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 Bill Text - AB-121 Education finance: education omnibus budget trailer bill.

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 |Add To My Favorites |Track Bill | Version: 06/27/25 - Chaptered
 06/27/25 - Enrolled
 06/24/25 - Amended Senate
 01/08/25 - Introduced

 AB-121 Education finance: education omnibus budget trailer bill.(2025-2026)

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 Date Published: 06/30/2025 09:00 PM

AB121:v96#DOCUMENTBill Start

 Assembly Bill

 No. 121

 CHAPTER 8

An act to amend Sections 1622, 1623, 1630, 8281.5, 8320, 8337, 8902, 14041.5, 14041.6, 14041.8, 32526, 41020.2, 41203.1, 41344.1, 41490, 41601, 42127.1, 42127.6, 42128, 42129, 42238.01, 42238.016, 42238.02, 44258.9, 44283, 44395, 46120, 46211, 46392, 48000.1, 48857, 51225.3, 51284.5, 52064.5, 56836.168, 60151, and 66032.2 of, to add Sections 1631, 17037, 17075.11, 33319.6, 41011.1, 42238.017, 42252.1, 44283.1, 44415.8, 48004, 49506.5, 52065.1, 52073.4, and 53009 to, to add Article 13.5 (commencing with Section 44400) to Chapter 2 of Part 25 of Division 3 of Title 2 of, and to repeal Section 42120 of, the Education Code, to amend Sections 17581.6 and 66007 of the Government Code, to amend Sections 137 and 152 of
 Chapter 44 of the Statutes of 2021, to amend Sections 121, 126, and 132 of Chapter 52 of the Statutes of 2022, to amend Section 108 of Chapter 48 of the Statutes of 2023, to amend Section 110 of Chapter 38 of the Statutes of 2024, to repeal Section 112 of Chapter 38 of the Statutes of 2024, to amend the Budget Act of 2017 (Chapter 14 of the Statutes of 2017) by amending Item 6100-139-8080 of Section 2.00 of that act, to amend the Budget Act of 2021 (Chapters 21, 69, and 240 of the Statutes of 2021) by amending Items 6100-001-0001 and 7760-101-0001 of Section 2.00 of that act, and to amend the Budget Act of 2024 (Chapters 22, 35, and 994 of the Statutes of 2024) by amending Item 6100-001-0001 of Section 2.00 of that act, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.

 [
 Approved by

 Governor
 June 27, 2025.

 Filed with

 Secretary of State
 June 27, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

AB 121, Committee on Budget.
 Education finance: education omnibus budget trailer bill.

(1) Existing law requires a county board of education, on or before July 1 of each fiscal year, to adopt an annual budget for the budget year and file the budget with the Superintendent of Public Instruction, the county board of supervisors, and the county auditor. Existing law requires the Superintendent to examine the budget and, on or before September 15, approve, conditionally approve, or disapprove the budget, as specified. Under existing law, in the event of the conditional approval or disapproval of the budget of a county office of education, the county superintendent of schools and the county board of education are required, on or before October 8, to review and respond to the Superintendent’s recommendations, including any revisions to the adopted budget and other proposed
 actions to be taken, if any, as a result of those recommendations, as provided.

This bill would require the Superintendent to, in addition to examining the budget of a county office education, review and consider studies, reports, evaluations, or audits of the county office of education that were commissioned by specified entities that contain evidence that the county office of education is showing fiscal distress according to specified standards and criteria or that contain a finding by an external reviewer that the county office of education is at moderate or high risk of intervention, as provided. The bill would additionally authorize the Superintendent to conditionally approve or disapprove a budget that does not provide adequate assurance that the county office of education will meet its current and future obligations and resolve any problems identified in the studies, reports, evaluations, or audits, as specified.

(2) Existing law requires the Superintendent to notify the county board of education and the county superintendent of schools in writing if the Superintendent determines that a county office of education will be unable to meet its financial obligations for the current or subsequent fiscal year, as provided. If the Superintendent makes that determination or if the county office of education has a negative certification, existing law requires the Superintendent to, as necessary to enable t