School District Budgeting. Administrative Costs.

SCHOOL DISTRICT BUDGETING. ADMINISTRATIVE COSTS. INITIATIVE STATUTE. This measure amends the Education Code to require school districts to allocate and expend funds to provide the best student education. It requires districts to adopt budgets based on student needs, publish percentage of budget expended on administrative costs, hold hearings on percentage, and identify factors causing an above average percentage. The Department of Education must report statewide averages. Districts may choose, as alternative to this measure\u27s requirements, the budgeting requirements of the California Educational Efficiency Act, an initiative measure on the June 1998 statewide Primary Election ballot, if voters pass that act. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Relative to current law, the measure would impose minor annual costs on school districts and the state to meet the reporting and public hearing requirements of the alternative budget adoption process. If the California Educational Efficiency Act were to pass in June 1998, this measure would allow districts spending above the 5 percent administration cap to continue to do so (if they choose) by using the alternative budget adoption process. Currently, almost all districts report spending above that cap, by an amount in excess of $500 million statewide