BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 442
                                                                  Page  1

          Date of Hearing: May 7, 2003

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                AB 442 (Richman) - As Introduced:  February 14, 2003 

          Policy Committee:                              EducationVote:9-1

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires each school district budget, beginning with  
          the 2005-06 fiscal year, to include a specified summary  
          available to the public and, at a minimum, distribute it at  
          public hearings.  
          The summary shall include 11 specified items including:

           Itemized detail of the actual expenditures for the immediate  
            prior fiscal year and proposed current expenditures on  
            salaries, benefits, incentive bonuses, expenses, or other  
            forms of remuneration paid to certificated staff, including  
            administrators, pupil services personnel, teachers, classified  
            staff, office workers, paraprofessionals, clerical employees,  
            and others.

           The actual expenditures in the immediate prior fiscal year,  
            proposed current year expenditures, and the percentage of any  
            increase or decrease budgeted for the current fiscal year,  
            segregated by type of credential for salaries and benefits  
            paid to employees assigned to classroom within the school  
            district.

           FISCAL EFFECT  

          Annual reimbursable costs to school districts probably in excess  
          of $200,000.  This assumes districts incur at least $200 in  
          additional costs to comply with the provisions of this measure.

           COMMENTS  

           1)Rationale  . According to the author, "This bill provides for a  
            transparent disclosure of how school districts spend their  








                                                                  AB 442
                                                                  Page  2

            funds in a way the average person can understand.  It will  
            require school districts to develop a summary of their budget,  
            comparing the amount of funds spent on instruction,  
            administration and overhead from the past year to the proposed  
            budget year in an uncomplicated executive summary of the  
            budget. "

           2)Current law  requires the governing board of a school district  
            to approve an annual statement of all receipts and  
            expenditures of the district for the preceding fiscal year and  
            to file the statement with the county superintendent of  
            schools.

           3)Legislative history  .   In 2002, a similar measure AB 2512  
            (Richman) was held on this committee's suspense file.


           Analysis Prepared by  : Daniel Alvarez / APPR. / (916) 319-2081