reconvene regular meeting: 7:00 pm - Irvine Unified School District

State can control its cash resources with more certainty and avoid issuance of IOUs, as occurred in July
2009. ABx8 14 will provide the State with authority to impose cash payment deferrals on, among others,
K-12 school districts, community college districts, county offices of education, the California State
University system, the University of California, cities and counties. In accordance with ABx8 14, the State
Department of Finance notified K-12 districts that it would defer the apportionments for July 2010,
October 2010 and March 2011 by up to 60 days, 90 days and 30 days, respectively. The aggregate amount
of such deferrals may not exceed $2.5 billion at any given time. ABx8 14 will not change the ongoing
cross-fiscal year cash deferrals to school districts in the State as described above.
Changes in State Budget; Future State Budgets. No prediction can be made by the Participants
regarding the future budgets, as implemented by the adoption of appropriation bills, its effect on the
Participants or the actions taken in the future by the State Legislature and the Governor to deal with
changing State revenues and expenditures.
No prediction can be made by the Participants as to whether the State will encounter further
budgetary problems in this or in any future fiscal years, and if it were to do so, it is not clear what measures
would be taken by the State to balance its budget, as required by law. In addition, the Participants cannot
predict the final outcome of future State budget negotiations, the impact that such budgets will have on its
finances and operations or what actions will be taken in the future by the State Legislature and Governor to
deal with changing State revenues and expenditures. Current and future State budgets will be affected by
national and State economic conditions and other factors over which the Participants have no control.
Budgets of Participants
The fiscal year for all California school districts begins on the first day of July of each year and
ends on the thirtieth day of June of the following year. On or before July 1 of each year, the governing
board of each school district, including the Participants, is required to file an adopted budget with the
County Superintendent of Schools. On or before August 15, the County Superintendent of Schools is
required to examine and approve or disapprove the adopted budgets. If disapproved, then on or before
September 8 such school districts and the County Superintendent of Schools must make certain revisions
to the budgets, adopt the revised budgets and file the revised budgets with the County Superintendent of
Schools.
In the event the revised budget of a school district is disapproved, the County Superintendent of
Schools is empowered by law to oversee the management of such school district for that fiscal year, with
the authority to monitor and review the operation of such district, to develop and adopt a fiscal plan and
budget for such district and to stay and rescind actions that are inconsistent with that budget.
The governing board of each school district must certify to the County Department of Education,
and the county superintendent must certify to the County Board of Education and the State, whether or not
such school district is able to meet its financial obligations for the remainder of the fiscal year and, based
on current forecasts, for the subsequent fiscal year. The certifications shall be classified as positive,
qualified or negative. A positive certification is to be assigned to any school district that is projected to
meet its financial obligations for the current fiscal year and subsequent two fiscal years, a qualified
certification is to be assigned to any school district that is not projected to meet its financial obligations for
the current fiscal year or subsequent two fiscal years and a negative certification is to be assigned to any
school district that likely will be unable to meet its financial obligations subject to certain qualifications for
the remainder of the fiscal year or the subsequent fiscal year. If a county office of education receives a
positive certification when it determines a negative or qualified certification should have been filed with
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22314.4 033985 POS