Subchapter 9. Criteria and Standards for County Office of Education Budgets and Interim Reports. Budget Review. Note: For fiscal responsibility of County Superintendents. Supplemental Information.
(a) County offices of education shall provide supplemental information in the following general areas:
(1) Provide the methodology and assumptions used to estimate ADA, enrollment, revenues, expenditures, reserves and fund balance, and multiyear commitments (including cost-of-living adjustments).
(2) Provide information on additional indicators as requested.
(b) County offices of education shall provide supplemental information in the following specific areas:
(1) Contingent Liabilities. Identify any known or contingent liabilities from financial or program audits, state compliance reviews, litigation, etc., that may impact the budget.
(2) Use of One-time Revenues for Ongoing Expenditures. Identify any ongoing county school service fund expenditures in excess of one percent of the total county school service fund expenditures that are funded with one-time resources in the budget year, and explain how the one-time resources will be replaced to continue funding the ongoing expenditures in the following fiscal years.
(3) Use of Ongoing Revenues for One-time Expenditures. Identify any large nonrecurring county school service fund expenditures that are funded with ongoing county school service fund revenues.
(4) Contingent Revenues. Identify projected revenues for the budget year and two subsequent fiscal years that are contingent on reauthorization by the local government, special legislation, or other definitive act (e.g. parcel taxes). If any of these revenues are dedicated for ongoing expenses, explain how the revenues will be replaced or the expenditures reduced.
(5) Contributions. Provide information regarding contributions as follows:
(A) Identify projected contributions from unrestricted resources in the county school service fund to restricted resources in the county school service fund for the budget year and two subsequent fiscal years. Provide an explanation if contributions have changed from prior fiscal year amounts by more than $20,000 and more than ten percent. An explanation should include whether contributions are ongoing or one-time in nature.
(B) Identify projected transfers to or from the county school service fund to cover operating deficits in either the county school service fund or any other fund for the budget year and two subsequent fiscal years. Provide an explanation if transfers have changed from the prior year amounts by more than $20,000 and more than ten percent. An explanation should include whether transfers are ongoing or one-time in nature.
(C) Estimate the impact of any capital projects on the county school service fund operational budget.
(6) Long-term Commitments. Provide information regarding long-term commitments as follows:
(A) Identify all existing and new multiyear commitments (include multiyear commitments, multiyear debt agreements, and new programs or contracts that result in long-term obligations) and their annual required payment for the budget year and two subsequent fiscal years.
(B) Explain how any increase in annual payments will be funded. Also explain how any decrease to funding sources used to pay long-term commitments will be replaced.
(7) Unfunded Liabilities. Provide information regarding unfunded liabilities as follows:
(A) Estimate the unfunded liability for post employment benefits other than pensions (OPEB) based on an actuarial valuation, if required, or other method; identify or estimate the annual required contribution; and indicate how the obligation is funded (pay-as-you-go, amortized over a specific period, etc.).
(B) Estimate the unfunded liability for self-insurance programs such as workers' compensation based on an actuarial valuation, if required, or other method; identify or estimate the required contribution; and indicate how the obligation is funded (level of risk retained, funding approach, etc.).
(8) Analyze the status of labor agreements, including the following:
(A) Identify new labor agreements, as well as new commitments provided as part of previously ratified multiyear agreements; and include all contracts, including all administrator contracts (and including all compensation). For new agreements, indicate the date of the required board meeting.
(B) Compare the increase in new commitments to the projected increase in ongoing revenues, and explain how these commitments will be funded in future fiscal years.
(C) If salary and benefit negotiations are not finalized at budget adoption, upon settlement with certificated or classified staff:
1 The county office must determine the cost of the settlement, including salaries, benefits, and any other agreements that change costs, and provide the California Department of Education (CDE) with an analysis of the cost of the settlement and its impact on the operating budget.
2 The CDE shall review the analysis relative to the criteria and standards, and may provide written comments to the president of the governing board and the county superintendent of schools.
(9) Local Control and Accountability Plan (LCAP). Confirm that the county office's governing board has adopted an LCAP or approved an update to the LCAP effective for the budget year.
(10) LCAP Expenditures. Confirm that the budget includes the expenditures necessary to implement the LCAP or annual update to the LCAP.
Education Code 1621
Education Code 1622
Education Code 1623
Education Code 33127
Education Code 33129
Education Code 33128
Education Code 52068
Government Code 3540.2
Government Code 3547.5
(Amended by Register 2013, No. 49.)