to any expenditure
classification or between expenditure classifications at any time by
written resolution of the board of education of any school district
governed by a board of education, when filed with the county
superintendent of schools and the county auditor, or by written
resolution of the board of trustees of any school district not
governed by a board of education, when approved by the county
superintendent of schools and filed with the county auditor. A
resolution providing for the transfers specified in this section
shall be approved by a majority vote of the members of the governing
board. Nothing in this section shall be construed as affecting
Sections 42204 and 85112.



42601. At the close of any school year a school district may, with
the approval of the governing board, identify and request the county
superintendent of schools to make the transfers between the
designated fund balance or the unappropriated fund balance and any
expenditure classification or classifications, or balance any
expenditure classifications of the budget of the district for that
school year as necessary to permit the payment of obligations of the
district incurred during that school year. For each elementary, high
school, and unified school district that, during the preceding school
year, had an average daily attendance less than the level, as
appropriate, specified in subdivision (a) of Section 41301, the
county superintendent of schools, with the consent of the governing
board of the school district, may identify and make the transfers,
and shall so notify the districts.



42602. Notwithstanding the provisions of Sections 42600 and 42610
or any provision of this code to the contrary, the governing board of
any school district may, by a majority vote of its membership, and
with the approval of the county superintendent of schools, budget and
use any unbudgeted income provided during the fiscal year from any
source.



42603. The governing board of any school district may direct that
moneys held in any fund or account may be temporarily transferred to
another fund or account of the district for payment of obligations.
The transfer shall be accounted for as temporary borrowing between
funds or accounts and shall not be available for appropriation or be
considered income to the borrowing fund or account. Amounts
transferred shall be repaid either in the same fiscal year, or in the
following fiscal year if the transfer takes place within the final
120 calendar days of a fiscal year. Borrowing shall occur only when
the fund or account receiving the money will earn sufficient income,
during the current fiscal year, to repay the amount transferred. No
more than 75 percent of the maximum of moneys held in any fund or
account during a current fiscal year may be transferred.



42604. Notwithstanding any other provisions of law, the computation
of reimbursement for the costs of attendance specified in
contractual agreements through which educational services are
provided by other than the district or county in which a pupil
resides shall be based on the revenue per average daily attendance
received by the school district or county in which the pupil resides
rather than the computed revenue limit or foundation program per
average daily attendance of the district or county of residence.



42605. (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2014-15 fiscal year, inclusive, recipients of funds from the
items listed in paragraph (2) may use funding received, pursuant to
subdivision (b), from any of these items listed in paragraph (2) that
are contained in an annual Budget Act, for any educational purpose.
(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section 2.00.
(b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a).
(2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
Notwithstanding paragraph (1), for the 2008-09 fiscal year to the
2014-15 fiscal year, inclusive, a school district that receives
funding on behalf of a charter school pursuant to Sections 47634.1
and 47651 shall continue to distribute the funds to those charter
schools based on the relative proportion that the school district
distributed in the 2007-08 fiscal year, and shall adjust those
amounts to reflect changes in charter school attendance in the
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a). For a charter school that began operation in the
2008-09 fiscal year, if a school district received funding on behalf
of that charter school pursuant to Sections 47634.1 and 47651, the
school district shall continue to distribute the funds to that
charter school based on the relative proportion that the school
district distributed in the 2008-09 fiscal year and shall adjust the
amount of those funds to reflect changes in charter school attendance
in the district. The amounts allocated shall be adjusted for any
greater or lesser amount appropriated for the items enumerated in
paragraph (2) of subdivision (a).
(3) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
(4) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts provided in the annual Budget Act an
amount to a school district, charter school, and county office of
education based on the same relative proportion that the local
educational agency received in the 2007-08 fiscal year for the
programs funded through the following items contained in Section 2.00
of the annual Budget Act: 6110-104-0001, 6110-105-0001,
6110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
6110-198-0001, 6110-232-0001, and Schedule (2) of 6110-240-0001.
(5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
(c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
(2) As a condition of receipt of funds, the governing board of the
school district or board of the county office of education, as
appropriate, at a regularly scheduled open public hearing shall take
testimony from the public, discuss, approve or disapprove the
proposed use of funding, and make explicit for each of the budget
items in paragraph (2) of subdivision (a) the purposes for which the
funds will be used.
(3) Using the Standardized Account Code Structure reporting
process, a local educational agency shall report expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect and provide this
information to the Department of Finance and the appropriate policy
and budget committees of the Legislature by April 15, 2010, and
annually thereafter on April 15 until, and including, April 15, 2016.
(d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
inclusive, local educational agencies that use the flexibility
provision of this section shall be deemed to be in compliance with
the program and funding requirements contained in statutory,
regulatory, and provisional language, associated with the items
enumerated in subdivision (a).
(e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
(1) For Item 6110-105-0001 of Section 2.00 of the annual Budget
Act, the amount authorized for flexibility shall exclude the funding
provided to fund remedial educational services pursuant to Provision
4. For Item 6110-156-0001 of Section 2.00 of the annual Budget Act,
the amount authorized for flexibility shall exclude the funding
provided for instruction of CalWORKs-eligible students pursuant to
Schedules (2) and (3) and Provisions 2 and 4.
(2) (A) Any instructional materials purchased by a local
educational agency shall be the materials adopted by the state board
for kindergarten and grades 1 to 8, inclusive, and for grades 9 to
12, inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
(B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119 and that all pupils
within the local educational agency who are enrolled in the same
course shall have identical textbooks and instructional materials, as
specified in Section 1240.3.
(3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
(4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
(5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
(f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.



42606. (a) To the extent funds are provided, for the 2010-11 to the
2014-15 fiscal years, inclusive, the Superintendent shall allocate a
supplemental categorical block grant to a charter school that began
operation during or after the 2008-09 fiscal year. These supplemental
categorical block grant funds may be used for any educational
purpose. Commencing in the 2011-12 fiscal year, a locally or direct
funded charter school that converted from a preexisting school
between the 2008-09 and 2014-15 fiscal years, inclusive, is not
eligible for funding specified in this section. A charter school that
receives funding pursuant to this subdivision shall not receive
additional funding for programs specified in paragraph (2) of
subdivision (a) of Section 42605, with the exception of the program
funded pursuant to Item 6110-211-0001 of Section 2.00 of the annual
Budget Act.
(b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127) per
unit of charter school average daily attendance as determined at the
2010-11 second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. A locally funded
charter school that converted from a preexisting school during or
after the 2008-09 fiscal year is not eligible for funding specified
in this section.
(2) For the 2011-12 to the 2014-15 fiscal years, inclusive, the
supplemental categorical block grant shall equal one hundred
twenty-seven dollars ($127) per unit of charter school average daily
attendance as determined at the current year second principal
apportionment for charter schools commencing operations during or
after the 2008-09 fiscal year. In lieu of this supplemental grant, a
school district shall provide new conversion charter schools that
commenced operations within the district during or after the 2008-09
fiscal year, one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the current
year second principal apportionment. This paragraph does not preclude
a school district and a new conversion charter school from
negotiating an alternative funding rate. Absent agreement from both
parties on an alternative rate, the school district shall be
obligated to provide funding at the one hundred twenty-seven dollars
($127) per average daily attendance rate.



 




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