SB 1262: Education finance: community colleges: general fund balance.

Official summary

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

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain.

This bill would prohibit, commencing with the 2027–28 fiscal year, a community college district’s annual unrestricted general fund balance, as specified, for a fiscal year from exceeding 50% of its unrestricted general fund expenditures for that year, unless the community college district meets specified conditions. The bill would prohibit a community college district from transferring unrestricted general funds to another fund if the receiving fund has an existing balance of 33% or more of the community college district’s unrestricted general fund expenditures for that fiscal year or if the transfer would cause the receiving fund to have a balance of 33% or more of the community college district’s unrestricted general fund expenditures for that fiscal year. For a community college district that violates the above-described prohibitions, the bill would require the community college district to distribute the amount of the annual unrestricted general fund balance that exceeds 50% to nonsupervisory and nonmanagement employees of the community college district, as provided. To the extent that the bill would impose new duties on community college districts, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“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. May 14, 2026May 14 hearing: Held in committee and under submission.
2. May 8, 2026Set for hearing May 14.
3. April 20, 2026April 20 hearing: Placed on APPR. suspense file.
4. April 10, 2026Set for hearing April 20.
5. April 8, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3791.) (April 8). Re-referred to Com. on APPR.
6. March 23, 2026Set for hearing April 8.
7. March 4, 2026Referred to Com. on ED.
8. February 20, 2026From printer. May be acted upon on or after March 22.
9. February 19, 2026Introduced. Read first time. To Com. on RLS. for assignment. To print.