AB 121: Education finance: education omnibus budget trailer bill.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law requires a county board of education, on or before July 1 of each fiscal year, to adopt an annual budget for the budget year and file the budget with the Superintendent of Public Instruction, the county board of supervisors, and the county auditor. Existing law requires the Superintendent to examine the budget and, on or before September 15, approve, conditionally approve, or disapprove the budget, as specified. Under existing law, in the event of the conditional approval or disapproval of the budget of a county office of education, the county superintendent of schools and the county board of education are required, on or before October 8, to review and respond to the Superintendent’s recommendations, including any revisions to the adopted budget and other proposed actions to be taken, if any, as a result of those recommendations, as provided.

This bill would require the Superintendent to, in addition to examining the budget of a county office education, review and consider studies, reports, evaluations, or audits of the county office of education that were commissioned by specified entities that contain evidence that the county office of education is showing fiscal distress according to specified standards and criteria or that contain a finding by an external reviewer that the county office of education is at moderate or high risk of intervention, as provided. The bill would additionally authorize the Superintendent to conditionally approve or disapprove a budget that does not provide adequate assurance that the county office of education will meet its current and future obligations and resolve any problems identified in the studies, reports, evaluations, or audits, as specified.

(2)Existing law requires the Superintendent to notify the county board of education and the county superintendent of schools in writing if the Superintendent determines that a county office of education will be unable to meet its financial obligations for the current or subsequent fiscal year, as provided. If the Superintendent makes that determination or if the county office of education has a negative certification, existing law requires the Superintendent to, as necessary to enable the county office of education to meet its financial obligations, take one or more specified actions. Existing law requires a county office of education to pay 75% of fees charged by the Superintendent for administrative expenses incurred for undertaking the required actions or for costs associated with improving the county office of education’s financial management practices and requires the other 25% to be covered by the Superintendent.

This bill would revise certain provisions related to the above-described requirements, including, among other things, by requiring the Superintendent to additionally notify the president of the State Board of Education, or the president’s designee, if the Superintendent determines that a county office of education will be unable to meet its financial obligations, as provided, including if a county office of education experiences a significant fiscal event that is determined by the Superintendent to have an immediate severe fiscal impact that will cause a county office of education to be unable to meet its financial obligations for the current or subsequent fiscal year. The bill would revise and recast the provision related to fees and costs to instead require a county office of education to pay 75% of, and the Superintendent to pay 25% of, specified administrative expenses incurred or costs associated with improving the county office of education’s financial management practices.

(3)Existing law establishes the California Prekindergarten Planning and Implementation Grant Program as a state early learning initiative with the goal of expanding access to classroom-based prekindergarten programs. Existing law appropriates $300,000,000 from the General Fund to the State Department of Education in both the 2021–22 fiscal year and the 2022–23 fiscal year for allocation to local educational agencies as base grants, enrollment grants, and supplemental grants, as specified. Existing law authorizes the department to allocate or prorate unexpended funds returned by or collected from a grant recipient for grants to local educational agencies for costs associated with the educational expenses of current and future California state preschool program, transitional kindergarten, and kindergarten professionals that support their attainment of required credentials, permits, or professional development in early childhood instruction or child development, including developing competencies in serving inclusive classrooms and dual language learners, as provided.

This bill would extend the encumbrance, expenditure, and reversion periods for those grant funds, as specified, thereby making an appropriation.

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 27, 2025Chaptered by Secretary of State - Chapter 8, Statutes of 2025.
2. June 27, 2025Approved by the Governor.
3. June 27, 2025Enrolled and presented to the Governor at 3:15 p.m.
4. June 27, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 70. Noes 0. Page 2334.).
5. June 27, 2025Assembly Rule 63 suspended. (Ayes 54. Noes 19. Page 2329.)
6. June 27, 2025In Assembly. Concurrence in Senate amendments pending.
7. June 27, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 32. Noes 1. Page 1805.).
8. June 26, 2025Read second time. Ordered to third reading.
9. June 25, 2025From committee: Do pass. (Ayes 13. Noes 0.) (June 25).
10. June 24, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
11. April 2, 2025Referred to Com. on B. & F. R.
12. March 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.