Governor Schwarzenegger signed into law Assembly Bill 2756, by Assemblywoman Lynn Daucher (R-Brea), which will inject greater accountability into the school district budgeting process.
"Every legislator I've talked with shares my concerns about the need to do all we can to prevent school district bankruptcies," Daucher said. "Not only are district bankruptcies very disruptive to our school children, but the emergency loans that the Legislature has approved in the past have also required millions of general fund dollars that otherwise could have been used for other state priorities."
Specifically, AB 2756 builds upon the existing school district budgeting and fiscal oversight process, commonly referred to as the AB 1200 system.
It helps districts manage their resources wisely, to avoid fiscal problems, in the first place, identify developing fiscal problems early when they do occur and correct fiscal problems before they beecome fiscal crises.
AB 2756 also improves procedures and clarifies roles for the rare instances when school district emergency leans become necessary for financially insolvent school districts.
In his bill signing message Governor Schwarzenegger noted his thanks to "Assembly Member Daucher for carrying, and the legislature for promtly enacting, this administration sponsored bill." The Governor also stated his belief that AB 2756's "emphasis on accountability and increased sunshining of the school financial situations will lead to improved fiscal practices and greater fiscal stability for school idstricts throughout California."
"AB 2756 was truly a group effort," said Daucher. "We spent months working closely with the educational community, the adminstration, Education Secretary Riordan's office, Superintendent of Pulic Instruction O'Connell's office, and a number of Republican and Democrat legislators."
"AB 2756 became a much better bill as a result of their input, and I thank them for their insights and commitment."
Assemblywoman Lynn Daucher represents the 72nd Assembly District, including the cities of Brea, Fullerton, Placentia, Anaheim, La Habra, Orange and Yorba Linda.