ARMONA, California, (December 13, 2014) – Armona Union Elementary School District adopted a resolution on the local cap that calls upon the Legislature and Governor to immediately repeal or substantially change the language contained in Sec 27 of SB 858 and Education Code 42127.01.

On June 20, 2014, the Governor Brown signed SB 858 (Committee on Budget and Fiscal Review, Chapter 32, Statutes of 2014), which will require school districts to spend their assigned and unassigned account balances down to no more than two to three times the minimum level of the statutory reserve for economic uncertainties (depending on district size) in the fiscal year following the fiscal year in which the State of California makes a payment of any amount to the Public School System Stabilization Account (referred to as the Prop 98 Reserve).

The statutory minimum for school district reserves for economic uncertainties ranges from 1 to 5 percent, depending on the district enrollment, and covers a few days to a couple of weeks of payroll, or less than 20 days of total cash flow. Reserves and ending balances help districts in bad economic times and allow them in good times to plan ahead for large expenditures such as maintenance projects, heating and air conditioning, roof replacement, school bus replacement, technology and textbook purchases.

“Section 27 of SB 858, now in Education Cod 42127.01, needs to be repealed. As the state’s distribution of funds to schools has been overhauled and greater authority provided to local school boards through the implementation of the Local Control Funding Formula, this legislative language runs in the opposite direction and weakens the financial position of school districts across the state, including the Armona Union Elementary School District,” said Dr. Xavier Piña, the District Superintendent. “With the LCFF not yet fully implemented, many school districts are still funded below their 2007-2008 levels, and districts cannot survive another downturn without fiscally responsible reserves.”

The Armona Union Elementary School District has maintained approximately 25% in reserves, as of June 30, 2014, for expansion purposes of facilities and installation of additional classrooms at Armona Elementary School due to new housing developments in the community, building maintenance by replacing the roofing on all permanent buildings and construction of new staff parking lot at Armona Elementary School. The Armona District has also set aside funds aside to provide teachers with relevant and rigorous supplemental materials to implement the Common Core Standards. In the future, the Armona School District will also look to purchase textbooks aligned to Common Core Standards. With the implementation of Common Core Standards, Armona is making technology improvements to help students become college and career ready. Additionally, Armona is committed to setting aside funds for increasing retirement contributions paid by employer.