Selected policies and procedures in the administration of California school district budgets
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SELECTED POLICIES M D PROCEDURES IN TEE ADMINISTRATION OF CALIFORNIA SCHOOL DISTRICT BUDGETS
A D is s e rta tio n P re s e n te d to t h e F a c u l t y o f t h e S c h o o l o f E d u c a tio n U n i v e r s i t y o f S o u th e r n C a l i f o r n i a
In P a r t i a l F u lf illm e n t o f t h e R e q u ire m e n ts f o r t h e D e g re e D o c to r o f E d u c a tio n
by F r a n k Moore W rig h t Ju n e 1 9 5 0
UMI Number: DP25795
All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.
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This dissertation, written under the direction of the Chairman of the candidatefs Guidance C o m m itt ee and a p p r o v e d by all me mbers of the Co mm itt ee, has been presented to and acce pted by the Fa culty of the Sch o ol of Educa tion in parti al fulfillment of the requirements fo r the degree of D o c t o r of Education. Date...
Dean Guidance Committee
TABLE OF CONTENTS CHAPTER
I.
PAGE
THE P R O B L E M .................... . ..................................... S t a t e s y s te m o f e d u c a t i o n
1
• • • • • . • • •
F in a n c ia l a d m in is tr a tio n . .
1
..............................
S ta te m e n t o f t h e p ro b le m . . . . . . . . . .
3
P u rp o s e o f t h e s t u d y ....................
. . . . . . .
5
. . . . .
5
P ro c e d u re o f s tu d y
G e n e r a l p l a n o f s t u d y .............................
5
S u rv e y o f l i t e r a t u r e
6—
............................
—. A n a l y s i s o f d i s t r i c t b u d g e t s ............................. C o u n ty s u p e r i n t e n d e n t s *
q u e s tio n n a ire
D i s t r i c t s u p e rin te n d e n ts * P e rs o n a l in te rv ie w s
. . .
q u e s tio n n a ire
. . . . . .
.
7 — 7
. .
9
..........................
10
A n a l y s i s o f m a t e r i a l ................................................
11
M ethod o f c o m p u ta tio n
12
. . . . . .
....................
Q u o t a ti o n s fro m t h e E d u c a ti o n Code . . . . . S u m m a r y ................................................ II.
2
.
13
. .
14
.............................................
14
AUTHORIZATION FOR SCHOOL DISTRICT BUDGETS Im p o rta n c e o f
budget.
E m ploym ent o f
sc h o o l s u p e rin te n d e n ts . . . .
—F i l i n g d i s t r i c t b u d g e t
12 -
.................................
15 16
B u d g et a p p ro v e d b y c o u n ty s u p e r i n t e n d e n t .
17
D is tr ic t re s p o n s ib ility
18
iv CHAPTER
'PAGE
S t a t e a n d c o u n ty r e s p o n s i b i l i t y B u d g e t fo rm
. . . . •
. . . . . V .................................. . .
20
S u m m a r y ................................................ ............................ .... III.
19
22
ANALYSIS OP BUDGETING SCHOOL DISTRICT INCOME .........................
..................................
24
P r e p a r a t i o n o f b u d g e t ..................................
24
\ L e g a l p r o c e d u r e ........................ .................................
24
R e s p o n s i b i l i t y o f g o v e r n in g b o a r d
25
. . . .
S o u rc e s o f i n c o m e ................................................ ....
28^
............................................
29
.................................. ....
29
Incom e fro m u n s e c u r e d p r o p e r t y • • • • •
31
Ite m s o f incom e ^ T a x e s on p r o p e r t y
.
L i s t i n g a n t i c i p a t e d incom e • • • • • • . .
32
C o l l e c t i o n o f u n s e c u r e d incom e .........................
34
C o u n ty p o l i c y ..................................
38 \
E ffe c t o f n o t lis tin g
39
ineom e . . . . . . .
D i s p o s i t i o n o f e x t r a ineom e
• • • • • • •
40
A s s e s s m e n ts i n r e l a t i o n t o i n c o m e .................... • • • •
S e c u re d p r o p e r t y
42 42
U n s e c u re d p r o p e r t y • ........................
43
E q u a l iz e d a s s e s s m e n t r o l l ..................................
44
C o lle c tio n o f ta x e s
• • •
44
F ix in g th e ta x r a t e
• • • • • • • . • • •
Summary
................................................
•
46 .
50
V
CHAPTER IV .
PAGE
ANADTSIS GP BUDGETING FOR DISTRICT EXPENDITURES .........................................................................
54
The b u d g e t a s a n a c c o u n t i n g d e v i c e ....................
55
S u p p le m e n ta l w o rk s h e e t fo rm . ....................* •
56
D i s t r i c t p ro ce d u res
. . . .......................................
59
R e c o rd s m a i n t a i n e d by d i s t r i c t s ....................
61
Use o f t a x r a t e ......................... . ............................
62
Summary Y.
. ..................................
65
ANALYSIS OP ENDING BALANCES IND RESERVES . . . S o u rc e o f e n d in g b a l a n c e E x tra ta x c o l l e c t i o n s Incom e n o t l i s t e d
....................
67
• • • • • • • • . • •
67
• • • • • . . • • • . • •
69
U n d is trib u te d r e s e r v e G e n era l r e s e r v e
. . . . .
67
.
......................................
70
• • • • • • • • • • • • • *
70
✓
U nexpended b u d g e te d ite m s
.
71
O th e r i n c o m e ................................................
71
E n d in g a n d b e g in n i n g b a l a n c e s ..............................
71
F a c t o r s a f f e c t i n g s i z e o f n e t b a la n c e Amount o f e n d in g b a l a n c e ........................
. .
72
• • •
74
A d eq u acy o f b e g in n i n g b a l a n c e s ........................
90
Change i n b e g in n in g b a l a n c e s • • • • • • •
91
R e se rv e s P r o c e d u r e f o l lo w e d
. . . . . . .
98 100
Vi CHAPTER
PAGE U n d is trib u te d re s e rv e G e n e ra l r e s e r v e
.
.......................................
• • •
• .............................
T o ta l r e s e r v e s • • • • • • • • . . • •
108 117 118
R e l a t i o n s h i p b e tw e e n r e s e r v e s a n d e n d in g b a la n c e s
.............................
R e s e rv e f u n d s u s e d t o b a l a n c e b u d g e ts R e s e rv e s i n m a jo r c l a s s i f i c a t i o n s A s in g le re se rv e
. . . . .
126 127
. . . . . . ............................
Summary V I.
. . •
11 9 -r
129
.................................................... .
130
ADMINISTRATION OP FUNDS RAISED IN EXCESS OP STATUTORY LIMITATIONS E x c e e d in g t a x l i m i t s
....................
• • • • • • . . . • • .
Funds r a i s e d b y v o te d ta x
•
........................
. . . .
134 134
•
135
. . • . •
135
L egal a u th o rity
. . . .
Use o f v o t e d t a x
• • . • • • • • • . . • •
136
A d m i n i s t r a t i o n o f f u n d s exem pt fro m t a x ra te lim ita tio n
. . .
.
•
139
M eals f o r n e e d y c h i l d r e n
...................................
139
Use o f e x t r a f u n d s w i t h o u t v o t e . . • . R e tir e m e n t f u n d s B u d g e tin g e x t r a t a x f u n d s
. •
.............................. .
..............................
E n d in g b a l a n c e s f o r e x t r a f u n d s
. . . . •
A c c o u n tin g f o r e x t r a t a x f u n d s . . . . . .
139 140 142 142 144
v ii CHAPTER
PAGE C h i ld c a r e c e n t e r f u n d s ................................. . . Summary
V II.
.................... . . . .
146 146
BUDGET ADMINISTRATION BY THE COUNTY “ SUPERINTENDENT . . .
148 *
L e g a l r e s p o n s i b i l i t i e s o f c o u n ty s u p e rin te n d e n ts
. . . . . . .
.
148
A u t h o r i t y o f g o v e r n in g b o a r d . ............................ •
150
A s s is ta n c e to d i s t r i c t s
152
..
................................
B u d g e t p r e p a r a t i o n b y c o u n ty s u p e rin te n d e n ts
. . • • • • • • • . • •
157
L e g a l r e q u i r e m e n t s o f c o u n ty s u p e r i n t e n d e n t s ........................................... . . •
159
A c c u m u la tiv e b u i l d i n g f u n d * . ♦ ....................... •
161
O u ts ta n d in g l i a b i l i t i e s
163
. . • • • • • • . .
R e p o r ti n g p r i o r y e a r e x p e n d i t u r e s
. . . . . t P r o c e d u r e s f o l lo w e d t o m e e t d e f i c i t . . . .
166
M a jo r c l a s s i f i c a t i o n s
170
B u d g et t r a n s f e r s
............................
. ......................................................
S u m m a r y ..................................................... V III.
E x p e n d itu re s p r i o r to b u d g e t a d o p tio n
A ssessed v a lu a tio n s
. . . . . .
173 176
PROPOSALS FOR REVISION OF BUDGET ACT . . . . .
B udget p r e p a r a tio n
169
• . •
179 179
. . . . .
179
.......................
182
v iii CHAPTER
PAGE Good b u d g e t p r o c e d u r e
. . . . . . . . . . .
184
Chang© i n a v e r a g e d a i l y a t t e n d a n c e re p o rtin g y e a r . . . . . . . . . . . . . .
IX .
P ro p o sed b u d g e t p ro c e d u re
187
B u d g e t h e a r i n g ......................................
191
Summary
195
LEGAL INTERPRETATIONS OF BUDGET ACT
. . . . .
197
L ocal ru lin g s
• • • • • • • • ............................ .
198
S ta te ru lin g s
....................
199
. . . . . . . . . .
G e n e ra l r e s e r v e
. ....................................................
201
B udget t r a n s f e r s
•
206
A d o p tio n o f b u d g e t • .... • . • . . . B u d g et h e a r i n g s
. . . .
•
Summary
. •
. . . . . . . . . . . . . . . . . .
SUMMARY AND CON CLU SIO N S................................................. G e n era l c o n c lu s io n s
208 211
P e n a lty f o r v i o l a t i o n o f b u d g et a c t
X.
186
• • • • • • • . • • • •
212 214 217 218
I n f l u e n c e o f c o u n ty s u p e r i n t e n d e n t o f s c h o o l s ...........................................
218
A d m in is tra tiv e ly s tro n g d i s t r i c t s in d e p e n d e n t
•
C o n fu s io n i n t h e
. . • • • • • • • • • • •
220
E d u c a tio n C o d e .....................
221
R e v is io n o f s t a t e b u d g e t fo rm
. . . . . .
221
ix CHAPTER
PAGE A s s e s s m e n ts a n d t a x c o l l e c t i o n s
• . . • *
E lim in a tio n o f ta x r a t e l i m i t a t i o n S p e c if ic c o n c lu s io n s * . . . . . E s t i m a t i n g incom e
.
222
• • • •
223
.................... •
225
. . ......................................
226
S u p p le m e n ta l b re a k d o w n f o r m ......................... •
226
R e c o rd s m a i n t a i n e d b y d i s t r i c t s
. . . . .
227
. . . . . . .
228
• ....................
E n d in g b a l a n c e s
R e s e r v e s ............................................ . .............................
229
f a x e s ab o v e l e g a l l i m i t s
230
.......................................
A d m i n i s t r a t i o n o f b u d g e ts b y c o u n ty s u p e r i n t e n d e n t s ........................................... B udget t r a n s f e r s
........................
W ith h o ld in g o f a s s e s s e d v a l u a t i o n s
X I.
232 233
. . . .
235
Change i n b a s i c b u d g e t p r o c e d u r e . . . . .
236
L egal in te r p r e ta tio n o f le g is la tio n
. • •
237
.........................
239
RECOmiENDATIORS R eco m m en d atio n s i n p r o c e d u r e a n d a d m in is tra tio n Work s h e e t fo rm
...................................... ........................
240 240
E s t i m a t i n g incom e fro m u n s e c u r e d p ro p e rty • • • • • • • • • • • • • • • • C o n tr o l o f v o t e d t a x • • . • • • • • • • •
241 241
C o n tr o l o f f u n d s r a i s e d f o r s p e c i f i c p u rp o se s
.....................................................
242
PAGE
CHAPTER Chang© i n b u d g e t fo rm l i s t i n g p r i o r y e a r f s e x p e n d itu re s
. . . . . . . . . .
243
F ix e d C h a rg e s a n d F o o d S e r v i c e s ....................
243
B udget t r a n s f e r s
245
. .
. . . . . . .
A s s e s s e d v a l u a t i o n s t o be made a v a i l a b l e to sch o o l d i s t r i c t s A ssessm ent r o l l
. . . . • • • • . •
• • • • • • • .........................
Incom e i t e m s ..........................
. .
247 248
R e v is io n o f b u d g e t a c t
249
I n t e r p r e t a t i o n o f s c h o o l l a w .............................. R eco m m en d atio n s f o r f u t u r e s t u d y .........................
250 251X
U se o f a s s e s s m e n t r o l l . . . . . ....................
252
B u d g e t e x p e n d i t u r e s a n d i n c o m e .........................
252
B e g in n in g b a l a n c e s • • • • • *
.........................
253
A d eq u acy o f r e s e r v e s
.........................
253
E x tra ta x c o ll e c t io n s BIBLIOGRAPHY APPENDIX A .
246
• • • • • • • • • •
. ............................................ .... (1 ) Sam ple fo rm l e t t e r d a t e d N ovem ber 2 8 , 1 9 4 9 , fro m F ra n k M. W r ig h t, A s s o c i a t e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n o f t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a t i o n , t o t h e f i f t y - e i g h t C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls o f C a l i f o r n i a t r a n s m i t t i n g a q u e s t i o n n a i r e c o n c e r n in g t h e s u r v e y o f p r o c e d u r e s an d p o l i c i e s in d i s t r i c t budget a d m in is tra tio n
253 255
xi PAGE (2 ) Q u e s t i o n n a i r e : A S u rv e y o f P r o c e d u r e s a n d P o l i c i e s U sed i n C o n n e c tio n w i t h t h e A d m i n i s t r a t i o n o f S c h o o l D i s t r i c t B u d g e ts by C o u n ty S u p e r i n t e n d e n t s a n d C o u n ty O f f i c e s o f th e S ta te o f C a lif o r n ia • * . . . . APPENDIX B.
APPENDIX C.
APPENDIX D.
APPENDIX E .
APPENDIX F*
259
(1 ) Sam ple fo rm l e t t e r fro m P ra n k M. W r ig h t, A s s o c i a t e S u p e r i n t e n d e n t o f P u b lic I n s t r u c t i o n o f th e C a lif o r n ia S t a t e D e p a rtm e n t o f E d u c a t i o n , t o s i x t y - t h r e e s e l e c te d G ity S u p e r in te n d e n t s o f S c h o o ls o f C a l i f o r n i a t r a n s m i t t i n g a q u e s t i o n n a i r e c o n c e r n in g t h e s u r v e y I n c o n n e c ti o n w i t h t h e a d m in is tra tio n o f school d i s t r i c t b u d g e ts (2 ) Q u e s t i o n n a i r e : 4 S u rv e y o f P r o c e d u r e s a n d P o l i c i e s U sed i n C o n n e c tio n w i t h t h e P r e p a r a t i o n a n d A d m in is tra tio n o f S chool D i s t r i c t B u d g e ts b y P u b l i c S c h o o l A d m i n i s t r a t o r s a n d G o v e rn in g B o a rd s o f C a l i f o r n i a S c h o o l D i s t r i c t s .................................................
271
C a l i f o r n i a s c h o o l d i s t r i c t b u d g e t fo rm f o r t h e f i s c a l y e a r b e g in n i n g J u l y 1 , 1 9 4 9 , a n d e n d in g Ju n e 3 0 , 19 5 0 (Form No* J - 4 1 )
276
P r o p o s e d r e v i s i o n o f t h e incom e p o r t i o n f o r t h e g e n e r a l fu n d o f t h e s e h o o l d i s t r i c t b u d g e t fo rm f o r t h e c u r r e n t y e a r o n l y (A p r o p o s e d r e v i s i o n o f p a g e 3 o f Form No* J - 4 1 ) . ..........................
289
P r o p o s e d e x p e n d i t u r e b rea k d o w n fo rm (A p r o p o s e d s u p p le m e n t t o Form No* J - 4 1 ) .....................................................
291
. *
L e t t e r d a t e d J a n u a r y 2 4 , 1 9 5 0 , fro m A l f r e d E* L e n t z , A d m i n i s t r a t i v e A d v is e r f o r th e C a li f o r n ia S t a te D e p a rtm e n t o f E d u c a ti o n , t o F ra n k M.
x ii PAGE W r ig h t, A s s o c i a t e S u p e r i n t e n d e n t o f P u b lic I n s t r u c t i o n o f th e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , c o n c e r n in g a n i n t e r p r e t a t i o n o f v a r i o u s E d u c a ti o n Code s e c tio n s re g a rd in g sc h o o l d i s t r i c t b u d g e ts . ............................................ ....
298
BIST OP TABLES TABLE
I.
PAGE
Humber o f S c h o o l D i s t r i c t s G ro u p ed b y C o u n tie s W hich Made a n y R e f e r e n c e t o Incom e Prom U n s e c u re d P r o p e r t y i n t h e 1 9 4 9 -5 0 D i s t r i c t B u d g e t s .....................................................• •
II.
36
F r e q u e n c y D i s t r i b u t i o n o f Common P r a c t i c e s o r P r o c e d u r e s i n O rd e r o f Use E m ployed b y D i s t r i c t s i n P r e p a r i n g B u d g e ts a s R e p o rte d b y C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls w i t h I n v e r s e W e ig h tin g C o m p u t e d ..................................
III.
60
D i s t r i b u t i o n o f P e rc e n ta g e o f D i s t r i c t s W hich M a i n ta in R e a s o n a b ly A d e q u a te R e c o rd s Prom W hich D i s t r i c t E x p e n d i tu r e s Can be D e te rm in e d on t h e D i s t r i c t L e v e l a s R e p o r te d b y C o u n ty S u p e r i n t e n d e n t s o f S c h o o l s ......................................
IV .
63
The C o u n ty M edian a n d Mean P e r c e n t a g e s W hich t h e U n d i s t r i b u t e d , G e n e r a l an d T o ta l R e s e rv e s W ere o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 - 5 0 , a n d t h e P e r c e n ta g e W hich t h e E n d in g B a la n c e Was o f t h e T o t a l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 1 ,7 2 9 E le m e n ta r y S c h o o l D i s t r i c t s i n 53 C o u n tie s
75
x iv PAGE
T4BDE V.
The C o u n ty M edian a n d Mean P e r c e n t a g e s W hich t h e U n d i s t r i b u t e d , G e n e r a l a n d T o t a l R e s e rv e s W ere o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 - 5 0 , a n d t h e P e r c e n t a g e W hich t h e E n d in g B a la n c e Was o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 232 H ig h School D i s t r i c t s
VI*
i n 50 C o u n t i e s ................... .
77
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e E n d in g B a la n c e Was o f t h e T o ta l O utgo f o r 1 ,7 2 9 E le m e n ta r y S c h o o l D i s t r i c t B u d g e ts i n 53 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 8 -4 9 .................................
V II.
80
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e E n d in g B a la n c e Was o f t h e T o ta l O utgo f o r 232 H ig h S c h o o l D i s t r i c t B u d g e ts i n 50 C o u n tie s f o r t h e
V III.
F i s c a l Y e a r 1 9 4 9 -5 0
. . .
81
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e B u d g e te d R e s e rv e s Were o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 -5 0 a n d t h e P e r c e n t a g e t h e E n d in g B a la n c e f o r 1 9 4 8 -4 9 Was o f th e T o ta l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 1 ,7 2 9 E le m e n ta r y S c h o o l D is tr ic ts in C a lifo rn ia
82
XV
P&GB
T&BLE IX .
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n t a g e t h e B u d g e te d R e s e r v e s Were o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 -5 0 a n d t h e P e r c e n t a g e t h e E n d in g B a la n c e f o r 1 9 4 8 -4 9 Was o f t h e T o t a l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 232 H igh S c h o o l D i s t r i c t s in C a lifo rn ia
X.
..............................................................
84
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e B u d g e te d R e s e rv e s Were o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 -5 0 a n d t h e P e r c e n t a g e t h e E n d in g B a la n c e f o r 1 9 4 8 -4 9 Was o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 47 U n i f i e d S c h o o l D i s t r i c t s in C a lifo rn ia
X I.
.................................. • • • • •
86
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e B u d g e te d R e s e r v e s Were o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 9 -5 0 a n d th e P e r c e n t a g e t h e E n d in g B a la n c e f o r 1 9 4 8 -4 9 Was o f t h e T o ta l B u d g e te d O utgo f o r 1 9 4 8 -4 9 f o r 17 J u n i o r C o lle g e D i s t r i c t s i n C a l i f o r n i a ..............................................................
XII.
P e r c e n tile o f F req u en cy D i s t r i b u t i o n o f P e r c e n t a g e o f B e g in n in g B a la n c e t o T o t a l
88
xvi TABLE
PAGE O utgo f o r E le m e n ta r y , H ig h S c h o o l, J u n i o r C o lle g e a n d U n i f i e d S c h o o l D is tric ts
X III.
....................... ...................................
92
P e r c e n t a g e o f 2 ,1 1 1 E le m e n ta r y , H igh S c h o o l, U n i f i e d a n d J u n i o r C o lle g e D i s t r i c t s w i t h a D e c r e a s e i n B e g in n in g B a la n c e s Prom 1 9 4 8 -4 9 t o 1 9 4 9 -5 0 G rou ped h y C o u n t i e s ......................................
XIV .
93
B e g in n in g B a la n c e s f o r 1 9 4 8 -4 9 a n d 1 9 4 9 -5 0 b y C o u n tie s f o r 1 ,7 3 9 E le m e n ta r y and 236 H ig h S c h o o l D i s t r i c t s a n d t h e P e r c e n t a g e Change Prom t h e
XV.
Y e a r 1 9 4 8 -4 9 . .
96
F re q u e n c y D i s t r i b u t i o n i n P e r c e n t a g e o f Change i n B e g in n in g B a la n c e s f o r E le m e n ta r y a n d H ig h S c h o o l D i s t r i c t s b y C o u n tie s Prom t h e F i s c a l Y e a r 1 9 4 8 -4 9 t o 1 9 4 9 -5 0
XVI.
99
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e U n d i s t r i b u t e d R e s e rv e Was o f t h e T o ta l O utgo f o r 1 ,7 2 9 E le m e n ta ry S c h o o l D i s t r i c t B u d g e ts i n 53 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0 ......................................................
101
x v ii PAGE
TABLE X V II.
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n t a g e t h e G e n e ra l R e s e rv e Was o f t h e T o t a l O utgo f o r 1 ,7 2 9 E le m e n ta r y S c h o o l D i s t r i c t B u d g e ts i n 53 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0
X V III.
.
102
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e U n d i s t r i b u t e d a n d G e n e ra l R e s e rv e s W ere o f t h e T o ta l O utgo f o r 1 ,7 2 9 E le m e n ta r y S c h o o l D i s t r i c t B u d g e ts i n 53 C o u n tie s , f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0 • .
XIX.
103
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e U n d i s t r i b u t e d R e s e rv e Was o f th e T o t a l O utgo f o r 232 H ig h S c h o o l D i s t r i c t B u d g e ts i n 50 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0
XX.
. ...............................................................
105
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n ta g e t h e G e n e ra l R e s e rv e Was o f th e T o ta l O utgo f o r 232 H ig h S c h o o l D i s t r i c t B u d g e ts i n 50 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0 • •
XXI.
106
F re q u e n c y D i s t r i b u t i o n o f t h e P e r c e n t a g e t h e U n d i s t r i b u t e d an d G e n e ra l R e s e rv e s W ere o f th e T o ta l O utgo f o r 232 H ig h S c h o o l D i s t r i c t B u d g e ts i n 50 C o u n tie s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0 ..................................
107
x v iii PAGE
TABLE X X II.
Number a n d P e r c e n t a g e o f E le m e n ta r y S c h o o l D i s t r i c t s W h ic h -B u d g e te d U n d i s t r i b u t e d a n d G e n e ra l R e s e rv e s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0 ..... .......................................................... ....
X X I II .
109
Number a n d P e r c e n t a g e o f H ig h S c h o o l D i s t r i c t s W hich B u d g e te d U n d i s t r i b u t e d a n d G e n e ra l R e s e rv e s f o r t h e F i s c a l Y e a r 1 9 4 9 -5 0
XXIV.
. . .
111
F re q u e n c y D i s t r i b u t i o n o f R e p l i e s From C o u n ty S u p e r i n t e n d e n t s o f S e h o o ls R e g a r d in g P e r c e n t a g e W hich U n d i s t r i b u t e d a n d G e n e ra l R e s e rv e s R e p r e s e n te d o f T o ta l O utgo i n S c h o o l D i s t r i c t B u d g e ts
XXV.
. •
114
F re q u e n c y D i s t r i b u t i o n o f R e p l i e s From C i t y S u p e r i n t e n d e n t s o f S c h o o ls R e g a r d in g P e r c e n t a g e W hich U n d i s t r i b u t e d a n d G e n e ra l R e s e r v e s S h o u ld R e p r e s e n t o f T o ta l O utgo i n S c h o o l D i s t r i c t B u d g e ts
XXVI.
F re q u e n c y D i s t r i b u t i o n o f th e R a t i o s B etw een t h e T o t a l R e s e rv e s i n P e r c e n t a g e B u d g e te d f o r t h e F i s c a l Y e a r 1 9 4 9 - 5 0 , a n d t h e E n d in g B a la n c e s i n P e r c e n t a g e o f t h e 1 9 4 8 -4 9 T o ta l B u d g e te d O utgo f o r
• •
116
x ix PAGE
TABIE 227 H ig h S c h o o l D i s t r i c t s XX VII.
i n . 49 C o u n tie s
121
F re q u e n c y D i s t r i b u t i o n o f t h e R a t i o s B etw een t h e T o ta l R e s e rv e s i n P e r c e n t a g e B u d g e te d f o r t h e F i s c a l Y e a r 1 9 4 9 - 5 0 , a n d t h e E nd in g B a la n c e s i n P e r c e n ta g e o f t h e 1 9 4 8 -4 9 T o ta l B u d g e te d O utgo f o r 1 ,6 8 7 E le m e n ta r y S c h o o l D i s t r i c t s i n 52 C o u n tie s ....................
X X V III.
122
F re q u e n c y D i s t r i b u t i o n o f R a ti o s B etw een P e r c e n t a g e o f B u d g e te d R e s e rv e s f o r 1 9 4 9 -5 0 a n d P e r c e n t a g e o f E n d in g B a la n c e f o r 1 9 4 8 -4 9 f o r D i s t r i c t s w ith E n d in g B a la n c e s i n E x c e s s o f R e s e rv e s B u d g e te d f o r S u c c e e d in g Y e a r f o r a l l T ypes o f D is tric ts
XXIX.
....................................................................
123
F r e q u e n c y D i s t r i b u t i o n o f R a t i o s B etw een P e r c e n ta g e o f B u d g e te d R e s e rv e s f o r 1 9 4 9 -5 0 a n d P e r c e n t a g e o f E n d in g B a la n c e f o r 1 9 4 8 -4 9 f o r D i s t r i c t s w i t h E n d in g B a la n c e s B ow er t h a n t h e R e s e rv e s B u d g e te d f o r t h e S u c c e e d in g Y e a r f o r a l l T ypes of D is tric ts
XXX.
...............................................................
T o t a l Hum ber o f E le m e n t a r y , H igh S c h o o l, J u n i o r C o lle g e a n d U n i f i e d D i s t r i c t s
124
xx PAGE
TABLE S how ing Number a n d P e r c e n t a g e w i t h R a ti o O v er 100 B etw een E n d in g B a la n c e f o r 1 9 4 8 -4 9 a n d B u d g e te d R e s e rv e f o r 1 9 4 9 -5 0 a n d Humber a n d P e r c e n t a g e L e s s T han 100 • • XXXI.
125
F re q u e n c y o f R e s p o n s e s From C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls Show ing A s s i s t a n c e R e n d e re d S c h o o l D i s t r i c t s i n P r e p a r i n g D i s t r i c t B u d g e ts . . . . . . .
XXXII.
1 54
F re q u e n c y D i s t r i b u t i o n o f P e r c e n ta g e o f B u d g e t P r e p a r a t i o n A s s i s t a n c e G iv e n to S c h o o l D i s t r i c t s w i t h V a ry in g Number o f T e a c h e r s a s R e p o r te d b y 46 C o u n ty S u p e r i n t e n d e n t s o f S c h o o l s ..................................
X X X III.
156
F r e q u e n c y o f R e s p o n s e s From 49 C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls G iv in g P o l i c i e s F o llo w e d i n A d v is in g S c h o o l D i s t r i c t s R e l a t i v e t o B u d g e t E x c e e d in g P r o b a b le Incom e . . . . .
XXXIV.
.......................................
162
F re q u e n c y o f R e sp o n se s G iv e n b y C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls S t a t i n g W h e th e r a D e t a i l e d B reakdow n o f I n f o r m a t i o n f o r O u t s t a n d in g O b l i g a t i o n s i s F u r n i s h e d a t Time o f B u d g e t F i l i n g
. . .
165
xxi TABLE XXXV.
PAGE F re q u e n c y D i s t r i b u t i o n o f t h e O rd e r o f Use o f P r o c e d u r e s F o llo w e d by C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls i n B u d g e t A d m i n i s t r a t i o n When Incom e F a i l s t o M eet B u d g e t R e q u i r e m e n t s ..........................................................
171
CHAPTER I I .
THE PROBLEM
S t a t e s y s te m o f e d u c a t i o n * C a lifo rn ia is a s ta te
P u b lic e d u c a tio n in
s c h o o l s y s te m g o v e rn e d by s t a t e
la w s u n i f o r m l y a p p l i c a b l e , t h r o u g h o u t t h e e n t i r e s t a t e . A t t h e tim e o f t h i s s t u d y t h e s t a t e 2 ,2 7 8 s e p a r a t e s c h o o l d i s t r i c t s ,
s y s te m i n c l u d e d
e a c h g o v e rn e d b y a
b o a r d o f e d u c a t i o n o r b o a r d o f t r u s t e e s . '* '
T h ese
d i s t r i c t s v a r ie d w id e ly i n t h e i r f u n c tio n , s iz e and g e o g r a p h ic l o c a t i o n .
T h e re w ere 1 ,9 0 8 s e p a r a t e
e le m e n t a r y d i s t r i c t s w h ic h i n c l u d e d a l l t h e t e r r i t o r y o f t h e s t a t e , a n d 225 h i g h s c h o o l d i s t r i c t s , w h ic h f o r t h e m o st p a r t w ere u n io n h i g h s c h o o l d i s t r i c t s a n d u s u a l l y i n c l u d e d s e v e r a l e le m e n ta r y d i s t r i c t s . w ere a num ber o f e le m e n t a r y d i s t r i c t s n o t in an y h ig h sc h o o l d i s t r i c t .
T h e re
in C a lifo rn ia
The la w m akes p r o v i s i o n
f o r j u n i o r c o l l e g e d i s t r i c t s w h ic h may i n c l u d e one o r m ore h i g h s c h o o l d i s t r i c t s .
T h e re w e re tw e n ty s e p a r a t e
j u n i o r c o l l e g e d i s t r i c t s w h ic h d i d n o t i n c l u d e many j u n i o r c o l l e g e s m a i n t a i n e d by u n i f i e d , c i t y o r h i g h scho o l d i s t r i c t s .
^A p p o rtio n m e n t o f t h e C a l i f o r n i a S t a t e S c h o o l Fund f o r t h e F i s c a l Y e a r E n d in g Ju n e 5 0 , 1950 ( S a c ra m e n to , C a l i f o r n i a : C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , 1 9 4 9 ) , p p . 1 , 59 a n d 7 8 .
The la w p r o v i d e s f o r a ty p e o f d i s t r i c t c a l l e d th e c i t y sch o o l d i s t r i c t .
A c i t y s c h o o l d i s t r i c t may be
e i t h e r a s i n g l e e le m e n t a r y o r h i g h s c h o o l d i s t r i c t .
A
c o m b in a tio n o f c i t y d i s t r i c t s may o r may n o t be g o v e rn e d b y a s i n g l e g o v e r n in g b o a r d . T h e re w ere f o r t y - t h r e e e le m e n t a r y a n d tw e n ty h ig h sch o o l d i s t r i c t s
c la s s ifie d as c ity d is tr ic ts ,
m ak in g a t o t a l o f s i x t y - t h r e e . T h e re w ere s i x t y - t w o u n i f i e d d i s t r i c t s .
A
u n i f i e d d i s t r i c t i s a s i n g l e d i s t r i c t e m b ra c in g e le m e n t a r y a n d h i g h s c h o o l f u n c t i o n s a n d o f t e n i n c l u d e s a ju n io r c o lle g e .
A u n i f i e d s c h o o l d i s t r i c t i s g o v e rn e d
b y a s i n g l e g o v e r n in g b o a r d . F in a n c ia l a d m in is tr a tio n .
W hile th e f u n c t i o n o r
r e s p o n s i b i l i t y o f t h e v a r i o u s t y p e s o f d i s t r i c t s may d i f f e r a c c o rd in g to th e p la n o r o r g a n iz a tio n o r l e v e l o f e d u c a tio n , th e g e n e ra l p la n o f f i n a n c ia l a d m in is tr a tio n i s v e r y much t h e sam e.
The r a t e o f s u p p o r t v a r i e s
b e tw e e n l e v e l s , b u t i s c o n s t a n t w i t h i n e a c h l e v e l , r e g a r d le s s o f th e l o c a ti o n o r s iz e o f th e d i s t r i c t s , e x c e p t f o r p r o v i s i o n s o f th e la w w h ic h a f f e c t a l l e q u a lly w ith in any g iv e n l e v e l o f s u p p o r t. T h e re a r e r e q u i r e m e n ts o r p r o v i s i o n s o f la w w h ic h a f f e c t e v e r y d i s t r i c t a l i k e , w h e th e r i t b e a n e le m e n t a r y ,
h ig h s c h o o l,
ju n io r c o lle g e ,
c ity o r u n ifie d d i s t r i c t .
E a c h d i s t r i c t m u st a d m i n i s t e r i t s
f i n a n c ia l a f f a i r s by
m eans o f a u n if o r m b u d g e t p r o c e d u r e .
T h is p r o c e d u r e i s
s e t f o r t h i n t h e E d u c a tio n Code o f C a l i f o r n i a a n d a p p l i e s e x a c t l y i n th e same m an n e r f o r e v e r y ty p e o f s c h o o l d i s t r i c t , r e g a r d le s s o f s iz e o r l o c a t i o n , w ith th e e x c e p t i o n t h a t d i s t r i c t s w i t h t e n th o u s a n d o r m ore i n a v e ra g e d a il y a tte n d a n c e s h a l l f i l e
t h e i r b u d g e ts on o r
b e f o r e t h e t e n t h d a y o f A u g u s t, a n d a l l o t h e r s w h ic h m u st h o l d h e a r i n g s m u st f i l e e i g h t h d a y o f A u g u s t.
t h e i r s on o r b e f o r e t h e
E ach d i s t r i c t i s r e q u i r e d t o
p r e p a r e , a d o p t a n d a d m i n i s t e r a b u d g e t i n h arm o n y w ith o t h e l e g a l p r o v i s i o n s o f t h e E d u c a tio n C ode. S ta te m e n t o f t h e p r o b le m .
In asm u ch a s t h e s c h o o l
d i s t r i c t b u d g e t i s an in s tru m e n t o r p ro c e d u re f o r th e f in a n c ia l a d m in is tra tio n o f e v ery school d i s t r i c t in C a lifo rn ia ,
i t i s a p r o c e s s common t o a l l d i s t r i c t s .
D u rin g th e y e a r s c e r t a i n p r a c t i c e s a n d p r o c e d u r e s may h a v e d e v e lo p e d i n v a r i o u s c o u n t i e s a n d d i s t r i c t s o f t h e s t a t e w h ic h w ould t e n d t o c a u s e t h e a d m i n i s t r a t i o n o f t h e b u d g e ts t o v a r y b e tw e e n c o u n t i e s a n d d i s t r i c t s .
% t a t e o f C a l i f o r n i a , E d u c a ti o n C ode, 1949 ( S a c r a m e n to , C a l i f o r n i a : S t a t e D e p a rtm e n t o f F i n a n c e , P r i n t i n g D i v i s i o n , D ocum ents S e c t i o n , 1 9 4 9 ) , S e c t i o n s 6 3 0 1 -6 3 8 7 . •
It
was i n t h i s a r e a t h a t t h e p r o p o s e d s t u d y was u n d e r t a k e n . A p r e l i m i n a r y r e v ie w o r s u r v e y p o i n t e d to t h e f a c t t h a t a f u l l a n d c o m p le te a n a l y s i s a n d s t u d y o f e a c h d i s t r i c t b u d g e t o f t h e s t a t e a n d t h e m an n er i n w h ic h i t was a d m i n i s t e r e d w o u ld h a v e p ro d u c e d a n a lm o s t e n d l e s s s t u d y w h ic h w o u ld h a v e b e e n i n s u c h d e t a i l t h a t i t w ould h a v e b e e n m e a n in g le s s a s f a r a s a s t a t e - w i d e s t u d y was c o n c e rn e d .
C o n s e q u e n tly , i t w as d e te r m in e d t o s e l e c t
c e r t a i n a r e a s in th e a d m in is tr a tio n o f sc h o o l d i s t r i c t b u d g e ts a n d t o make a s t u d y o f t h e p r a c t i c e s , p r o c e d u r e s a n d p o l i c i e s w h ic h a p p e a r e d t o h a v e a n e f f e c t on th e o p e ra tio n o f sch o o l d i s t r i c t s
i n s u c h a d e g re e a s t o
c a u s e s e r i o u s q u e s t i o n r e g a r d i n g t h e u n if o r m o p e r a t i o n o f t h e f i n a n c i a l a d m i n i s t r a t i o n a n d m anagem ent o f t h e p u b l i c s c h o o l s y s te m a s p r o v id e d i n t h e s t a t e la w . The p u r p o s e o f t h e s t u d y was t o make a n a p p r a i s a l o f t h e o p e r a t i o n o f t h e b u d g e t s y s te m o f t h e p u b l i c s c h o o l s o f C a l i f o r n i a , a n d t o d e te r m in e th e p r a c t i c e s a n d p r o c e d u r e s f o llo w e d w h ic h p r o d u c e e i t h e r go o d o r p o o r a d m i n i s t r a t i o n o f t h e f i n a n c i a l a f f a i r s o f th e s c h o o ls in C a l i f o r n i a .
In o r d e r to l i m i t th e s tu d y
i t w as deem ed a d v i s a b l e t o s e l e c t o n l y t h o s e p r a c t i c e s a n d p r o c e d u r e s w h ic h seem ed t o h a v e m a jo r im p o r ta n c e .
P u rp o s e o f t h e s t n d y . was f i r s t ,
The p u r p o s e o f t h e s t u d y
to a s c e r t a i n n o t o n ly w h at t h e p r a c t i c e s an d
p r o c e d u r e s w e r e , b u t t o c o n s i d e r w h at d e s i r a b l e c h a n g e s s h o u ld b e made t o p r o v i d e b e t t e r a d m i n i s t r a t i o n o f th e f i n a n c i a l a f f a i r s o f th e sc h o o l d i s t r i c t s o f C a lif o r n ia a n d s e c o n d , t o m ake s u c h p r o p o s a l s a n d re c o m m e n d a tio n s i n b u d g e t fo r m s , p r o c e d u r e s , i n s t r u c t i o n s , la w , a n d p o s s ib ly th e C o n s titu tio n o f C a lif o r n ia . I n m ak in g t h i s s e l e c t i o n o f s u b j e c t s , i t was r e c o g n i z e d t h a t ju d g m e n t was r e q u i r e d a n d t h e a r e a s s e l e c t e d may n o t be c o n s i d e r e d o f m a jo r im p o r ta n c e by o t h e r s who w ould make a s i m i l a r a p p r a i s a l .
P r o b le m s ,
p o l i c i e s o r p r o c e d u r e s n o t c o n s i d e r e d t o be a p a r t o f th e s tu d y a re p o in te d o u t w ith th e s ta te m e n t t h a t th e y a re re c o g n iz e d , o r t h a t th e y a re c lo s e ly r e l a t e d , w ith t h e s u g g e s t i o n t h a t t h e y be made t h e s u b j e c t f o r f u t u r e in v e s tig a tio n . II.
PROCEDURE OP STUDY
G e n e ra l p l a n o f s t u d y .
The g e n e r a l p l a n o f th e
s tu d y in c lu d e d th e f o llo w in g : 1.
S u rv e y o f l i t e r a t u r e
2.
A n a l y s i s o f d i s t r i c t b u d g e ts
3.
C o u n ty s u p e r i n t e n d e n t s 1 q u e s t i o n n a i r e
4.
D i s t r i c t s u p e r in te n d e n ts 1 q u e s tio n n a ire
5.
P e rs o n a l in te rv ie w s
6.
A n a ly s is o f m a te r ia l
7.
S egal in te rp re ta tio n s
(^ ^ B u rv e y o f l i t e r a t u r e .
A s u r v e y o f th e l i t e r a t u r e
on t h e s u b j e c t o f s c h o o l d i s t r i c t b u d g e ts r e v e a l e d t h a t a g r e a t d e a l h as b een w r itte n in th e g e n e ra l f i e l d o f b u d g e t i n g , b u t n o t h i n g was fo u n d i n t h e f i e l d u n d e r ta k e n in th is
s tu d y .
De Young*s s t u d y o f b u d g e t p r a c t i c e s i n
l a r g e c i t i e s o f t h e U n ite d S t a t e s was s i m i l a r i n some r e s p e c t s . • H ow ever, i t was l i m i t e d i n t h a t i t was c o n f i n e d to l a r g e c i t i e s o n l y .
The s t u d y made b y T r ig g s
d e a l t w i t h f a c t o r s a f f e c t i n g th e am o u n ts o f e n d in g o r 4 b e g in n i n g b a l a n c e s . T h is s t u d y w as l i m i t e d e n t i r e l y t o t h e c u r r e n t p ra c tic e s
i n e f f e c t a t t h e tim e o f w r i t i n g .
C o n s e q u e n tly ,
t h e r e was no b a s i s f o r e s t a b l i s h i n g c r i t e r i a o r s t a n d a r d s u s u a lly c o n s id e re d in a s tu d y o f t h i s
ty p e .
No s i m i l a r
^ C h r is A n th o n y DeYoung, B u d g e ta r y P r a c t i c e s i n P u b l i c S c h o o l A d m i n i s t r a t i o n ( E v a n s to n , I l l i n o i s : N o r th w e s t e r n U n i v e r s i t y , S c h o o l o f E d u c a ti o n , 1 9 3 2 ) , 152 p p . ^D ean E . T r i g g s , "The D e t e r m in a t io n o f t h e G e n e ra l B e s e rv e R e q u ir e d i n t h e S c h o o l D i s t r i c t s o f V e n tu ra C o u n ty , ( u n p u b l is h e d M a s t e r 's t h e s i s , The U n i v e r s i t y o f S o u th e r n C a l i f o r n i a , L os A n g e le s , 1 9 4 8 ) , 77 p p .
s t u d y h a d b e e n made o f t h e b u d g e t p r o c e d u r e o f t h e C a l i f o r n i a s c h o o l s y s te m .
T h is a r e a , b e in g o f a p i o n e e r
n a t u r e , r e q u i r e d t h a t o r i g i n a l s o u r c e s be u s e d a n d s t u d i e d w i t h t h e o b j e c t i v e o f d e te r m i n i n g th e p l a n o f o p e r a t i o n a n d t h e p o l i c i e s o r p r o c e d u r e s w h ic h a f f e c t t h e f i n a n c i a l o p e r a t i o n o f s c h o o l d i s t r i c t s th r o u g h b u d g e t a d m in is tra tio n . A n a ly s is o f d i s t r i c t b u d g e ts .
O f f i c i a l c o p ie s o f
e a c h s c h o o l d i s t r i c t b u d g e t i n t h e s t a t e w e re f i l e d w i t h th e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n in a c c o rd a n c e w i t h t h e la w r e c e n t l y e n a c t e d .
The d i s t r i c t b u d g e ts w ere
f i r s t f i l e d w i t h th e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s who in tu rn f i le d
c o p ie s w i t h t h e S t a t e D e p a rtm e n t o f
E d u c a tio n . C o u n ty s u p e r i n t e n d e n t s 1 q u e s t i o n n a i r e .
A
q u e s t i o n n a i r e was p r e p a r e d f o r s u b m is s io n t o t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s f o l l o w i n g many p e r s o n a l i n t e r v i e w s a n d c o n f e r e n c e s w i t h t h e s e o f f i c e r s an d m em bers o f t h e i r s t a f f s . As a r e s u l t o f t h e s e i n t e r v i e w s , t h e q u e s t i o n n a i r e was d e v e lo p e d a n d r e f i n e d .
A f t e r i t was o r g a n i z e d an d
p r e p a r e d , i t was v a l i d a t e d b y d i s c u s s i n g e a c h s t a t e m e n t o r ---------------
I n f r a , A p p e n d ix A, p p . 2 6 1 -2 7 0 .
q u e s t i o n w i t h f o u r c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s . The q u e s t i o n n a i r e was m a t e r i a l l y r e v i s e d s e v e r a l tim e s so t h e q u e s t i o n s w o u ld h e c l e a r l y s t a t e d .
The s t a t e m e n t s
w h ic h w ere i n t e n d e d t o t e s t g i v e n s i t u a t i o n s w ere p l a c e d i n p r o p e r la n g u a g e t o m e a su re t h e p r a c t i c e , p o l i c y o r p r o c e d u r e a n d t o p ro d u c e v a l i d a n s w e rs w h ic h w ould m e a su re t h a t w h ic h t h e y w ere i n t e n d e d t o m e a su re *
T h is
q u e s tio n n a ir e c o n s is te d o f te n p a g e s c o n ta in in g f o r t y - f i v e s e p a r a te q u e s tio n s o r s ta te m e n ts f o r e v a lu a tio n o r r e p l y . A c o v e r i n g l e t t e r was a d d r e s s e d t o e a c h o f th e f i f t y - e i g h t c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s o f t h e s t a t e .
The
l e t t e r p o i n t e d o u t t h a t t h e s t u d y w o u ld n o t be u s e d t o c r i t i c i s e a d v e r s e l y o r c a u s e e m b a rra s s m e n t t o a n y c o u n ty s u p e r in te n d e n t o f s c h o o ls o r s c h o o l d i s t r i c t s u p e rin te n d e n t.
C o n s e q u e n tly , a l l r e s p o n s e s w ere
t a b u l a t e d w i t h no r e f e r e n c e to i n d i v i d u a l c o u n t i e s b y nam e, e x c e p t i n a few i n s t a n c e s f o r t h e p u r p o s e o f illu s tra tio n . The q u e s t i o n n a i r e was p r e s e n t e d t o t h e c o u n ty s u p e r in te n d e n ts o f s c h o o ls d u rin g t h e i r a n n u al th r e e - d a y c o n f e r e n c e h e l d i n S a c ra m e n to , C a l i f o r n i a , i n Novem ber o f 1949.
Time was g iv e n f o r a c a r e f u l p r e s e n t a t i o n o f
t h e s t u d y a n d e a c h c o u n ty s u p e r i n t e n d e n t o f s c h o o ls was a s k e d to r e n d e r w h a te v e r a s s i s t a n c e was p o s s i b l e .
F o llo w in g th e p r e s e n t a t i o n , q u e s tio n s c o n c e rn in g th e i n t e n t o f t h e l a n g u a g e u s e d i n t h e q u e s t i o n n a i r e w ere answ ered.
As a r e s u l t , t h e a n s w e r s a n d e v a l u a t i o n s a r e
b e l i e v e d t o be more v a l i d t h a n o t h e r w i s e m ig h t be e x p e c te d .
Many c o m p l e t e r e p l i e s w ere r e c e i v e d d u r i n g
t h e c o n f e r e n c e a n d t h e b a l a n c e w ere r e c e i v e d b y m a i l . Some s u p e r i n t e n d e n t s w e re a b s e n t a n d o t h e r s f a i l e d t o r e tu r n th e q u e s tio n n a ire s .
H ow ever, f o r t y - n i n e w e re
r e t u r n e d c o m p l e t e l y a n s w e r e d a n d w e re u s e d i n t h e stu d y . D is tr ic t s u p e rin te n d e n ts1 q u e s tio n n a ire .
The
p la n f o r th e stu d y o r i g i n a l l y in c lu d e d a s i m il a r q u e s tio n n a ir e f o r sch o o l d i s t r i c t o f f i c i a l s c o v erin g t h e same q u e s t i o n s .
H ow ever, a f t e r r e c e i v i n g t h e
r e s p o n s e s fro m t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s , and a f t e r a f u l l rev iew o f th e i n d iv i d u a l sc h o o l d i s t r i c t b u d g e ts,
i t was a p p a r e n t t h a t t h e m a j o r
p r o b l e m s w e re w e l l p o i n t e d o u t a n d t h a t t h e v a r i a n c e o f p o l i c y and p ro c e d u re i n a d m i n i s t r a t i o n o f th e b u d g e ts was l a r g e l y on t h e c o u n t y r a t h e r t h a n t h e d i s t r i c t le v e l.
C o n se q u e n tly , th e d i s t r i c t q u e s t i o n n a i r e s , as
o r i g i n a l l y p l a n n e d , w ere n o t u s e d .
H ow ever, a
q u e s t i o n n a i r e c o v e r in g e le v e n ite m s d e s ig n e d f o r th e p u rp o se o f o b ta in in g th e r e a c t i o n o f c i t y s u p e rin te n d e n ts
1°
o f sc h o o ls to c e r t a i n p ro p o s a ls c o n ce rn in g p o s s ib le changes i n t h e b u d g e t la w was m a i l e d t o e a c h o f t h e s i x t y - t h r e e 6 c i t y s u p e r in te n d e n ts o f sc h o o ls* P e rso n a l i n t e r v i e w s F ifty -tw o p e rs o n a l in te rv ie w s w e re h e l d w i t h c i t y ,
c o u n ty and d i s t r i c t s u p e r i n te n d e n t s
o f sc h o o ls r e g a r d in g th e p r a c t i c e s and p ro c e d u re s fo llo w e d in t h e i r d i s t r i c t s and c o u n tie s *
I n t e r v i e w s w ere h e l d
w ith th e r e p r e s e n ta tiv e s o f th e o f f i c e s o f th e A tto rn e y G e n e r a l a n d t h e C a l i f o r n i a S t a t e B o a rd o f E q u a l i z a t i o n and w ith th e A d m in is tr a tiv e A d v is e r o f th e C a l i f o r n i a S t a t e D e p a r tm e n t o f E d u c a t i o n .
Many c o u n t y o f f i c i a l s
o t h e r t h a n t h o s e c o n n e c t e d w i t h t h e s c h o o l s w e re i n t e r v i e w e d a n d a l l c o n t r i b u t e d im m e a s u r a b ly t o t h e stu d y . D u r i n g t h e s e i n t e r v i e w s , t h e r e v i e w o f 2 ,2 7 8 s c h o o l d i s t r i c t b u d g e t s an d a c a r e f u l s t u d y o f t h e q u e s t i o n n a i r e r e s p o n s e s , t h e a r e a s f o r f u l l s t u d y w e re c r y s t a l l i z e d w ith th e r e s u l t t h a t a l i m i t e d group o f s e l e c t e d p o l i c i e s and p ro c e d u re s a f f e c t i n g th e a d m i n i s t r a t i o n o f th e b u d g e t s o f t h e C a l i f o r n i a p u b l i c s c h o o l s w ere s e l e c t e d w i t h t h e o b j e c t i v e o f i m p r o v i n g p r o c e d u r e , la w a n d t h e a d m i n i s t r a t i o n o f b u d g e t m aking*
I n f r a , A ppendix B, p p . 2 7 3 -2 7 5 .
11
A n a ly sis o f m a t e r i a l .
A t t h e o u t s e t i t was t h e
i n t e n t i o n t o make u s e o f a l l t h e s c h o o l d i s t r i c t b u d g e t s fro m e a c h c o u n ty .
H ow ever, i t was f o u n d t h a t t h e m a t e r i a l
f ro m c e r t a i n c o u n t i e s was i n c o m p l e t e o r t h e o r g a n i z a t i o n o f t h e c o u n t y was s u c h a s t o make t h e i n c l u s i o n o f t h e b u d g e t s i m p r a c t i c a l , a n d t o u s e them w o u ld h a v e p r e s e n t e d a d is to r te d s itu a tio n in c e r ta in in s ta n c e s .
I n some
i n s t a n c e s t h e b u d g e t s f a i l e d t o show t h e e n d i n g b a l a n c e s . O t h e r s r e p r e s e n t e d s i n g l e d i s t r i c t s s u c h a s San F r a n c i s c o a n d M a r ip o s a C o u n t i e s .
The b u d g e t s fr o m one c o u n t y w ere
n o t r e c e i v e d u n t i l t h e s t u d y was w e l l u n d e r w ay, a n d t o a t t e m p t t o i n c l u d e t h e i n f o r m a t i o n l a t e r w o u ld h a v e made no c o n t r i b u t i o n a s t h e s a m p li n g was b r o a d e n o u g h t o r e v e a l th e p ro c e d u r e s and p r a c t i c e s g e n e r a l l y i n e f f e c t th ro u g h o u t th e s t a t e . B u d g e ts fr o m c e r t a i n d i s t r i c t s w i t h i n c o u n t i e s w e re f o u n d t o h a v e one o r m ore e n t r i e s m i s s i n g w i t h t h e r e s u l t t h a t t h e y c o u ld n o t be u s e d i n many o f t h e t a b u l a t i o n s and c o m p u ta tio n s .
T h is r e s u l t e d i n a
v a r y i n g n u m b er o f c o u n t i e s a n d d i s t r i c t s b e i n g u s e d th ro u g h o u t th e s tu d y in c o n n e c tio n w ith th e sch o o l d i s t r i c t b u d g e ts.
The same p r o c e d u r e was f o l l o w e d i n
c o n n e c tio n w ith th e u se o f th e c i t y and c o u n ty q u e s tio n n a ire s .
A l l d a t a a n d m a t e r i a l w e re s t a t e - w i d e
12
a n d i n e v e r y i n s t a n c e t h e w i d e s t s a m p li n g p o s s i b l e was used.
W henever r e p l i e s t o q u e s t i o n s w e re e v i d e n t l y
in c o m p le te , m is u n d e rs to o d o r m is s in g e n t i r e l y , th e y w ere o m i t t e d . M ethod o f c o m p u t a t i o n .
The p r o c e d u r e u s e d i n
c o m p u tin g p e r c e n t a g e o f r e s e r v e s and, b a l a n c e s i n c l u d e d t h e t o t a l o u tg o c o n s i s t i n g o f r e s e r v e s , t r a n s f e r s , c a p i t a l o u tla y s and c u r r e n t expenses i n th e g e n e ra l fu n d b u d g e t.
T h is m e th o d o f c o m p u t a t i o n s h o u l d be k e p t i n
m ind a s o f t e n t h e p r a c t i c e i n s u c h a s t u d y i s t o u s e c u rre n t expenses o n ly . Q u o t a t i o n s fro m t h e E d u c a t i o n C o d e .
S in c e th e
E d u c a t i o n Code i s t h e l e g a l a u t h o r i t y f o r t h e a d m i n i s t r a t i o n o f t h e p u b l i c s c h o o l s , no a t t e m p t i s made to p arap h rase o r r e s t a t e
th e la w , b u t th e f u l l t e x t o f
t h e s e c t i o n o r t h e p a r t w h ic h a p p l i e s i s q u o t e d .
A lso ,
t h i s i s done i n o r d e r t o rem ove t h e n e c e s s i t y o f h a v i n g t o r e f e r c o n s t a n t l y t o t h e E d u c a t i o n Code i t s e l f . Q u e s tio n n a ire s and l e t t e r s o f t r a n s m i t t a l s u b m itte d t o th e c i t y and c o u n ty s u p e r i n te n d e n t s o f s c h o o l s a p p e a r i n t h e A p p e n d ix a n d r e f e r e n c e t o t h e v a r i o u s s e c t i o n s w i l l be made i n t h e c h a p t e r s t o f o l l o w .
' I n f r a , A p p en d ixes A and B, p p . 2 5 9 -2 7 5 .
7
13 Summary.
The s t a t e s c h o o l s y s te m c o n s i s t s o f
1 , 9 0 8 e l e m e n t a r y , 225 h i g h s c h o o l , t w e n t y j u n i o r c o l l e g e , s ix ty -tw o u n i f i e d and s i x t y - t h r e e c i t y sch o o l d i s t r i c t s . W h ile many a s p e c t s o f t h e i r a d m i n i s t r a t i o n may d i f f e r , th e re q u ire m e n t f o r t h e i r f i n a n c ia l a d m in is tr a tio n i s re a s o n a b ly u n ifo rm .
The p r o v i s i o n f o r t h e p r e p a r a t i o n
and a d m i n i s t r a t io n o f th e b u d g e ts i s u n ifo rm f o r a l l ty p es o f d i s t r i c t s ,
e x ce p t f o r th e f i n a l f i l i n g d a te s .
T h is s t u d y was a n a p p r a i s a l o f t h e o p e r a t i o n o f t h e b u d g e t s y s te m s o f t h e p u b l i c s c h o o l s o f C a l i f o r n i a , w i t h p a r t i c u l a r e m p h a s is on c e r t a i n s e l e c t e d p o l i c i e s , p r o c e d u r e s and p r a c t i c e s u se d .
The p r o c e d u r e u s e d was a s t u d y o f
o v e r two t h o u s a n d i n d i v i d u a l s c h o o l d i s t r i c t b u d g e t s .
A
q u e s t i o n n a i r e c o n s i s t i n g o f f o r t y - f i v e i t e m s was s u b m itte d to th e c o u n ty s u p e r in te n d e n ts o f s c h o o ls . s h o r t e r q u e s t i o n n a i r e was s e n t t o s i x t y - t h r e e
A
c ity
s u p e r i n t e n d e n t s o f s c h o o l s f o r t h e i r r e a c t i o n on a s e l e c t e d num ber o f i t e m s . w e re h e l d w i t h c i t y , o f sc h o o ls.
F ifty -tw o p e rs o n a l in te rv ie w s
c o u n ty and d i s t r i c t s u p e r in te n d e n ts
Many s t a t e a n d c o u n t y o f f i c i a l s c o n t r i b u t e d
v a lu a b le in f o r m a tio n r e g a r d in g a s s e s s in g p r a c t i c e s and budget a d m in is tra tio n .
CHAPTER I I AUTHORIZATION FOR SCHOOL DISTRICT BUDGETS S ch o o l d i s t r i c t b u d g e ts a r e a u th o r i z e d and r e q u i r e d b y t h e E d u c a t i o n Code o f C a l i f o r n i a *
The
s e c t i o n s w h ic h s p e c i f i c a l l y r e f e r t o s c h o o l d i s t r i c t b u d g e t s a r e few i n n u m b e r, a l t h o u g h a l a r g e p a r t o f t h e E d u c a t i o n Code i s d e v o t e d t o f i n a n c e , b o t h d i r e c t l y a n d in d ire c tly .
T h is c h a p t e r d e a l s o n l y w i t h t h o s e s e c t i o n s
w h ic h e i t h e r i n w h o le o r i n p a r t make r e f e r e n c e t o b u d g e ts o r b u d g e t p ro c e d u re . I m p o r ta n c e o f b u d g e t .
The E d u c a t i o n Code makes
v e r y few s p e c i f i c a s s i g n m e n t s t o a n y em p lo y ee o r o f f i c i a l in c o n n e c tio n w ith th e a d m in is tr a tio n o f th e p u b lic sc h o o ls.
The i m p o r t a n c e o f t h e s c h o o l d i s t r i c t
b u d g e t i s a p p a r e n t, and th e i n t e n t o f th e C a l i f o r n i a S t a te L e g is la tu r e t h a t th e p r e p a r a t i o n and a d m i n i s t r a t i o n o f t h e b u d g e t s h o u l d be o f p rim e im p o rtan c e i s i n d i c a t e d by th e la n g u a g e o f E d u c a tio n Code S e c t i o n 1306 i n w h ic h t h e s u p e r i n t e n d e n t o f s c h o o l s i s s p e c i f i c a l l y c h a rg e d w ith th e p r e p a r a t i o n and a d m i n i s t r a t i o n o f t h e d i s t r i c t b u d g e t s a s one o f t h e th r e e s p e c i f i c d u tie s a s s ig n e d t h i s o f f i c e by law .
The
f i r s t m e n t i o n e d d u t y a s c h i e f e x e c u t i v e o f f i c e r w o u ld
15 seem t o p l a c e u p o n t h e s u p e r i n t e n d e n t r e s p o n s i b i l i t i e s w h ic h w ould i n c l u d e t h e a d m i n i s t r a t i o n o f t h e b u d g e t a f t e r i t s p re p a ra tio n .
The f u l l t e x t o f S e c t i o n 1306
read s: 1306. The s u p e r i n t e n d e n t o f e a c h s c h o o l d i s t r i c t s h a l l , i n a d d i t i o n t o a n y o t h e r p o w e rs a n d d u t i e s g r a n t e d t o o r im p o se d u p o n h im : ( a ) Be t h e c h i e f e x e c u t i v e o f f i c e r o f t h e g o v e rn in g b o a rd o f th e d i s t r i c t . (b) E x c e p t i n g i n d i s t r i c t s w h ere t h e g o v e r n i n g b o a r d h a s a p p o i n t e d o r d e s i g n a t e d a n em p lo y ee o t h e r th a n th e s u p e r in te n d e n t, o r a d e p u ty , o r a s s i s t a n t s u p e r i n t e n d e n t , t o p r e p a r e a n d s u b m it a b u d g e t , p r e p a r e and su b m it to th e g o v e rn in g b o a rd o f th e d i s t r i c t , a t s u c h t i m e a s i t may d i r e c t , t h e b u d g e t o f th e d i s t r i c t f o r th e n e x t e n su in g sc h o o l y e a r , and r e v is e and ta k e such o th e r a c t io n in c o n n e c tio n w ith t h e b u d g e t a s t h e b o a r d may d e s i r e . (c) S u b je c t t o th e a p p ro v a l o f th e g o v e rn in g b o a r d , a s s i g n a l l e m p lo y e e s o f t h e d i s t r i c t e m p lo y ed i n p o s i t i o n s r e q u i r i n g c e r t i f i c a t i o n q u a l i f i c a t i o n s , t o t h e p o s i t i o n s i n w h ic h t h e y a r e to se rv e . Employm ent o f s c h o o l s u p e r i n t e n d e n t s .
C a lifo rn ia
la w p ro v id e s f o r a s u p e rin te n d e n t o f sc h o o ls in a l l c i t y and u n i f ie d scho ol d i s t r i c t s .
i
A d i s t r i c t s u p e rin te n d e n t
i s p r o v i d e d f o r e v e r y o t h e r t y p e o f d i s t r i c t e m p lo y in g 2 e i g h t o r more t e a c h e r s . T hese p r o v i s i o n s p l a c e t h e
^ E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n s 1 302 a n d 4629. 2 I b i d ., S e c tio n 1301.
16 r e s p o n s i b i l i t y f o r budget a d m in is tra tio n in th e l a r g e r d i s t r i c t s w ith th e s u p e rin te n d e n t.
A cco rd in g to th e
r e c o r d s o f t h e B u re a u o f S c h o o l A c c o u n ts a n d R e c o r d s o f t h e C a l i f o r n i a S t a t e D e p a r tm e n t o f E d u c a t i o n , t h e r e a re a p p ro x im a te ly 1 ,7 0 0 d i s t r i c t s
i n t h e s t a t e w h ic h
h a v e l e s s t h a n e i g h t t e a c h e r s e m p lo y e d .
T hese d i s t r i c t s
a r e e n t i r e l y d ep en d en t upon th e l o c a l g o v e rn in g b o ard f o r th e p r e p a r a t i o n and a d m in is tr a tio n o f th e b u d g e t. As a r e s u l t , t h e . c o u n t y s u p e r i n t e n d e n t o f s c h o o l s , who e x e r c is e s g e n e ra l s u p e rv is io n over such d i s t r i c t s ,
is
c a l l e d u p o n t o a d v i s e a n d , a s s u b s e q u e n t l y show n, a c t u a l l y p r e p a r e m o st o f t h e b u d g e t s f o r t h e s m a l l e r d istric ts.
T h e re i s no l e g a l a u t h o r i t y f o r t h e c o u n t y
s u p e r i n t e n d e n t o f s c h o o l s t o a ssu m e t h i s r e s p o n s i b i l i t y , b u t , a s shown l a t e r , th ro u g h o u t th e s t a t e .
it
i s g e n e r a lly th e p r a c t ic e The p a r t w h ic h t h e c o u n t y
s u p e rin te n d e n t o f sc h o o ls has in th e a d m in is tr a tio n of th e sch o o l d i s t r i c t b u d g e ts , e i t h e r d i r e c t l y o r o t h e r w i s e , w i l l be d i s c u s s e d i n C h a p t e r V I I o f t h i s s tu d y .^ F ilin g d i s t r i c t b u d g e t.
The E d u c a t i o n Code
p r o v i d e s t h a t a t e n t a t i v e b u d g e t s h a l l be f i l e d w i t h t h e
^ I n f r a , C h a p t e r V I I , “B u d g e t A d m i n i s t r a t i o n by t h e C o u n ty S u p e r i n t e n d e n t , 11 p p . 1 4 8 - 1 7 8 .
17 c o u n ty s u p e r i n te n d e n t o f s c h o o ls by th e g o v e rn in g b o a rd o f e a c h sc h o o l d i s t r i c t on o r b e f o r e th e f i r s t day o f Ju ly in each y e a r .
F o llo w in g i t s
s u b m is s io n th e c o u n ty
s u p e r i n t e n d e n t o f s c h o o l s s h a l l e x am in e i t a n d s h a l l i n d i c a t e a n y c h a n g e s deem ed n e c e s s a r y a n d s h a l l r e t u r n i t to th e g o v e rn in g b o a rd b e fo r e th e f i f t e e n t h . day o f Ju ly .
The g o v e r n i n g b o a r d i s r e q u i r e d t o r e t u r n i t t o
th e c o u n ty s u p e r in te n d e n t o f sc h o o ls b e fo r e th e t w e n t i e t h d a y o f J u l y , a f t e r m ak in g s u c h c h a n g e s , a d d itio n s o r re v is io n s as i t fin d s n e c e ssa ry .
The la w
f u r t h e r p ro v id e s t h a t an a d v e r tis e d p u b lic h e a r in g s h a l l be h e l d a t w h ic h t im e a n y p e r s o n may o f f e r a n y p r o t e s t h e w i s h e s t o make c o n c e r n i n g a n y i t e m .
T h is h e a r i n g
m u st be h e l d d u r i n g t h e f i r s t week i n A u g u s t a n d f i n a l a d o p tio n o f th e b u d g et m ust ta k e p la c e p r i o r t o th e e ig h th day o f A ugust f o r d i s t r i c t s w ith te n th o u san d o r l e s s a v e ra g e d a i l y a t t e n d a n c e , and p r i o r to t h e t e n t h day o f A ugust f o r d i s t r i c t s h a v in g a g r e a t e r av erag e 4 d a ily a tte n d a n c e . B u d g e t a p p r o v a l by c o u n t y s u p e r i n t e n d e n t .
The
c o u n ty s u p e r i n te n d e n t o f s c h o o ls i s r e q u ir e d to ap p ro v e th e b u d g e t, a s o f f i c i a l l y a d o p te d , and t r a n s m i t i t t o
4
E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n s 6 5 0 1 -6 5 1 0 .
18 t h e c o u n t y a u d i t o r a n d c o u n t y b o a r d o f s u p e r v i s o r s , who m u st l e v y a t a x t o p r o v i d e t h e f u n d s n e c e s s a r y t o b a l a n c e t h e b u d g e t#
D e t a i l s r e l a t i v e to le v y in g ta x e s and
a s s e s s e d v a lu a t i o n s a r e d i s c u s s e d i n C h a p te r I I I , ^ A n a l y s i s o f B u d g e ti n g S c h o o l D i s t r i c t I n c o m e .”^ The C o n s t i t u t i o n o f C a l i f o r n i a p r o v i d e s i n S e c tio n 6 o f A r tic le
IX , E d u c a t i o n , t h a t :
The L e g i s l a t u r e s h a l l p r o v i d e f o r t h e l e v y i n g a n n u a lly by th e g o v e rn in g body o f e ac h c o u n ty , and c i t y and c o u n ty , o f such sc h o o l d i s t r i c t t a x e s , a t r a t e s n o t i n e x c e s s o f t h e maximum r a t e s o f s c h o o l d i s t r i c t t a x f i x e d o r a u t h o r i z e d by t h e L e g i s l a t u r e , a s w i l l p roduce i n e a c h f i s c a l y e a r such reven ue f o r each sc h o o l d i s t r i c t as th e g o v e rn in g b o a rd t h e r e o f s h a l l d e te rm in e i s re q u ire d in such f i s c a l y e a r f o r th e su p p o rt o f a l l sc h o o ls and f u n c tio n s in s a i d d i s t r i c t a u th o r iz e d o r r e q u ir e d by law .
D is tric t re s p o n s ib ility .
The f u l l r e s p o n s i b i l i t y
an d a u t h o r i t y f o r f i x i n g t h e a m o u n ts i n t h e s c h o o l d i s t r i c t b u d g e t i s v e s te d i n th e g o v e rn in g b o a rd and no o t h e r o f f i c i a l ,
i n c l u d i n g th e c o u n ty s u p e r in te n d e n t
o f s c h o o l s , h a s a u t h o r i t y t o make a n y c h a n g e i n t h e am ount o f th e b u d g e t.
I t i s m a n d a to r y f o r t h e c o u n t y b o a r d o f
s u p e r v i s o r s to l e v y th e n e c e s s a r y t a x to p ro d u ce th e fu n d s r e q u i r e d ,
s u b j e c t t o maximum t a x r a t e l i m i t a t i o n s
p r e s c r i b e d by th e C a l i f o r n i a S t a te L e g i s l a t u r e . 5
I n fr a , pp. 2 4 -5 3 .
19 S t a t e and c o u n ty r e s p o n s i b i l i t y .
The c o u n ty
s u p e rin te n d e n t o f sc h o o ls i s r e q u ir e d to e n te r c ash b a l an ces and e s tim a te d e x p e n d itu re s f o r th e l a s t p re c e d in g f i s c a l y e a r f o r c o m p a r is o n w i t h t h e e s t i m a t e o f e x p e n d itu re s by f u n c tio n s o r purpose as p ro v id e d in E d u c a t i o n Code S e c t i o n 6301 ( a ) , a p o r t i o n o f w h ic h reads: 6301. ( a ) . . . T h ese p u r p o s e s s h a l l be c l a s s i f i e d t o s e t f o r t h t h e d a t a by f u n c t i o n s and o b j e c ts o f e x p e n d itu re w i t h in th e m ajo r c la s s if ic a tio n s of a d m in istra tio n , in s tr u c tio n , o p e r a t io n o f p l a n t , m ain ten a n ce o f p l a n t , a u x i l i a r y s e r v i c e s , com m unity s e r v i c e s , c a p i t a l o u t l a y , and su c h a d d i t i o n a l m ajo r c l a s s i f i c a t i o n s a s may be p r e s c r i b e d b y t h e S u p e r i n t e n d e n t o f P u b lic I n s t r u c t i o n and e x p e n d itu r e s p ro p o se d to be made fro m b o nds o r o t h e r incom e n o t y e t a u th o riz e d * W ith in th e m ajo r c l a s s i f i c a t i o n s o f a d m in is tra tio n , in s tr u c tio n , o p e ra tio n o f p la n t, m a in te n a n c e o f p l a n t , a u x i l i a r y a g e n c ie s , and com m unity s e r v i c e s t h e r e s h a l l be s e t f o r t h a s s e p a r a t e e n t r i e s t h e am ou nt o f p r o p o s e d e x p e n d i t u r e s f o r s a l a r i e s a n d wages a n d m ain ten a n ce and o p e r a t i o n and such a d d i t i o n a l i n t e r m e d i a t e c l a s s i f i c a t i o n a s may be p r e s c r i b e d by t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n . P r o p o s e d c a p i t a l o u t l a y a p p r o p r i a t i o n s s h a l l be s e t f o r t h by l a n d , b u i l d i n g , a n d e q u ip m e n t c la s s ific a tio n s . . . . S e c t i o n 6303 o f t h e E d u c a t i o n Code p r o v i d e s t h a t f i v e c o p i e s o f t h e b u d g e t s h a l l be p r e p a r e d : 6303. . . . I n t h e fo r m a n d u p o n t h e b l a n k s p r e s c r ib e d by th e S u p e rin te n d e n t o f P u b lic In stru c tio n . I t s h a l l be t h e d u t y o f t h e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n to p re p a re s t a n d a r d fo rm s a n d b l a n k s n e c e s s a r y t o show t h e b u d g e t i n g i t e m s a n d c o m p a r is o n s r e q u i r e d by S e c t i o n s 6301 a n d 6302 o f t h i s c o d e . B la n k s
20
s h a l l be f u r n i s h e d t o t h e s c h o o l d i s t r i c t s by t h e co u n ty s u p e r in te n d e n t o f sc h o o ls* T h is p r o v i s i o n m akes t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n r e s p o n s i b l e f o r th e m anner o f p r e p a r a t i o n and arra n g em e n t o f th e b u d g e t. The l a t e s t a p p r o v e d b u d g e t fo rm i s shown i n t h e 6 A p p e n d ix . The b u d g e t f o rm c o n s i s t s o f a s e r i e s o f s e p a r a t e b u d g e ts r e q u i r e d f o r e ac h s e p a r a t e fu n d a u t h o r i z e d by l a w .
They i n c l u d e t h e f o l l o w i n g s e c t i o n s :
G e n e r a l Fund Bond I n t e r e s t a n d S i n k i n g Fund B u i l d i n g Fund (Funds d e r i v e d fro m t h e s a l e o f b o n d s ) S p e c i a l A c c u m u l a t i v e B u i l d i n g Fund E m e rg en c y S c h o o l B u i l d i n g Fund C a f e t e r i a (Fund o r A c c o u n t) C h i l d C are C e n t e r Funds B la n k s f o r a d d i t i o n a l f u n d s B udget fo rm .
The s e c t i o n s o f t h e b u d g e t o t h e r
t h a n t h e ftG e n e r a l F u n d fl a r e l i m i t e d i n t h e i r o p e r a t i o n . The s e c t i o n f o r f,Bond I n t e r e s t a n d S i n k i n g F u nd” f o r i n s t a n c e , w h ile in c lu d e d a s a p a r t o f th e b u d g et fo rm , i s n o t s p e c i f i c a l l y r e q u i r e d by la w .
I t i s p ro v id ed
f o r a c c o u n tin g p u rp o s e s an d f o r th e c o n v en ien c e o f th e c o u n t y b o a r d o f s u p e r v i s o r s w h ic h i s r e q u i r e d t o l e v y a t a x s u f f i c i e n t t o m e e t t h e p ay m en t o f a n y p r i n c i p a l a n d i n t e r e s t w h ic h may b e due d u r i n g t h e n e x t f i s c a l y e a r on a c c o u n t o f b o n d s o u t s t a n d i n g .
6 I n f r a , A ppendix C, p p . 2 7 6 -2 8 8 .
O t h e r b u d g e t fo rm s a r e r e q u i r e d f o r i d e n t i f i e d f u n d s , f o r w h ic h t h e g o v e r n i n g b o a r d i s p r i m a r i l y r e s p o n s i b l e , a s w a r r a n t s a r e draw n a g a i n s t t h e a c c o u n t s T h is s t u d y was c o n c e r n e d w i t h t h e o v e r - a l l p r o c e d u r e s , p r a c t i c e s a n d p o l i c i e s w h ic h l a r g e l y g o v e r n th e a d m i n i s t r a t i o n o f b u d g e ts i n g e n e r a l .
H ow ever,
p a r t i c u l a r e m p h a s is was p l a c e d on t h e MG e n e r a l Fund*1 a s t h i s a r e a p r o v i d e s f o r r e g u l a r t a x incom e a n d e x p e n d itu r e s f o r g e n e r a l sch o o l p u rp o se s by th e g o v e rn in g b o a rd . The p r e s e n t fo r m s a p p r o v e d b y t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n make no p r o v i s i o n f o r a c c o u n t i n g f o r f u n d s r a i s e d f o r s p e c i f i c p u r p o s e s s u c h a s m e a ls f o r n e e d y c h i l d r e n , r e t i r e m e n t , and m ore r e c e n t l y a n e x tr a d i s t r i c t ta x f o r th e su p p o rt o f c h ild care c e n te rs.
The i m p l i c a t i o n o f t h i s p r o b l e m a n d a f i i l l
t r e a t m e n t o f i t a r e c o n t a i n e d i n C h a p t e r VI e n t i t l e d , ^ A d m i n i s t r a t i o n o f F und s R a i s e d i n E x c e s s o f S t a t u t o r y L i m i t a t i o n s . 117 The p r o v i s i o n w h ic h r e q u i r e s t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n t o p r e s c r i b e t h e b u d g e t fo rm s r a t h e r t h a n t o h a v e a fo rm p r e s c r i b e d b y la w i s c o n s i d e r e d good p r a c t i c e .
7 I n f r a , p p . 1 3 4 -1 4 7
T h is p r a c t i c e p r o v i d e s
re a s o n a b le f l e x i b i l i t y to m eet needs and c o n d itio n s as th e y a ris e #
I t lik e w ise p la c e s th e r e s p o n s ib ility
f o r d e s i g n i n g a n d p r e s c r i b i n g a fo rm w h ic h w i l l l e n d i t s e l f t o p r o v i d i n g a n d e n c o u r a g i n g good f i n a n c i a l a d m in is tr a tio n in th e sch o o l d i s t r i c t s #
T h is fo r m
u n d o u b t e d l y h a s s e r v e d a g ood p u r p o s e , b u t i t i s b e l i e v e d t h a t t h e r e a r e c h a n g e s w h ic h s h o u l d be made t o make i t s a d m i n i s t r a t i o n more e f f e c t i v e a n d w o r k a b l e • Some c h a n g e s a r e s u g g e s t e d i n c h a p t e r s t o f o l l o w , a n d s p e c i f i c re c o m m e n d a tio n s w i l l b e f o u n d i n t h e c h a p t e r Q c o n t a i n i n g r e c o m m e n d a tio n s . I t i s ' a l s o b e lie v e d t h a t c e r t a i n changes in th e b a s i c l a w a r e a d v i s a b l e a n d w o r th y o f c o n s i d e r a t i o n . T h ese a r e c o n t a i n e d i n t h e c h a p t e r s t o f o l l o w .
C e rta in
b a s i c p r o p o s a l s f o r s t a t u t o r y c h a n g e s a r e t o be f o u n d i n C h a p te r V I I I ,
,fP r o p o s a l s f o r R e v i s i o n o f B u d g e t
A c t." 9 Summary.
A u th o riz a tio n f o r school d i s t r i c t
b u d g e t s i s c o n t a i n e d i n t h e E d u c a t i o n Code#
The
re q u ire m e n t t h a t th e s u p e r in te n d e n t o f sc h o o ls p re p a re
8 I n f r a , C h a p t e r X I, ^ R e c o m m e n d a tio n s ,w p p . 2 3 9-254. 9 I n fr a , p p . 1 7 9 -1 9 6 .
23 t h e b u d g e t a s one o f h i s few Code s p e c i f i e d d u t i e s i s s i g n i f i c a n t o f th e im p o rtan c e p la c e d upon th e b u d g e t by th e C a lif o r n ia S ta te L e g i s l a t u r e .
The b u d g e t s e c t i o n s
o f t h e E d u c a t i o n Code a r e f e w , b u t r e a s o n a b l y s p e c i f i c . The r e q u i r e m e n t t h a t t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n s h a l l p r e s c r i b e a n d f u r n i s h t h e f o r m on w h ic h b u d g e t s s h a l l be made g i v e s am ple a u t h o r i t y t o p r o v i d e f o r g ood a d m i n i s t r a t i o n u n d e r t h e e x i s t i n g la w .
CHAPTER I I I ANALYSIS OF BUDGETING SCHOOL DISTRICT INCOME I.
PREPARATION OF BUDGET
Legal p ro c e d u re .
The E d u c a t i o n Code o f C a l i f o r n i a
s e t s f o r t h t h e p r o c e d u r e t o be f o l l o w e d b y t h e s c h o o l d i s t r i c t and th e c o u n ty s u p e r in te n d e n t o f sc h o o ls i n p re p a rin g a sc h o o l d i s t r i c t b u d g e t.
The g o v e r n i n g b o a r d
o f th e sc h o o l d i s t r i c t i s r e q u ir e d t o f i l e w ith th e c o u n ty s u p e r in te n d e n t o f sc h o o ls a p r e l i m i n a r y b u d g e t on o r b e f o r e J u l y f i r s t ,
sh o w in g a l l t h e p u r p o s e s f o r
w h ic h t h e s c h o o l d i s t r i c t w i l l n e e d money a n d t h e e s t i m a t e d am ount o f money t h a t w i l l be n e e d e d f o r e a c h p u rp o se f o r th e n e x t e n su in g sch o o l y e a r . th is
A u th o rity f o r
i s c o n t a i n e d i n E d u c a t i o n Code S e c t i o n 6301 ( a ) ,
a p o r t i o n o f w h ic h r e a d s : 6301. (a) On o r b e f o r e t h e f i r s t d a y o f J u l y i n e ach y e a r , th e g o v e rn in g b o a rd o f e ach sc h o o l d i s t r i c t s h a l l f i l e w ith th e c o u n ty s u p e r i n te n d e n t o f s c h o o l s a t e n t a t i v e b u d g e t sh o w in g a l l t h e p u r p o s e s f o r w h ic h t h e s c h o o l d i s t r i c t w i l l n e e d money a n d t h e e s t i m a t e d am ount o f money t h a t w i l l be n e e d e d f o r e a c h p u r p o s e f o r t h e e n s u i n g f i s c a l y ear. . . • The c o u n t y s u p e r i n t e n d e n t o f s c h o o l s i s r e q u i r e d to o b t a i n th e c a s h b a la n c e o f th e d i s t r i c t from th e a u d i t o r a n d e n t e r i t on t h e d i s t r i c t b u d g e t .
From t h i s
25 am ount t h e d i s t r i c t i s r e q u i r e d t o d e d u c t t h e am ount o f th e c u rre n t l i a b i l i t i e s
so as to o b t a i n th e n e t c a sh
b a l a n c e a v a i l a b l e f o r incom e p u r p o s e s f o r t h e b u d g e t d u r i n g t h e y e a r f o r w h ic h t h e b u d g e t i s b e i n g p r e p a r e d * The a u t h o r i t y w h ic h r e q u i r e s t h e c o u n t y s u p e r i n t e n d e n t o f sc h o o ls t o e n t e r th e c a sh b a la n c e o f th e d i s t r i c t i s c o n t a i n e d i n S e c t i o n 6302 ( a ) o f t h e E d u c a t i o n C ode, a p o r t i o n o f w h ic h r e a d s : 6302. ( a ) Prom t h e r e c o r d s o f t h e c o u n t y a u d i t o r , th e c o u n ty s u p e r in te n d e n t o f s c h o o ls s h a l l se c u re th e c ash b a la n c e s o f th e d i s t r i c t o r s h a l l make e s t i m a t e s t h e r e o f i f i n f o r m a t i o n on a c t u a l c a sh b a la n c e s i s n o t a v a i l a b l e , and s h a l l e n t e r th e s e , . . . E d u c a t i o n Code S e c t i o n 6302 ( b ) im p o s e s s p e c i f i c r e s p o n s i b i l i t i e s upon th e g o v e rn in g b o a rd o f th e sc h o o l d istric t.
T h is s e c t i o n r e a d s a s f o l l o w s :
6302. (b) I n a d d i t i o n t o t h e ab o v e i n f o r m a t i o n th e g o v e rn in g b o a rd s h a l l f u r n i s h th e c o u n ty su p e rin te n d e n t o f sc h o o ls w ith an e s tim a te o f th e r e v e n u e s fr o m s o u r c e s o t h e r t h a n t a x e s on p r o p e r t y a n t i c i p a t e d d u r i n g t h e y e a r t o w h ic h t h e b u d g e t i s i n t e n d e d t o a p p l y , a n d t h e s o u r c e s whence d e r i v e d , c o m p a red w i t h t h e e s t i m a t e d r e c e i p t s fro m t h e same so u rc e s f o r th e l a s t p re c e d in g f i s c a l y e a r . S h o u ld th e g o v e rn in g b o a rd f a i l to p ro v id e t h i s in f o r m a tio n , i t s h a l l be s u p p l i e d b y t h e c o u n t y s u p e r i n t e n d e n t o f a c h o o l s fro m h i s own r e c o r d s . R e s p o n s ib ility o f g o v ern in g b o a rd .
I t is th e
r e s p o n s i b i l i t y o f th e g o v e rn in g b o a rd o f th e d i s t r i c t to f u r n i s h t h e c o u n ty s u p e r i n te n d e n t o f sc h o o ls w ith an
e s t i m a t e o f r e v e n u e s fro m s o u r c e s o t h e r t h a n t a x e s on p r o p e r t y w h ic h may b e a n t i c i p a t e d d u r i n g t h e y e a r f o r w h ic h t h e b u d g e t i s i n t e n d e d t o a p p l y .
The l a n g u a g e
o f t h e s e c t i o n above i n d i c a t e s q u i t e c l e a r l y t h a t i t i s a ls o th e r e s p o n s i b i l i t y o f th e g o v e rn in g b o a rd to i n c l u d e i n t h e b u d g e t t h e am ount o f incom e a n d t h e s o u r c e s fro m w h ic h i t was d e r i v e d f o r t h e p r e c e d i n g y e a r so t h a t t h e two may be c o m p a re d .
The s e c t i o n f u r t h e r s t a t e s
t h a t i f th e g o v e rn in g b o a rd f a i l s in fo rm a tio n s p e c if ie d i t
to p ro v id e th e
s h a l l be s u p p l i e d b y t h e
c o u n t y s u p e r i n t e n d e n t o f s c h o o l s fro m h i s own r e c o r d s . I t i s n o t c l e a r w hat c o n s t i t u t e s f a i l u r e t o p r o v i d e t h i s in fo rm a tio n .
As s u b s e q u e n t l y show n, i t was f o u n d i n
t h e r e v i e w o f t h e s c h o o l d i s t r i c t b u d g e t s t h a t many d i s t r i c t s e n t e r e d o n l y a t o k e n am ount f o r incom e ite m s f o r t h e y e a r f o r w h ic h t h e b u d g e t was t o a p p l y , b u t t h a t t h e a c t u a l incom e fro m t h e c o r r e s p o n d i n g s o u r c e s f o r t h e p r e c e d i n g y e a r was many t i m e s t h a t b u d g e t e d f o r t h e su c c e ed in g y e a r . I t i s q u i t e c l e a r fro m t h e l a n g u a g e o f t h e la w t h a t i f t h e d i s t r i c t f a i l s t o make a n y e n t r y i n t h e b u d g e t f o r incom e fro m s o u r c e s o t h e r t h a n t a x e s on p r o p e r t y , t h e c o u n ty s u p e r in te n d e n t o f s c h o o ls i s a u th o r i z e d to su p p ly t h e i n f o r m a t i o n fro m h i s own r e c o r d s .
H o w ev er, i t i s n o t
c l e a r t h a t i f th e d i s t r i c t s h o u ld in c lu d e o n ly a to k en
am ount f o r a n y one o r a l l s o u r c e s w h e t h e r t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s , u p o n f i n d i n g t h a t t h e incom e i s o n l y a s m a ll f r a c t i o n o f t h e am ount r e c e i v e d d u r i n g t h e p r e v i o u s y e a r a n d o b v i o u s l y l e s s t h a n may be e x p e c te d to a c c ru e to th e d i s t r i c t , has th e a u t h o r i t y to e n t e r t h e amount w h ic h he deems t o be a m ore r e a l i s t i c f i g u r e ; o r , d o e s a t o k e n am ount p r e v e n t a n y a c t i o n by t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s on t h e a s s u m p t i o n t h a t o n c e a n am ount i s s u p p l i e d by t h e g o v e r n i n g b o a r d , r e g a r d l e s s o f how u n r e a l i s t i c , t h e r e i s no a u t h o r i t y f o r t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s t o c h an g e i t * T h is q u e s t i o n was p r e s e n t e d t o t h e A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a r tm e n t o f E d u c a t i o n a n d h e s t a te d t h a t in h is o p in io n : I do n o t b e l i e v e t h a t a c o u n t y s u p e r i n t e n d e n t o f s c h o o l s may s u b s t i t u t e a n e s t i m a t e made b y h im f o r t h e e s t i m a t e made b y t h e g o v e r n i n g b o a r d o f a s c h o o l d i s t r i c t u n d e r E d u c a t i o n Code S e c t i o n 6302 ( b ) . 1 A f u r t h e r q u e s t i o n was p r e s e n t e d t o t h e A d m in is tra tiv e A d v ise r f o r th e C a lif o r n ia S ta te D e p a r tm e n t o f E d u c a t i o n c o n c e r n i n g w h e t h e r t h e c o n s t i t u t i o n a l p r o v is io n t h a t o n ly th e g o v e rn in g b o ard may f i x t h e b u d g e t f o r t h e s c h o o l d i s t r i c t w o u ld be
■ ^ L e tte r, A l f r e d E* L e n t z t o F r a n k M* W r i g h t , F eb ru ary 10, 1950.
28 v i o l a t e d i f th e c o u n ty s u p e r i n te n d e n t o f s c h o o ls i n s i s t e d u p o n c h a n g i n g a t o k e n am ount f o r t h e s o u r c e o f incom e t o a n am ount w h ic h w o u ld more n e a r l y r e p r e s e n t t h e a c t u a l e x p e c t e d in c o m e , o r i f h e i n s i s t e d u p o n m a k in g c h a n g e s , a l t e r a t i o n s o r a d d itio n s to any o th e r p o r t io n o f th e b u d g e t.
The A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a
S t a t e D e p a r tm e n t o f E d u c a t i o n s t a t e d h i s o p i n i o n a s fo llo w s: I do n o t b e l i e v e E d u c a t i o n Code S e c t i o n 6304 a u t h o r i z e s a c o u n ty s u p e r i n te n d e n t o f s c h o o ls t o a c t u a l l y make a n y c h a n g e s i n t h e t e n t a t i v e b u d g e t o f a school d i s t r i c t . The s e c t i o n r e q u i r e s t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s t o ,fi n d i c a t e tf c h a n g e s a n d c o r r e c t i o n s t h o u g h t b y h im t o b e d e s i r a b l e a n d t h i s m e a n s , I b e l i e v e , t h a t he may o n ly s u g g e s t t o th e g o v e rn in g b o ard o f th e d i s t r i c t , by n o t a t i o n s on t h e t e n t a t i v e b u d g e t , t h e c h a n g e s o r c o rre c tio n s he b e lie v e s d e s ir a b le . To ^ i n d i c a t e 11 a c h a n g e o r c o r r e c t i o n i s n o t t o make i t . The g o v e rn in g b o a rd o f a sc h o o l d i s t r i c t a f t e r r e c e i v i n g t h e t e n t a t i v e b u d g e t b a c k f ro m t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s may, u n d e r E d u c a t i o n Code S e c t i o n 6 3 0 5 , make s u c h c h a n g e s a s i t t h i n k s d e s ir a b le o r n e c e s s a ry , in c lu d in g th e d e l e t i o n o f. a n y c h a n g e s o r c o r r e c t i o n s w h ic h h a d b e e n made b y t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s who w o u ld have no a u t h o r i t y t h e r e a f t e r t o t a k e a n y a c t i o n o t h e r th a n to ap p ro v e th e b u d g e t.^ S o u r c e s o f in c o m e .
T h e re a r e many s o u r c e s o f
incom e w h ic h a r e i n c l u d e d i n ,fs o u r c e s o t h e r t h a n t a x e s on p r o p e r t y 11 w h ic h may be a n t i c i p a t e d d u r i n g t h e y e a r f o r w h ic h t h e b u d g e t i s i n t e n d e d t o a p p l y .
2h o c . c i t .
The s o u r c e s
29 o f incom e a s shown on p a g e t h r e e o f t h e c u r r e n t s t a t e b u d g e t form in c lu d e d e li n q u e n t t a x e s , s o lv e n t c r e d i t s , m is c e lla n e o u s r e c e i p t s such as r e n t s , e tc .,
sa le of p ro p e rty ,
v a r io u s t u i t i o n t a x e s , c o u n ty s e r v i c e a p p o rtio n m e n ts ,
c u r r e n t m u n i c i p a l t a x e s , t r a n s f e r s f ro m o t h e r d i s t r i c t s , c u r r e n t t a x e s on u n s e c u r e d p r o p e r t y , f e d e r a l g r a n t s , a n d a n y a n d a l l o t h e r m i s c e l l a n e o u s incom e o t h e r t h a n c u r r e n t d i s t r i c t t a x e s on p r o p e r t y . I t e m s o f in c o m e .
An e x a m i n a t i o n o f t h e b u d g e t
f o r m r e v e a l e d t h a t t h e i t e m s o f incom e w ere n o t w e l l a rra n g ed because th e y d id n o t p ro p e rly se g reg a te sources o f incom e o t h e r t h a n p r o p e r t y f ro m t h o s e s o u r c e s d e r i v e d f ro m p r o p e r t y .
S u ch i t e m s a s d e l i n q u e n t t a x e s , t a x e s
on s o l v e n t c r e d i t s , m u n i c i p a l t a x e s f o r s c h o o l s a n d d i s t r i c t t a x e s on u n s e c u r e d p r o p e r t y a l l a r e incom e d e r i v e d fro m t a x e s on p r o p e r t y .
I f t h e s e w ere r e g r o u p e d
so t h a t t h e s o u r c e s o f incom e o n p r o p e r t y w ere p l a c e d t o g e t h e r a n d t h i s g ro u p f o l l o w e d o t h e r s o u r c e s o f in c o m e , t h e a r r a n g e m e n t w ould be more o r d e r l y . ~
on p r o p e r t y .
I t i s n o t c l e a r from th e
l a n g u a g e o f t h e E d u c a t i o n Code w h a t i s m ean t b y ”t a x e s on p r o p e r t y . ”
The v a r i o u s s e c t i o n s o f t h e E d u c a t i o n
^ I n f r a , A ppendix C, p . 2 7 9 .
30 Code h a v i n g t o do w i t h d i s t r i c t t a x e s i n d i c a t e t h a t ” incom e f r o m t a x e s on p r o p e r t y * 1 r e f e r s o n l y t o t h e incom e d e r i v e d fro m t h e d i s t r i c t t a x n e c e s s a r y t o r a i s e t h e am ount o f money r e q u i r e d t o m e e t t h e e x p e n d i t u r e n e e d s o f t h e d i s t r i c t i n e x c e s s o f incom e f ro m a l l o t h e r so u rces.
I n r e p l y t o t h e q u e s t i o n r e g a r d i n g w hose
r e s p o n s i b i l i t y i t i s to l i s t
incom e s u c h a s incom e
d e r i v e d fro m u n s e c u r e d p r o p e r t y , d e l i n q u e n t t a x e s , s o l v e n t c r e d i t s , f e d e r a l g r a n t s , I n d ia n funds and o t h e r s i m i l a r s o u rc e s , th e A d m in is tra tiv e A d v ise r f o r th e C a lif o r n ia S t a t e D e p a rtm e n t o f E d u c a t i o n s t a t e d t h a t t h e r e s p o n s i b i l i t y f o r th e i n c l u s i o n o f th e s e ite m s in th e d i s t r i c t budget c l e a r l y l i e s w ith th e g o v ern in g b o ard of th e d i s t r i c t . The l a n g u a g e o f t h e E d u c a t i o n Code m akes r e f e r e n c e t o t h e incom e d e r i v e d f ro m d i s t r i c t t a x e s , i n d i c a t i n g t h a t s u c h incom e i s d e r i v e d fro m t h e s e c u r e d p o r tio n o f th e assessm ent r o l l .
I f t h i s i s t o be
a s s u m e d , t h e i n t e n t o f ,!s o u r c e s o t h e r t h a n t a x e s on p r o p e r t y ” w o u ld mean a l l o t h e r s o u r c e s e x c e p t t h a t incom e w h ic h i s d e r i v e d fr o m t h e d i s t r i c t t a x a p p l i e d t o t h e se c u re d p o r tio n o f th e asse ssm e n t r o l l .
C o n se q u e n tly ,
t h e a r r a n g e m e n t o f t h e i t e m s . on p a g e t h r e e o f t h e d i s t r i c t b u d g e t sh o w in g s o u r c e s o f incom e c o u l d be
c o n sid e re d p r o p e r ly gro u p ed .
4
H ow ever, incom e d e r i v e d
f ro m a n y p r o p e r t y , r e g a r d l e s s o f w h e t h e r i t i s fro m d e l i n q u e n t t a x e s , fro m t h e u n s e c u r e d r o l l , o r o t h e r i te m s o f p r o p e r t y , i s incom e f r o m t a x e s o n p r o p e r t y a n d a l i t e r a l i n t e r p r e t a t i o n o f t h e la w w o u ld so c o n s i d e r i t * H ow ever, t h e p r a c t i c e w h ic h h a s b e e n f o l l o w e d b y s c h o o l d i s t r i c t s f o r many y e a r s h a s b e e n t o c o n s i d e r t h e s e s o u r c e s a s ” r e v e n u e s fro m s o u r c e s o t h e r t h a n t a x e s on p ro p e rty .”
U n l e s s t h e l a n g u a g e o f t h e la w i s c l a r i f i e d ,
a s t r i c t i n t e r p r e t a t i o n w i l l c o n tin u e to p r e s e n t th e p r o b l e m s w h ic h h a v e b e e n d e s c r i b e d . Income fro m u n s e c u r e d p r o p e r t y .
Prom a n
e x a m i n a t i o n o f t h e a r r a n g e m e n t o f t h e incom e i t e m s on p a g e t h r e e o f t h e d i s t r i c t b u d g e t f o r m , i t was f o u n d t h a t t h e r e was n o p r o c e d u r e o r s u g g e s t i o n made a s t o how t o e s t i m a t e t h e incom e fro m u n s e c u r e d p r o p e r t y . F u r t h e r e x a m i n a t i o n r e v e a l e d t h a t t h e E d u c a t i o n Code d o e s n o t s p e c i f y how t o e s t i m a t e t h e incom e fro m u n s e c u r e d p r o p e r t y e i t h e r by r e f e r e n c e t o t h e u n s e c u r e d p o r t i o n o f t h e a s s e s s m e n t r o l l o r t o t h e t a x r a t e t o be
32 u s e d i n d e t e r m i n i n g t h e am ount o f incom e w h ic h may be e x p e c t e d t o be d e r i v e d fro m t h e u n s e c u r e d p r o p e r t y . T h e re i s no p r o c e d u r e f o r d e t e r m i n i n g t h e am ount o f d e l i n q u e n c y w h ic h may be e x p e c t e d , s u c h a s u s i n g 90 p e r c e n t o f t h e a s s e s s m e n t r o l l i n f i x i n g t h e t a x r a t e on t h e s e c u r e d p o r t i o n o f t h e a s s e s s m e n t r o l l , seem ed n e c e s s a r y t o d e t e r m i n e some am ount o f d e l i n q u e n c y i n o r d e r t h a t t h e d i s t r i c t s w ould n o t o v e r - e s t i m a t e t h e i r in c o m e .
Any p e r c e n t a g e f o r d e l i n q u e n c y t h a t m ig h t
be s u g g e s t e d w o u ld n o t a lw a y s a p p l y i n e v e r y i n s t a n c e . H ow ever, s i n c e 10 p e r c e n t h a s b e e n t h e e s t a b l i s h e d p e rc e n ta g e o f e s tim a te d d e lin q u en c y a s p ro v id e d i n th e E d u c a t i o n C ode, t h e same p e r c e n t a g e c o u l d w e l l be u s e d i n e s t i m a t i n g t h e am ount o f incom e fro m t h e u n s e c u r e d p o r t io n o f th e asse ssm e n t r o l l .
A p ro p o sed o r d e r and
a r r a n g e m e n t o f incom e i t e m s t o be u s e d f o r p a g e t h r e e o f t h e s c h o o l d i s t r i c t b u d g e t , sh o w in g t h e p r o c e d u r e t o be f o l l o w e d i n e s t i m a t i n g incom e fro m u n s e c u r e d p ro p e rty ,
i s t o b e f o u n d i n t h e A p p e n d ix .
L i s t i n g a n t i c i p a t e d in c o m e .
The l a n g u a g e u s e d
i n S e c t i o n 6302 (b ) o f t h e E d u c a t i o n Code r e q u i r e s t h a t th e g o v e rn in g b o a rd and th e c o u n ty s u p e r in te n d e n t o f
6 I n f r a , A ppendix D, p . 2 9 0 .
s c h o o l s s h a l l l i s t a l l known o r a n t i c i p a t e d incom e re g a rd le ss o f i t s
so u rce.
T h i s w o u ld r e q u i r e t h a t s u c h
i t e m s a s incom e f r o m u n s e c u r e d p r o p e r t y a n d d e l i n q u e n t t a x e s w h ic h a r e known t o b e r e c u r r i n g i t e m s y e a r a f t e r y e a r , s h o u l d a p p e a r a s incom e r e c e i v e d f o r t h e p r e c e d i n g y e a r a n d a n t i c i p a t e d incom e f o r t h e e n s u i n g y e a r . T h e se a r e two s t a b l e i t e m s o f incom e w h ic h i t i s i n c o n c e i v a b l e w ou ld n o t b e a p p a r e n t i n e v e r y c o u n t y e v e r y year.
O th e r ite m s e n u m e rated i n t h e l i s t
shown on p a g e
t h r e e o f t h e b u d g e t fo rm l i k e l y w ou ld a p p e a r w i t h re a so n a b le freq u e n cy . kn e x a m i n a t i o n o f s c h o o l d i s t r i c t b u d g e t s r e v e a le d th e f a c t t h a t o n ly ab o u t o n e - th ir d o f th e d istric ts
i n t h e s t a t e made a n y r e f e r e n c e w h a t e v e r t o
incom e r e c e i v e d o r a n t i c i p a t e d fro m u n s e c u r e d p r o p e r t y . T h i s incom e i t e m i s c o n s i d e r e d to . b e t h e m o s t s t a b l e a s f a r as r e c u r re n c e i s co n cern ed b ecau se i t i s i n c o n c e i v a b l e t h a t t h e r e w o u ld b e a n y d i s t r i c t i n a n y c o u n t y w h ic h w o uld n o t h a v e c o n s i d e r a b l e u n s e c u r e d p r o p e r t y on t h a t p o r t i o n o f t h e a s s e s s m e n t , r o l l .
The
r e f e r e n c e t o incom e f r o m u n s e c u r e d p r o p e r t y i n c l u d e d m ore i n s t a n c e s o f l i s t i n g
incom e f ro m t h i s s o u r c e
f ro m t h e p r e c e d i n g y e a r t h a n f o r a n t i c i p a t e d
7 I n f r a , A ppendix C, p . 2 7 9 .
34 incom e f o r t h e c u r r e n t y e a r * C o l l e c t i o n o f u n s e c u r e d in c o m e .
An i n q u i r y was
in c lu d e d i n th e q u e s t io n n a ir e to th e c o u n ty s u p e r in te n d e n ts o f s c h o o ls w h e th e r th e c o u n ty c o n ce rn e d i t s e l f i n any d e g r e e w h a t e v e r r e l a t i v e t o incom e b e i n g r e a s o n a b l y r e a l i s t i c , w i t h p a r t i c u l a r a t t e n t i o n t o t h e incom e d e r i v e d fr o m u n s e c u r e d p r o p e r t y .
Q
T w e n ty - n in e c o u n t y
s u p e rin te n d e n ts o f sc h o o ls r e p o r te d th a t c o n s id e r a tio n was g i v e n t o t h i s s o u r c e o f incom e a n d t w e l v e r e p o r t e d in th e n e g a tiv e .
The q u e s t i o n was n o t a n s w e r e d b y
se v en c o u n ty s u p e r i n te n d e n t s o f s c h o o l s . A s e r i e s o f q u e s t i o n s w ere a s k e d t h e c o u n t y s u p e rin te n d e n ts o f sc h o o ls re g a rd in g th e p ro c e d u re s fo llo w e d i n h a n d lin g u n se cu re d p r o p e r ty .
9
The a n s w e r s
to th e se q u e stio n s a p p e a r in th e fo llo w in g ta b u la t io n : I n h a n d l i n g u n s e c u r e d p r o p e r t y , w h ic h o f th e fo llo w in g p ro ce d u res (o r p ro ce d u re) i s f o l l o w e d i n t h e c o u n ty ? a . E n t i r e l y d i s r e g a r d e d ? ......................... b . P l a c e d w i t h s e c u r e d w i t h no a t t e m p t t o k e e p s e p a r a t e ? .............................. c . K ept s e p a r a t e , a n d c o l l e c t i o n s r e q u i r e d ? .................................................................... d. Tax l e v y m ade, b u t no r e a s o n a b l e e f f o r t made t o make c o l l e c t i o n s ? • • • •
8 I n f r a , A p p e n d ix A, p . 2 7 0 , I t e m 4 4 . 9I b i d . , Item 45.
1 17 28 2
R e f e r e n c e h a s b e e n made t o a n e x a m i n a t i o n o f sc h o o l d i s t r i c t b u d g e ts f o r 1949-50 and t h a t o n ly o n e t h i r d o f t h e d i s t r i c t s made a n y r e f e r e n c e t o u n s e c u r e d p r o p e r t y a s a s o u r c e o f incom e e i t h e r d u r i n g t h e p re c e d in g y e a r o r f o r th e c u r r e n t y e a r . t h e num ber o f d i s t r i c t s referen ce.
T a b le I shows
i n e a c h c o u n t y m ak ing s u c h
Of t h e f i f t y - s e v e n c o u n t i e s f o r w h ic h b u d g e t s
w e re a v a i l a b l e , t h i r t y - t h r e e c o u n t i e s , c o m p r i s i n g 5 7 . 8 p e r c e n t o f t h e t o t a l c o u n t i e s c o n t a i n e d d i s t r i c t s w h ic h made r e f e r e n c e t o incom e fro m u n s e c u r e d p r o p e r t y .
I t was
s i g n i f i c a n t t h a t th e l a r g e s t p e rc e n ta g e o f th e d i s t r i c t s made no r e f e r e n c e t o a n t i c i p a t e d incom e fro m u n s e c u r e d p ro p e rty .
A stu d y o f t h i s ta b le in d ic a te s t h a t e ig h te e n
o r 5 4 .5 4 p e r c e n t o f th e t h i r t y - t h r e e
c o u n t i e s m ak in g
r e f e r e n c e t o incom e fro m u n s e c u r e d p r o p e r t y i n c l u d e 695 d i s t r i c t s o r 9 5 .0 9 p e r c e n t o f t h e d i s t r i c t s fro m t h e th ir ty - th r e e c o u n tie s .
The f i f t e e n c o u n t i e s s h o w in g a
sm a ll p e r c e n t p e r c o u n ty a c c o u n t f o r o n ly t h i r t y - s i x d i s t r i c t s , o r 4 .9 1 p e r c e n t o f t h e t o t a l 731 d i s t r i c t s . The e i g h t e e n c o u n t i e s r e p r e s e n t e d 3 1 . 0 p e r c e n t o f t h e t o t a l c o u n t i e s o f t h e s t a t e a n d 9 5 .0 9 p e r c e n t o f . t h e d i s t r i c t s w h ic h made r e f e r e n c e t o incom e fro m u n s e c u r e d p ro p e rty .
36
TABLE I
NUMBER OF SCHOOL DISTRICTS GROUPED BY COUNTIES WHICH MADE ANY REFERENCE TO INCOME FROM UNSECURED PROPERTY IN THE 191*9-50 DISTRICT BUDGETS
County Alameda Alpine Amador Butte Calaveras Colusa Contra Costa Del Norte El Dorado Fresno Glenn Humboldt Imperial Inyo Kern Kings Lake Lassen Los Angeles Madera
Number of Districts 1*0 3 21 57 28 18 32 7 1*3 117 18 73 37 11* 56
Number Making Reference to Unsecured Income
Per Cent
-
-
->
-
mm
-
-
-
17
9l*.l*l*
-
-
-
—
-
•* m
-
37 -
1*5* 21*
-
100*00 -
80.3$ 100*00
21* 13 23 115 29
1 106 -
l*«3l* 92.17
Marin Mariposa Mendocino Merced Modoc
31* 1 31* 1*3 20
1* 1 3 2 12
11.76 100.00 8.82 1**65 60.00
Mono Monterey Napa Nevada Orange
6 1*1* 20 18 51*
1 17 6 51*
-»
mm
a»
2.27 85.00 33.00 100.00
37 TABLE I-(continued)
NUMBER OF SCHOOL DISTRICTS GROUPED BY COUNTIES ■WHICH MADE ANY REFERENCE TO INCOME FROM UNSECURED PROPERTY IN THE 191*9-50 DISTRICT BUDGETS
County
Number of Districts
Number Making Reference to Unsecured Income
Per Cent
Placer Plumas Riverside Sacramento San Benito
31 3 1*6 1*9 25
27 1 ia 2
San San San San San
63 68 1 75 1*7
9 66 1
W
36.17
San Mateo Santa Barbara Santa Clara Santa Cruz Shasta
31 33 50 21* 51
28 32 1*0 1
90.32 96.96 80.00 7.H* -
Sierra Siskiyou Solano Sonoma Stanislaus
7 1*5 30 90 1*8
Sutter Tehama Trinity Tulare Ventura
21 33 20 87 38
Yolo Yuba Total
Bernardino Diego Francisco Joaquin Luis Obispo
-
-
-
1*2 27 1
87.09 33.33 89.13 i*.08 ll*.28 97.05 100.00 —
-
93.33 90.00 1.11 -
3
Hi.28
-
mm
-
—
-
36
9U.73
33 20
27
81.81
2,111
731
* Included with current. district taxes*
*•
3U.63
38 C oirnty p o l i c y .
The p r o c e d u r e s f o l l o w e d w o u ld l e a d
t o t h e b e l i e f t h a t t h e m an n e r o f l i s t i n g a n d h a n d l i n g u n s e c u r e d p r o p e r t y a s r e q u i r e d b y la w may w e l l b e c o n s i d e r e d th e r e s u l t o f a c o u n ty p o l i c y .
No a t t e m p t was made t o
d e t e r m i n e w h e t h e r t h e p o l i c i e s e m a n a te fro m t h e c o u n t y s u p e r i n te n d e n t s o f s c h o o ls o r o t h e r c o u n ty o f f i c i a l s . P e r s o n a l i n t e r v i e w s w i t h a num ber o f c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s r e v e a l e d t h a t i n many i n s t a n c e s t h e c o u n t y a u d i t o r a n d / o r t h e c o u n t y b o a r d o f s u p e r v i s o r s gave little
o r no a t t e n t i o n t o t h e s u b j e c t .
One c o u n t y
s u p e r in te n d e n t o f sc h o o ls r e p o r te d t h a t th e asse ssm e n t was made e a c h y e a r b u t a b s o l u t e l y no e f f o r t was made t o c o l l e c t th e ta x e s a s s e s s e d .
On one o c c a s i o n i n t h i s
c o u n t y he r e p o r t e d a new d i s t r i c t a t t o r n e y was a p p o i n t e d a n d h e made some e f f o r t t o c o l l e c t t h e o u t s t a n d i n g t a x e s on u n s e c u r e d p r o p e r t y .
T h is was done b y m eans o f a l e t t e r
w h ic h r e s u l t e d i n t h e r e c e i p t o f a b o u t h a l f o f t h e c u r r e n t y ear* s ta x e s .
N o t h i n g was do ne a b o u t t h e b a l a n c e .
O th e r c o u n ty s u p e r i n te n d e n t s o f s c h o o ls r e p o r t e d t h a t i n t h e i r c o u n t i e s no one was c o n c e r n e d a b o u t t h e su b je c t.
T hey saw no r e a s o n why t h e y s h o u l d become
in v o lv e d i n th e p ro b lem .
T h is s u b j e c t i s l i k e many
o t h e r s i n many o f t h e c o u n t i e s .
P r a c t i c e s h a v e become
e s t a b l i s h e d a n d h a v e b e e n i n e x i s t e n c e f o r many y e a r s .
39 I t seem s t h a t i n some c o u n t i e s t h e s i g n i f i c a n c e o f t h e p ro b lem i s g iv e n l i t t l e
c o n sid e ra tio n .
I n a p e r s o n a l i n t e r v i e w , one c o u n t y s u p e r i n t e n d e n t o f s c h o o l s s t a t e d t h a t t h e e x t r a m oney c o l l e c t e d on a c c o u n t o f u n s e c u r e d t a x e s w h ic h w ere n o t l i s t e d a s e s t i m a t e d incom e f u r n i s h e d t h e b e g i n n i n g b a l a n c e f o r h is d i s t r i c t s th e fo llo w in g y e a r .
T h is u n d o u b t e d l y
a c c o u n t s f o r t h e p r a c t i c e o f some d i s t r i c t s
e n d in g th e
y e a r w i t h r e a s o n a b l e b a l a n c e s when t h e y do n o t p r o v i d e gen eral reserv es# E ffect of not lis tin g lis tin g
incom e #
The e f f e c t o f n o t
incom e i n d i s t r i c t b u d g e t s i s n o t p a r t i c u l a r l y
s i g n i f i c a n t i n d i s t r i c t s w h ic h m u st p r o v i d e t h e maximum ta x r a t e , e x c e p t t h a t p o o r b u d g et p ro c e d u re i s fo llo w e d a n d t h e la w i s b e i n g c i r c u m v e n t e d .
T h is i s t r u e o n ly
i f t h e t o t a l b u d g e t am ount t o be r a i s e d b y l o c a l d i s t r i c t t a x on s e c u r e d p r o p e r t y i s i n e x c e s s o f t h a t w h ic h may be r a i s e d by t h e t a x on u n s e c u r e d p r o p e r t y , o r o t h e r incom e n o t l i s t e d o r e s t i m a t e d #
I f th e b udget need is
r e d u c e d t o e q u a l t h e am ount w h ic h t h e d i s t r i c t t a x p l u s s t a t e incom e w i l l p r o d u c e , a s i s t h e p o l i c y i n some c o u n ti e s , th e d i s t r i c t w i l l be d e p riv e d o f c o n s id e r a b le incom e t o w h ic h i t i s e n t i t l e d a n d may n e e d b a d l y .
40 I f th e d i s t r i c t has s u f f i c i e n t w e a lth and i t s n e e d s c a n b e m et b y a t a x on s e c u r e d p r o p e r t y w h ic h i s l e s s t h a n t h e maximum, f a i l u r e t o t a k e i n t o a c c o u n t incom e fro m u n s e c u r e d p r o p e r t y o r s i m i l a r i t e m s w i l l r e q u ir e a h ig h e r d i s t r i c t ta x th a n o r i g i n a l l y p la n n e d . T h is i s due t o t h e f a c t t h a t t h e f a i l u r e t o l i s t incom e r e q u i r e s t h a t a h i g h e r am ount m u st b e r a i s e d b y d i s t r i c t t a x e s on s e c u r e d p r o p e r t y .
P e rso n a l in te rv ie w s w ith
c o u n ty s u p e r i n te n d e n t s o f sc h o o ls r e v e a l e d t h a t i t
is not
a n uncommon p r a c t i c e t o make no c h e c k on t h e e x t r a money w h ic h may a c c r u e t o a d i s t r i c t i n e x c e s s o f t h e b u d g e t . D i s p o s i t i o n o f e x t r a in c o m e .
The E d u c a t i o n Code
p r o v id e s s p e c i f i c i n s t r u c t i o n s to th e c p u n ty a u d i t o r r e g a r d in g th e a p p o rtio n m e n t o f fu n d s to sch o o l d i s t r i c t s . I f t h e t o t a l am ount o f c o l l e c t i o n s fro m a l l s o u r c e s s h o u l d e x c e e d t h e t o t a l am ount o f t h e d i s t r i c t b u d g e t , t h e ex cess s h a l l be c r e d ite d to th e g e n e ra l re s e rv e o f th e d i s t r i c t a n d may n o t be e x p e n d e d d u r i n g t h e c u r r e n t y e a r e x c e p t by f o r m a l a c t i o n o f t h e b o a r d a c c o m p a n ie d by c e r t a i n l e g a l p r o c e d u r e s s e t f o r t h by l a w .
The
a u t h o r i z a t i o n g iv e n t o th e c o u n ty a u d i t o r i s c o n ta in e d i n E d u c a t i o n Code S e c t i o n 6 3 6 1 , w h ic h r e a d s i n p a r t as fo llo w s:
41 6 3 6 1 , A l l incom e a c c r u i n g t o t h e s c h o o l d i s t r i c t i n e x c e s s o f t h e a m o u n ts r e q u i r e d t o f i n a n c e t h e t o t a l proposed e x p e n d itu re s , in c lu d in g t r a n s f e r s to o t h e r s c h o o l d i s t r i c t s a n d f u n d s , a s shown i n t h e b u d g e t o f t h e s c h o o l d i s t r i c t s h a l l be a d d e d t o t h e g e n e ra l r e s e r v e o f th e sch o o l d i s t r i c t , and s h a ll n o t b e a v a i l a b l e f o r a p p r o p r i a t i o n by t h e s c h o o l d i s t r i c t f o r th e c u r r e n t f i s c a l y e a r e x c e p t by th e fo llo w in g p ro c e d u re . . . . A c c e p t a b l e b u d g e t p r o c e d u r e w i l l n o t be p o s s i b l e u n t i l t h o s e who s h a p e b u d g e t p o l i c i e s r e c o g n i z e t h a t a l l i t e m s n e c e s s a r y t o m a k in g a f u l l f i n a n c i a l p l a n m u st be in c o r p o r a te d i n th e c u r r e n t b u d g e t p r o c e d u r e s .
To
l e a v e o u t known in c o m e , f o r a n y r e a s o n w h a t e v e r , i s
ju st
a s s e r i o u s and u n r e a l i s t i c as to l e a v e o u t ite m s o f e x p e n d itu re .
I t i s b e l i e v e d fro m t h e f a c t s a t h a n d
t h a t th e a c c o u n tin g p r a c t i c e s in bu d g et p ro ced u re r e g a r d i n g l i s t i n g a n d a c c o u n t i n g f o r incom e i t e m s i s t h e r e s u l t o f th e p o l i c y o f c o u n ty o f f i c i a l s r a t h e r th a n o f th e d i s t r i c t s .
T h is a s s u m p t i o n i s r e a c h e d a s a r e s u l t
o f t h e d a t a d e r i v e d f ro m d i s t r i c t b u d g e t s a n d t a b u l a t e d io i n T a b le I . .
The f a c t t h a t t h e p r o b l e m i s n a r r o w e d
s p e c i f i c a l l y to c e r t a i n c o u n tie s g iv e s f u r t h e r e v id e n c e o f th e f a c t .
P e r s o n a l i n t e r v i e w s w i t h a n u m b er o f c o u n t y
o f f i c i a l s c o n firm ed t h i s p o i n t o f v iew .
'L0Bu£ra, pp. 36 and 37.
42 II.
ASSESSMENTS IN RELATION TO INCOME
The a s s e s s m e n t r o l l o f t h e c o u n t y i s d e f i n e d by S e c t i o n 109 o f t h e Revenue a n d T a x a t i o n Code o f t h e S ta te o f C a lif o r n ia as fo llo w s 109. “R o l l ” : “S e c u r e d r o l l 1*: f,U n s e c u r e d r o l l , * 1, e tc . “R o l l ” m eans t h e e n t i r e a s s e s s m e n t r o l l . The “ s e c u r e d r o l l 11 i s t h a t p a r t o f t h e r o l l c o n t a i n i n g S t a t e a s s e s s e d p r o p e r t y a n d p r o p e r t y t h e t a x e s on w h ic h a r e a l i e n on r e a l p r o p e r t y s u f f i c i e n t , i n t h e o p in io n o f th e a s s e s s o r , to s e c u r e paym ent o f th e ta x e s. The r e m a i n d e r o f t h e r o l l i s t h e “u n s e c u r e d r o l l . 11 The “l o c a l r o l l ” i s t h o s e p a r t s o f t h e s e c u re d and u n s e c u re d r o l l c o n ta in in g p r o p e r t y w h ic h i t i s t h e c o u n t y a s s e s s o r * s d u t y t o a s s e s s . The “b o a r d r o l l ” i s t h a t p a r t o f t h e s e c u r e d r o l l c o n ta in in g S ta te a s se ss e d p ro p e rty . S ecu red p r o p e r t y .
A l l r e a l p r o p e r t y and th e
im p ro v e m e n ts t h e r e o n a r e s e c u r e d p r o p e r t y . p ro p e rty d e riv e s i t s t i t l e
S ecu red
fro m t h e f a c t t h a t i t i s
s e c u r e d b y t h e r e a l e s t a t e upo n w h ic h i t i s l o c a t e d . The p r o p e r t y ow ner o f r e a l e s t a t e may h a v e c e r t a i n p e r s o n a l p r o p e r t i e s “a t t a c h e d ” to th e r e a l p r o p e r t y and th e ta x e s g u a ra n te e d o r se cu re d by th e r e a l e s t a t e i t s e l f .
C o u n ty
o r l o c a l s e c u r e d p r o p e r t y i s a s s e s s e d b y t h e l o c a l c o u n ty a s s e s s o r a n d a l l p r o p e r t y u s u a l l y r e f e r r e d t o a s “p u b l i c u t i l i t y ” i s a s s e s s e d b y t h e C a l i f o r n i a S t a t e B o a rd o f E q u a liz a tio n . • ^ Revenue a n d T a x a t i o n Code o f t h e S t a t e o f C a l i f o r n i a (S an F r a n c i s c o : B a n c r o f t - W h i t n e y Company, 1 9 4 4 ) .
43 U nsecured p r o p e r t y .
A l l p e r s o n a l p r o p e r t y w h ic h
i s owned b y p e r s o n s who do n o t own r e a l e s t a t e t o w h ic h t h e p e r s o n a l p r o p e r t y may be s e c u r e d ,
is l i s t e d as
unsecured v a lu a tio n . The two t y p e s o f p r o p e r t y make up t h e a s s e s s m e n t ro ll.
A ll u n se c u re d p r o p e r t y i s a s s e s s e d by th e l o c a l
c o u n t y a s s e s s o r a n d a s t h e r e i s no m e th o d o f g u a r a n t e e i n g paym ent a t a l a t e r d a t e , th e la w r e q u i r e s t h a t th e t a x on t h e u n s e c u r e d p o r t i o n o f t h e a s s e s s m e n t r o l l i s due a n d p a y a b l e a t t h e t im e t h e a s s e s s m e n t i s m ade.
A ssess
m en t o n a l l p r o p e r t y b e g i n s o n t h e f i r s t Monday i n M arch a n d t h e u n s e c u r e d p o r t i o n o f t h e r o l l becom es d e l i n q u e n t on t h e f i r s t d a y o f S e p t e m b e r . 1 P
G e n e ra lly ,
th e c o ll e c t io n of u nsecured ta x e s i s b e t t e r th a n c o l l e c t i o n s fro m t h e s e c u r e d r o l l .
T h is i s due t o t h e
f a c t t h a t th e s e c u r e d p r o p e r t y i s f i x e d and ta x e s u n p a id become a l i e n on t h e p r o p e r t y a n d d e l a y e d o r d e l i n q u e n t p a y m e n ts a r e n o t c o n s i d e r e d a n im m e d ia te p r o b l e m f o r t h e ta x in g o f f i c i a l s .
I n t h e c a s e o f ■unsecured p r o p e r t y , i f
th e ta x e s a re n o t p a id im m e d ia te ly , th e p r o p e r t y e a s i l y c a n b e rem oved e l s e w h e r e w i t h t h e r e s u l t t h a t t h e t a x e s n e v e r w i l l be p a i d .
C o n se q u e n tly , th e t a x in g o f f i c i a l s
a r e more p r o n e t o i n s i s t u p o n im m e d ia te c o l l e c t i o n s
2 I b i d . , S e c t io n s 405 and 2 9 2 2 .
and p r o p e r t y i s a tt a c h e d i f ta x e s a re n o t p a id p ro m p tly . E q u a liz e d a sse ssm e n t r o l l .
'The e q u a l i z e d
a sse ssm e n t r o l l i s th e a sse ssm e n t r o l l as c o r r e c t e d by t h e c o u n t y b o a r d o f s u p e r v i s o r s w h ic h i s r e q u i r e d t o m eet a s a c o u n ty b o a rd o f e q u a l i z a t i o n in a c c o rd a n c e w i t h t h e p r o v i s i o n s o f S e c t i o n s 1 6 0 1 -1 6 1 5 o f t h e R evenue a n d T a x a t i o n Code o f t h e S t a t e o f C a l i f o r n i a . T h is u s u a l l y i s done d u r i n g t h e f i r s t t h r e e w eeks o f J u l y v/hen t h e c o u n t y b o a r d o f s u p e r v i s o r s s i t s a s a co u n ty b o a rd o f e q u a l i z a t i o n .
The a s s e s s m e n t r o l l , w h ic h
i s t h e l i s t i n g o f a l l t a x a b l e p r o p e r t y , becom es t h e e q u a l iz e d a s se ss m e n t r o l l a f t e r t h e c o u n ty b o a rd o f s u p e r v i s o r s , s i t t i n g a s a c o u n ty b o a rd o f e q u a l i z a t i o n , h a s made w h a t e v e r a d j u s t m e n t s a r e n e c e s s a r y a n d h a s c e rtifie d
i t to th e p ro p e r a u t h o r i t i e s as th e e q u a liz e d
assessm ent r o l l . C o lle c tio n o f ta x e s .
T ax e s l e v i e d on u n s e c u r e d
p r o p e r t y m u st b e c o l l e c t e d a t t h e r a t e o f t a x e s t a b l i s h e d a t t h e tim e o f c o l l e c t i o n w h ic h i s t h e r a t e f i x e d f o r c o l l e c t i o n on t h e s e c u r e d r o l l f o r t h e p r e c e d i n g y e a r f o r w h ic h t h e a s s e s s m e n t i s b e i n g m a d e . The a u t h o r i t y f o r u s i n g t h e t a x r a t e f o r t h e p r e c e d i n g y e a r i s f o u n d i n S e c t i o n 2905 o f t h e Revenue a n d
45
T a x a t i o n Code o f t h e S t a t e o f C a l i f o r n i a , w h ic h r e a d s in p a r t as fo llo w s: 2 9 0 5 . R a te a n d c o m p u t a t i o n o f t a x . In c o l l e c t i n g t a x e s on u n s e c u r e d p r o p e r t y t h e t a x r a t e t o be u s e d i s t h e r a t e f o r p r o p e r t y o f t h e same k i n d on t h e s e c u r e d r o l l l a s t f i x e d b e f o r e th e l i e n d a te f o r th e ta x e s to be c o ll e c t e d . . . . The E d u c a t i o n Code i s s i l e n t a n d i n c o m p l e t e r e g a r d in g th e c o l l e c t i o n and th e m anner o f e s t im a t i n g t h e am ount o f t a x e s t o be d e r i v e d fro m u n s e c u r e d p r o p e r t y * I n f a c t , a c a r e f u l s t u d y o f t h e E d u c a t i o n Code a s i t i s now w r i t t e n l e a d s t o much c o n f u s i o n i n t h i s c o n n e c t i o n . P r i o r t o 1931 t h e la w made t h e c o u n t y a s s e s s o r r e s p o n s i b l e , a n d i n f a c t he was h e l d l i a b l e , f o r t h e c o l l e c t i o n o f a l l t a x e s on u n s e c u r e d p r o p e r t y .
C o n se q u e n tly ,
i t was m ore o r l e s s common p r a c t i c e f o r t h e a s s e s s o r t o l i s t on t h e u n s e c u r e d r o l l o n l y t h e p r o p e r t y u p o n w h ic h h e was a b l e t o c o l l e c t t a x e s .
T h e re was n e v e r a n y
d e l i n q u e n c y , b u t t h e r e was much u n s e c u r e d p r o p e r t y w h ic h n e v e r re a c h e d th e u n se c u re d r o l l s b ecau se to l i s t
i t as
a s s e s s e d w i t h o u t t h e c o l l e c t i o n h a v i n g b e e n made p l a c e d th e a s s e s s o r i n a p o s i t i o n o f b e in g p e r s o n a l l y l i a b l e f o r th e ta x e s n o t c o lle c te d . T h is p r a c t i c e u n d o u b t e d l y was r e s p o n s i b l e f o r t h e f a c t t h a t t o d a y many c o u n t i e s s t i l l make l i t t l e p re te n se o f l i s t i n g
o r no
incom e f ro m u n s e c u r e d p r o p e r t y .
Many
46
c o u n ty s u p e r i n te n d e n t s o f s c h o o ls r e p o r t t h a t w h ile c o l l e c t i o n s w e re made t h e y w e re a p a r t o f t h e r e g u l a r t a x c o l l e c t i o n w i t h no a t t e m p t t o k e e p t h i s s o u r c e o f incom e s e p a r a t e fro m t h a t d e r i v e d f r o m t h e s e c u r e d p o r t i o n o f th e assessm en t r o l l .
In f a c t ,
th e re is stro n g reaso n
t o b e l i e v e t h a t t h e a s s e s s m e n t r o l l o n w h ic h t h e c u r r e n t d i s t r i c t t a x i s d e t e r m i n e d may i n some i n s t a n c e s i n c l u d e b o th th e s e c u r e d and u n s e c u re d r o l l .
T h i s was v e r i f i e d
th ro u g h p e rs o n a l in te r v ie w s w ith c o u n ty s u p e r in te n d e n ts o f s c h o o ls and t a x i n g o f f i c i a l s .
The s u b j e c t was n o t
made a p a r t o f t h i s s t u d y , b u t i t i s s u g g e s t e d a s a su b je c t f o r f u r th e r in v e s tig a tio n . F ix in g th e ta x r a t e .
The c o u n t y s u p e r i n t e n d e n t o f
s c h o o l s i s r e q u i r e d t o d e t e r m i n e t h e am ount o f money w h ic h m u st be p r o v i d e d
by a s c h o o l d i s t r i c t
ta x .
S e c t i o n 6352
o f th e E d u c a tio n
C ode, w h ic h p r o v i d e s
t h e m an n e r i n w h ic h
t h i s s h a l l be d o n e , r e a d s a s f o l l o w s : 6 3 5 2 . He s h a l l d e t e r m i n e t h i s am ount b y d e d u c t i n g fro m t h e t o t a l e s t i m a t e d n e e d s o f t h e s c h o o l d i s t r i c t a s shown b y i t s b u d g e t t h e t o t a l e s t i m a t e d incom e o f t h e s c h o o l d i s t r i c t fro m a l l s o u r c e s o t h e r th an a school d i s t r i c t ta x f o r th e c u rre n t school y e a r a s e s t i m a t e d i n t h e b u d g e t . The r e m a i n d e r , i f a n y , s h a l l be t h e minimum am ount o f t h e s c h o o l d i s t r i c t t a x t o be l e v i e d b y t h e b o a r d o f s u p e r v i s o r s f o r th e p a r t i c u l a r school d i s t r i c t . The q u e s t i o n o f w h a t c o n s t i t u t e s incom e fro m “t a x e s on p r o p e r t y ” a s u s e d i n E d u c a t i o n Code S e c t i o n 6302 (b ) i s
n o t d e f i n e d n o r was i t p o s s i b l e t o f i n d a n y c l e a r s t a t e m e n t o f t h e m e a n in g o f t h i s p h r a s e i n e i t h e r t h e E d u c a t i o n Code 13 o r t h e Revenue a n d T a x a t i o n C o d e .,
The l a n g u a g e o f
E d u c a t i o n Code S e c t i o n 6352 q u o t e d ab ove may, c o n s t i t u t e t h e a n s w e r a s n e a r l y a s i t may b e d e t e r m i n e d i n t h e a b s e n c e o f a c l e a r s ta te m e n t d e f i n i n g w hat i s m eant by s o u rc e s o f incom e o t h e r t h a n t h a t d e r i v e d fro m t a x e s on p r o p e r t y * The s e c t i o n r e f e r s t o fla s c h o o l d i s t r i c t t a x f o r t h e c u r r e n t s c h o o l y e a r ” w h ic h c a n be o n l y t h e t a x w h ic h m u st be d e t e r m i n e d f r o m t h e ,ft o t a l e s t i m a t e d n e e d s o f t h e sc h o o l d i s t r i c t * 1 a f t e r a l l o th e r so u rc e s have been d e d u cted . T h is i s t h e o n l y t a x w h ic h h a s b e e n o r w i l l be l e v i e d d u rin g th e sch o o l year#
S i n c e t a x e s on u n s e c u r e d p r o p e r t y
h a v e b e e n made a l i e n on t h e d a t e o f a s s e s s m e n t w h ic h i s t h e f i r s t Monday i n M arch a n d t h e s e t a x e s a r e due im m e d ia te ly , and d e li n q u e n t and s u b j e c t t o f o r c e d s a l e a n d c o l l e c t i o n on S e p te m b e r f i r s t ,
i t i s o b v io u s t h a t th e
o n l y t a x e s w h ic h a r e due a n d c o l l e c t i b l e when t h e d i s t r i c t t a x r a t e i s f i x e d w o u ld be t h o s e d e r i v e d fro m p r o p e r t y re p r e s e n te d by th e se c u re d p o r tio n o f th e a ssessm en t r o l l . I n a n y e v e n t , t h e l a n g u a g e was f o u n d t o be c o n f u s i n g a n d in co m p lete. S e c t i o n 6356 o f t h e E d u c a t i o n Code s p e c i f i e s how • ^ S u p ra, p . 2 5 .
48 t h e d i s t r i c t t a x i s t o b e d e te r m i n e d *
T h is s e c t i o n r e a d s :
6356. The b o a r d o f s u p e r v i s o r s s h a l l d e t e r m i n e th e r a t e o f d i s t r i c t ta x n e c e s s a r y to be l e v i e d a s fo llo w s: T hey s h a l l d e d u c t 10 p e r c e n t f r o m t h e e q u a l i z e d v a lu e o f th e l a s t g e n e ra l a sse ssm e n t r o l l f o r th e d istric t* The r a t e i s , t h e am ou nt r e q u i r e d t o be r a i s e d , d iv id e d b y th e re m a in d e r o f th e a sse ssm e n t ro ll. I t i s to be n o te d t h a t t h i s s e c t i o n r e f e r s to ”th e l a s t g e n e ra l assessm en t r o l l f o r th e d i s t r i c t . ”
The
w o r d in g ng e n e r a l a s s e s s m e n t r o l l ” w o u ld i n d i c a t e t h a t t h e f u l l a s s e s s m e n t r o l l f o r t h e d i s t r i c t i s t o be u s e d i n d e te rm in in g th e d i s t r i c t ta x r a t e .
The b u d g e t f o r m
r e q u i r e s t h a t t h e incom e fr o m u n s e c u r e d p r o p e r t y , w h ic h i s th e u n se cu re d p o r tio n o f th e a sse ssm e n t r o l l f o r th e d i s t r i c t , b e i n c l u d e d among t h e i t e m s o f incom e on p a g e 14 th r e e o f th e budget form . I f th e lan g u ag e o f S e c t i o n 6356 i s t o be f o l l o w e d l i t e r a l l y , t h e t a x r a t e w o u ld be d e t e r m i n e d b y u s i n g b o t h t h e s e c u r e d a n d u n secu red p o r tio n s o f th e a ssessm en t r o l l . As h a s b e e n s t a t e d b e f o r e , e v i d e n c e was f o u n d t h a t t h e e n t i r e r o l l i s u s e d i n some c o u n t i e s .
At th e
same t i m e , i t was a l s o d e t e r m i n e d up o n i n v e s t i g a t i o n t h a t t h e p r a c t i c e i n many c o u n t i e s was t o u s e o n l y t h e s e c u re d p o r t io n o f th e a sse ssm e n t r o l l i n d e te rm in in g th e -------14!----------I n f r a , A ppendix C, p . 2 7 9 .
49 ta x r a t e a s d e s c rib e d in th e s e c t i o n o f th e E d u c a tio n Code q u o t e d a b o v e . ' I f i t i s t o be a ssu m e d t h a t t h e l a n g u a g e w h ic h refers
t o s o u r c e s o f incom e o t h e r t h a n **taxes fro m
p ro p erty * * r e p r e s e n t s a l l incom e e x c e p t t h a t w h ic h i s t o be d e r i v e d fro m t h e f i n a l t a x r a t e su ch ite m s as d e lin q u e n t t a x e s ,
c o m p u ta tio n , th e n
incom e fro m u n s e c u r e d
p r o p e r t y and o t h e r s i m i l a r s o u r c e s d e r iv e d fro m t h i s t y p e o f p r o p e r t y s h o u l d be c o n s i d e r e d among t h e “ s o u r c e s o f incom e o t h e r t h a n fro m p r o p e r t y . * 1
I f th e c o u n ty
b o a rd o f s u p e r v is o r s sh o u ld use th e e n t i r e a sse ss m e n t r o l l in d e te rm in in g th e ta x r a t e ,
i t w ould b e u s i n g a
l a r g e r am ount o f v a l u a t i o n fro m w h ic h t o d e t e r m i n e t h e t a x t h a n s u b s e q u e n t l y w ould b e u s e d t o a c t u a l l y r a i s e t h e money r e q u i r e d t o m e e t t h e b u d g e t n e e d s o f t h e d istric t.
The u s e o f a l a r g e r a s s e s s m e n t t o r a i s e a
f i x e d am ount o f money t h a n t h a t w h ic h i s a c t u a l l y u s e d w ould h a v e t h e e f f e c t o f f i x i n g a t a x r a t e w h ic h w o u ld be i n s u f f i c i e n t t o r a i s e t h e money r e q u i r e d .
On t h e
o t h e r h an d , i f th e se c u re d p o r t io n o n ly i s u sed a h ig h e r t a x r a t e w i l l r e s u l t , a n d t h i s a p p l i e d t o t h e same v a l u a t i o n w i l l r a i s e t h e am ount r e q u i r e d .
H ow ever, i f
in f i x i n g t h i s ta x r a t e u s in g o n ly th e se cu re d p o r tio n o f t h e a s s e s s m e n t r o l l , no c o n s i d e r a t i o n h a s b e e n g i v e n t o t h e am ount o f money d e r i v e d fro m u n s e c u r e d t a x e s
50 c o ll e c t e d u s in g th e ta x r a t e o f th e p re v io u s y e a r , th e am ount o f incom e r e q u i r e d a s shown i n t h e b u d g e t t o be r a i s e d f r o m d i s t r i c t t a x e s w i l l be much l a r g e r t h a n t h a t a c t u a l l y n e e d e d due t o t h e f a c t t h a t t h e i t e m o f incom e r e p re s e n te d by u n secu red p r o p e r ty ta x e s h as n o t been d e d u c t e d f r o m t h e t o t a l need * I t i s e v id e n t t h a t th e C a lif o r n ia S ta te L e g is la tu r e m u st h a v e i n t e n d e d t h e t e r m “g e n e r a l a s s e s s m e n t r o l l n a s u s e d i n S e c t i o n 6356 o f t h e E d u c a t i o n C ode, t o a p p l y t o t h e s e c u r e d p o r t i o n o f t h e a s s e s s m e n t r o l l * 15
I t is
m ore l i k e l y , h o w e v e r , t h a t t h e l a n g u a g e i n t h i s s e c t i o n was u s e d i n e r r o r a n d t h a t t h e p r a c t i c e o f u s i n g o n l y th e se c u re d p o r tio n o f th e r o l l had been in e x is te n c e f o r a l o n g t i m e a n d t h a t t h i s was t h e d e t e r m i n i n g f a c t o r r a t h e r t h a n t h e t e c h n i c a l l a n g u a g e o f t h e la w i t s e l f . Summary.
G o v e r n in g b o a r d s a n d c o u n t y s u p e r i n t e n d e n t s
o f s c h o o l s a r e r e q u i r e d b y l a w t o make e n t r i e s i n t h e p r e lim in a r y b u d g e t r e g a r d in g b a la n c e s and a l l so u rc e s o f incom e o t h e r t h a n t h a t r a i s e d f r o m t a x e s on p r o p e r t y . V a r i o u s s o u r c e s o f incom e s u c h a s d e l i n q u e n t t a x e s , s o l v e n t c r e d i t s , m i s c e l l a n e o u s r e c e i p t s , t u i t i o n p a y m e n ts , (/V c o u n ty s e r v i c e a p p o rtio n m e n ts , m i n i c i p a l t a x e s , t r a n s f e r s ,
15
S u p ra , p . 4 8 .
51 u n se c u re d p r o p e r t y t a x e s , f e d e r a l g r a n ts and any and a l l o t h e r m i s c e l l a n e o u s incom e i t e m s a r e r e q u i r e d t o be lis te d . The R evenue a n d T a x a t i o n Code d e f i n e s t h e a s s e s s m en t r o l l a s t h e t o t a l a s s e s s e d v a l u a t i o n o f a l l p r o p e r t y in c lu d in g se c u re d and u n secu red p r o p e r ty .
U nsecured
p r o p e r t y i s t h a t p r o p e r t y w h ic h c a n n o t be r,a t t a c h e d ” t o r e a l p r o p e r t y owned b y t h e same p e r s o n .
T ax e s on
u n s e c u re d p r o p e r t y a r e p a y a b le im m e d ia te ly upon a sse s s m e n t w h ic h b e g i n s on t h e f i r s t Monday i n M arch a n d become d e l i n q u e n t on S e p te m b e r f i r s t .
The l a n g u a g e i n t h e
E d u c a t i o n Code i s c o n f u s i n g a s i t d o e s n o t c l e a r l y i n d i c a t e w hat i s m e a n t b y t a x e s on p r o p e r t y .
The
l a n g u a g e w o u ld i n d i c a t e t h a t incom e d e r i v e d f ro m t h e unsecured p o rtio n o f th e assessm ent r o l l ,
d e lin q u e n t
t a x e s , s o lv e n t c r e d i t s and m u n ic ip a l ta x e s a re n o t c o n s i d e r e d incom e d e r i v e d f ro m t a x e s on p r o p e r t y .
The
l a n g u a g e r e f e r r i n g t o t a x e s on p r o p e r t y i n d i c a t e s t h a t s u c h incom e i s d e r i v e d o n l y f ro m t h e s e c u r e d p o r t i o n o f th e assessm ent r o l l .
H ow ever, a s t r i c t i n t e r p r e t a t i o n
w o u ld i n d i c a t e t h a t d i s t r i c t t a x e s w o u ld b e l e v i e d on t h e e n t i r e a s s e s s m e n t r o l l w h ic h w ou ld i n c l u d e b o t h t h e s e c u re d and u n secu red p o r t i o n s ,
r e s u l ti n g in ta x e s
b e in g c o l l e c t e d tw ic e on th e u n se c u re d p o r t i o n o f th e assessm ent r o l l .
The t a x r a t e u s e d t o c o l l e c t t a x e s fro m
52 th e u n se c u re d p o r t io n o f th e a sse ssm e n t r o l l i s th e same r a t e u s e d i n t h e c o l l e c t i o n o f d i s t r i c t t a x e s fro m th e s e c u re d p o r t io n o f th e a sse ssm e n t r o l l f o r th e p re c e d in g y e a r. U n s e c u r e d p r o p e r t y incom e i s o n e o f t h e m o st s t a b l e s o u r c e s o f o t h e r incom e a n d t h i s i t e m was g i v e n i n t e n s i v e stu d y .
I t was f o u n d t h a t o n l y o n e - t h i r d o f t h e d i s t r i c t s
i n t h e s t a t e made a n y r e f e r e n c e t o t h i s s o u r c e .
Of t h e
731 d i s t r i c t s m ak in g s u c h r e f e r e n c e , 695 o r 9 5 .0 9 p e r c e n t w ere f ro m e i g h t e e n c o u n t i e s .
The b a l a n c e o f t h i r t y - s i x
d i s t r i c t s w ere f ro m f i f t e e n c o u n t i e s . c o u n tie s s tu d ie d ,
Of t h e f i f t y - s e v e n
t w e n t y - f o u r made no r e f e r e n c e w h a t e v e r .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d t h a t t w e n t y - e i g h t c o u n t i e s k e p t u n s e c u r e d incom e s e p a r a t e , w h i l e s e v e n t e e n s t a t e d t h a t a n e f f o r t was made t o k e e p c o l l e c t i o n s s e p a r a t e fro m s e c u r e d t a x e s .
F a ilu r e to
t a k e i n t o a c c o u n t a l l s o u r c e s o f incom e may d e p r i v e d i s t r i c t s o f fu n d s t o w h ich th e y a r e e n t i t l e d .
I n some
i n s t a n c e s , e s p e c i a l l y i f t h e maximum t a x r a t e i s n o t n e e d e d , incom e b e y o n d t h a t w h ic h t h e la w p r o v i d e s may be c o lle c te d .
A c ce p tab le b a la n c e s i n d i s t r i c t s
in c o u n tie s
w h ic h p r o v i d e no g e n e r a l r e s e r v e s i n d i c a t e d t h a t t h e f u n d s w e re b e i n g r a i s e d fro m o t h e r t h a n b u d g e t e d r e s e r v e s . P e r s o n a l i n te r v ie w s w ith c o u n ty o f f i c i a l s r e v e a le d t h a t
53
th e p r a c tic e o f n o t l i s t i n g
incom e was o f l o n g s t a n d i n g .
E v id e n c e p o i n t s t o t h e n e e d f o r l e g i s l a t i o n , c h a n g e o r im p ro v e m e n t i n b u d g e t p r o c e d u r e , o r a p r o g r a m o f b e t t e r i n t e r p r e t a t i o n and u n d e r s t a n d i n g o f e x i s t i n g l a w s , a n d p o ss ib ly a l l th re e .
T h e re i s e v i d e n c e , c o n f i r m e d by
p e rs o n a l in te r v ie w s , t h a t th e p o l i c i e s and p ro c e d u re s fo llo w e d i n d i s t r i c t s a r e l a r g e l y th o se e n u n c ia te d by th e c o u n ty o f f i c i a l s .
CHAPTER IV ANALYSIS OP BUDGETING FOR DISTRICT EXPENDITURES The E d u c a t i o n Code o f C a l i f o r n i a p r e s c r i b e s t h e m a n n e r i n w h ic h p r o p o s e d e x p e n d i t u r e s s h a l l be l i s t e d i n th e d i s t r i c t b u d g e ts .
T h is a u t h o r i z a t i o n i s f o u n d i n
S e c t i o n 6301 (a ) w h ic h r e a d s a s f o l l o w s : 6301. (a) On o r b e f o r e t h e f i r s t day o f J u l y i n each y e a r , th e g o v e rn in g b o a rd o f each sch o o l d i s t r i c t s h a l l f i l e w ith th e c o u n ty s u p e r in te n d e n t o f sc h o o ls a t e n t a t i v e b u d g e t sh o w in g a l l t h e p u r p o s e s f o r w h ic h t h e s c h o o l d i s t r i c t w i l l n e e d money a n d t h e e s t i m a t e d am ount o f money t h a t w i l l b e n e e d e d f o r e a c h p u r p o s e f o r th e e n su in g f i s c a l y e a r . T h ese p u r p o s e s s h a l l b e c l a s s i f i e d t o s e t f o r t h th e d a ta by f u n c tio n s and o b je c ts o f e x p e n d itu re w ith in th e m ajo r c l a s s i f i c a t i o n s o f a d m in is tra tio n , in s tr u c tio n , o p e ra tio n of p la n t, m a i n t e n a n c e o f p l a n t , a u x i l i a r y s e r v i c e s , com m unity s e r v i c e s , c a p i t a l o u t la y , and su c h a d d i t i o n a l m ajo r c l a s s i f i c a t i o n s a s may b e p r e s c r i b e d by t h e S u p e r i n t e n d e n t o f P u b lic I n s t r u c t i o n and e x p e n d itu re s p roposed t o be made fr o m b o n d s o r o t h e r incom e n o t y e t a u t h o r i z e d . W ith in th e m a jo r c l a s s i f i c a t i o n s o f a d m in is tra tio n , in s tr u c tio n , o p e ra tio n o f p la n t, m a i n t e n a n c e o f p l a n t , a u x i l i a r y a g e n c i e s , a n d com m unity s e r v ic e s th e r e s h a l l be s e t f o r t h as s e p a ra te e n t r i e s t h e am ount o f p r o p o s e d e x p e n d i t u r e s f o r s a l a r i e s a n d w ages a n d m a i n t e n a n c e a n d o p e r a t i o n a n d s u c h a d d i t i o n a l i n t e r m e d i a t e c l a s s i f i c a t i o n a s may b e p r e s c r i b e d b y th e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n . P ro posed c a p i t a l o u t l a y a p p r o p r i a t i o n s s h a l l be s e t f o r t h b y l a n d , b u i l d i n g , a n d e q u ip m e n t c l a s s i f i c a t i o n s . W h e re v e r a d i s t r i c t h as a s p e c ia l a cc u m u lativ e b u ild in g fu n d , as p ro v id e d i n A r t i c l e 4 o f C h a p te r 8 o f t h i s d i v i s i o n , t h e am ount i n s u c h f u n d a t t h e e n d o f t h e l a s t p r e c e d i n g f i s c a l y e a r , a n d t h e am ount t o b e a d d e d d u r i n g t h e e n s u i n g f i s c a l y e a r , s h a l l be show n. P r i o r t o 1 949 t h e E d u c a t i o n Code l i m i t e d t h e c l a s s i f i c a t i o n s t o t h o s e s p e c i f i e d i n t h e p r e s e n t la w a n d
55 no a u t h o r i t y was g i v e n t o t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n to add a d d i t i o n a l m a jo r c l a s s i f i c a t i o n s .
F ix e d
c h a r g e s w ere i n c l u d e d a s one o f t h e m a j o r c l a s s i f i c a t i o n s re q u ire d .
P r i o r to amendment i n 1 9 4 9 , t h e la w f u r t h e r
p r o v i d e d t h a t a l l e x p e n d i t u r e s be l i s t e d u n d e r fl3 a l a r i e s a n d W ages” a n d M a i n t e n a n c e a n d O p e r a t i o n . ”
The p r e s e n t
la w p r o v i d e s t h a t t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n i s a u th o r i z e d to add a d d i t i o n a l i n te r m e d i a t e c l a s s i f i c a t i o n s . T h ese p r o v i s i o n s a r e i n harm on y w i t h o t h e r s e c t i o n s o f t h e E d u c a t i o n Code w h ic h g i v e a u t h o r i t y t o t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n t o r e q u i r e t h a t t h e b u d g e t s h a l l be made i n t h e fo rm a n d u p o n t h e b l a n k s p r e s c r i b e d .
In th is
m a n n e r t h e fo rm an d a r r a n g e m e n t o f r e q u i r e m e n t s i n t h e b u d g e t may be a l t e r e d fr o m t im e t o tim e t o m e e t c h a n g i n g c o n d itio n s.
T h is i s a d e s i r a b l e p r o v i s i o n a n d g i v e s a l l
o f th e n e c e ssa ry c o n tr o l needed w ith f l e x i b i l i t y f o r good a d m i n i s t r a t i o n . The b u d g e t a s a n a c c o u n t i n g d e v i c e . th e l i t e r a t u r e
A c co rd in g to
i t i s n o t th e p rim a ry f u n c tio n o f a
b u d g e t t o s e r v e a s a b o o k k e e p i n g o r a c c o u n t i n g d e v ic e * H ow ev er, t h e b u d g e t s h o u l d be p r e p a r e d i n t h e same o r d e r a n d u s i n g t h e g e n e r a l d e s c r i p t i v e t i t l e s made u s e o f i n t h e a c c o u n t i n g p r o c e d u r e m a n u a l.
A l l o f th e m ajo r b u d g et
c l a s s i f i c a t i o n s p r e s c r i b e d i n t h e E d u c a t i o n Code a r e u s e d
i n t h e C a l i f o r n i a S c h o o l A c c o u n t i n g M anual w h ic h i s t h e a u t h o r i t y and g u id e f o r c l a s s i f y i n g e x p e n d itu re s o f sc h o o l d istric t f u n d s P a g e s
f o u r and f i v e o f th e b u d g e t form ,
w h ic h i s t o b e f o u n d i n t h e A p p e n d i x , - , r e q u i r e t h e s e g r e g a t i o n o f e a c h m a j o r c l a s s i f i c a t i o n i n t o “S a l a r i e s a n d W agesft a n d “O t h e r E x p e n s e . 1*2
The m a j o r c l a s s i f i c a t i o n s
o f e x p e n d i t u r e s a s s h o w n .o n t h e b u d g e t a r e a l s o t o be f o u n d i n t h e C a l i f o r n i a S c h o o l A c c o u n t i n g M a n u a l.
T h e re
a r e many s u b h e a d s a n d i t e m i z e d l i s t i n g s o f e x p e n d i t u r e s w h ic h may b e c l a s s i f i e d i n e i t h e r one o f t h e two s u b g r o u p s u n d e r e a c h o f t h e m a j o r c l a s s i f i c a t i o n s a s shown i n t h e b u d g e t. S u p p l e m e n t a l w ork s h e e t f o r m .
I t i s t o be n o t e d
t h a t u n d e r c a p i t a l o u t l a y t h e r e i s a b rea k d o w n o f t h e p u r p o s e s f o r w h ic h f u n d s a r e t o b e e x p e n d e d .
In
i n te r v ie w in g c o u n ty s u p e r i n te n d e n t s o f s c h o o ls and o t h e r school o f f i c i a l s
i t was f o u n d t h a t s e v e r a l c o u n t i e s h a d
^ C a l i f o r n i a S c h o o l A c c o u n t i n g M a n u a l, P a r t s I - I V , B u l l e t i n o f t h e C a l i f o r n i a S t a t e D e p a r tm e n t o f E d u c a t i o n , V o l . X I I I , No. 2 ( S a c r a m e n t o , C a l i f o r n i a : C a l i f o r n i a S t a t e D e p a r tm e n t o f E d u c a t i o n , J u n e , 1 9 4 4 ) , p p . 1 1 - 2 8 . ^ I n f r a , A p p e n d ix C, p p . 2 8 0 - 2 8 1 . 5
C a l i f o m i a S c h o o l A c c o u n t i n g M a n u al, l o c . c i t .
57 p r o v i d e d a s u p p l e m e n t a l b re a k d o w n w ork s h e e t t o a s s i s t d istric ts
i n p r e p a r i n g b u d g e ts *
The v a r i o u s f o r m s e x a m in e d
i n d i c a t e d a w ide v a r i e t y i n t h e i t e m s i n c l u d e d *
S ev eral
c o u n ty s u p e r in te n d e n ts o f s c h o o ls e x p re s s e d th e d e s i r e t h a t th e s t a t e sh o u ld p r e p a r e a u n ifo rm su p p le m e n ta l w ork s h e e t b u d g e t fo rm t h a t c o u l d be u s e d by a l l d i s t r i c t s th ro u g h o u t th e s t a t e * I n o r d e r t o d e t e r m i n e how w i d e s p r e a d t h i s n e e d w a s, c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s w ere a s k e d i n t h e c o u n t y q u e s t i o n n a i r e w h e t h e r t h e y b e l i e v e d t h e r e was a n e e d f o r a s u p p l e m e n t a l b re a k d o w n fo rm f o r t h e p r e p a r a t i o n o f p re lim in a ry b u d g e ts .4
T h is fo rm w ould n o t be a p a r t
o f t h e f i n a l b u d g e t , b u t w ou ld p r o v i d e f r o m f o u r t o t e n su b item s in each m a jo r c l a s s i f i c a t i o n i n o r d e r to p r e s e n t a d e t a i l o f p ro p o sed e x p e n d itu re s*
To t h i s q u e s t i o n
t h i r t y - n i n e c o u n ty s u p e r in te n d e n ts o f s c h o o ls r e p l i e d i n th e a f f i r m a t i v e and e i g h t i n th e n e g a t i v e .
S e v e ra l o f th e
c o u n ty s u p e r i n te n d e n t s o f s c h o o ls r e p o r t e d t h a t su ch a f o r m w as a l r e a d y i n u s e i n t h e i r c o u n t i e s *
S ev eral
made r e f e r e n c e t o a fo rm w h i c h was u s e d t h r o u g h o u t t h e s ta te se v e ra l y ears ago.
O th ers e x p re s s e d th e d e s i r e
t h a t a b re a k d o w n s u p p l e m e n t a l f o r m w o u ld b e d e v e l o p e d by th e s t a t e f o r d i s t r i c t use*
I f s u c h a f o r m w e re
4 I n f r a , A ppendix A, p . 2 6 9 , Item 4 1 .
58
p r o v i d e d i t w o u ld a s s u r e r e a s o n a b l e u n i f o r m i t y f o r a minimum s e g r e g a t i o n w i t h i n e a c h c l a s s i f i c a t i o n w h ic h w ould te n d to a id d i s t r i c t s
i n s e t t i n g up t h e minimum a c c o u n t i n g
c l a s s i f i c a t i o n s , a s w e ll as to a s s i s t in th e p re p a ra tio n o f th e d i s t r i c t b u d g e ts* The same q u e s t i o n was p r e s e n t e d t o t h e c i t y s u p e r in te n d e n ts o f s c h o o ls and t h i r t y - t h r e e r e p o r t e d th e y f a v o r e d t h e d e v e lo p m e n t o f s u c h a f o r m . ^ th e y d id n o t fa v o r i t .
S ix te e n r e p lie d
The a f f i r m a t i v e r e p l i e s fro m t h e
c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s r e p r e s e n t e d 83*0 p e r c e n t o f t h o s e r e p l y i n g a s com pared t o 6 7 .4 p e r c e n t o f t h e c i t y su p e rin te n d e n ts of sc h o o ls.
S e v e ra l o f th e c i t y
s u p e r i n t e n d e n t s o f s c h o o l s p l a c e d comments o n t h e q u e s t i o n n a i r e s s t a t i n g t h a t t h e y a l r e a d y h a d s u c h a fo rm a n d c o n s e q u e n t l y w ere n o t i n f a v o r o f t h e d e v e lo p m e n t o f a s t a t e fo im .
I n t h e c a s e o f t h e c o u n ty s u p e r i n t e n d e n t s
o f s c h o o l s , many s t a t e d t h e r e was a n e e d f o r t h i s t y p e o f a s s i s t a n c e f o r many o f t h e s m a l l e r d i s t r i c t s .
A
s u b s t a n t i a l p e r c e n t a g e o f e a c h g ro u p i n d i c a t e d t h e r e was a n e e d f o r a s u p p l e m e n t a l work s h e e t t y p e o f fo rm t o acco m p any t h e r e g u l a r s c h o o l d i s t r i c t b u d g e t f o r t h e p urp ose o f e s tim a tin g p rop o sed e x p e n d itu re s . --------------- g ---------------
I n f r a , A p p e n d ix B, p . 2 7 5 , I t e m 8 .
59
D i s t r i c t pro ced u res .
C o u n ty s u p e r i n t e n d e n t s o f
s c h o o l s w e re a s k e d t o l i s t t h e m o s t common p r a c t i c e s o r Q p r o c e d u r e s u s e d b y d i s t r i c t s i n p r e p a r i n g b u d g e ts # They w ere a s k e d t o a s s i g n a r a t i n g t o t h e s i x i t e m s i n o r d e r o f common u s e .
The t a b u l a t i o n o f f r e q u e n c y i s t o b e
f o u n d i n T a b le I I .
W h ile t h e r e was a w ide d i s t r i b u t i o n
o f f r e q u e n c y , t h e r e was e v i d e n c e o f good b u d g e t p r e p a r a t i o n p r a c t i c e r e p r e s e n t e d by ite m s " c , " "d" and " e ."
T hese t h r e e w e re b a s e d u p o n g o o d r e c o r d k e e p i n g
a n d n o t " g u e s s e s 11 o r " s h o r t c u t s # "
I n o r d e r t o show t h e
i m p o r t a n c e o f t h e p r o c e d u r e s m o st commonly u s e d , a n i n v e r s e w e i g h t i n g was a s s i g n e d t o e a c h o f t h e f r e q u e n c i e s f o r each ite m .
F r e q u e n c y o n e was a s s i g n e d a w e i g h t i n g o f
s i x , f r e q u e n c y two a w e i g h t i n g o f f i v e , an d c o n t i n u i n g t o a f r e q u e n c y o f s i x w h ic h was a s s i g n e d a w e i g h t i n g o f o n e . By u s e o f t h e i n v e r s e w e i g h t i n g p r o c e d u r e a b e t t e r c o m p a r is o n c o u l d b e draw n among t h e s i x p r o c e d u r e s u s e d in p re p a rin g sch o o l d i s t r i c t b u d g e ts .
I t was f o u n d t h a t
p r o c e d u r e s " a " a n d " b , " w h ic h d i d n o t p r o v i d e f o r p r o p e r k e e p i n g o f b o o k s a n d r e c o r d s , r e c e i v e d a w e i g h t i n g o f 50 p e r c e n t o f t h e l o w e s t o f t h e t h r e e b e t t e r m e th o d s , " c , " " d " a n d " e , " w h ic h p r o c e d u r e s i n c l u d e d g ood a c c o u n t i n g p r a c tic e s fo llo w e d .
I t i s a ls o s i g n i f i c a n t to n o te t h a t
--------------- g ---------------
I n f r a , A p p e n d ix A, p* 2 6 5 , I t e m 2 4 .
60
SABLE I I FREQUENCY DISTRIBUTION OF COMMON PRACTICES OR PROCEDURES IN ORDER OF USE EMPLOYED BY DISTRICTS IN PREPARING BUDGETS AS REPORTED BY COUNTY SUPERINTENDENTS OF SCHOOIS WITH INVERSE WEIGHTING COMPUTED
Procedure
Frequency in Order of Use 2 1 l* 3 $ 6
Total
Inverse Weighting
22
89
18
70
30
na
a.
5
2
7
6
1
b.
k
3
h
1
6
c.
7
12
6
5
d.
1k
11
6
2
1
3U
171
e.
20
6
k
k
3
37
18U
2
1
1
2
12
27
f. Notes
1
6
This ta b le reads as follo w st Five county superintendents of schools rate d tta tt as th e procedure most commonly used; two ra te d t h i s procedure as the next most commonly used, e tc . Inverse weighting was computed by assigning to number one order of use a weighting of s ix ; to number two a weighting of f iv e ; e tc .
Procedures re fe rre d to a re j a . Use only t o t a l of p r io r year costs by c l a s s i f i c a t i o n exclusively as b a s is f o r next year*s expenditures. b . Use information from b i l l s , invoices, warrant stubs without having any reg u la r books* c. Use information derived from books and records of p r io r y e a r. d. Prepare estim ate of needs w ith only guidance from p r io r year expenditures. e . Prepare f u l l and complete breakdown of needs, by item izing a c tu a l proposed, expenditures, giving i n f u l l and complete ta b u la tio n l i s t s of p o s itio n s , serv ices to be performed and m aterials and supplied to be purchased* f . Purely an estim ate without reference to p a st experience or th e d e t a i l needs of th e d i s t r i c t .
61 t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d a v e r y low u s e o f ”p u r e g u e s s ” d e s c r i b e d i n i t e m !,f . tf
The d i s t r i b u t i o n
i s w e ll to th e r i g h t and th e w e ig h tin g g iv e s a c o m p a ra tiv e ly lo w s c o r e f o r t h i s p r o c e d u r e w h ic h i s o n l y 3 8 , 6 p e r c e n t o f t h e n e x t l o w e s t w e i g h t e d s c o r e and 1 4 . 6 p e r c e n t o f t h e h ig h e st s c o re .
P e r s o n a l i n t e r v i e w s w i t h a num ber o f
c o u n ty s u p e r i n te n d e n t s o f s c h o o ls v e r i f i e d t h a t th e f a c t s r e v e a l e d b y t h e c o u n t y q u e s t i o n n a i r e s w e re a r e a s o n a b l y a c c u r a te a n a l y s i s o f th e p ro b lem . R e c o rd s m a i n t a i n e d b y d i s t r i c t s .
C o u n ty
s u p e r i n t e n d e n t s o f s c h o o l s , who a r e c l o s e l y a s s o c i a t e d w i t h t h e p r o c e s s o f d i s t r i c t b u d g e t m a k in g , w e re a s k e d to g iv e t h e i r e v a l u a t i o n o f th e p e rc e n ta g e o f d i s t r i c t s w h ic h m a i n t a i n e d r e c o r d s , i n v o i c e s , b i l l s a n d w a r r a n t s t u b s .in r e a s o n a b l y p r o p e r fo rm so t h a t t h e p a s t y e ar* s e x p e n d i t u r e s c o u l d be d e t e r m i n e d on t h e d i s t r i c t l e v e l . T h is q u e s t i o n d i v i d e d t h e s c h o o l s i n t o t h r e e g r o u p s , t h o s e w i t h one a n d two t e a c h e r s , t h o s e w i t h t h r e e t o s e v e n 7 t e a c h e r s a n d t h o s e w i t h e i g h t o r m ore t e a c h e r s . D istric ts w i t h e i g h t o r m ore t e a c h e r s a r e a u t h o r i z e d t o em ploy a d i s t r i c t s u p e r i n t e n d e n t o f s c h o o l s a n d i t may b e a ssu m e d t h a t i f s u c h i s t h e c a s e , a c c o u n t i n g s h o u l d be p e r f o r m e d i n a b e t t e r m a n n e r t h a n . m i g h t be e x p e c t e d fro m l a y b o a r d ^ I b i d . I t e m 21.
members who a r e r e q u i r e d t o p e r f o r m s u c h d u t i e s a s a com m unity s e r v i c e .
The r e s u l t s w e re t a b u l a t e d a n d a r e t o
be fo u n d i n T ab le I I I .
T h e re was f o u n d t o a n a p p r o x i m a t e l y
e q u a l d i s t r i b u t i o n o f d i s t r i c t s w h ic h m a i n t a i n r e a s o n a b l e r e c o r d s f o r t h e g ro u p w i t h one t o two t e a c h e r s a n d t h e g r o u p w i t h t h r e e t o s e v e n t e a c h e r s , t h e m e d ia n p e r c e n t b e i n g 58*33 a n d 6 5 . 0 . 9 2 .5 8 p e r c e n t .
The t h i r d g r o u p h a d a m e d ia n o f
F u r th e r a n a ly s is r e v e a le d t h a t th e
d istrib u tio n fo r a ll d is tr ic ts
showed 1 0 1 , o r 7 3 .1 9 p e r
c e n t a b o v e 50 p e r c e n t i l e a n d t h i r t y - s e v e n , o r 2 6 .8 1 p e r c e n t b e lo w . These f i n d i n g s p o i n t t o th e f a c t t h a t a s d i s t r i c t s becom e l a r g e r t h e r e a r e a n i n c r e a s i n g n u m b er w h ic h m a i n t a i n r e a s o n a b l e r e c o r d s f ro m w h ic h t o c o m p ile d a t a f o r p r e p a r in g th e su c c e e d in g y e a r* s e x p e n d itu re e s t i m a t e s . A t t h e same t i m e , t h e r e a r e many d i s t r i c t s w h ic h k e e p v e r y i n a d e q u a t e r e c o r d s a n d many w h ic h k e e p n o n e a t a l l . Use o f t a x r a t e .
In r e p ly to th e q u e s tio n
w h e th e r d i s t r i c t s te n d to p re p a re b u d g e ts by f i r s t d e te r m in in g th e t a x r a t e t h e y w ish to h av e f i x e d and th e n p r e p a r in g t h e i r e x p e n d itu r e s in a cc o rd a n c e w ith th e r e v e n u e so d e r i v e d , t w e n t y c o u n t y s u p e r i n t e n d e n t s o f s c h o o ls r e p l i e d in th e a f f i r m a t i v e and tw e n ty -s e v e n s t a t e d t h i s p r a c t i c e was n o t g e n e r a l l y f o l l o w e d i n
63 TABLE I I I DISTRIBUTION OF PERCENTAGE OF DISTRICTS WHICH MAINTAIN REASONABLY ADEQUATE RECORDS FROM WHICH DISTRICT EXPENDITURES GAN BE DETERMINED ON THE DISTRICT LEVEL AS REPORTED BY COUNTY SUPERINTENDENTS OF SCHOOLS
a. Per Cent
1 to 2 Teachers
Frequencies b. 3 to 7 Teachers
c.
8 or More Teachers
T otal
95
1U
16
31
61
85
3
1*
2
9
75
3
3
2
8
65
2
55
6
10
2
1
1*
3
2 5
21
U5 35 m s
15
5
5
7
T otal Median Number Above SO Per Cent Number Below SO Per Cent
9
3
-
1
8
1
6
1*
20
1*6 58.33
1*6 6£.00
1*6^ 92.58
138 80.76
28
33
1*0
101
18
13
6
37
Per cent of total responses above $0 percentile - 73*19 •Per cent of total responses below SO percentile - 26.81
• 64 t h e i r c o u n tie s # 8
The t w e n t y r e p l y i n g i n t h e a f f i r m a t i v e
r e p r e s e n t e d 4 2 .5 p e r c e n t o f t h o s e r e p o r t i n g a n d t h i s i n d i c a t e d t h a t many d i s t r i c t s w o rk e d w i t h i n t h e t a x r a t e fram ew ork #
The q u e s t i o n d i d n o t d i f f e r e n t i a t e b e tw e e n
t h e maximum t a x r a t e b e i n g s o u g h t , o r w h e t h e r i t a p p l i e d o n ly to a ta x l e s s
t h a n t h e maximum#
I f th e d i s t r i c t s
n eed a l l th e rev en u e p o s s ib l e to m eet t h e i r n e ed s i t i s l o g i c a l t h a t t h e b u d g e t w ould be p r e p a r e d w i t h i n t h e fra m e w o rk o f t h e maximum r a t e # An e x a m i n a t i o n o f t h e d i s t r i c t b u d g e t s r e v e a l e d t h a t a l a r g e num ber c a r r i e d a n o t a t i o n o f t h e t a x r a t e d e sire d #
The m a j o r i t y i n d i c a t e d t h e maximum r a t e , b u t
many s p e c i f i e d a l e s s e r r a t e #
The f a c t s t i l l
r e m a in s t h a t
d i s t r i c t s a r e i n c l i n e d t o be v e r y c o n s c i o u s o f t h e t a x r a t e r a t h e r t h a n t o b e c o n c e r n e d w i t h t h e am ount o f rev e n u e n eed e d o r a v a i l a b l e to o p e r a te t h e i r s c h o o l s . T h is g i v e s a d d i t i o n a l s t r e n g t h t o t h e a d v i s a b i l i t y o f n o t h a v i n g a maximum t a x r a t e s p e c i f i e d b y law # No a t t e m p t was made t o d e t e r m i n e w h e t h e r t h e b u d g e t e d e x p e n d i t u r e s e x c e e d e d t h e t o t a l p o s s i b l e incom e f o r t h e same b u d g e t y e a r , due t o t h e f a c t t h a t t h e t a x r a t e s a n d t h e a s s e s s e d v a l u a t i o n s o f e a c h d i s t r i c t w ere n o t a v a i l a b l e a t t h e t im e t h i s s t u d y was m a d e .
F u rth e r
m o r e , i t was n o t known how many d i s t r i c t s a c t u a l l y w ou ld 8 I b i d . , “Item 2 5 .
h a v e b u d g e t e d g r e a t e r a m o u n ts f o r e x p e n d i t u r e s b a s e d on th e th e o r y t h a t a b u d g et sh o u ld be a t r u e e s tim a te o f th e a c tu a l needs o f th e sc h o o ls w ith in th e d i s t r i c t ,
if
such
am o u n ts h a d n o t b e e n h e l d w i t h i n t h e p r o b a b l e e s t i m a t e o f incom e*
I t was f o u n d t h a t t h e c o u n t y s u p e r i n t e n d e n t s o f
sc h o o ls e x e r te d c o n s id e ra b le in f lu e n c e o v e r th e d i s t r i c t s a n d e v e n e x t e n d e d t h e i r i n f l u e n c e t o a v i r t u a l demand t h a t t h e e x p e n d i t u r e e s t i m a t e s be k e p t w i t h i n t h e amount o f e s t i m a t e d in c o m e .
T h is s u b j e c t i s n o t a p a r t o f t h i s
s t u d y b u t i t c o u l d be u n d e r t a k e n by o t h e r s who d e s i r e t o p u rsu e t h i s r e l a t e d phase o f th e s u b je c t o f sch o o l d i s t r i c t e x p e n d i t u r e s i n r e l a t i o n to a m o u n ts a c t u a l l y b u d g e te d . Summary* The la w r e q u i r e s t h a t t h e s c h o o l d i s t r i c t b u d g e t s h a l l b e p r e p a r e d to show e x p e n d i t u r e s u n d e r two s u b d i v i s i o n s f o r e a c h m ajo r c l a s s i f i c a t i o n .
The la w
a l s o p r o v i d e s f o r a c c e p t a b l e b u d g e t fo rm a d m i n i s t r a t i o n by th e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n .
I t was t h e
b e l i e f o f 8 3 .0 p e r c e n t o f th e c o u n ty s u p e r i n te n d e n t s o f s c h o o l s t h a t t h e r e was n e e d f o r a m ore d e t a i l e d b re a k d o w n fo rm t o be u s e d i n t h e p r e p a r a t i o n o f t h e b u d g e t s .
T h is
was c o n c u r r e d i n b y 67*5 p e r c e n t o f t h e c i t y s u p e r i n t e n d e n ts o f sc h o o ls r e p o r t i n g . o n l y a s a work s h e e t .
T h is f o r m w o uld be u s e d
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s
66 r e p o r t e d t h a t t h e p r a c t i c e m o st g e n e r a l l y f o l l o w e d b y d i s t r i c t s was t o p r e p a r e b u d g e t s f ro m o b j e c t i v e d a t a i n t h e f o rm o f r e c o r d s . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s , i n r e p o r t i n g on t h e p e r c e n t a g e o f d i s t r i c t s o f v a r i o u s s i z e s w h ic h m a i n t a i n e d a d e q u a t e r e c o r d s f r o m w h ic h t o p r e p a r e b u d g e t s , s t a t e d t h e r e was l i t t l e
o r no d i f f e r e n c e among d i s t r i c t s
o f l e s s t h a n s e v e n t e a c h e r s , b u t r e c o r d k e e p i n g was m a i n t a i n e d i n a much b e t t e r m a n n e r b y d i s t r i c t s w i t h e i g h t o r m ore t e a c h e r s , t h e m e d ia n p e r c e n t b e i n g 9 2 .5 a s co m p ared to 5 8 .0 f o r th e s m a lle r d i s t r i c t s . I t was f o u n d t h a t 4 2 . 5 p e r c e n t o f t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s s t a t e d i t was t h e g e n e r a l p r a c t i c e f o r th e d i s t r i c t s i n t h e i r c o u n tie s to p re p a re b u d g e t s by f i r s t d e t e r m i n i n g t h e t a x r a t e d e s i r e d . D i s t r i c t s a re c o n scio u s o f th e ta x r a t e .
T h is f a c t was
r e v e a le d by an e x a m in a tio n o f th e i n d iv id u a l d i s t r i c t b u d g e ts. The r e l a t i o n s h i p b e tw e e n a m o u n ts a c t u a l l y b u d g e t e d a n d incom e f o r t h e y e a r , a s d e t e r m i n e d fro m t h e t a x r a t e a p p lie d to th e a sse ss e d v a lu a tio n ,
i s su g g e ste d as a
s u b j e c t w h i c h , m i g h t be u n d e r t a k e n b y o t h e r s i n t e r e s t e d i n th e s p e c i f i c f i e l d o f b u d g e te d e x p e n d itu r e s as th e y r e l a t e t o in c o m e .
CHAPTER V ANALYSIS OP ENDING BALANCES AND RESERVES The E d u c a t i o n Code o f C a l i f o r n i a p r o v i d e s t h a t a l l sch o o l d i s t r i c t fu n d s unexpended a t th e c lo s e o f th e f i s c a l y e a r , l e s s o u t s t a n d i n g o b l i g a t i o n s , s h a l l be c a r r i e d fo rw a rd and e n te r e d i n th e b u d g et f o r th e s u c c e e d i n g y e a r a s p a r t o f t h e incom e o f t h e d i s t r i c t * T h is a u t h o r i t y i s
i n S e c t i o n 6302 ( a ) o f t h e E d u c a t i o n
C ode, a p o r t i o n o f w h ic h r e a d s : 6302, ( a ) Prom t h e r e c o r d s o f t h e c o u n t y a u d i t o r , t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h a l l se cu re th e cash b a la n c e s o f th e d i s t r i c t o r s h a l l make e s t i m a t e s t h e r e o f i f i n f o r m a t i o n on a c t u a l c a s h b a la n c e s i s n o t a v a i l a b l e , and s h a l l e n t e r th e se , . . . T h is b a l a n c e i s g e n e r a l l y r e f e r r e d t o a s t h e e n d i n g b a l a n c e f o r t h e p r e c e d i n g y e a r a n d i t becom es t h e b e g in n in g b a la n c e f o r th e su c c e e d in g year* S ource o f e n d in g b a la n c e * d e r i v e d f ro m s e v e r a l s o u r c e s .
The e n d i n g b a l a n c e i s
The s o u r c e a n d am ount
r e s u l t fro m t h e o p e r a t i o n o f t h e l e g a l p r o v i s i o n s o f la w and th e p o l ic y o f th e g o v e rn in g b o a rd o f th e sc h o o l d istric t. E x tra ta x c o l l e c t i o n s »
The c o l l e c t i o n o f d i s t r i c t
ta x e s o f te n exceeds t h a t a n ti c i p a te d .
The E d u c a t i o n Code
68 p r o v i d e s t h a t t h e t a x r a t e s h a l l be c o m pu ted b y u s i n g 90 p e r c e n t o f t h e a s s e s s e d v a l u a t i o n , t h u s p r o v i d i n g f o r a p o s s i b l e t a x d e l i n q u e n c y up t o 10 p e r c e n t * D u rin g l e s s s tr e n u o u s f i n a n c i a l tim e s ta x c o l l e c t i o n s may r u n w e l l ab o v e t h e 90 p e r c e n t , w i t h t h e r e s u l t t h a t t h e d i s t r i c t r e c e i v e s m ore f u n d s t h a n o r i g i n a l l y c o n te m p la te d in th e b u d g e t.
T h is i s t h e c a s e
p a r t i c u l a r l y i f t h e d i s t r i c t h a s p r e p a r e d a b u d g e t w h ic h r e q u i r e s l e s s t h a n t h e maximum t a x r a t e .
I f th e budget
r e q u ire s a ta x r a t e in excess o f th e le g a l l i m i t , a l l f u n d s c o l l e c t e d i n e x c e s s o f t h e 90 p e r c e n t a r e c r e d i t e d to th e budget needs u n t i l such need has been s a t i s f i e d . I n a c c o r d a n c e w i t h S e c t i o n 6361 o f t h e E d u c a t i o n Code, a l l incom e i n e x c e s s o f t h e b u d g e t e d e x p e n d i t u r e s m u s t be p l a c e d i n t h e g e n e r a l r e s e r v e o f t h e d i s t r i c t .
T h is
s e c tio n re a d s in p a r t as fo llo w s: 6 3 6 1 . A l l incom e a c c r u i n g t o t h e s c h o o l d i s t r i c t i n e x c e s s o f t h e a m oun ts r e q u i r e d t o f i n a n c e t h e t o t a l proposed e x p e n d itu re s , in c lu d in g t r a n s f e r s to o t h e r s c h o o l d i s t r i c t s a n d f u n d s , a s shown i n t h e b u d g et o f th e sc h o o l d i s t r i c t s h a l l be added to th e g e n e r a l r e s e r v e o f th e sc h o o l d i s t r i c t , and s h a l l n o t be a v a i l a b l e f o r a p p r o p r i a t i o n b y t h e s c h o o l d i s t r i c t f o r th e c u r r e n t f i s c a l y e a r e x cep t by th e fo llo w in g p ro ced u re. . . . I n a d d i t i o n t o e x t r a c o l l e c t i o n s f ro m t h e d i s t r i c t t a x d e r i v e d f ro m t h e s e c u r e d a s s e s s m e n t r o l l , t h e r e a r e t a x e s on u n s e c u r e d p r o p e r t y , s o l v e n t c r e d i t s , m u n i c i p a l
ta x e s i n c e r t a i n c h a r te r e d c i t i e s , and v a rio u s ta x d e l i n q u e n c i e s w h ic h may e x c e e d t h e e s t i m a t e d incom e lis te d
in th e b u d g e t f o r th e s e ite m s .
d i f f i c u l t to a n t i c i p a t e .
T hese ite m s a r e
F o r i n s t a n c e , ho one c a n
f o r e t e l l w i t h a n y d e g re e o f c e r t a i n t y how many d e l i n q u e n t t a x p a y e r s w i l l p a y d u r i n g a n y one y e a r .
The am o u n ts w h ic h
may be d e r i v e d fro m o t h e r t a x s o u r c e s a r e d i f f i c u l t t o a n t i c i p a t e w i t h a n y d e g re e o f a c c u r a c y .
The n a t u r a l
r e s u l t i s to b u d g e t s u c h s o u r c e s o f incom e on th e c o n s e rv a tiv e s id e .
The s e c t i o n a l s o c o n t a i n s t h e
p r o c e d u r e w h e re b y a d d i t i o n a l c o l l e c t i o n s may be e x p e n d e d b y t h e d i s t r i c t , p r o v i d e d t h e g o v e r n in g b o a r d a d o p ts t h e p r o p e r r e s o l u t i o n a n d s e c u r e s a p p r o v a l fro m t h e c o u n ty s u p e rin te n d e n t o f s c h o o ls .
I f t h e am ount e x c e e d s one
th o u s a n d d o l l a r s t h e r e s o l u t i o n m u st b e p u b l i s h e d i n t h e same m an n e r a s t h e o r i g i n a l b u d g e t. Incom e n o t l i s t e d .
S o u r c e s o f incom e w h ic h may
be c o u n te d u p o n to p ro d u c e re v e n u e f o r .t h e d i s t r i c t a r e o f t e n e n t i r e l y o m it t e d fro m t h e incom e e s t i m a t e s .
T h is
may o r may n o t be done w i t h t h e i n t e n t i o n o f p r o v i d i n g a l a r g e r e n d in g b a l a n c e , w i t h o u t h a v in g i t a p p e a r i n th e b u d g e t.
The f a c t t h a t o n l y a p p r o x i m a t e ly o n e - t h i r d o f
t h e d i s t r i c t s made a n y m e n tio n a t a l l o f incom e fro m u n s e c u r e d p r o p e r t y i s e v id e n c e t h a t incom e w h ic h s h o u ld
70 h a v e b e e n l i s t e d was n o t in c lu d e d *
T h is i te m a lo n e
f u r n i s h e s a c o n s i d e r a b l e am ount' o f incom e w h ic h , i f n o t i n c l u d e d i n t h e b u d g e t , a d d s t o th e e n d in g b a la n c e o f th e d i s t r i c t . U n d is trib u te d r e s e r v e .
P r o v i s i o n i s made f o r
r e s e r v e s .t o be e s ta b lis h e d in th e d i s t r i c t b u d g e ts .
The
u n d i s t r i b u t e d r e s e r v e i s d e s ig n e d t o m e e t a n y u n e x p e n d e d o r u n a n t i c i p a t e d n e e d s f o r w h ic h p r o v i s i o n was n o t made i n th e o r i g i n a l b u d g e t.
T h is r e s e r v e i s n o t s u b j e c t t o
e x p e n d i t u r e u n l e s s i t i s f i r s t t r a n s f e r r e d t o a m a jo r e x p e n d itu re c l a s s i f i c a t i o n .
T h is c a n b e done o n ly th r o u g h
p ro p e r budget tr a n s f e r p ro c e d u re .
The u n d i s t r i b u t e d
r e s e r v e i s e x p e n d a b le d u r i n g t h e y e a r , b u t i f n o t e x p e n d e d i t may b e u s e d t o a s s i s t i n p r o v i d i n g a b a la n c e a t th e e n d o f th e y e a r . G e n e ra l r e s e r v e .
The E d u c a tio n Code m akes
p r o v i s i o n f o r a f u n d t o be known a s t h e g e n e r a l r e s e r v e t o b e u s e d e x c l u s i v e l y t o m e e t e x p e n s e s d u r i n g th e n e x t s u c c e e d in g f i s c a l y e a r b e f o r e incom e fro m t a x e s o r s t a t e a p p o r tio n m e n ts becom e a v a i l a b l e ." ^
T h is r e s e r v e i s n o t
s u b j e c t t o e x p e n d i t u r e d u r in g t h e c u r r e n t f i s c a l y e a r a n d , i n t h e o r y , s h o u l d s u p p ly a l l o r a t l e a s t t h e m a jo r
1------------
In fr a , p . 98.
71 p o r t i o n o f t h e c a s h b a la n c e n e e d e d a t t h e b e g in n in g o f t h e n e x t y e a r* U nexpended b u d g e te d i t e m s .
Any am ount u n e x p e n d e d
r e m a in in g fro m th e m a jo r e x p e n d i t u r e c l a s s i f i c a t i o n s o f t h e b u d g e t becom es a p a r t o f t h e c a s h b a la n c e f o r t h e e n s u in g y e a r*
T h is am ount may be a c o m p a r a t i v e l y l a r g e
o r s m a ll p a r t o f t h e b u d g e t, d e p e n d in g u p o n how c a r e f u l l y th e b u d g e t i s p re p a re d and a d m in is te re d *
A c a re fu lly
p r e p a r e d b u d g e t w h ic h i s b a s e d u p o n d e t a i l e d c o s t e s t i m a t e s w i l l p r o d u c e a n am ount c o m p a r a t i v e l y s m a ll i n r e l a t i o n s h i p t o t h e t o t a l o u tg o * O th e r in c o m e ,
Incom e o t h e r t h a n t h a t d e r i v e d fro m
s t a t e o r d i s t r i c t t a x e s may e x c e e d t h e a n t i c i p a t e d incom e* Incom e fro m ite m s s u c h a s f e d e r a l f u n d s , m is c e l l a n e o u s in c o m e , s a l e s , r e n t s , e t c . ,
i s d i f f i c u l t to a n ti c i p a te .
T h is i s due to t h e f a c t t h a t i n m o st i n s t a n c e s t h e r e i s no way o f e s t i m a t i n g t h e s e a m o u n ts , e x c e p t fro m p r i o r incom e e x p e r i e n c e .
Due t o c h a n g in g c o n d i t i o n s t h i s
is
n o t a lw a y s r e l i a b l e . E n d in g an d b e g in n in g b a l a n c e s *
The s i z e o f t h e
c a s h b a la n c e w h ic h a d i s t r i c t s h o u ld h a v e to b e g in t h e y e a r v a r i e s g r e a t l y among t h e d i s t r i c t s sch o o l d i s t r i c t re c e iv e s i t s
s ta te
o f th e s t a t e .
incom e i n t e n e q u a l
A
72 in s ta llm e n ts . O c to b e r f i r s t .
The f i r s t
in s ta llm e n t i s re c e iv e d ab o u t
Tax c o l l e c t i o n s a r e n o t a v a i l a b l e u n t i l
a p p r o x i m a t e ly D ecem ber f i r s t .
The n e e d i s g o v e rn e d by
t h e f a c t o r s o f p o l i c y u n d e r w h ic h t h e d i s t r i c t a d m i n i s t e r s its
s c h o o ls . F a c to rs a f f e c t i n g s iz e o f n e t b a la n c e .
The
p r i n c i p a l f a c t o r s w h ic h a f f e c t t h e n e t b a la n c e o f a school d i s t r i c t a re : its
1,
A s c h o o l d i s t r i c t w h ic h p a y s
t e a c h e r s on t h e b a s i s o f tw e lv e e q u a l s a l a r y p a y m e n ts
r e q u i r e s a l a r g e r b a la n c e a s co m p ared t o a d i s t r i c t w h ic h p a y s on a n i n e o r t e n m o nth s c h e d u l e .
2.
A d is tric t
w h ic h c a r r i e s on a r e g u l a r p l a n o f m a in te n a n c e th r o u g h o u t t h e y e a r , a s c o n t r a s t e d t o one w h ic h p e r f o r m s a l l m a in te n a n c e d u r i n g t h e summer v a c a t i o n , w i l l s p r e a d t h i s c o s t i n a r e a s o n a b l y u n if o r m m an n e r th r o u g h o u t t h e y e a r . 3.
The p o l i c y o f w h e th e r t h e d i s t r i c t m akes p ro m p t p a y
m ent o f o b l i g a t i o n s , a s c o n t r a s t e d t o a p o l i c y o f m e e tin g p a y m e n ts o n l y when f u n d s a r e a v a i l a b l e , w i l l a f f e c t t h e n e e d f o r b e g in n in g b a l a n c e s .
4.
D is tric ts
w h ic h b o rro w f u n d s fro m t h e c o u n ty o r fro m o t h e r d i s t r i c t f u n d s may o p e r a t e w ith a minimum b e g in n i n g c a s h b a l a n c e . 5.
The la w p r o v i d e s f o r r e g i s t r a t i o n o f w a r r a n t s , t h u s
m ak in g i t p o s s i b l e t o m e e t o b l i g a t i o n s p e n d in g t h e r e c e i p t o f ta x e s .
T h is p r o c e d u r e r e q u i r e s e x p e n d i t u r e s f o r i n t e r e s t .
73 Some d i s t r i c t s p r e f e r t o p a y i n t e r e s t r a t h e r t h a n p l a c e t h e ta x p a y e r s * money i n l a r g e b e g in n i n g b a l a n c e s . D i s t r i c t s w h ic h r e q u i r e f u n d s t o m e e t e q u a l l y l a r g e p a y m e n ts f o r e a c h m o n th o f t h e y e a r n e e d a b e g in n in g b a la n c e o f n o t l e s s
t h a n 25 p e r c e n t o f t h e t o t a l b u d g e t
i n o r d e r t o m e e t p a y m e n ts d u r i n g J u l y , A u g u st a n d S e p te m b e r.
I f th e d i s t r i c t m akes p r o v i s i o n f o r fe w e r
e x p e n d i t u r e s d u r in g t h e summer m o n th s ; i f b i l l s a r e n o t p a i d p r o m p tly ; i f m oney i s b o rro w e d fro m o t h e r fu n d s o r p r o v i d e d by r e g i s t e r e d w a r r a n t s , t h e s i z e o f t h e b e g in n in g b a la n c e may be r e d u c e d i n a c c o rd a n c e w ith w h a te v e r p o l i c y i s f o l lo w e d b y t h e d i s t r i c t . F a c t o r s w h ic h h a v e b e e n i n d i c a t e d i n t h e p r e c e d i n g p a r a g r a p h s h a v e t o do w i t h th e p o l i c y o f e x p e n d i tu r e o p e ra tio n s a f f e c t i n g a l l d i s t r i c t s
and r e f e r l a r g e l y to
th e p e r io d p re c e d in g r e c e i p t o f s t a t e fu n d s .
A c c o rd in g
t o T r i g g s , t h e f a c t o r w h ic h h a s t h e g r e a t e s t e f f e c t u p o n t h e n e e d f o r a b e g in n i n g b a la n c e i s t h e w e a l t h o f th e d is tric t A w e a lth y d i s t r i c t r e c e i v e s a l e s s p r o p o r t i o n o f its
incom e fro m t h e s t a t e t h a n a p o o r d i s t r i c t a n d a s a o
Dean B . T r i g g s , 11The D e t e r m in a t io n o f t h e G e n e ra l R e s e rv e R e q u ir e d i n t h e S c h o o l D i s t r i c t s o f V e n tu ra C o u n ty ,11 ( u n p u b lis h e d M a s t e r ’ s t h e s i s , The U n i v e r s i t y o f S o u th e r n C a l i f o r n i a , h o s A n g e le s , 1 9 4 8 ) , 77 p p .
74 r e s u l t m u st d e p e n d u p o n d i s t r i c t t a x incom e t o m ee t i t s need s.
S t a t e fu n d s a r e r e c e i v e d t h r o u g h o u t t h e y e a r
b e g in n i n g i n O c to b e r , w h ile t a x f u n d s a r e n o t a v a i l a b l e u n t i l a f t e r c o l l e c t i o n s h a v e b e e n m ade, w h ic h ' i s u s u a l l y la te
i n N ovem ber o r D ecem b er.
T h is s i n g l e f a c t o r i s one
w h ic h c a n n o t be a d j u s t e d b y s p e n d in g o r o p e r a t i o n p o l i c i e s , a s may be done w i t h o t h e r f a c t o r s , an d i t becom es m o st i m p o r ta n t a s i t h a s i t s
e f f e c t d u r i n g th e
tim e s c h o o l s a r e o p e n , a n d e x p e n d i t u r e s m u st be made c u rre n tly . Amount o f e n d in g b a l a n c e .
An a n a l y s i s o f t h e s i z e
o f th e c a s h b a la n c e s f o r th e sc h o o l d i s t r i c t s
in
C a l i f o r n i a was made fro m t h e b u d g e t o f e a c h s c h o o l d is tric t.
T h is a n a l y s i s r e v e a l e d a v a r i a t i o n among
d is tric ts .
The p e r c e n t a g e w h ic h t h e b e g in n in g b a la n c e
o f e a c h s c h o o l d i s t r i c t w as o f t h e t o t a l o u tg o was c a l c u l a t e d f o r 2 ,0 2 5 s c h o o l d i s t r i c t s
in C a lif o r n ia .
T h is r e p r e s e n t e d 8 9 .2 8 p e r c e n t o f t h e t o t a l n um ber o f d is tric ts
i n th e s t a t e .
Columns n i n e a n d t e n , m ark ed “E n d in g B a l a n c e s , 0 i n T a b le s IV a n d V show t h e m e d ia n a n d m ean p e r c e n t a g e s w h ic h t h e e n d in g b a l a n c e s w e re o f t h e t o t a l o u tg o f o r th e y e a r 1 9 4 8 -4 9 . f o r 1 9 4 9 -5 0 .
T h ese b a l a n c e s becam e t h e b e g in n in g b a l a n c e s The mean a n d m e d ia n o f t h e b a l a n c e s i n
p e r c e n t a g e a r e g iv e n by c o u n ti e s *
75
TABLE IV
THE COUNTY MEDIAN AND MEAN PERCENTAGES WHICH THE UNDISTRIBUTED, GENERAL AND TOTAL RESERVES WERE OF THE TOTAL BUDGETED OUTGO FOR 1949-50, AND THE PERCENTAGE WHICH THE ENDING BALANCE WAS OF THE TOTAL BUDGETED OUTGO FOR 1948-1*9 FOR 1,729 ELEMENTARY SCHOOL DISTRICTS IN 53 COUNTIES
(i)
(’a) (3j— a1) "T;u—m— m— m— mEnding — mr~mr~~mr U ndistributed and General Reserves R atio T o tal
No. County of ______ D ist* Alameda Alpine Amador B utte Calaveras
Mi
U ndist. Mi
General Mi Mn
Mi
T o tal Mn
Mi
Balances*-:-* Res* to B al. Mn Mi Mh
30 3 18 47 26
li.66 12.50 5.75 2.5U 5.66
5.55 11.83 6.22 3.78 6.91
1.35 11.25 7.95 2.12 ii.95
2.03 10.50 6.61t 2.91 5.65
5.80 20.75 1U.50 5.16 11.95
6.28 21.83 13.50 6.13 12.73
10.95 20.50 18.95 13.50 18.95
lli .51 26.16 19.77 16 . U8 22.69
Colusa 13 ContraCosta 23 6 Del Norte El Dorado 41 100 Fresno
6.5 0 U.50 k.90 2.95 6.90
6.65 5.39 5.16 5.58 7.93
6.25 3.90 5.50 5.U3 1.88
7.11 5.06 7.00 U.92 li.03
13.50 7.75 8.90 9.U3 10.66
13.67 15.U5 11.83 10.61 12.36
20.75 20.50 10.90 lii.5 0 16.75
25.73 58.75 62.88 21.65 U8.75 5U.02 11.33 200.00 187.50 18.31 60.50 70.U2 20.23 63.30 71.52
Glenn Humboldt Im perial Inyo Kern
15 67 31 10 50
3.25 2.91 8.16 3.66 6.50
3.96 ii.77 8.61i 5.50 6.21
0 7.95 1.83 3.95 3.95
l.li6 5.62 2.56 U.60 7.51
3.25 11.85 10.16 9.95 10.33
li.10 10.28 11.36 lO.UO 1U. 16
11.75 18.50 18.50 5.95 16.50
lli . 06 22.50 li2.5o 19.21 66.00 58.82 18.63 68.75 76.95 8.90 195.00 172.50 25.50 65.00 78.50
Kings Lake Lassen Los Angeles Marin
21 8 19 83 30
li.62 13.95 li.37 U.85 i*.Uo
5.19 8.75 li.97 5.Wi 7.56
3.91 .75 2.25 U.3U 0
ii.lt5 3.87 2.92 U.89 .56
9.50 17.95 7.25 9.68 U.75
12.6U 18.50 16.37 19.95 7.7li 13.75 10.53 11.75 6.68 13.95
19.60 U8.75 69.88 21.87 85.00 77.50 17.8U 52.50 65.39 13.U6 7U.70 98.86 16.36 liO.oo 59.16
Mendocino Merced Modoc Mono Monterey
26 37 17 5 i*l
7.90 8.31 li.20 3.25 H i.25 11.9U . 8U 2.25 6.37 11.70
1.66 7.50 9.33 3.50 3.77
3.11 7.1A 9.00 li.io lt.93
11.50 9.12 26.50 5.50 9.83
11.69 11.00 21.70 6.50 lli.65
lii.66 15.12 25.50 13.50 13.50
75.00 107.50 67.50 37.50 51.65
17.19 63.75 l l i . 81 78.75 31.50 66.25 2U.30 86.25 Hi.32 101.25
93.83 9li.l6 98.33 58.03 73.27
87.69 91.21 79.85 62.50 92.01
76 ’
TABLE IV (continued)
THE COUNTY MEDIAN AND MEAN PERCENTAGES WHICH THE UNDISTRIBUTED, GENERAL AND TOTAL RESERVES WERE OF THE TOTAL BUDGETED OUTGO FOR 19U9-50, AND THE PERCENTAGE WHICH THE ENDING BALANCE WAS OF THE TOTAL BUDGETED OUTGO FOR 191*84*9 FOR 1,729 ELEMENTARY SCHOOL DISTRICTS IN 53 COUNTIES — (D ------- m — (3) (ID (51------ (61------- (71 m No* U ndistributed and General Reserves County of U ndist« General T o tal D is t. Mi Mn Mi lyfri M Mn
(93------d o ) — (IT)— ( 12 ) Ending R atio T otal Balances## Res» to Bal» Mi Mn Mi Mn
Napa Nevada Orange P lacer Plumas R iverside
17 17 39 27 2 35
8.50 1.81 5.99 13.50 •16.00 6.16
10.32 2.03 7.38 21.1*2 17.00 7.1*2
.91* 1.22 3.62 0 6.50 3.21
1.67 1.50 5 .io 0 6.5 0 3.25
10.25 3.30 10.60 13.50 23.00 8.50
12.38 3.1*1* 17.76 a . 1*2 23.00 16.27
16.25 10.50 20.95 19.50 22.00 12.25
17.61 ll*.20 22.70 22.1*1* 23.00 15.52
Sacramento# San Benito SanBernardro San Diego San Joaquin
1*2 25 52 51* 69
0 6.16 2.82 3.75 8.16
2.21 7.1*6 3.65 1*.1*9 10.76
0 8.87 1*.50 3.62 l*.ol*
0 0 9.3U 13.81 6.06 8.80 6.66 5.11 1*.03 12.16
2.21 15 . 1*8 9.75 8.63 15.51*
15.50 33.25 18.1*0 18.95 30.25
20.32 38.66 19.61 21.18 28.28
S. Inis Obispo 1+0 San Mateo 25 SantaB&rbara 28 Santa Clara 1+1 Santa Cruz 22
6.95 5 .5 0 6.66 6.50 8.75
7.71* 1*.70 8.27 8.57 12.U7
6.33 .87 8.25 0 0
6.32 2.08 9.51 • .08 .71
12.20 6.75 15.90 7.25 10.50
H*.i5 7.68 17.78 8.67 13.28
15.95 16.50 17.50 8.50 9 .75
21.61 77.50 118.00 19.36 3i*.l5 1*9.30 20.01* 107.50 108.83 11.1*6 67.50 113.81* 16.26 73.75 95.00
Shasta S ie rra Solano Sonoma S tan islau s
1*8 6 26 82 1*0
i*.66 3.33 2.78 2.09 9.66
8.75 3.16 2.88 2.75 9.86
U.50 8.95 0 6.70 3.1*0
8.1*1* 7.50 9.66 12.50 0 2.78 6.56 9.60 3.80 12.95
12.08 12.83 2.88 9.39 lit.36
11.95 21.95 12.25 17.50 15.95
16 . 01* a . 16 13.51* 20.96 18.08
75.00 65.00 22.50 53.30 70.00
93.1*9 61*. 16 38.52 62.25 95.25
S u tte r Tehama T rin ity Tulare Ventura
21 31 19 78 31
1U.25 3.50 6.83 7.16 6.75
15.31* 7.1*1 7.31 8.72 7.U0
0 0 3.65 2.12
1.11 llt.5 0 3.90 .32 1.92 6.25 3.99 11.90 9.50 2.1*5
16.26 8.51* 9.10 13.69 9.82
26.25 10.75 15.83 21.95 U*. 75
27.76 li*.38 18.26 22.89 18.82
1*7.50 l*l*.l5 1*2.50 65.00 69.15
1*3.57 70.08 87.76 72.78 69.1*3
Yolo Yuba
28 17
U.66 7.95
5.32 8.80
18.50 8.50
21.1*0 23.1*0 21*.39 9.08 16.50 17.97
31.50 20.50
3U.18 21*. 80
70.00 95.oo
75.00 92.36
mo no ##The th e
.50
reserv e in most d i s t r i c t s , consequently r a tio o b tain ab le . ending balance f o r 191*8-1*9 becomes beginning balance fo r 191*9-50.
77.50 29.15 51.65 97.50 95.oo 68.75
71*. 85 30.73 71.81* 89.35 95.00 92.61* mm
i*l*.l5 1*8.30 1*6.65 1*6.80
1*7.50 60.1*3 59.35 51t.7l*
77 TABLE V
THE COUNTY MEDIAN AND MEAN PERCENTAGES WHICH THE UNDISTRIBUTED, GENERAL AND TOTAL RESERVES WERE OF THE TOTAL BUDGETED OUTGO FOR 191*9-50, AND THE PERCENTAGE WHICH THE ENDING BALANCE WAS OF THE TOTAL BUDGETED OUTGO FOR 19U8-U9 FOR 232 HIGH SCHOOL DISTRICTS IN 50 COUNTIES ........... ( i j ... County
Alameda Amador Butte Calaveras Colusa Contra Costa Del Norte## El Dorado#* Fresno Glenn Humboldt Im perial Inyo Kern Kings Lake Lassen** Los Angeles Marin Mendocino Merced Modoc Mono#* Monterey Napa**
(2 r No. of D is t.
U)
Sonoma
P H
S u tte r
H
r o to r o p - H U ) U )U )H
vn
to
h
ro H ro
U)
U )tO IO H H tO H H HH
H
H
h
ro ro
H H
p-U) H t o H i o r o f o v n H r o H ( o r o u ) U ) i o H U ) r o r o r o HHH
h h h u > h
coh
H
Tehama
H
T r in ity
ro
H
T ulare V entura Yolo
H H
Santa C lara S anta Cruz
H H
H
H
H
SariLuisObispo
to H ro ro
San Mateo
HfO to H
ro H
San Diego
H
ro to
h u iu i
H U> U) IO
IOH
San Joaquin
HU) ro fO HU ) p-U) U) ro H HU) H OvU)U> U) U)U) vn ro
H
ro H HVA
IO
SanBemardino
H
H
U> fO H H H H H h
ro h H
HU) H H ro H
h
H
i i
H a 03 ro O v H H H
H
H ro H H H H H H
H
Sacramento San B enito
fO H IO
to ro H H h H H
H
H
P la c e r
R iv ersid e
ro
IO H U )H H U )p
U > tO H lO H lO I O H H tO P
h h h
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H
H
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ro
HH HU)
ro fO O '
H U) vn. H
h
HH
vn io ro p -v n u ) H H ro ro h H
fO H H H ro
H
H p ro o P
Monterey Napa
H
H
U) H to
ro H U )H H
H H
HH
H
lO H H r O H lO
H
to
H to O ro H H
H to
to ro IO H H H H H
H to H H H ro U> to
H
VO"P ro
H H H H
p - ro io H H to to ro H H fOU) to H H p U ) to to lou> H H
P
H
H tO -o vn
HH
H H H
ro vo
Inyo Kern
Plumas
H HU ) to
ro H H— OU) H
Im p erial H
H H H ,
IO
H U) H H H
U> ro u> vn -0 H H
u> to (O cx vn
Humboldt H
H
HU) ro vn H
10—3 ro cc
ro h h
H p H ro p H H
H IO p-U) H IO H H to
ro to H
H
H HH H
Glenn
H
H H H H H
to H
H
to ro ro
H H Ov vo
HH
to h h h
h
X
H H H
H
ro U) H vo to
to ro Ov H P
IO H H
Fresno
ro ro ro
i
H
H
i
H H
H H H -0
H P Ov ro H
ro H
HH
tO
H
ro H p -ro
l
n r
P*H H H
H
E l Dorado
HH
H M H lO U )U )V a U )p O v p —0 OvU) H PU > HU> H P U )
H p -\n H
H H Ov— J
fO ro
H
HH
HH H H H
IO H H
H H H ro
HH
H
to H Ov-0 ro ro H
ro
u> p \ n U ) r o w u ) h v a
H to
(OHIO
H
HU) O H
p
ContraCosta Del Norte
2
H a ro U) H
H
C alaveras Colusa
h io h h h h h
1 1 1
H
Butte:
H
ro ro
H
ro H H
1
H H p-vO
HU) VJl-J
H to
H
to
H M H P p iO p
v n p U )p v n to
1
ro O 03
U) H H H
ro H H H \A M V n p -(o u > v n p M p p ro u > H H U) h ro
h
Amador
H
H to H
HU)
H H H ro ro H H ^ w n c o gvvn p \p p v n v n U ) U ) roU)U) Ov ro VO Ov o co U> CO U) p — 3 vo
Yuba
FREQUENCY DISTRIBUTION OF THE PERCENTAGE THE ENDING BALANCE WAS OF THE TOTAL OUTGO FOR 1,729 ELEMENTARY SCHOOL DISTRICT BUDGETS IN 53 COUNTIES FOR THE FISCAL YEAR 19bS-k9
H ro VO H H
H H U) p U n H H U) to
H H H
io
H
H
H to H H
H
H Ov O
H ro vn. O' ro
Alameda
H H
H
H H ro to
IO
H to
H
H vn -o o vo fO H H
a
( O U J M H H H IO
H
o v H H ro ro ro sn
H
H U) VO H
H H
ro H ro H
H H fO H U )
ro U) ro ro U)
HH to H to H HU)
ro H H
H H
H O vo -o IO H
1
A lpine
to
HH
H H O' H P VA H H H H H H ^ 8 03
H H U »H H H H
► d a
ro H o o o o
H H ro
n r p r-J H
H
H o o ? 8
TABLE VII FREQUENCY DISTRIBUTION OF THE iERCENTAGE THE ENDING BALANCE WAS OF THE TOTAL OUTGO FOR 232 HIGH SCHOOL DISTRICT BUDGETS IN 50 COUNTIES FOR THE FISCAL YEAR 19lt9-50
o
5 % un P© P
ofcO •rl © ? o •O -3 & •PH § S •s S CO CO CO CO
$ M l0 >) u ©
P e r C ent 0 0 . 01- ■ 1.00 1.01 • 2 .0 0 2 .0 1 • 3.0 0 3 . Gi • It.00 lt. 01 ■ 5 .0 0 5 . 01-- 6.00 6 .0 1 ■ 7.00 7 .0 1 ■ 8.00 8 . 0! ■ 9 .0 0 S’. Ol- ■10.00 IO . 01. •11.00 1 1 .0 1 ■12.00 12.01- ■13.00 1 3 .0 1 •lii.OO lit. oi- ■1 5 .0 0 iS .01 ■16.00 16.01- ■1 7 .0 0 17.01 •18.00 18.01- •19.00 19.01- ■20.00 20.01- •21.00 21.01- •22.00 1 1 22.01- ■2 3 .00 23. 01- ■2lt.00 2U.01- ■2 5 .0 0 25. 01- •26.00 26.01- ■27.00 27.01- •28.00 28.01- ■29.00 29.01- ■3 0 .0 0 3 0 .0 ! ■31.00 31.01- ■32.00 32.01- ■33.00 33.01- -3li.00 3lt.01- ■35.00 35.01- ■36.00 36 01 ■37.00 37.01- •38.00 3 8 . 0 ! ■39.00 39.01- ■ltO.00 ItO.Ol- •Ip..00 ltl.0 1 - ■lt2.00 h2.01- •lt3.00 Over T o ta l 5 3 5 2 5 STS 2 U 5 2 M edian___________ 18 20 17 18 21 22 1 9 20 35 19 lU # N in e C o u n tie s : D el N o rte , e 1 Dorado, L a sse n , Mono, Napa, N evada, K ern, S u t t e r , T r i n i t y .
3
1 1
1
k 5 U 2
1 1 1 1
1
1 1 2
1
1
1 1
2
2 1
1 1
1
1
10
1
3 11
5 5
2
1
1 1
6 1
1 1 1
1
1
1 1
Q § •IH •§ C-Va) H H W r O H
H
H
ro
H
IM H
H*
U> H
H H
Stanislaus ro
Sutter
Vo
fr-H
ro
H
H - 0 VO -o -o a
IO
H
H H W N t o r o r o f o U l M ^ & v 0 - 0 £ r Ug f j ro fr- H H H* H
vn a
H H M H U U W H -J H H U H IM U U H tO
ro H
io H H
H t r ro vnVu ro Vjj H roVjJ4r-U)V*)VjiVi)H
Tehama Trinity Tulare Ventura Yolo
H
0 3 -0
IO IO H H*
M
h on fo nR w -g o NO-«o c h ) j 0 0 ^ ) 0
Yuba
101
v n M O O H H O H r o M a i U i O 'H P ' t : — a ro -> 3 -jc o v n .v n .-o l-* t"^
V/Jtu
o
TABLE XVII FREQUENCY DISTRIBUTION OF THE PERCENTAGE THE GENERAL RESERVE WAS OF THE TOTAL OUTGO FOR 1,729 ELEMENTARY SCHOOL DISTRICT BUDGETS IN 53 COUNTIES FOR THE FISCAL YEAR 19U9-50
a*
© -P **
3 5 O It» cd §Q 6 2 & •rl Cc! C 2 27 1 U2 2 1 0
3
§ 5 5 B S S S 0 0
14 0
s &
id
16
17
1 10 10 22 33 11 1 1 66 2 2 1 1 3 31 1
U U
7 7
0
20
2 22 7 2
TS 0 £ 0
0
2
1 1 u* 2 2 1 11 33 3 3 9 9 11 1 551 U 1 * 11 5 5 1 2 2 11 2 2 2 1 11 2 8 1 66 1 1 1 5.. 1 3 5 I t U 5 11 1 1 5 5 3 22 1 11 3 1 U l * * U l 1 6 1 1 2 -• 1 1 U* 3 3 2 1 2 1 3 7
12 92 19 * U 9 9 1 1 2 11 2 1133 1U* 22
1 1
1 * U
1 22 5 5 1 13 2 66 U 2 1 13 U 13 1 33 1 3 13 u * 22 l 1 5 7 '3 5 1 1 3 3 "3 1 6 2 11 2 2 1 88 8 2 1 1 2 66 1 1 1 2 11 1l 1 1 7 7 7 1l 2 1 6 1 1 2 1 33 l 1 8 1 1 1 6 6 1 11 1 3 1 2 1 1 11 1 11 1 1 1 1 1 1 2 1 12 1 1 11 1 1 1 1 1
1 1
1
2 8 5 7 1* 11* 1
8 15 1 1 1
11 1 1
1
2 1
3
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9
102
§ O 3
12 17 17 77 12
2 12 1 1
1 6 3
21 1 1 2 3 1
1 3 1 1
0
s 1
1 20 33 1 1 2 2 12 1 1 1 1* 10 5 55 2 17 u 1
5
2 2 2 1 1 1 2 1 1 1 1 2 1 1 1 1 1 1 1 1 2 1 1 2 2 2
14 $ •P
1
5 2
1 , 1 * 2 6 5 1 2 3 1 1 * 2 1 * 2
1
3 1*
H CQ
1 7
1 8 11 12 2 2 1 1 9 8 7 3 1 1 * 1 1 5 3 13 9 2 1 1 3 1 * 2 1 * 1 3 2551*6 1 1 5 2 3 6 3
1
£
S H •H
I rl O CQ
2 11 1*1 10 12 11 11 5 5 11
1 U* 3 U 1 1 10 2 2 16 3 1 1* 1U 10
99 11
31*8
6 11 U* 3 3 6
119 169 159 161 131 132
10 1 16 1 2 10 6 1 55 2 11 11 3 11 11 11 1 3
2 1
1
23.01-2lt.0O
1
25 . 01- 26.00 26 . 01- 2 7.00 27 . 01- 2 8.00 28 . 01- 29.00 29. 01- 30.00 3 0 . 01- 31.00 31. 01- 32.00
1
11 2 1 1 1 1 9 3 12 1 7 2
1
1
2
1 1
1
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1
1
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35. 01- 36.00 36. 01- 37.00 37.OL-38.00 38.OL-39.00 39.01-U0.00 U0.01-Ul.00 Ul.01-U2.00 U2.01-U3.00
Over 18 8
U7 2
26 13 23 5 6 U 6
6 5
U1
100 2
11*
1
32.01-33.00 33.01-3U.00 3U.01-35-00
Total 30 3 Median__________ l l l
8 6 2
3
3 3
1
2U.01-25.00
1
1
20.01-2L .00 2L .01-22.00
22 . 01- 23.00
96 81 92 67 37 30 17
15 O
67 .31 8 2
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8
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26 8
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17 9
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17 l
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35 U2 25 52 5U 69 UO 25 28 1*1 22 3 O 9 5 U U 6 l 8 O 0
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82 7
1*0 21 31 19 78 31 3
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88 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 88 88 8 8 88 8 8 8 8 8 8 88 8
1
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Mendocino Merced
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Sonoma Stanislaus
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ro ro t r oc
On
v n iO H W frH H iO H t'
ro
ro H H Vj
H Vo O H
VJ H Cj H
H
ro cc
SantaBarbara
H H f r vn Vo -0 ONOnCDso O OdV j V j H H H M H
H
fr
l
l
H
l
vn h
H H
San Mateo
H
ro
hvj
H
San Joaquin
V J r o r o H V o V jf r f r H r o ro
IO VjJ O
H
San Diego
H
r o H H V j r o H r o H - o v n .r o H V n .H t r H H H
H
SanBemardino
SaiiLuisObispo
h
H ro
Sacramento San Benito
H
H io rO ro v jro H H
ro H to
ro ro
io
H V jJ O'
H CC © ro
HH
f rf r H H V n iO V o f r V o H f O H
H H
HH
ro vo
ro ro H
f r H H ro v o v jV n io v jV JV n C M O frio H
ro ro H
H
H
Riverside
fo r o r o H f o r o r o io v n v jv n o N r o O N V jro H
H ro V j
H
X
i
X
fr co a t r
ro H
Plumas
H H ro
H ro
ro
Placer
H VJ ro H OVri.Vn.Cr OsVn.tr H H
ro -o vn
G g
Orange
h
h h
ro v jv n v j h v j HV o
H V JH V JH H H
ro H H
H VJ H VJ io io
h
H ro H ro
Nevada
H H ro
H H
X
V jJ vo vn
ro ro
Monterey Napa
H Vo H V n.fr fO H
HV jJ H VO
Modoc Mono
V o H H trH lO H V J ro H
Los Angeles
P V JO X W H h io io
H
ro H
Lassen
H
H VjJ -O
H H
Kings
t r to
ro rofrv n V J H Vo
H H IOVJ H
Kern
H
o co a> o ow o vj io t r h
H
H H
Inyo
h io v j io
HH
vj
H ro VJ VJ
H
Ovvn
Imperial H
Lake
ro h ro
roH V JV J
H
v jH
Fresno Glenn
H
HHH
H
HH
H
El Dorado
Humboldt
Onf r ro ro H
H
H
H vo O s trp - ro vn
H
ro
H
H
H
fO H - J -0
H
ro H to vo H vo
r o to H r o v jr o f r io v n .v j
h
H
V jJ VO-0
rovo
Vj fO t r H
H ro H H roi H Vj
VJ H
H - J vo
H
VJ ro
H
H
H ro ro o H
ContraCosta Del Norte
H
H IO
H ro . ... H H H H H t o r o r o r o t r i o v n . C 't r —J C o - J v o p v o O Q c o C D - o coVavj vn. vo o v n 10 Htrvn.VjjVJVn.tr~o no co ovVnvo ro vn On-o so ovro ov o C j vo v j o s t r H on-o n h o d v j w ' j i v a covnvnso ro
Tehama Trinity Tulare Ventura Yolo Yuba
FREQUENCY DISTRIBUTION OF THE PERCENTAGE THE UNDISTRIBUTED AND GENERAL RESERVES WERE OF. THE TOTAL OUTGO FOR 1,729 ELEMENTARY SCHOOL DISTRICT BUDGETS IN 53 COUNTIES FOR THE FISCAL YEAR 191*9-50
H
VJ vn O
vo
H
l o t r v j Vj vo ro H
H H H io
H H H
H a O VjJ
H
-o ro H to H v n
H VJ H H VJ ro VJ £ —0 VJ O
H H H H H
HVJ O H
H VJ1 O O
Colusa H
r o H r o H i o H r o i o H - O H V J f r f r ooVj ro VJ vo £■" OvVn Vj Vj trV J CN
H
Butte Calaveras
H
io
H ro O H
Amador
H V jJH H
H H ro H ro ro ro ro
H VJ Vn H
H
H rfO N W frV A -JV JW M
H
ro
H H H
HH
HH
H
H
H H H
H H H IO H
H
HH H
VO H H h 8 vn.
Alameda
H H H H H ro v n H V n V J V J trH
IO
H H vn cc
H O' ro — q
CD
I r - r r f r t r V J VJ VJ VOVJ VJ V J\J VJ VJ M N r O M W r O M M r o r O H H H H M H H H H H VO IO H O VO CD— 0 OvVn-p-VjJ fO H O VO CO-0 OvVn.tr V jJ M H O 'O a - J OW nfrVJ ro H O VO CD-0 o w n .tr vo ro H
u n d i s t r i b u t e d , g e n e r a l an d t o t a l r e s e r v e s .
T a b le s XIX, XX
a n d XXI show t h e same d i s t r i b u t i o n f o r h i g h s c h o o l d i s t r i c t s . T h ese t a b l e s show t h e m e d ia n p e r c e n t f o r e a c h c o u n ty 3 4 co m p u ted t o t h e n e a r e s t w hole n u m b e r. T a b le s IV a n d V, r e f e r r e d t o p r e v i o u s l y , show t h e m e d ia n a n d m ean co m p u ted f o r t h e s e p a r a t e r e s e r v e s a n d th e t o t a l f o r e a c h c o u n ty co m p u ted t o t h e s e c o n d d e c i m a l .
The m ean was c a l c u l a t e d
an d l i s t e d o p p o s i t e t h e c o r r e s p o n d i n g m e d ia n i n o r d e r t o show t h e te n d e n c y t o skew i n e i t h e r t h e ’’h i g h ” o r nlo w H d ire c tio n .
As a n e x a m p le , r e f e r e n c e i s made t o t h e A lam eda
C o u n ty u n d i s t r i b u t e d r e s e r v e i n T a b le IV .
The m ean o f 5 .5 5
was h i g h e r t h a n t h e m e d ia n o f 4 .6 6 w h ic h i n d i c a t e d t h a t t h e d i s t r i b u t i o n te n d e d t o d e v i a t e to w a rd t h e
’’h i g h ” s i d e .
T h is
i n d i c a t e d t h e r e w e re one o r m ore d i s t r i c t s w i t h h i g h e r p e r c e n t a g e s o f u n d i s t r i b u t e d r e s e r v e w h ic h t e n d e d to d i s t o r t a n o rm a l d i s t r i b u t i o n .
T h is i s c l e a r l y show n on t h e
f r e q u e n c y d i s t r i b u t i o n o f T a b le XVI. ^
S ta te t o ta ls
sh o w in g t h e f r e q u e n c y d i s t r i b u t i o n f o r t h e e n t i r e s t a t e w ere c a l c u l a t e d a n d c h a r t e d on T a b le s V I I I , IX , X a n d X I . 6 ^S u p ra , p p . 7 5 -7 6 . 4S u p r a , p p . 7 7 - 7 8 . 5
S u p ra , p . 101.
6S u p ra , p p . 8 2 - 8 9 .
Total Median
O 4=”P"4=“Vo vovo vovo vovo Vo Vovo r o r o r o r o r o r o r o r o r o r o H H H H H H H H H H H
M
H> H
H
H
Modoc
M
H> H
U> H H
H H
H
Orange Placer
H
H Vn
H
H
H
H
vn.-j M M
ro H H
H
San Diego
VjO h H
ro
Santa Clara 1
1
1
H
Shasta
H H
vn-o
H
Santa Cruz
H
ro vo
H H
ro H H
H
H H
£T TO
ro
H
H
Os O'
H
H ro
vovn
M
Sonoma
M
Stanislaus Tehama
H H M
Tulare
ro
H
Ventura
H
U) H
ro ro
H H
H
H
Solano
H H
M H M
San Mateo Santa Barbara
M H
vn ro
j=— o
SariLuisObispo H
1 1 1
H H
San Joaquin H H
H H M 2
Osvn
Os Vo
San Bernard! no
H
H M
(->
M H ro
H H
H H H
■fr-vn
Riverside H ro Sacramento
H ro
fr- oc
•fr-vo
Monterey
H
CO O'
H O O
Merced
\j>
H
H M
Marin Mendocino
H H
VO fT
ro vnvo
Los Angeles 1
1
1
H
09 VO
H1 vn o
Kings Lake
H M C - W I O H H H
H H H
Os a
OS cc
Imperial
• H* H
Cr\_o
-0
Humboldt
1
H
Glenn
H
1
1
0\jr
Fresno
ro H
ro Vo ro H O O O O O O O O O O O O O O H O O H H H l O H I O H O H V n M . p r C N O s - j H V n ^ V n V A S O VJ CN H
Yolo M
VjO
Yuba NineCounties*
t* VO
FREQUENCY DISTRIBUTION OF THE PERCENTAGE THE UNDISTRIBUTED RESERVE FAS OF THE TOTAL OUTGO FOR 232 HIGH SCHOOL DISTRICT BUDGETS IN $ 0. COUNTIES FOR THE FISCAL YEAR 1 9h9-l
H
vnvo
Contra Costa
H
H M
H
4=-vn
H ro
1
H H
ro
VO
H
1
1
1
Os^r
H VO -0
Colusa
H
vovn
H ro
Calaveras
ro
HVn,
h
Butte
H
pj ro H O O ►? P P P Q P P P P P O p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o p o o P P h h h P h h h h h h h h h h h h S p h h h . . . i I i i i i r t i » i i t i i « i i ro iroi roiro i ro ro ro ^r-^r"-p“ p r v o v o v j o v o v o v o v o v o v o v j ro ro ro vo ro H o vo CD-o o w n - P - v o ro H o vo c o —o O svnfc-V o VOwCDh o O vo c d - o o v v n p r ’Vo ro H IJT-VO
i
i
8 *88 8 8 *88 *8*88 *88 8 8 8 8 8 >3 h p
8 8 8 8 8 88 8881 8
•
*
>o o >o o
88 8 8 8 8 8 8 8 8 8 8 Alameda
HVn
* 2 vnvo s*a £ rv n
P4
Amador
ro H
H H H
B u tte
H
13 05 P H* O (0 4
On ro
H
3 &o w n to pft* P 0s
H
P O
*-3 g
4 o H- »
ro H H
H ro 0 s
H
C a la v e ra s
H H H
H
C olusa
H
C o n tra C osta
H H r o r o V jjf rrO H
o ro
ro
F resn o G lenn
H fo jr
Humboldt
ro vn
Im p e ria l Inyo H ro
Kern
H ro
Kings
cd
H
.
VOVjJ
la k e
-4 £ r
H J V0
ro U) ro
ro v jj
H ro
Los A ngeles
U H
M arin
O Vo H -0
Mendocino
ro r o w
V0O'
H
VO VO
H H H
H H
Modoc
ro
ro £ r
H
H vn o
ro H
M onterey
H ro
H
H H to
Orange
H H
O vo
\
£r O'
H H H ro H Vn H H
•pr oc
H
H H
H
x= - o
San Diego
OJ H
San Jo aq u in
H ro ro
- o —5
H H
.p -v n
H
H O Vn
H
H H
H ro H
S .L u isO b isp o
ro
H
H
H
O -o
Sacram ento SanB ernardino
H H H ro
P la c e r F .iv e rs id e
O vn VO — 0
Merced
San M ateo
H
S a n ta B arb ara
H
H
On
vnvo
S a n ta C la ra S a i t a Cruz
ro H ro
1S h a s ta
O Vo
Solano
v n -o
H
H
H
ro ro
H ro v n cc
H
CDO'
H H
H H
h
H H
Sonoma
H H ro
Vo —o
^ vn
FREQUENCY DISTRIBUTION OF THE PERCBTTAGE THE GENERAL RESERVE IAS OF THE TOTAL OUTGO FOR 232 HIGH SCHOOL DISTRICT BUDGETS IN gO COUNTIES FOR THE FISCAL YEAR 19U9-50
ro
srv n
H
H
to H
S ta n is la u s
H H
Tehama T u la re
ro H
V en tu ra
ro
Yolo
ro
Vo ro
Yuba
H H
Ov vo
H to H H
H O O O O O O O O H O O H O O O H O O O O O H H O H H H H H V
j j vo-O
oo co ~ g t * i o
oovo Cj
H H
ro
N ineC ounties*
C N H On cn
106
TABLE XXI FREQUENCY DISTRIBUTION OF THE PERCENTAGE THE UNDISTRIBUTED AND GENERAL RESERVES WERE OF THE TOTAL OUTGO FOR 232 HIGH SCHOOL DISTRICT BUDGETS IN 30 COUNTIES FOR THE FISCAL YEAR
107
1
0 u % 3 w
P e r C ent
is H O cti ■P § to
e ri is to
2 0 . 01- 1.00
1 . 01- 2.00 2 . 01- 3.00 3 . 01- ii.0 0 11.01- 5 .0 0
5 . 01- 6.00 6 . 01- 7.00 7 . 01- 8.00 8 . 01- 9.00 9 . 01- 10.00 10. 01- 11.00 11 . 01- 12.00 1 2 . 01- 1 3 .0 0 1 3 . 01- l l t .0 0 iU .01- 1 5 .0 0 1 5 . 01- 1 6 .0 0 1 6 . 01- 1 7 .0 0
1 7 . 01- 18.00 18 . 01- 19.00 19 . 01- 20.00 20 . 01- 21.00 21 . 01- 22.00 22 . 01- 23.00 23 . 01- 21.00
3 7 5
1
1 1 2 1 1 1 1
1 1 1 1 1
1
1 1
1 1 2 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 2 1
1 1
l h 1 1 1
10
1
1 1
2
1 1
2 1
1 1
11
15 16 10 10
15
9
8 20 12
1
1 1
? 7 8
1
1 1
1
10
2
3 8 6
1
U
3 0
2l t . 01- 25 .0 0
2
25 . 01- 26.00 26 . 01- 27.00 27 . 01- 28.00 28 . 01- 29.00 29 . 01- 30.00
3 0 2 0 0 0 0 0 1 1 1
3 0 .0 1 -3 1 .0 0 3 1 .0 1 -3 2 .0 0 3 2 .0 1 -3 3 .0 0 3 3 .0 1 -3 lt.0 0 3 lt.0 1 -3 5 .0 0
33 . 01- 36.00 3 6 .0 1 -3 7 .0 0 3 7 .0 1 -3 3 .0 0
2 0
38 . 01- 39.00
2
39.01-ltO.OO lt0 .0 1 - ltl.0 0 111.01-lt2.00 It2 .0 1 -lt3 .0 0 1 O ver T o ta l it 3 2 3 1 3 r “5— 3— 5 15" 2 M edian 9 17 13 11 9 1 0 13 3 3k 11 13 13 #N ine C o u n tie s : D el N o rte , E l D o rado, L a s s e n , Mono, N apa, N evada, S i e r r a , S u t t e r , T r i n i t y .
0 0 0 0
3 0 9 8 lit 13
3 7 6 13
6 3 6 17
T 'T er
7 ?
_ 2
g_ 11
1
1
r
12
"8
9
13
6.... 7..T 13 1 1
T 13
7 3 2 9
13
23
2 3
8 6 13 16
5 23
2 9 3 II
3 232
J u n i o r c o l l e g e -a-nd-hm if i e d d i s t r i c t s w ere com puted o n ly f o r s t a t e t o t a l s a s t h e num ber i n e a c h c o u n ty was to o s m a ll t o t a b u l a t e f o r e a c h i n d i v i d u a l c o u n ty . U n d is trib u te d r e s e r v e ♦
The num ber an d p e r c e n t a g e
o f e le m e n t a r y a n d h i g h s c h o o l d i s t r i c t s w i t h i n e a c h c o u n ty w h ic h b u d g e te d a n u n d i s t r i b u t e d r e s e r v e f o r 1 9 4 9 -5 0 a r e shown i n T a b le s XXII a n d X X III.
Of th e 1 ,7 2 9 e le m e n ta r y
d is tric ts
s t u d i e d , 1 ,5 5 4 a c t u a l l y b u d g e te d a n - u n d i s t r i b u t e d
re se rv e .
T h is r e p r e s e n t e d 8 9 .8 7 p e r c e n t o f t h e t o t a l .
The h i g h s c h o o l s h a d a h i g h e r n u m b er, 220 fro m a t o t a l o f 2 3 2 , o r 9 4 .8 3 p e r c e n t .
The m e d ia n p e r c e n t w h ic h
t h e u n d i s t r i b u t e d r e s e r v e was o f t h e t o t a l o u tg o f o r t h e 1 ,7 2 9 e le m e n t a r y d i s t r i c t s o f t h e s t a t e was fo u n d t o be 5 .0 9 .
The m ean was 7 .0 6 a n d t h e s t a n d a r d d e v i a t i o n was
6 .6 3 .
T h e re i s no f i x e d s t a n d a r d p e r c e n t a g e w h ic h c a n be
s a i d t o b e t h e r i g h t a m o u n t.
The d e g re e o f c a r e w i t h
w h ic h a b u d g e t i s p r e p a r e d w i l l d e te r m in e t o a g r e a t e x te n t th e s iz e o f th e u n d i s t r ib u t e d r e s e r v e .
The m ore
a c c u r a te ly th e b u d g e t r e p r e s e n ts th e a c tu a l e x p e n d itu re s t h e l o w e r may be t h e p e r c e n t a g e f o r a n a d e q u a te u n d i s t r i b u t e d re se rv e .
I f th e d i s t r i c t t e n d s to u s e t h e u n d i s t r i b u t e d
r e s e r v e a s a g e n e r a l r e s e r v e d u r i n g t h e s u c c e e d in g y e a r t h e p e r c e n t a g e w i l l t e n d to be h i g h e r .
The c o u n ty
s u p e r i n t e n d e n t s o f s c h o o ls w e re a s k e d s e v e r a l q u e s t i o n s
109 TABLE X X II NUMBER AND PERCENTAGE OF ELEMENTARY SCHOOL DISTRICTS WHICH BUDGETED UNDISTRIBUTED AND GENERAL RESERVES FOR THE FISCAL YEAR 191*9-50
County
Alameda Alpine Amador B utte Calaveras
Number of D is tr ic ts
With U ndistribut ed Reserve Per Cent Number
With General Reserve Number Per Cent
30 3 18 hi 26
30 3 18 U5 21
100*0 100.0 100.0 95.7 80*8
30 3 17 32 26
100.0 100.0 9h.h 68.1 100.0
13 23 6 Ui 100
13 22 6 36
100.0 95.7 100*0 87.8 -
13 23 6 37 81
100.0 100.0 100.0 90.2 81.0
Glenn Humboldt Im perial Inyo Kern
15 67 31 10 50
lh 66 31 10 h9
93.3 98.5 100.0 100.0 98.0
h9 31 10 33
73.1 100.0 100.0 66.0
Kings Lake Lassen Los Angeles Marin
21 8 19 83 30
21 8 19 83 30
100.0 100.0 100.0 100.0 100.0
21 k 12 83 10
100.0 50.0 63.2 100,0 33.3
Mendocino Merced Modoc Mono Monterey
26 37 17 5 hi
2k 37 16 5 36
92.3 100.0 9U.1 100.0 87.8
26 37 15 5 37
100.0 100.0 88.2 100.0 90.2
Colusa Contra Costa Del Norte El Dorado Fresno
-
110 TABLE X X II (c o n tin u e d ) NUMBER AND PERCENTAGE OF ELEMENTARY SCHOOL DISTRICTS WHICH BUDGETED UNDISTRIBUTED AND GENERAL RESERVES FOR THE FISCAL YEAR 191*9-50
County
Number of D istricts^
With U nd istrib u t ed Reserve Number Per Cent
With General Reserve Number Per Cent
Napa Nevada Orange P lacer Plumas
17 17 39 27 2
17 17 39 27 2
100.0 100.0 100.0 100.0 100.0
17 17 32 2
100.0
R iverside Sacramento San Benito San Bernardino San Diego
35 1*2 25 52 5k
35 13 25 52 52
100.0 31.0 100.0 100.0 96.3
3k
97.1
San Joaquin San Luis Obispo San Mateo Santa Barbara Santa Clara
69 ko 25 28 1*1
69 ho 25 28 39
100.0 100*0 100.0
Santa Cruz Shasta S ie rra Solano Sonoma
22 1*8 6 26 82
15 1*1* 6 26 80
68.2 91.7 100.0 100.0 97.6
US 6 77
93.9
S ta n isla u s S u tte r Tehama T rin ity Tulare
l*o 21 31 19 78
ko 19 30 18 77
100.0 90.5 96.8 91*. 7 98.7
ko k 2k 7 71*
100.0 19.0 77.U 36.8 9k.9
Ventura Yolo Yuba
31 28 17
31 28 17
100.0 100.0 100.0
22 27 17
71.0 96.lt 100.0
1,729
1,551*
T o tals
1 0 0 .0
95.1
89.87
-
—
.
100.0 100.0 82*1 -
—
23 51 5k
92.0 98.1 100.0
60 1*0 16 28 1
87.0 100.0 61*.0 100.0 2.1*
mm
mm
—
1,359
93.8 100.0 »
78.60
I ll TABLE X X III NUMBER AND PERCENTAGE OF HIGH SCHOOL DISTRICTS WHICH BUDGETED UNDISTRIBUTED AND GENERAL RESERVES FOR THE FISCAL YEAR 19U 9-50
County
Alameda Amador B utte Calaveras Colusa Contra Costa Del Norte El Dorado Fresno Glenn Humboldt Im perial Inyo Kern Kings Lake Lassen Los Angeles Marin Mendocino Merced Modoc Mono Monterey Napa
Number of D is tr ic ts
With With U ndistributed General Reserve_______ Reserve______ Number Per Cent Number Per Cent
5 3 5 2 5
5 3 5 2 5
100,0 100.0 100.0 100.0 100.0
5 3 5 2 5
100.0 100.0 100.0 100.0 100.0
6 1 1 16 2
6 1 1 6 2
100.0 100.0 100.0 37.9 100.0
6 1 1 35
100.0 100.0 100.0 93.8
k * 2 5 3
k 5 2 5 3
100.0 100.0 100.0 100.0 100.0
k 5 2 5 3
100.0 100.0 100.0 100.0 100.0
h l 19 3 7
U 1 19 3 7
100.0 100.0 100.0 100.0 100.0
u 1 19 1 7
100.0 100.0 100.0 33.3 100.0
6 3 1 k 1
6 3 1 k 1
100.0 100.0 100.0 100.0 100.0
5 3 1 u
83.3 100.0 100.0 100.0
-
-
-
-
112 TABLE X X III (c o n tin u e d ) NUMBER AND PERCENTAGE OF HIGH SCHOOL DISTRICTS WHICH BUDGETED UNDISTRIBUTED AND GENERAL RESERVES FOR THE FISCAL YEAR 191*9-50
County
Number of D is tr ic ts
With U ndistributed Reserve Per Cent Number
With General Reserve Number Per Cent
1 10 3 6 5
1 10 3 6 3
100,0 100.0 100.0 100.0 60.0
1 10 5 -
83.3 -
7 8 6 7 5
7 8 6 7 5
100.0 100.0 100.0 100.0 100.0
7 8 6 7 h
100.0 100.0 - 100.0 100; 0 80.0
Santa Barbara Santa Clara Santa Cruz Shasta S ie rra
5 7 3 2 1
5 7 3 2 1
100.0 100.0 100.0 100.0 100.0
5 l 3 2 1
100.0 llw3 100.0 100.0 100.0
Solano Sonoma S ta n isla u s S u tte r Tehama
3 7 7 1 2
3 7 7 1 2
100.0 100.0 100.0 100.0 100.0
7 7
100.0 100.0
T rin ity T ulare Ventura Yolo Yuba
1 8 6 5 2
1 8 6 5 2
100.0 100.0 100.0 100.0 100.0
232
220
Nevada Orange P lacer R iverside Sacramento San San San San San
Bernardino Diego Joaquin Luis Obispo Mateo
T o tals
9U.83
—
100.0 100.0 —
—
—
2
100.0
1 8 6 5 2
100.0 100.0 100.0 100.0 100.0
205
88.36
113 re g a rd in g r e s e r v e s .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o ls
w ere a s k e d w h a t t h e c o u n ty b e l i e v e d was a d e s i r a b l e am ount f o r d i s t r i c t s to b u d g et f o r u n d is tr ib u te d r e s e r v e s , e x p re sse d in p e rc e n ta g e s .
I n t h e s e c o n d colum n o f
T a b le XXIV t h e r e p l i e s a n d f r e q u e n c y o f e a c h p e r c e n t a g e a re g iv e n .
The c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls w ere
r e q u e s t e d t o i n d i c a t e t h e p r a c t i c e a c t u a l l y f o l l o w e d .^ T h is i n f o r m a t i o n i s c o lu m n .
shown on t h e same t a b l e i n th e t h i r d
The ra n g e i n a n s w e rs i n d i c a t e d t h a t t h e c o u n ty
s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d a b o u t a s much v a r i a n c e i n w h at t h e y c o n s i d e r e d good p o l i c y o r p r a c t i c e r e g a r d i n g t h e p e r c e n t w h ic h t h e u n d i s t r i b u t e d r e s e r v e s h o u ld be a s t h e a c t u a l p r a c t i c e s seem ed to i n d i c a t e .
T hose s t a t i n g
t h a t t h e r e was no p o l i c y r e g a r d i n g d e s i r a b l e p r a c t i c e r e p r e s e n t e d 1 6 .3 2 p e r c e n t o f t h o s e r e p o r t i n g .
T hose
who h a d no p o l i c y i n a c t u a l p r a c t i c e r e p r e s e n t e d 5 3 .0 6 p e r c e n t.
The ,fno p o l i c y 11 r e p r e s e n t e d 3 .2 5 tim e s a s
many i n a c t u a l p r a c t i c e a s i n th e d e s i r a b l e p o l i c y r e p l i e s . W h ile no g e n e r a l a s s u m p tio n s c o u ld be m ad e, i t was e v i d e n t t h a t t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s h a d no r e a s o n a b l e u n i f o r m i t y e i t h e r i n w h at t h e y c o n s i d e r e d d e s ira b le p o lic y , o r in p r a c tic e .
*7I n f r a , A p p e n d i x A, p . 2 6 1 , Item 2 . ^ I n f r a , Appendix A, p* 2 6 2 , Item 3 .
TABLE XXIV
FREQUENCY DISTRIBUTION OF REPLIES FROM COUNTY SUPERINTENDENTS OF SCHOOLS REGARDING PERCENTAGE UHICH UNDISTRIBUTED AND GENERAL RESERVES REPRESENTED OF TOTAL OUTGO IN SCHOOL DISTRICT BUDGETS
Undistributed Reserve Desirable Present Per Cent Policy Practice .. ......(A .L ..... - J 2 L - ....... ... JL2L_
.
General Reserve Desirable Present Policy Practice (U -. (5)
3
i
i
-
1*
i
i
-
-
13
k
5
1*
6
-
i
art
-
7
2
i*
2
3
8
2
i
-
mm
Q 7
1 16
6
10
H CM
5
6
12
-
cm
2
2
1$
-
-
2
-
20
1
-
1*
2
25
-
-
5
1
25
-
2
1
-
No Policy
8
25
8
26
No Answer
-
1*
1*
5
k9
1*9
1*9
1*9
Over
Total
115 A. s i m i l a r q u e s t i o n r e g a r d i n g d e s i r a b l e p o l i c y was p r e s e n t e d t o th e c i t y s u p e r i n t e n d e n t s o f s c h o o l s ^ an d t h e i r r e p l i e s a r e t a b u l a t e d i n T a b le XXV.
I t was fo u n d
t h a t th e d i s t r i b u t i o n o f t h e d e s i r a b l e p o l i c y f o r b o th th e u n d i s t r i b u t e d a n d g e n e r a l r e s e r v e a s r e p o r t e d b y c i t y s u p e r i n t e n d e n t s o f s c h o o l s i s c o m p a ra b le t o t h a t r e p o r t e d b y t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s , a s f a r a s any p a t t e r n i s
c o n c e rn e d *
T h e re i s a w ide d i s t r i b u t i o n
a lt h o u g h t h e s i z e o f th e r e s e r v e s i s g e n e r a l l y s m a l l e r t h a n t h o s e r e p o r t e d by t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls . R e f e r e n c e to t h e t a b l e s sh o w in g a d i s t r i b u t i o n o f t h e a c t u a l p e r c e n t a g e s b u d g e te d f o r u n d i s t r i b u t e d r e s e r v e b y d i s t r i c t s f o r 1 9 4 9 -5 0 show ed c o n s i d e r a b l e v a r i a n c e . ’1'0 The d e v i a t i o n fro m t h e m e d ia n s o f 5 .0 9 an d 4 .3 8 f o r e le m e n t a r y a n d h i g h s c h o o l d i s t r i c t s was n o t to o e x tr e m e , e x c e p t i n a fe w d i s t r i c t s .
S e v e r a l c o u n t i e s show ed a
n a rro w s p r e a d , w h ile o t h e r s w ere w id e ly s c a t t e r e d .
It
seem ed l o g i c a l t o assu m e t h a t t h e a c t u a l m e d ia n p e r c e n t a g e s b u d g e te d i n s u c h a w id e s a m p lin g o f d i s t r i c t b u d g e ts r e p r e s e n t e d a p a t t e r n o r g u id e w h ic h c o u ld be c o n s i d e r e d
9 I n f r a , A p p e n d ix B, p . 2 7 3 , Ite m 1 . 1 0 S u p r a , T a b le s V I I I a n d IX , p p . 8 2 - 8 5 .
116
TABLE XXV
FREQUENCY DISTRIBUTION OF REPLIES FROM CITY SUPERINTENDENTS OF SCHOOLS REGARDING PERCENTAGE 18HICH UNDISTRIBUTED AND GENERAL RESERVES SHOULD REPRESENT OF TOTAL OUTGO IN SCHOOL DISTRICT BUDGETS
Per Cent (1)
Undistributed Reserve Desirable Policy - (2) ... - -
General Reserve Desirable Policy (3)
0
-
2
2
6
-
3
2
3
k
2
2
5
22
12
6
1
1
7
1
1
8
1
-
9
1
-
10
6
8
15
1
k
20
-
5
25
-
3
Over 25
-
2
No answer
1
1
Ijii
Uk
Total
117 a s a s t a n d a r d o f p r a c t i c e a g a i n s t w h ic h to m e a su re t h e p e r c e n t o f u n d is tr ib u te d re s e rv e f o r in d iv id u a l d i s t r i c t s . G e n era l r e s e r v e .
T h is r e s e r v e d i f f e r s fro m t h e
u n d is trib u te d re s e rv e in th a t i t
i s n o t e x p e n d a b le d u r i n g
t h e y e a r i n w h ic h i t i s b u d g e te d .
The la n g u a g e o f t h e
E d u c a tio n Code i s m a n d a to ry r e q u i r i n g t h a t a g e n e r a l r e s e r v e f o r u s e d u r i n g t h e s u c c e e d in g y e a r m u st be b u d g e te d , a n d e a c h g o v e rn in g b o a r d i s r e q u i r e d to a n am ount s u c h a s i t deem s n e c e s s a r y .
in c l u d e
T h e re i s no
r e q u i r e m e n t s e t t i n g f o r t h a n y s p e c i f i c am ount o r p e r c e n t a g e w h ic h m u st be b u d g e te d .
T h ere i s no a u t h o r i t y
f o r e n t i r e l y o m ittin g th e g e n e ra l r e s e r v e . a n d X X III show th e n um ber o f d i s t r i c t s w h ic h b u d g e te d a g e n e r a l r e s e r v e .^ - 1
T a b le s XXII
i n e a c h c o u n ty
T h ere w ere 1 ,3 5 9
e le m e n ta r y a n d 205
h ig h s c h o o ld i s t r i c t s
w h ic h b u d g e te d
a g e n eral re s e rv e ,
r e p r e s e n t i n g 7 8 .6 p e r c e n t o f
th e
e le m e n ta r y d i s t r i c t s w i t h g e n e r a l r e s e r v e s a n d 8 8 .3 6 p e r c e n t o f th e h ig h sc h o o l d i s t r i c t s . The f r e q u e n c y d i s t r i b u t i o n o f p e r c e n t a g e o f t o t a l o u tg o b u d g e te d b y d i s t r i c t s
f o r g e n e r a l r e s e r v e f o r 1 9 4 9 -5 0
i n c o u n t i e s i s show n i n T a b le s XV II12 a n d X X ,^ t o w h ic h S u p ra , p p . 1 0 9 -1 1 2 . l s S u p ra , p .
102.
- ^ S u p ra , p .
106.
118 r e f e r e n c e h a s b e e n m ad e .
The t o t a l p e r c e n t a g e b u d g e te d
f o r g e n e ra l r e s e r v e s f o r th e s t a t e
i s show n i n T a b le s V I I I ,
IX , X a n d X I, r e f e r r e d to e a r l i e r . 14 R e f e r e n c e a g a i n i s made to T a b le XXIV w h ic h g i v e s t h e r e p l i e s o f c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s who w ere a s k e d t o s t a t e w h a t t h e y b e l i e v e d to b e a d e s i r a b l e p e r c e n t a g e t o b u d g e t f o r g e n e r a l r e s e r v e . 15 a re l i s t e d
T h ese r e p l i e s
i n t h e f o u r t h colum n o f t h e t a b l e .
The f i f t h
colum n g i v e s t h e p e r c e n t a g e w h ic h t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls r e p o r te d a s th e p r a c t i c e
in e f f e c t .
The
v a r i a n c e i n p e r c e n t a g e s was c o m p a ra b le to t h e p e r c e n t a g e s g i v e n f o r u n d i s t r i b u t e d r e s e r v e , w h ic h i n d i c a t e d t h a t t h e p o l i c y f o llo w e d i n t h e a d m i n i s t r a t i o n o f t h a t p a r t o f t h e b u d g e t was c o m p a ra b le a n d t h a t t h e r e was no c o n s i s t e n t p a t t e r n e i t h e r a d v o c a te d o r p r a c t i c e d *
T a b le XXV shows
th e d e s ir a b le p o lic y r e p o r te d by c i t y s u p e r in te n d e n ts o f s c h o o l s r e g a r d i n g w h at t h e y c o n s i d e r e d a s a t i s f a c t o r y g e n e ra l r e s e r v e .1 ^ T o ta l r e s e r v e s .
T a b le s IV a n d V g iv e th e m e d ia n
an d m ean f o r t h e g e n e r a l r e s e r v e a n d t o t a l r e s e r v e f o r 14S u p ra , p p . 8 2 -8 9 . 1 5S u p r a , p . 1 1 4 . 1 6 S u p ra, p . 1 1 6 .
119 e le m e n t a r y a n d h i g h s c h o o l d i s t r i c t s f o r e a c h c o u n ty i n t h e s t a t e f o r w h ic h d a t a was a v a i l a b l e an d u s e a b le *
17
The d i f f e r e n c e b e tw e e n t h e m e d ia n a n d m ean i n d i c a t e d t h e d i r e c t i o n o f sk e w n e ss o f e a c h c o u n ty d i s t r i b u t i o n . The f r e q u e n c y d i s t r i b u t i o n i n d i c a t e d a w ide v a r i a n c e o f p r a c t i c e i n e a c h c o u n ty .
T h is was a c c o u n te d f o r i n some
d e g re e b ecau se o f th e g e n e ra l p r a c t i c e
i n m any d i s t r i c t s
w h ic h a t one tim e o r a n o t h e r c a r r y f o r w a r d l a r g e sums o f money f o r f u t u r e e x p e n d i t u r e .
C o n s e q u e n tly , t h e h i g h
p e r c e n t a g e b u d g e te d b y some d i s t r i c t s re p re s e n t a tru e g e n e ra l re se rv e *
d i d n o t a lw a y s
The same s i t u a t i o n
o f t e n p r e v a i l s i n c o n n e c ti o n w i t h t h e u n d i s t r i b u t e d re se rv e . R e l a t i o n s h i p b e tw e e n r e s e r v e s an d e n d in g b a l a n c e s . I n a d d i t i o n t o d e te r m i n i n g w h at p e r c e n t a g e o f t h e o u tg o was a c t u a l l y b u d g e te d f o r r e s e r v e s , a s tu d y was made o f t h e r e l a t i o n s h i p b e tw e e n t h e a c t u a l e n d in g b a la n c e o f t h e d i s t r i c t f o r th e y e a r 1 9 4 8 -4 9 a n d t h e am ount b u d g e te d f o r r e s e r v e s f o r t h e s u c c e e d in g y e a r .
R e fe ren c e to
T a b le s IV an d V f o r e le m e n t a r y a n d h i g h s c h o o l d i s t r i c t s show s t h a t w i t h t h e e x c e p t i o n o f s i x 'c o u n t i e s th e m e d ia n a n d mean p e r c e n t a g e f o r b e g in n i n g b a l a n c e s e x c e e d e d t h e
^ S u p ra, p p . 7 5 - 7 8 .
120 m e d ia n a n d m ean p e r c e n t a g e o f t o t a l b u d g e te d r e s e r v e s f o r th e s u c c e e d in g y e a r .1 ® th e r a t i o
Colum ns e l e v e n a n d tw e lv e show
b e tw e e n t h e t o t a l r e s e r v e s a n d th e e n d in g
b a la n c e o f t h e p r e v i o u s y e a r .
The r a t i o s b e tw e e n t h e
e n d in g b a la n c e f o r 1 9 4 8 -4 9 a n d t h e b u d g e te d r e s e r v e s f o r 1 9 4 9 -5 0 w ere made f o r e a c h d i s t r i c t i n t h e s t a t e a n d t h e f r e q u e n c y d i s t r i b u t i o n f o r e le m e n ta r y a n d h i g h s c h o o l d i s t r i c t s by c o u n tie s o f th e s e r a t i o s i s T a b le s XXVI a n d XXVII. T a b le s XX VIII an d XXIX.
shown i n
The s t a t e t o t a l s a r e shown i n The num ber a n d p e r c e n t o f th e
r a t i o s f o r e a c h ty p e o f d i s t r i c t ab o v e a n d b e lo w one h u n d r e d w ere com puted a n d a r e shown i n T a b le XXX.
It
was fo u n d t h a t i n e a c h c a s e t h e l a r g e p r o p o r t i o n o f t h e r a t i o s w e re l e s s t h a n on e h u n d r e d f o r e a c h ty p e o f d is tric t• I t I s p o i n t e d o u t t h a t th e e n d in g b a la n c e r e p r e s e n t e d a c o m p u ta tio n b a s e d u p o n f i n a l f i g u r e s an d n o t a b u d g e te d e s t i m a t e .
T h e r e f o r e , i t was a b a s i c
am ount a g a i n s t w h ic h a c o m p a ris o n was made w i t h re a s o n a b le a c c u ra c y . On t h e a s s u m p tio n t h a t t h e p e r c e n t a g e o f b u d g e te d r e s e r v e s f o r 1 9 4 9 -5 0 was c o m p a ra b le t o t h a t w h ic h was b u d g e te d f o r 1 9 4 8 - 4 9 , i t was s e e n t h a t t h e r e s e r v e s a s
1®Eoc. c i t .
TABLE XXVI
121
FREQUENCY DISTRIBUTION OF THE RATIOS BETWEEN THE TOTAL RESERVES IN PERCENTAGE BUDGETED FOR THE FISCAL t 191*9-50, ANT* THF BWnTNG RAT.ANCFS TN Pfr.BCTOTT&r^ OF THF 1Q).B-)|Q
®
Ratio
2s n
H
ft,
0- k-9 5-
o
o
co
co
S>? m a w
*n
as
c
(I)
C •H 1 *O -3 § co
£* *ro ri O O W ♦rl $ eO tf to8 C
8 1
2
3 & co
5 a
c* s
0
CO
5 S co
3 'I
1 1
9.9
U 3
1
It
10 - 1h .9
1 11
15- 19.9 20- 2h.9
25- 29.9 30- 3U.9 35- 39.9 1*0- i*i*.9 1*5- 1*9.9 50- 51*. 9 55- 59.9 60- 6U.9 65- 69.9 70- 7l*.9 75- 79.9 80- 81*.9 85- 89.9 90- 91*.9 95- 99.9 100-102*. 9 105-109.9 110-lli*.9 115-119.9 120-121*. 9 125-129.9 130-13l*.9 135-139.9 11*0-11*1*.9 11*5-11*9.9 150-151*.9 155-159.9 160-161*. 9 165-169.9 170-17U.9 175-179.9 180-181*. 9 185-189.9 190-19l*.9 195-199.9 200-201**9 Over_____ Total 3 3 5 5 5 Median 63 118 53 5 5 63 *Nine Counties: Del Norte, El Dorado, Napa, Nevada, Sierra,
1
1 1 1 1
1 1 1 1
1
1 2 2
1 1 1
1 1 2
1 1 1
1
2 1 1 1 2 1
1 1 1 1
10
1
1
8 12
1
11
1 1
1
U 7 11*
1 1
1 1 1 1 1 1 1 1
1 1
12
1
10
1
21
2
1 1
1
13
1 1
1
7
6
1 1
7 3 7 1* 3 3 1 1 3 2
3 0 0 1
1 1
2
1 0 1 0 2
1 0
0 5 50 53 Lassen, Sutter,
2 5 5 S" 3 15 78 63 185 68 Mono, T rinity.
1
1
3 0 5 3 7 6 3 I* 15 3 5 1 8 5 1*6 65 73 33 66 25 73 70 53 89 65 68 58 53
2
5 7 3" 83 63 58 78 108 7
3
*1 7 1*
7 2 8
6
5
1*8 108 150 66 120
63
2
9
38 61*_
12 T2T
TABLE 3
122
1
1
2 1 2
1 2 1 2
1 3
2 1
1
1 1 1
1
2
1 1
3 3 2 3
1 2 2 1
3 1 1 1 1 2 2
1 1 1 3 2 1 1 2 1
1 5 1 1*
1 .2
1 1 1 2 1
3 1 2 1
1 2
1
1
3 1
1
1
3 7 3 6 2 1 6 1* 5 3 8 9 2 3 2 3 3 2 1 5 2 l
2 1* 1 2
1 1 2
1 1 1 1* 2 2 1 2
1 1 1
1
1
1. 1 2
2 3 1* 1 1 1 1
3 1* 2 1* 1 1 2 2 1 3 1 1 1 2
1
1 3 1 3 2 1 1 1
2 1 1
1
1 1 2
2
1
2 1
1 2 1
1
1
1
1
1
1 1 2 56 52
13 59
3 6 23 1*9 200
1 5 1*1 100 61 63
3 3 1* 3 1 1 1
2 2 1* 2 3 1 2 2 1*
1
3 2
2 2 2 1 2 2
1 1
1
2
1
1* 2 1* 2 2 2 1 2 1 2 2
1
2 1 1 1
2
2
1
1
1 1
1 2 2 1
1
1 2
1 1 1 2 1
3
1 1
2 1 2 1 2 1* 2
1* 1
2 2
3 3 3 3 1 1 2 1
1 1 3 1 1
1 3 1
1 2
1
1 1 1
1 1
1
1 1
2 1 1
1
1
1 1 3 2 10 3 3 3 3 2 1 5 l 5 1 1 2
1 l
1 15 23
67 66
1 1 5 31 10 69 1 9 5
1 3 56 65
L L »■ 1 3 3 2 l l l
l L
1
2 2 1
2 1 I*
1
2 2 1 3 2 1 2 3 1 2
2 1 1
2 2 3 1 1 1
1
1* 2 1 2 1 1
1 1 1
1
1 1
1 1
2 3 1* 3
2
1 6 I* 5 2
1 2 1 1* 2 1
1 2
1 1 1 1 1
1 1
1
1
2 2 l
1 1
1
1
1
1
1
1
1
1
L 1 1
l
1
L
1 1
1
3
1
1 '
1
1 1
2 1
1 1 1 1
1 1
1
1 1 1 1 2 1* 1 1 1 1 2 1 1 1 1
1
3 1
1
1 3 2 3
1 1 1 1 1 1
1 1 2
1
1 1
1
1 1
1 1 1 2 2 1 1 1
1
2 5 3 2 6 8 3 2 5 3 It 5 1* 2 7 3 1 2 1 2 1
2 1 3 2 1 1 2 2 3 1 2 3 3 1 1
19 53
9 83 75
2 1
1 1* 3 2 2 1 2
1 1 2 1 2
3 1 2 1
1
1 2 2
1 1
1 1 1
1 1 1
1
1
1
1
1
2 1
1
1
1 1
1
1 1 21 ‘ 8 1*9 85
Tehama
1 2 1* 1 3 2 3 6 3 2 8 3 8 2 3 1 3 10 3 7 2 1* • 1 1* 1* 5 2 3 5 1 1 1* 1 1 2 2 2 2 1 1 3 1 1 1 3 1 1 1 1 1 2 2
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San B e n ito
Modoc
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2 1* 36 3 18 75 108 68
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1 1
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2 1
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0- 1*.9 5- 9 . 9 1 0 - 11*. 9 15- 1 9 .9 2 0- 2l*.9 25- 2 9 .9 3 0- 31*.9 35- 3 9 .9 1*0- 10w9 1*5- 1*9 .9 50- 51*. 9 55- 5 9 .9 60- 61*.9 65- 6 9 .9 70- 71*.9 75- 7 9 .9 80- 81*. 9 85- 8 9 .9 9 0 - 9 l*.9 95- 9 9 .9 10 0 - 101*. 9 105- 1 0 9 .9 11 0 - 1 1 U.9 115- H 9 .9 12 0 - 12l*.9 125- 1 2 9 .9 1 3 0 -131*. 9 1 3 5 - 1 3 9 .9 lk O -ll* l*.9 l l i 5—11*9 .9 150- 151*.9 155- 1 5 9 .9 1 6 0 - 161*. 9 1 6 5 - 1 6 9 .9 170- 171**9 175- 1 7 9 .9 18 0 - 181*.9 1 8 5 - 1 8 9 .9 190- 191*. 9 195- 1 9 9 .9 200- 20l*.9 O ver T o ta l M edian
1
3
C a la v e r a s
R a t io
A lp in e
«
Amador
FREQUENCE DISTRIBUTION OF THE RATIOS ;BETWEEM THE TOTAL RESERVES IN EERCENTAGE BUDGETED FOR TH FISCAL YEAR 191*9-50, AND THE ENDING BALANCES IN PERCENTAGE OF THE 19U8-U9 TOTAL BUDGETED OUTGO FOR 1,687 ELEMENTARY SCHCp DISTRICTS IN 52 COUNTIES
1 30 1*0
1
3 1* 26 37 17 61* 79 66
3 5 1*1 86 101
1 17 78
17 29
39 52
1 27 98
2 95
2 1* 35 25 52 69 111* 1*8
2 51* 69 1*7 1*7
7 1*0 78
1 3 5 28 1* 108
11 1*1 68
6 1* 22 1*8 71* 75
6 65
1 26 23
1 82 53
3 1*0 70
1 3 31 19 1*1* 1*3
1
21 1*8
3 78 65
31 69
28 70
1 17 95
•
1*8 37 1*8 55 56 72 85 83 90 89 86 81 89 82 69 60 52 59 1*1* 1*2 31 33 28 20 16 H* . 11 11* 11* 10 8 8 6 7 8 9 5 1 l* 1* 3 106 1 ,6 8 7
123 TABLE X X V III
FREQUENCY DISTRIBUTION CF RATIOS BETWEEN PERCENTAGE OF BUDGETED RESERVES FOR 1949-50 AND PERCENTAGE OF ENDING BALANCE FOR 1948-49 FOR DISTRICTS WITH ENDING BALANCES IN EXCESS OF RESERVES BUDGETED FOR SUCCEEDING YEAR FOR ALL TYPES OF DISTRICTS
R atios
Elementary
High School
U nified
Junior College
0 - 1+.9 5 - 9.9 10-11+. 9 15-19.9 20-21+.9 25-29.9
48 37 48 55 56 72
4 3 4 10 8 12
1 — 1 — 2
1 — — 1 -
30-3U.9 35-39.9 i+0-l+l+.9 U5-U9.9 50-51+. 9
85 83 90 89 86
11 4 7 14 12
1 3 2 3 5
2 2 1 — 2
55-59.9 60-61+.9 65-69.9 70-7U.9 75-79.9
81 89 82 69 60
10 21 13 8 8
2 4 2 5
2 1 1 1
80-8!+. 9 85-89.9 90-9U-9 95-99.9
52 59 44 42
8 7 6 7
2 2 3 2
1 -
1,327
177
40
1$
T o tals
TABLE XXIX
FREQUENCY DISTRIBUTION OF RATIOS BETWEEN PERCENTAGE OF BUDGETED RESERVES FOR I9h9~50 AND PERCENTAGE OF ENDING BALANCE FOR 19l±84;9 FOR DISTRICTS WITH ENDING BALANCES LOWER THAN THE RESERVES BUDGETED FOR THE SUCCEEDING YEAR FOR ALL TYPES OF DISTRICTS
R atios
Elementary
High School
Unified
Junior College
100-10^.9 105-109.9 110-111*.9 115-119.9 120-121*. 9
31 33 28 20 16
3 7 h 3 3
125-129.9 130-13U.9 135-139.9 ll*0-ll*l*.9 11*5-11(9.9
u* 11 1U 1h 10
1 1 3 2 3
-
-
—
1
—
—
3
-
150-151*.9 155-159.9 . 160-161*. 9 165-169.9 170-171*. 9
8 8 6 7 8
—
—
—
—
—
175-179.9 180-181*. 9 185-189.9 190-191*. 9 195-199.9
9 5 l k h
2 1
200 Over 200
3 106
12
1
T o tals
360
50
7
2
1
—
-
—
—
-
-
_
_
1 2 1
-
-
—
—
..
1
—
—
—
-
-
—
1
-
.
—
2
125
TABLE XXX
TOTAL NUMBER OF ELEMENTARY, HIGH SCHOOL, JUNIOR COLLEGE AND UNIFIED DISTRICTS SHOWING NUMBER AND PERCENTAGE WITH RATIO OVER 100 BETWEEN ENDING BAIANCE FOR 191*8-4*9 AND BUDGETED RESERVE FOR 191*9-50 AND NUMBER AND PERCENTAGE LESS THAN 100
Total Districts
Number Over 100
1,687
360
227
Unified Junior College
Type of District Elementary High School
Total
Number Less Than 100
Per, Cent
21*31*
1,327
78.66
50
22.03
177
77.97
1*7
7
H u 89
1*0
85.11
17
2
11.76
15
88.2b
1,978
1*19
21.19
1,559
77.81
Per Cent
1 26 b u d g e te d r e p r e s e n t e d o n ly a p o r t i o n o f th e e n d in g b a l a n c e . The p o r t i o n o f t h e e n d in g b a la n c e n o t r e p r e s e n t e d b y r e s e r v e s comes fro m two s o u r c e s ,
(1 ) e x t r a incom e n o t
c o n te m p la te d o r s p e c i f i e d i n t h e b u d g e t an d (2 ) s a v in g s fro m t h e m a jo r b u d g e t e x p e n d i t u r e c l a s s i f i c a t i o n s .
No
a t t e m p t was made t o s e g r e g a t e t h e s e , a s i t was n o t c o n s i d e r e d a p a r t o f th e s t u d y .
The am ount o f incom e
r e s u l t i n g fro m e x t r a t a x c o l l e c t i o n s made p e r y e a r i n th e d i s t r i c t s
c o u ld be a s t u d y f o r f u t u r e i n v e s t i g a t i o n .
The im p o r t a n t f a c t i s t h a t t o en d t h e y e a r w i t h a b a la n c e w e ll a b o v e t h e am ount p r o v i d e d i n r e s e r v e s was fo u n d t o be a p r a c t i c e r e a s o n a b l y u n if o r m i n e a c h d i s t r i c t a n d c o u n ty . R e s e rv e f u n d s u s e d t o b a la n c e b u d g e t s .
C o u n ty
s u p e r i n t e n d e n t s o f s c h o o l s w ere a s k e d w h e th e r t h e y b e l i e v e d t h e u n d i s t r i b u t e d o r g e n e r a l r e s e r v e s w ere u s e d by d i s t r i c t s
t o b r i n g b u d g e ts i n t o b a l a n c e .
19
T hat i s ,
w ere t h e l a s t e n t r i e s t o be made i n t h e b u d g e ts one o r b o th o f th e r e s e r v e s .
T h i r t y - s i x o r 75 p e r c e n t o f th e
c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls r e p o r t e d t h a t i t was th e p r a c t ic e
in t h e i r c o u n tie s to u se th e r e s e r v e s f o r
s u c h p u r p o s e , an d tw e lv e o r 25 p e r c e n t r e p l i e d i t was n o t .
I n f r a , A ppendix A, p . 2 6 3 , Item 1 0 .
127 T h is p r o c e d u r e c o u ld e x p l a i n why t h e r e was no c o n s i s t e n t p a t t e r n a s f a r a s p e r c e n t a g e o f o u tg o was c o n c e rn e d * P e r s o n a l i n t e r v i e w s w i t h c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s an d s c h o o l s u p e r i n t e n d e n t s r e v e a l e d t h a t o f t e n th e r e s e r v e s w e re d e l e t e d e n t i r e l y i n o r d e r to b r i n g b u d g e ts in to b a la n c e .
E x t r a f u n d s n o t n e e d e d e ls e w h e r e w ere
p la c e d in th e r e s e r v e . ta x l i m i t s .
T h is t e n d e n c y was th e r e s u l t o f
Many d i s t r i c t s
d e te r m in e d how m uch t h e y
e x p e c te d to g e t fro m a maximum t a x a n d p r o c e e d e d to a l l o c a t e a l l p o s s i b l e in c o m e .
I f th e e x p e n d itu re c l a s s i f i c a t i o n s
c o u ld n o t j u s t i f y m ore f u n d s , t h e b a la n c e was p l a c e d i n e i t h e r o f th e r e s e r v e s .
T h is was fo u n d t o b e a g e n e r a l
p r a c t i c e th ro u g h o u t th e s t a t e .
I f a b u d g e t w ere b u i l t
u p o n t h e n e e d s o f th e d i s t r i c t a n d a n am ount i n c l u d e d i n t h e r e s e r v e s e q u a l t o t h e n e e d f o r t h e purpo*se f o r w h ic h t h e r e s e r v e was i n t e n d e d , t h e b u d g e t w o u ld be a r e a l f in a n c ia l p la n .
The re m o v a l o f th e t a x l i m i t a t i o n w o u ld
g r e a t l y a s s i s t i n H ie r e a l i z a t i o n o f t h i s o b j e c t i v e . R e s e rv e s i n m a jo r c l a s s i f i c a t i o n s . show n t h a t d i s t r i c t s
I t has been
o b ta in e d a la r g e p o r tio n o f t h e i r
e n d in g b a l a n c e s fro m s o u r c e s o t h e r t h a n b u d g e te d r e s e r v e s . When i t i s c o n s i d e r e d t h a t m uch o f t h e u n d i s t r i b u t e d r e s e r v e i s e x p e n d e d d u r in g t h e y e a r a s a r e s u l t o f t r a n s f e r s t o e x p e n d i t u r e c l a s s i f i c a t i o n s , th e am ount o f t h e e n d in g
b a la n c e d e r i v e d fro m o t h e r s o u r c e s a c t u a l l y i s h i g h e r t h a n th e d i f f e r e n c e b e tw e e n t h e t o t a l r e s e r v e s a n d e n d in g b a la n c e s *
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w ere
a s k e d i f t h e r e w as a te n d e n c y f o r d i s t r i c t s
to i n c r e a s e
t h e m a jo r c l a s s i f i c a t i o n s f o r t h e p u r p o s e o f p r o v i d i n g a r e s e r v e i n e a c h g ro u p in g .2^
T w e n ty -s ix i n d i c a t e d t h a t
t h i s w as t h e te n d e n c y , w h ile tw e n ty - o n e s a i d i t was n o t . A q u e s t i o n was a s k e d w h e th e r i t w ould be d e s i r a b l e t o i n c l u d e a c o n tin g e n c y ite m a s a p a r t o f e a c h m a jo r c l a s s i f i c a t i o n f o r th e p u r p o s e o f p r o v i d i n g a r e a s o n a b l e r e s e r v e so t h a t t h e b u d g e te d ite m s w o u ld m ore n e a r l y r e p r e s e n t th e r e a l n e e d . 21
W h ile t h e c o u n ty s u p e r i n t e n d e n t s
o f s c h o o l s w e re a b o u t e v e n l y d i v i d e d i n s a y i n g t h a t r e s e r v e s , th o u g h c o n c e a l e d , w ere a c t u a l l y a p a r t o f e a c h c l a s s i f i c a tio n , th e y re p o rte d th ir ty - o n e to f i f t e e n a g a in s t in c lu d in g su ch an ite m .
R e g a rd le s s o f t h i s
re sp o n se ,
t h e r e w as s u b s t a n t i a l a rg u m e n t i n f a v o r o f s u c h a c o n tin g e n c y r e s e r v e . re a lis tic
in s tru m e n t f o r f i n a n c i a l a d m in is tr a tio n o f th e
d is tric ts .
I t w o u ld t e n d t o re d u c e t h e n um ber o f t r a n s f e r s
20I b i d . , 21
I t w o u ld make t h e b u d g e t a m ore
Ite m 8 .
I b i d . , Item 9 .
129 n e c e s s a r y u n l e s s t h e c l a s s i f i c a t i o n s w e re ^ p ad d ed .* 1
T h e re
was e v i d e n c e t h a t ‘• p a d d in g 1’ o r a d d i n g e x t r a am ounts was b e in g done. s iflg iQ r e s e r v e .
T h e r e was a s e r i o u s q u e s t i o n
w h e t h e r t h e r e s e r v e s y s te m was p e r f o r m i n g t h e f u n c t i o n f o r w h i c h i t was i n t e n d e d .
T h e re was a t e n d e n c y shown
t h r o u g h o u t t h e s t u d y t o k e ep t h e g e n e r a l r e s e r v e ‘‘l o w ” and th e u n d i s t r i b u t e d r e s e r v e
“h i g h ” so a s t o make f u n d s
a v a i l a b l e f o r b o t h e m e rg e n c y n e e d s d u r i n g t h e c u r r e n t y e a r and f o r th e p u rp o se o f m e e tin g o b l i g a t i o n s d u rin g t h e f i r s t m o n th s o f t h e s u b s e q u e n t y e a r .
When a s k e d
w h e t h e r t h e t e n d e n c y was t o b u d g e t r e s e r v e s i n t h i s m a n n e r, t h i r t y c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d 22 t h a t s u c h was t h e c a s e a n d f i f t e e n r e p o r t e d i t was n o t . When a s k e d w h e t h e r t h e y f a v o r e d a s i n g l e r e s e r v e ,
th e
r e p l y was t h i r t y - f o u r t o t h i r t e e n a g a i n s t t h e p r o p o s a l . 23 T h is q u e s t i o n was f o l l o w e d b y t h e i n q u i r y t h a t i f s u c h a s i n g l e f u n d w e re f a v o r e d w h e t h e r i t f o r e x p e n d itu re ,
( a ) d u r i n g t h e c u r r e n t y e a r , o r (b) OA
d u rin g th e su c c e ed in g y e a r o n ly . u
2^ I b i d . ,
Item 7 .
S3I b l d . , I t e m 5 . 24I b i d . ,
s h o u l d be a v a i l a b l e
Item 6 .
T w e n ty -th re e c o u n ty
130 s u p e r i n t e n d e n t s o f s c h o o l s r e p l i e d i n f a v o r o f ( a ) an d e le v e n fa v o re d
(b ).
F i f t e e n ga v e no r e p l y .
T h e re w ere
t h o s e who e x p r e s s e d o p p o s i t i o n t o e l i m i n a t i n g t h e p r e s e n t g e n eral re se rv e as i t fu rn ish e d assu ran ce th a t th e re w o u ld be some f u n d s a v a i l a b l e t o b e g i n t h e new y e a r . L i k e l y t h e a rg u m e n t was s o u n d , due t o t h e l a x m a n n e r o f a d m i n i s t e r i n g t h e d i s t r i c t b u d g e t s i n many d i s t r i c t s .
It
was b e l i e v e d t h a t t h e m eth o d o f b u d g e t m a k in g w as c l o s e l y m eshed w i t h t a x l i m i t a t i o n a n d w as t h e l a r g e s t s i n g l e f a c t o r i n p o o r b u d g e t m ak in g a n d a d m i n i s t r a t i o n . Summary.
The E d u c a t i o n Code p r o v i d e s t h a t a l l
sc h o o l d i s t r i c t fu n d s unexpended a t th e c lo s e o f th e f i s c a l y e a r , l e s s o u t s t a n d i n g o b l i g a t i o n s , s h a l l be c a r r i e d fo rw a rd and e n te r e d i n th e b u d g et f o r th e s u c c e e d i n g y e a r a s p a r t o f t h e incom e o f t h e d i s t r i c t . T h is e n d i n g b a l a n c e i s d e r i v e d f ro m e x t r a t a x c o l l e c t i o n s r e s u l t i n g fro m incom e i n e x c e s s o f t h a t a n t i c i p a t e d , v a r i o u s u n e x p e n d e d a m o u n ts i n t h e u n d i s t r i b u t e d a n d g e n e r a l r e s e r v e s , and unexpended b u d g e te d ite m s . S e v e r a l f a c t o r s a f f e c t t h e s i z e o f th e e n d in g b a la n c e .
Among t h e s e a r e t h e p o l i c y a d o p t e d by t h e
d i s t r i c t c o n c e r n i n g t h e c o n t r a c t p a y m e n t o f t e a c h e r s and t h e g e n e r a l p o l i c i e s i n e f f e c t c o n c e r n i n g p a y m e n ts made f o r c u rre n t e x p e n d itu re s.
131 The p e r c e n t a g e w h ic h t h e e n d i n g b a l a n c e r e p r e s e n t e d o f t h e t o t a l b u d g e t e d o u t g o a n d t h e p e r c e n t a g e w h ic h t h e u n d i s t r i b u t e d , g e n e r a l a n d t o t a l r e s e r v e s w ere o f t h e t o t a l b u d g e t e d o u t g o w ere c a l c u l a t e d f o r e a c h o f t h e o v e r two t h o u s a n d s c h o o l d i s t r i c t s
stu d ied #
The f r e q u e n c y
d i s t r i b u t i o n o f th e p e r c e n ta g e s o f th e e n d in g b a la n c e s and r e s e r v e s w e re c h a r t e d on t a b l e s w h ic h show ed a w ide d istrib u tio n #
F u rth e r stu d y o f th e ta b le s in d ic a te d th a t
no f i x e d p e r c e n t a g e c o n c e r n i n g b a l a n c e s o r r e s e r v e s c h a r a c t e r i z e d th e sc h o o l d i s t r i c t b u d g e ts in C a l i f o r n i a . The b e g i n n i n g b a l a n c e s f o r t h e y e a r 1 9 4 9 -5 0 g e n e r a l l y exceeded th o se f o r th e p re c e d in g y e a r .
I t was f o u n d t h a t
34#95 p e r c e n t o f t h e 2 ,1 1 1 s c h o o l d i s t r i c t s b e g a n t h e y e a r w ith a lo w e r b e g in n in g b a la n c e th a n th e y d id f o r th e p re c e d in g y e a r.
O nly s e v e n c o u n t i e s h a d i n e x c e s s o f 50
p e r c e n t o f t h e i r d i s t r i c t s w ith l e s s b a la n c e s f o r th e s e c o n d y e a r , i n d i c a t i n g a d e f i n i t e t r e n d to w a r d l a r g e r b e g in n in g b a la n c e s#
T h ere w e re 4 . 5 8 t i m e s a s many c o u n t i e s
w ith an i n c r e a s e i n e le m e n ta r y b e g in n in g b a la n c e s as co m p a red t o 5 . 7 7 f o r t h e h i g h s c h o o l s c o v e r i n g t h e tw o year p e rio d . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d t h e p e r c e n t a g e w h ic h t h e y b e l i e v e d t o b e a d e s i r a b l e p o l i c y t o f o llo w f o r b u d g e tin g u n d i s t r i b u t e d and g e n e r a l r e s e r v e s . T hey a l s o s t a t e d w h a t t h e p r a c t i c e w a s .
C ity su p e rin te n d e n ts
132 o f s c h o o l s i n d i c a t e d t h e r e was no g e n e r a l p a t t e r n o r p o l i c y e i t h e r a d v o c a te d o r fo llo w e d #
The r a t i o s w ere
com puted b e tw e e n t h e a c t u a l r e s e r v e s b u d g e t e d a n d t h e e n d in g b a la n c e c a r r i e d fo rw a rd as th e b e g in n in g b a la n c e f o r th e su c ce ed in g y e a r .
I t was f o u n d t h a t o f t h e 1 , 9 7 8
d istric ts
s t u d i e d , o n l y 419* d i s t r i c t s b u d g e t e d t o t a l
reserv es,
i n c l u d i n g u n d i s t r i b u t e d and g e n e r a l r e s e r v e s ,
w h ic h w e re more t h a n t h e e n d i n g b a l a n c e s f o r t h e p r e c e d i n g y ear.
T h is r e p r e s e n t e d 2 1 .1 9 p e r c e n t o f t h e t o t a l num ber
of d is tr ic ts .
I t was f o u n d t h a t t h e e l e m e n t a r y and h i g h
sch o ol d i s t r i c t s had a g r e a t e r p e rc en ta g e of d i s t r i c t s h a v i n g b a l a n c e s l e s s t h a n b u d g e t e d r e s e r v e s a s co m p ared to th e u n i f ie d and ju n io r c o lle g e d i s t r i c t s . I t was f o u n d t h a t t h e e n t r y o f r e s e r v e f u n d s i n t h e b u d g e t s o f t e n was d e t e r m i n e d b y t h e n e c e s s i t y o f u s in g a f i g u r e to b a la n c e th e b u d g e t r a t h e r t h a n d e t e r m i n i n g t h e a c t u a l am ount n e e d e d f o r a r e s e r v e . A p p ro x im ately o n e - h a lf o f th e c o u n ty s u p e r in te n d e n ts o f s c h o o l s r e p o r t e d t h a t much o f t h e e n d i n g b a l a n c e , t h o u g h c o n c e a l e d , was a c t u a l l y a p a r t o f e a c h b u d g e t c la ss ific a tio n .
Y e t, th e y r e p o r te d t h i r t y - o n e to f i f t e e n
a g a i n s t in c lu d in g a c o n tin g e n c y ite m i n e ac h m ajo r c l a s s i f i c a t i o n w h ic h w ould b e i d e n t i f i e d c l e a r l y i n t h e b u d g e t.
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p l i e d t h i r t y -
f o u r to t h i r t e e n a g a in s t th e p ro p o sa l o f a s in g le re s e rv e
t o r e p l a c e t h e now u n d i s t r i b u t e d a n d g e n e r a l r e s e r v e s . One o f t h e r e a s o n s a d v o c a t e d a g a i n s t e l i m i n a t i n g t h e p r e s e n t g e n e r a l r e s e r v e was t h a t i t f u r n i s h e d a s s u r a n c e t h e r e w ould be some f u n d s a v a i l a b l e t o b e g i n t h e n e x t s u c c e e d i n g y e a r , r e g a r d l e s s o f how t h e c u r r e n t y e a r 1s b u d g e t was e x p e n d e d o r a d m i n i s t e r e d .
CHAPTER VI ADMINISTRATION OP FUNDS RAISED IN EXCESS OP STATUTORY LIMITATIONS . F o r g e n e r a l s c h o o l p u r p o s e s t h e E d u c a t i o n Code o f C a lif o r n ia p ro v id e s a ta x r a te l i m i t a t i o n , th e r a t e s b e in g f i x e d by th e C a l i f o r n i a S t a t e L e g i s l a t u r e .
The
t e r m Hg e n e r a l s c h o o l p u r p o s e s ” d o e s n o t i n c l u d e f u n d s r a i s e d f o r th e paym ent o f re d e m p tio n o f sc h o o l d i s t r i c t b o n d s o r i n t e r e s t p a i d on s u c h b o n d s .
The la w s p e c i f i c a l l y
r e q u i r e s t h a t t h e t a x r a t e f o r t h i s p u r p o s e s h a l l be p r o v i d e d a s a s e p a r a t e f u n d a n d i s n o t t o be c o n s t r u e d as a p a r t o f g e n eral school p u rp o se s. E x ce ed in g ta x l i m i t s .
The E d u c a t i o n Code makes
f i v e p r o v is io n s f o r e x c e e d in g th e s t a t u t o r y t a x r a t e lim ita tio n .
One p r o v i d e s f o r e x c e e d i n g t h e t a x r a t e f o r
a l l g e n e r a l s c h o o l p u r p o s e s by a v o te o f th e p e o p le . A l l f u n d s r a i s e d u n d e r t h i s t a x may b e u s e d f o r a l l g e n e ra l sch o o l p u rp o ses s p e c if ie d f o r th e use o f th e g e n e ra l fu n d , p ro v id e d t h a t th e e l e c t i o n s p e c i f i e s such purp o ses.
The e l e c t i o n may l i m i t t h e p u r p o s e s t o one
o r m ore o f t h e s p e c i f i c p u r p o s e s f o r w h ic h t h e g e n e r a l f u n d may be u s e d .
135 T h e re a r e f o u r p r o v i s i o n s f o r r a i s i n g f u n d s i n e x c e s s o f t h e maximum t a x r a t e w h ic h do n o t r e q u i r e a v o te o f th e p e o p le . needy p u p i ls .
One i s f o r p r o v i d i n g m e a ls f o r
Two o t h e r s a r e f o r p r o v i d i n g f u n d s f o r
n o n - c e r t i f i c a t e d e m ployees* r e t i r e m e n t a n d l o c a l r e t i r e m e n t s y s te m s f o r a l l e m p l o y e e s .
The f o u r t h was
e n a c t e d r e c e n t l y by t h e C a l i f o r n i a S t a t e l e g i s l a t u r e and p ro v id e s t h a t th e c o s t of o p e ra tin g c h ild care c e n te rs may be p r o v i d e d b y a t a x l e v y i n e x c e s s o f t h e r e g u l a r ta x r a t e l i m i t a t i o n w ith o u t v o te o f th e p e o p le . I.
FUNDS RAISED BY VOTED TAX
hegal a u th o rity .
The a u t h o r i t y f o r e x c e e d i n g t h e
maximum t a x r a t e a s f i x e d b y t h e E d u c a t i o n Code i s f o u n d i n S e c t i o n 6358 w h ic h r e a d s i n p a r t a s f o l l o w s : 6 3 5 8 . Any maximum r a t e o f t a x f o r a n y d i s t r i c t may b e i n c r e a s e d b y a m a j o r i t y v o t e o f t h e q u a l i f i e d e l e c t o r s o f t h e s c h o o l d i s t r i c t a t a n e l e c t i o n w h ic h may be c a l l e d by t h e g o v e r n i n g b o a r d o f t h e s c h o o l d i s t r i c t o f i t s own m o ti o n a n d s h a l l b e c a l l e d w h e n e v e r a p e t i t i o n r e q u e s t i n g t h a t a n e l e c t i o n be c a l l e d a n d s i g n e d by 10 p e r c e n t o f t h e q u a l i f i e d e l e c t o r s o f th e d i s t r i c t i s p r e s e n te d to th e g o v e r n i n g b o a r d . The e l e c t i o n s h a l l be c a l l e d , h e l d , a n d c o n d u c t e d i n a s n e a r l y t h e same m a n n e r a s i s p r a c t i c a b l e as a r e e l e c t i o n s f o r g o v e rn in g b o a rd s , e x c e p t t h a t n o t i c e s o f t h e e l e c t i o n n e e d n o t be p o s t e d o r p u b l i s h e d m ore t h a n t h i r t y d a y s b e f o r e th e e l e c t i o n . The b a l l o t u s e d i n t h e e l e c t i o n s h a l l c o n t a i n t h e w o rd s l!f o r t h e p r o p o s e d i n c r e a s e i n t h e maximum t a x r a t e s fro m _________ t o _________ , t o p r o v i d e money f o r t h e p u r p o s e o f _______ ,s u c h r a t e
136 t o be i n e f f e c t i n t h e _________ s c h o o l d i s t r i c t f o r t h e y e a r ( o r y e a r s ) 1 9___ t o 19____, - - y e s M • • Use o f v o t e d t a x .
A t o t a l o f 2 ,1 1 1 s c h o o l
d i s t r i c t b u d g e t s w e re e x a m in e d a n d f o r t h e y e a r 1 9 4 9 - 5 0 , 341 s t a t e d t h a t t h e i r d i s t r i c t s , b y a v o t e o f t h e p e o p l e , h a v e e x c e e d e d t h e maximum t a x r a t e .
T h is s t u d y was n o t
c o n c e r n e d w i t h t h e p u r p o s e f o r w h ic h f u n d s w ere v o t e d , b u t w i t h t h e m a n n e r i n w h ic h t h e a d m i n i s t r a t i o n o f t h e f u n d s was c a r r i e d o u t a n d w h e t h e r t h e e x p e n d i t u r e o f f u n d s was l i m i t e d t o t h e p u r p o s e f o r w h ic h t h e y w ere ra ise d .
In o r d e r to s e c u re in fo rm a tio n on t h i s s u b je c t
a n i n q u i r y was i n c l u d e d i n t h e c o u n t y q u e s t i o n n a i r e a s fo llo w s:
!,When d i s t r i c t s b y a v o t e o f t h e p e o p l e h a v e
r a is e d th e ta x l i m i t s f o r s p e c i f i c purposes i s th e re a s y s te m a tic check to l i m i t th e v o te d ta x le v y e x p e n d itu re s t o o n l y t h e p u r p o s e o r p u r p o s e s s p e c i f i e d when t h e 'tax* was v o t e d ? 11’*' To t h i s q u e s t i o n f o r t y - t w o c o u n t y s u p e r i n t e n d e n t s o f sc h o o ls r e p l i e d .
T w e n ty -e ig h t answ ered i n th e
a f f i r m a t i v e and f o u r t e e n answ ered i n th e n e g a t i v e . l e f t th e q u e s tio n unansw ered.
S ix
One o f t h e c o u n t i e s
w h ic h c o n t a i n e d d i s t r i c t s u s i n g t h e e x t r a v o t e d t a x gave no a n s w e r t o t h e q u e s t i o n . ----------------
I n f r a , A p p e n d ix A, p . 2 6 4 , I te m 1 6 .
137 Of t h e t w e n t y - e i g h t c o u n t i e s a n s w e r i n g i n t h e a f f i r m a t i v e , t w e n t y - o n e h a d d i s t r i c t s w h ic h h a d v o t e d e x t r a t a x e s f o r t h e y e a r 1 9 4 9 - 5 0 , a n d s e v e n h a d no s u c h tax* Of t h e f o u r t e e n c o u n t i e s r e p l y i n g nn o n t o t h e q u e s tio n , t h i r t e e n had d i s t r i c t s w ith a v o ted ta x r a t e . Of t h e f i f t y - e i g h t c o u n t i e s i n t h e s t a t e , f o r t y - o n e c o u n t i e s h a d d i s t r i c t s w h ic h r e p o r t e d on t h e i r b u d g e t s t h a t t h e y had v o te d to ex ceed th e s t a t u t o r y ta x l i m i t a t i o n p ro v id ed i n t h e E d u c a t i o n C ode. I t i s i n t e r e s t i n g t o n o t e t h a t o f t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t i n g on t h i s q u e s t i o n , s e v e n e x p r e s s e d a n o p i n i o n o r made t h e s t a t e m e n t t h a t t h e r e was a s y s t e m a t i c c h e c k t o l i m i t t h e v o t e d t a x l e v y e x p e n d itu re s to o n ly th e purp o se o r p u rp o se s s p e c i f i e d when t h e t a x r a t e was l e v i e d a n d t h a t t h e r e w e re no d i s t r i c t s w i t h i n t h e s e s e v e n c o u n t i e s w h ic h h a d a v o t e d e x tra ta x . Of t h e f o r t y - t w o c o u n t i e s w h ic h g a v e a !,y e s ,f o r f,n o ,f a n s w e r t o t h e q u e s t i o n r e g a r d i n g w h e t h e r a s y s t e m a t i c c h e c k was made on e x p e n d i t u r e s f o r a n e x t r a t a x , t w e n t y e i g h t , o r 6 6 .6 6 p e r c e n t r e p o r t e d rfy e s , ff a n d t h e s e c o u n t i e s r e p r e s e n t e d 122 d i s t r i c t s w h ic h h a d e x t r a t a x r a t e s , o r 3 6 .8 p e r c e n t o f t h e t o t a l d i s t r i c t s c o n t a i n e d w i t h i n th e fo rty -tw o c o u n tie s .
138 The f o u r t e e n c o u n t i e s w h ic h r e p o r t e d f,n o !t t o t h e q u e s t i o n r e p r e s e n t e d 33*33 p e r c e n t o f t h e c o u n t i e s r e p l y i n g , a n d c o n t a i n e d 125 d i s t r i c t s w h ic h h a d v o t e d t a x r a t e i n c r e a s e s , o r 6 3 .2 p e r c e n t o f th e t o t a l d i s t r i c t s w ith in th e f o rty -tw o c o u n tie s * W hile t h e e v i d e n c e i s f a r f ro m c o n c l u s i v e , t h e in d ic a tio n s are th a t
t h e f o u r t e e n c o u n t i e s w h ic h r e p o r t e d
t h e y do n o t m a i n t a i n
a s y s te m a tic check to see t h a t
e x p e n d i t u r e s c o n fo rm t o t h e p u r p o s e f o r w h ic h t h e f u n d s w e re v o t e d do r e p r e s e n t a s m a l l e r p e r c e n t a g e o f t h e c o u n tie s and a h ig h e r p e rc e n ta g e of th e d i s t r i c t s a ffe c te d *
The e v i d e n c e seem ed t o
t h e t e n d e n c y was f o r
p o in t to th e f a c t t h a t
c o u n tie s n o t to p ro v id e a s y s te m a tic
p ro c e d u re f o r c h e c k in g th e e x p e n d itu r e o f v o te d fu n d s as c o m p a red t o t h o s e who s t a t e d t h e y d i d m a i n t a i n s u c h a sy ste m .
F u rth e rm o re , th e f a c t t h a t sev en o u t o f a t o t a l
o f t w e n t y - e i g h t who r e p o r t e d T,y e s M t o t h e q u e s t i o n h a d no d i s t r i c t s w i t h i n t h e i r c o u n t i e s w i t h a v o t e d t a x w o u ld t e n d t o r a i s e some q u e s t i o n a s t o w h e t h e r t h e fty e s H a n s w e r s w ere a s v a l i d a s t h e f,n o H a n s w e r s , a s t h e nn o t1 a n s w e r s r e p r e s e n t e d o n l y one c o u n t y w h ic h d i d n o t h a v e d i s t r i c t s m a in ta in in g a v o te d ta x .
139 II.
ADMINISTRATION OP FUNDS
EXEMPT PROM TAX RATE LIMITATION M eals f o r n e e d y c h i l d r e n .
Ponds f o r t h e p u r p o s e
o f p r o v i d i n g m e a ls f o r n e e d y c h i l d r e n may be p r o v i d e d b y t h e s c h o o l d i s t r i c t f ro m t h e f u n d s r a i s e d f o r g e n e r a l sc h o o l p u rp o s e s and a s a p a r t o f th e funds r a i s e d by th e n o rm a l s t a t u t o r y t a x r a t e .
S e c t i o n 16420 o f t h e E d u c a t i o n
Code m akes p r o v i s i o n f o r t h e g o v e r n i n g b o a r d o f t h e d i s t r i c t to p ro v id e fu n d s f o r t h i s s p e c i f i c pu rp o se in ex cess o f th e s t a t u t o r y ta x l i m i t a t i o n w ith o u t v o te o f th e p e o p le .
The a u t h o r i t y f o r t h i s r e a d s :
16420. F or th e p u rp o se o f p ro v id in g fu n d s w ith w h ic h t o o b t a i n b r e a k f a s t s o r l u n c h e s , o r b o t h , f o r n e ed y p u p i l s , th e g o v e rn in g b o a rd o f any sc h o o l d i s t r i c t may l e v y a n d c o l l e c t a d i s t r i c t t a x o v e r a n d ab o v e t h e maximum e l s e w h e r e s p e c i f i e d i n t h i s code. E d u c a t i o n Code S e c t i o n 1 6 4 2 1 , w h ic h s p e c i f i c a l l y p r o v i d e s t h a t m e a ls may be p u r c h a s e d fro m r e g u l a r d i s t r i c t fu n d s, read s as fo llo w s: 1 6 4 2 1 . D i s t r i c t f u n d s may a l s o be u s e d f o r th e p u rch ase o f b r e a k f a s ts o r lu n c h e s , o r b o th , f o r needy p u p i ls . Use o f e x t r a f u n d s w i t h o u t v o t e .
W hile t h e
E d u c a t i o n Code s e c t i o n s a r e q u i t e s p e c i f i c i n s t a t i n g t h e p u r p o s e f o r w h ic h t h e t a x r a t e may be i n c r e a s e d , t h e r e i s n o t h i n g i n t h e la w w h ic h e i t h e r by i m p l i c a t i o n
140 o r d i r e c t i o n s t a t e s how a n y e x c e s s m o n ie s a r e t o be h a n d l e d w h ic h may be r a i s e d b y a t a x r a t e p r o v i d e d f o r t h i s p u r p o s e a n d n o t a c t u a l l y e x p en d e d *
In th e case o f
th e re d e m p tio n and i n t e r e s t fund f o r sc h o o l d i s t r i c t b o n d s , a n y e x c e s s c o l l e c t e d an d n o t s p e n t f o r t h e p u r p o s e f o r w h ic h i t i s r a i s e d i s h e l d a s a b a l a n c e i n t h a t p a r t i c u l a r f u n d t o be u s e d d u r i n g t h e s u b s e q u e n t y e a r o n l y f o r t h e p u r p o s e f o r w h ic h i t was r a i s e d .
No
s u c h p r o v i s i o n i s made f o r t h e a d m i n i s t r a t i o n o f f u n d s r a i s e d f o r t h e p u r p o s e o f s u p p l y i n g m e a ls f o r n e e d y c h ild re n . R e tire m e n t f u n d s .
T h e re a r e two p r o v i s i o n s i n t h e
s t a t u t e s w h ic h a u t h o r i z e t h e g o v e r n i n g b o a r d o f a s c h o o l d i s t r i c t to le v y a ta x in ex cess o f th e s t a t u t o r y l i m i t a t i o n s w ith o u t v o te o f th e p e o p le f o r th e p u rpose o f f u r n i s h i n g and s u p p ly in g fu n d s f o r th e paym ent o f d i s t r i c t c o n t r i b u t i o n s to th e e m p lo y ee s1 r e t i r e m e n t sy s te m s• The tw o r e t i r e m e n t s y s te m s r e f e r t o n o n - c e r t i f i c a t e d and c e r t i f i c a t e d em p lo y ee s.
One i s
th e C a l i f o r n i a S ta te
E m p lo y e e s 1 R e t i r e m e n t S y s te m a n d e a c h s c h o o l d i s t r i c t i n C a l i f o r n i a , e x c e p t t h o s e w hich m a i n t a i n a l o c a l r e t i r e m e n t s y s te m f o r n o n - c e r t i f i c a t e d e m p lo y e e s o n l y , m u st be m embers b y c o n t r a c t .
The l o c a l e m p l o y e e s ’ r e t i r e m e n t
141 s y s t e m , w h ic h i n c l u d e s c e r t i f i c a t e d a n d n o n - c e r t i f i c a t e d e m p l o y e e s , i s p r o v i d e d by l a w a n d d i f f e r s i n no p a r t i c u l a r as f a r as t h i s s tu d y i s c o n c e rn e d , e x c e p t th e lan g u a g e r e f e r r e d t o r e g a r d in g th e tax *
The E d u c a t i o n Code g i v e s
s p e c i f i c a u t h o r i t y f o r p r o v i d i n g f u n d s t o m ee t t h e d istric ts
c o n t r i b u t i o n to a d i s t r i c t r e t i r e m e n t s y s te m
a n d t h e a u t h o r i t y i s f o u n d i n S e c t i o n 14725 o f t h e E d u c a t i o n Code w h ic h r e a d s : 14725, F o r t h e p u r p o s e o f p r o v i d i n g f u n d s w h ic h may be n e c e s s a r y t o make t h e p a y m e n ts r e q u i r e d b y a n y d i s t r i c t r e t i r e m e n t p l a n , d i s t r i c t ta x e s s h a l l be l e v i e d an d c o l l e c t e d a n n u a l l y b y t h e r e s p e c t i v e d i s t r i c t s - a t t h e same tim e a n d i n t h e same m a n n e r a s o th e r d i s t r i c t ta x e s a re le v i e d and c o lle c te d . The t a x s h a l l be i n a d d i t i o n t o a n y o t h e r d i s t r i c t t a x now o r h e r e a f t e r a u t h o r i z e d b y l a w , a n d s h a l l n o t be c o n s i d e r e d i n f i x i n g maximum r a t e s o f t a x f o r s c h o o l d i s t r i c t p u rp o ses. I n t h e c a s e o f t h e C a l i f o r n i a S t a t e E m p lo y e e s 1 R e t i r e m e n t S y s te m , t h e l a n g u a g e i s somewhat d i f f e r e n t r e g a r d in g th e ty p e o f t a x . t h e s p e c i a l t a x , w h ic h i t i s
The a u t h o r i t y f o r p r o v i d i n g c a lle d ,
i s found i n
S e c t i o n 20532 o f t h e G overnm ent Code o f t h e S t a t e o f C a lifo rn ia ,
T h is s e c t i o n r e a d s :
20532. The g o v e r n i n g b o d y o f a c o n t r a c t i n g a g e n c y h a v in g t a x i n g pow er, o r o f a s c h o o l d i s t r i c t in c lu d e d u n d e r C h a p te r 4 .5 o f t h i s p a r t , s h a l l , i f n e c e s s a r y , le v y and c o l l e c t a n n u a lly a s p e c i a l t a x upon th e a s s e s s a b le p ro p e rty w ith in th e agency o r d i s t r i c t in t h e nu m b er o f c e n t s p e r one h u n d r e d d o l l a r s ($100 ) o f a s s e s s a b l e p r o p e r t y a s w i l l be s u f f i c i e n t t o r a i s e t h e am ount e s t i m a t e d b y t h e g o v e r n i n g body t o be r e q u i r e d to p r o v id e s u f f i c i e n t re v e n u e to m eet th e o b l i g a t i o n s
142 of th e agency o r d i s t r i c t f o r c o n tr ib u tio n s to th is s y s te m u n d e r a n d a f t e r t e r m i n a t i o n o f t h e c o n t r a c t . T h is r a t e o f t a x a t i o n may be i n a d d i t i o n t o t h e a n n u a l r a t e o f t a x a t i o n a l l o w e d b y la w t o be l e v i e d i n t h a t a g e n c y o r d i s t r i c t . Any member o f , o r r e c i p i e n t o f a b e n e f i t f r o m , t h i s s y s t e m by r e a s o n o f s u c h a c o n t r a c t may m a i n t a i n a n y a p p r o p r i a t e a c t i o n o r p ro c e e d in g to r e q u i r e p erfo rm an ce o f th e d u ty h e r e i n a n d by S e c t i o n 20564 im p o se d on a g o v e r n i n g b o d y . B u d g e ti n g e x t r a t a x f u n d s .
The l a n g u a g e u s e d i n
c o n n e c t i o n w i t h s u p p l y i n g f u n d s f o r m e a ls f o r n e e d y c h i l d r e n a n d t h e d i s t r i c t r e t i r e m e n t s y s te m r e f e r s t o d i s t r i c t ta x e s and i t
i s l o g i c a l t o assum e t h a t in a s m u c h
as th e d i s t r i c t ta x e s have been r a i s e d f o r t h i s pu rpose t h e e x p e n d i t u r e w ou ld become a p a r t o f t h e r e g u l a r s c h o o l d i s t r i c t b u d g e t.
In th e case o f th e C a lif o r n ia S ta te
E m ployees* R e t i r e m e n t s y s t e m , t h e l a n g u a g e r e f e r s t o a s p e c i a l ta x and i t c o u ld be c o n s tr u e d t h a t t h i s i s n o t a d i s t r i c t ta x b u t a s e p a r a t e t a x , and as su ch th e r e sh o u ld be a s e p a r a t e i t e m i n t h e b u d g e t f o r i t s E n d in g b a l a n c e s f o r e x t r a f u n d s .
e x p e n d itu re . T h e r e i s no
a u t h o r i t y i n t h e la w f o r a d i s t r i c t t o s e t up a s p e c i a l f u n d n o r i s t h e r e a r e q u i r e m e n t t h a t t h e r e s h a l l be a s e p a r a te ite m in th e sc h o o l d i s t r i c t b u d g e t.
In th e
c a s e o f m e a ls f o r n e e d y c h i l d r e n , t h e e x p e n d i t u r e l i s t e d u n d e r “S .
p
Community S e r v i c e s 11
an d t h e c o n t r i b u t i o n s t o
^ I n f r a , Appendix C, p . 281
143 t h e d i s t r i c t r e t i r e m e n t s y s te m a r e a p a r t o f tf6 . C h a r g e s . 1*^
F ix e d
T hese e x p e n d i t u r e s a r e a p a r t o f t h e t o t a l s
o f t h e s e s u b d i v i s i o n s o f t h e s c h o o l d i s t r i c t b u d g e t and no p r o v i s i o n i s made f o r a s e p a r a t e a c c o u n t i n g .
D istric ts
a r e n o t r e q u i r e d t o a c c o u n t f o r t h e a m o u n ts r a i s e d , n e i t h e r a r e th e y r e q u ir e d to l i s t any unexpended b a la n c e a t t h e e n d o f t h e y e a r w h ic h may be c r e d i t e d t o t h e su b seq uen t y e a r f s need f o r th e p u rp o ses s p e c ifie d * I t is e n tir e ly p o ss ib le f o r d i s t r i c t s
to s p e c i f y
a n y am ount f o r m e a ls o r r e t i r e m e n t , h a v e t h e t a x r a t e s e t , a n d t h e n e x p e n d n one o r o n l y a p a r t o f t h e f u n d s f o r t h e p u r p o s e f o r w h ic h t h e y w ere r a i s e d .
T h is w ould
t e n d t o be m ore t r u e i n t h e c a s e o f m e a ls due t o t h e f a c t t h a t paym ent o f r e t i r e m e n t i s m a n d a to ry .
A d i s t r i c t may
n o t be c e r t a i n o f t h e am ount o f money w h ic h w i l l be re q u ir e d to
s u p p l y m e a ls f o r n e e d y c h i l d r e n , a n d i t i s
c o n c e i v a b l e t h a t t h e d i s t r i c t m ig h t l e v y a t a x w h ic h w o uld p r o v i d e a c o n s i d e r a b l e am ount o f money a n d n o t f i n d i t n e c e s s a r y t o expend i t f o r t h a t p u r p o s e . S i n c e t h e r e i s no c o n t r o l a s f a r a s t h e la w o r b u d g e t p r o c e d u r e i s c o n c e r n e d , e v e n w i t h good i n t e n t i o n s a d i s t r i c t m ig h t f i n d t h a t i t h a d u s e d t h e m oney f o r some o th e r p u rp ose.
Any f u n d s r a i s e d f o r s u c h p u r p o s e s n o t
5 I b l d . , p . 283
144 expended r e v e r t i n t o th e e n d in g b a la n c e o f th e g e n e r a l fu n d , and a re u sed f o r g e n e ra l p u rp o se s f o r th e fo llo w in g y ear.
I n " t h i s m an n e r t h e a p p a r e n t i n t e n t o f t h e la w w o u ld
be v i o l a t e d in a s m u c h a s t h e t a x r a t e w o u ld be i n c r e a s e d an d t h e f u n d s u s e d f o r g e n e r a l s c h o o l p u r p o s e s i n e x c e s s o f t h a t p ro v id e d by s t a t u t o r y ta x l i m i t a t i o n s .
T h u s, t h e
s e c t i o n o f th e law p r o v id in g f o r a v o te o f th e p e o p le to in c re a s e th e ta x r a te l i m i t a t i o n f o r g e n e ra l school p u r p o s e s w o u ld b e v o i d . A c co u n tin g f o r e x t r a ta x f u n d s . q u e stio n s re g a rd in g t h i s s u b je c t,
I n r e p l y to two
t h e r e was a d i v e r g e n c e
o f p o l i c y among c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s r e g a r d i n g s e t t i n g up a c c o u n t i n g p r o c e d u r e s .
In answ er
t o t h e q u e s t i o n o f w h e t h e r p r o c e d u r e s h a v e b e e n s e t up f o r k e e p i n g s u c h f u n d s s e p a r a t e f ro m o t h e r a c c o u n t s , e i g h t e e n s t a t e d t h a t s u c h p r o c e d u r e s w e re p r o v i d e d a n d f i f t e e n s t a t e d t h a t no p r o c e d u r e s w ere p r o v i d e d . ^ w ere s i x t e e n who gav e no r e p l y .
T h ere
Of t h e e i g h t e e n who
answ ered i n th e a f f i r m a t i v e , f o u r t e e n had d i s t r i c t s i n t h e i r c o u n t i e s w h i c h l e v i e d e x t r a t a x e s f o r m e a ls o r re tire m e n t.
Of t h e f i f t e e n who r e p l i e d i n t h e n e g a t i v e ,
t h i r t e e n h a d d i s t r i c t s w h ic h p r o v i d e d f o r e x t r a t a x e s .
^ I n f r a , Appendix A, p . 2 6 3 , Item 1 2 .
145 I n r e p l y t o t h e q u e s t i o n o f w h e t h e r i t was f o u n d t o be d i f f i c u l t t o i d e n t i f y e x p e n d i t u r e s f o r t h e s e p u r p o s e s , tw e n ty c o u n ty s u p e r in te n d e n ts o f sc h o o ls r e p o r t e d i n th e a f f i r m a t i v e , e l e v e n i n t h e n e g a t i v e a n d e i g h t e e n g a v e no answ er.
T h e re w e re s i x t e e n c o u n t i e s w h i c h h a d d i s t r i c t s
p r o v i d i n g m e a ls o r r e t i r e m e n t w h ic h r e p o r t e d t h e y e x p e r ie n c e d d i f f i c u l t y i n i d e n t i f y i n g e x p e n d itu r e s and t e n c o u n t i e s w h ic h l e v i e d t a x e s f o r t h e s e p u r p o s e s e x p e r i e n c e d no d i f f i c u l t y .
I t i s n o te d t h a t seven c o u n tie s
w h ic h d i d n o t h a v e d i s t r i c t s l e v y i n g e x t r a t a x e s s a i d t h e y e x p e rie n c e d d i f f i c u l t y in id e n tif y in g such e x p e n d itu re s a n d s e v e n c o u n t i e s w h ic h h a d d i s t r i c t s w h ic h p r o v i d e d e x t r a t a x f u n d s r e p o r t e d no d i f f i c u l t y . W hile t h e c o u n t i e s w ere a p p r o x i m a t e l y d i v i d e d c o n c e r n i n g t h e q u e s t i o n o f w h e t h e r t h e y s e t up p r o c e d u r e s f o r a c c o u n t i n g f o r e x t r a t a x e s n o t v o t e d by t h e p e o p l e , b y a l a r g e m a j o r i t y t h e y i n d i c a t e d t h e y w ere e x p e r i e n c i n g d i f f i c u l t y due t o t h e f a c t t h a t t h e p r e s e n t b u d g e t f o rm m akes no s p e c i f i c p r o v i s i o n f o r sh o w in g t h e p r o p o s e d e x p e n d itu re s a s a s e p a r a te ite m .
T h i s w ould i n d i c a t e
t h a t t h e la w i s i n a d e q u a t e a n d t h a t t h e b u d g e t f o rm d o e s n o t p r o v i d e p r o c e d u r e s w h e re b y p r o p e r a c c o u n t i n g may b e u n d e rta k en .
T h e r e i s r e a s o n t o b e l i e v e in a s m u c h a s t h e
5 I b i d . , Item 1 3 .
146 la w d o e s p r o v i d e t h a t t a x e s a r e l e v i e d f o r a s p e c i f i c p u rp o se , t h a t th e a u t h o r i t y i s p re s e n t f o r th e budget to p ro p e rly id e n tif y th e se e x p e n d itu re s.
I t i s e v id e n t th a t
p r o c e d u r e s s h o u l d be s e t up t o p r o v i d e f o r t h e p r o p e r a d m in is tra tio n o f th e se fu n d s. C h ild c a re c e n t e r f u n d s .
The la w s p e c i f i c a l l y
p r o v i d e s f o r a ” c h i l d c a r e c e n t e r f u n d ” w h ic h r e q u i r e s a s e p a r a t e b u d g et and a c c o u n tin g .^
The p r e s e n t b u d g e t
f o rm m akes s u c h p r o v i s i o n , a l t h o u g h i t was p r e p a r e d t o m e e t t h e l a w p r o v i d i n g t h a t c h i l d c a r e c e n t e r s s h o u l d be f i n a n c e d e x c l u s i v e l y fro m p a r e n t s 1 f e e s a n d s t a t e f u n d s • ' The p r o v i s i o n f o r d i s t r i c t s u p p o r t becom es e f f e c t i v e on J u ly 1 , 1950. Summary.
The E d u c a t i o n Code p r o v i d e s f o r e x t r a
t a x e s t o be l e v i e d t o p r o v i d e f u n d s f o r m e a ls f o r n e e d y c h ild r e n and f o r n o n - c e r t i f i c a t e d and c e r t i f i c a t e d e m p lo y ee s1 r e t i r e m e n t , w ith o u t p r o p e r p ro c e d u re s p ro v id e d i n e i t h e r t h e E d u c a t i o n Code o r t h e d i s t r i c t b u d g e t f o r m . I t i s p o s s ib le f o r th e d i s t r i c t s
t o r a i s e money f o r e x t r a
ta x e s w ith o u t a v o te o f th e p e o p le and c o n v e rt th e fu n d s
^ E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n s 1 9 6 0 1 - 1 9 6 1 9 . 7 I n f r a , A p p e n d ix C, p . 2 8 7 .
147 to o th e r u se s.
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s
r e p o r te d t h a t o n ly a b o u t h a l f o f th e d i s t r i c t s
s e t up
a c c o u n t i n g p r o c e d u r e s a n d t h a t two o u t o f t h r e e e x p e r i e n c e d d i f f i c u l t y i n i d e n t i f y i n g t h e s e f u n d s due t o t h e f a c t t h a t t h e b u d g e t f o r m m akes no p r o v i s i o n f o r e n t e r i n g them as se p a ra te ite m s. c o n tro l.
T here i s e v id e n t n eed f o r p r o p e r
T h i s may be a c c o m p l i s h e d b y r e v i s i o n s o r
a d d i t i o n s to th e d i s t r i c t b u d g e t form p r e s c r i b e d by th e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n .
CHAPTER V II BUDGET ADMINISTRATION BY THE COUNTY SUPERINTENDENT The p r e p a r a t i o n , l e g a l p r o c e s s i n g a n d a d v i s o r y s e r v i c e s g i v e n t o s c h o o l d i s t r i c t s by c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s a r e f u n c t i o n s e i t h e r p r o v i d e d ' by la w o r a ssum ed by th e c o u n ty s u p e r i n t e n d e n t ’ s o f f i c e i n eac h o f th e f i f t y e ig h t c o u n tie s o f th e s t a t e .
Many o f t h e f u n c t i o n s
p e r f o r m e d a r e n o t s p e c i f i c a l l y p r o v i d e d b y la v /, a l t h o u g h u n d e r t h e l a w , w h ic h s t a t e s t h a t t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s ns h a l l s u p e r i n t e n d i n g t h e s c h o o l s o f h i s c o u n t y , ’1-*- i t may be c o n s t r u e d t h a t he h a s am ple l e g a l a u t h o r i t y to p e rfo rm a d m in is tr a tiv e f u n c tio n s n o t s p e c i f i c a l l y p ro v id e d by la w .
T h is c h a p t e r i n c l u d e s a
d i s c u s s i o n o f t h e many a c t i v i t i e s p e r f o r m e d b y t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s w h ic h h a v e a d i r e c t a p p l i c a t i o n upon th e a d m i n i s t r a t io n o f sc h o o l d i s t r i c t b u d g e ts . L e g a l r e s p o n s i b i l i t i e s o f c o u n ty s u p e r i n t e n d e n t s . The c o u n t y s u p e r i n t e n d e n t o f s c h o o l s i s r e q u i r e d t o s u p p l y b u d g e t f o r m s , w h ic h h a v e b e e n p r e s c r i b e d by t h e S t a t e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n , to each d i s t r i c t w ith in h i s c o u n ty .
T hese b u d g e t s m u st be p r e p a r e d ,
^Education Code of California, Section 352
(a).
149 t e n t a t i v e l y a d o p t e d by t h e g o v e r n i n g b o a r d a n d f i l e d w i t h t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s on o r b e f o r e t h e f i r s t day o f J u ly .
Upon r e c e i p t o f t h e b u d g e t t h e c o u n ty
s u p e r i n t e n d e n t o f s c h o o l s i s r e q u i r e d t o make c e r t a i n f i n a n c i a l e n t r i e s w h ic h a r e s p e c i f i e d i n S e c t i o n 6302 ( a ) o f t h e E d u c a t i o n Code o f C a l i f o r n i a , w h ic h r e a d s i n p a r t as f o llo w s : 6302. (a) Prom t h e r e c o r d s o f t h e c o u n t y a u d i t o r , th e c o u n ty s u p e r i n te n d e n t o f s c h o o ls s h a l l s e c u r e th e c a s h b a l a n c e s o f t h e d i s t r i c t o r s h a l l make e s t i m a t e s t h e r e o f i f i n f o r m a t i o n on a c t u a l c a s h b a l a n c e s i s n o t a v a ila b le , and s h a ll e n te r th e s e , as w e ll as th e e s tim a te d e x p e n d itu re s f o r th e l a s t p re c e d in g f i s c a l y e a r ; t h e s e e s t i m a t e d e x p e n d i t u r e s s h a l l be s e t f o r t h f o r c o m p a r is o n w i t h t h e e s t i m a t e d r e q u i r e m e n t s o f t h e d i s t r i c t i n t h e o r d e r by f u n c t i o n s . . . In a d d i t i o n to b e in g r e q u i r e d to su p p ly in f o r m a tio n on c a s h b a l a n c e s a n d e s t i m a t e d e x p e n d i t u r e s f o r t h e l a s t p r e c e d i n g y e a r , t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s i s r e q u i r e d to su p p ly d a ta r e g a r d in g rev en u e i f su ch i s n o t s u p p lie d by th e sch ool d i s t r i c t s .
T h is p r o v i s i o n i s f o u n d
i n S e c t i o n 6302 (b ) o f t h e E d u c a t i o n Code a n d r e a d s : 6302. (b) In a d d i t i o n to th e above in f o r m a tio n th e g o v e rn in g b o a rd s h a l l f u r n i s h th e c o u n ty s u p e r i n te n d e n t o f s c h o o ls w ith an e s tim a te o f th e r e v e n u e s fro m s o u r c e s o t h e r t h a n t a x e s on p r o p e r t y a n t i c i p a t e d d u r i n g t h e y e a r t o w h ic h t h e b u d g e t i s i n t e n d e d t o a p p l y , a n d t h e s o u r c e s w hence d e r i v e d , c o m p a red w i t h t h e e s t i m a t e d r e c e i p t s fr o m t h e same s o u r c e s f o r t h e l a s t p r e c e d i n g f i s c a l y e a r . S h o u ld th e g o v e rn in g b o ard f a i l to p ro v id e t h i s in fo rm a tio n , i t s h a l l be s u p p l i e d by t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s fr o m h i s own r e c o r d s .
150
A f t e r t h e b u d g e t h a s b e e n f i l e d t h e E d u c a t i o n Gode a u t h o r i z e s t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s t o exam ine th e t e n t a t i v e budget and to add such in fo rm a tio n a s i s n e c e s s a r y t o d e t e r m i n e t h e am o u n ts n e c e s s a r y to be r a i s e d b y t a x e s on p r o p e r t y .
S e c t i o n 6304 o f t h e E d u c a t i o n Gode
w h ic h g i v e s s u c h a u t h o r i z a t i o n r e a d s : 6304. The c o u n t y s u p e r i n t e n d e n t o f s c h o o l s s h a l l ex am in e t h e t e n t a t i v e b u d g e t a n d a f t e r i n d i c a t i n g t h e r e o n s u c h c h a n g e s a s h e deems d e s i r a b l e o r n e c e s s a r y , s h a l l r e t u r n th e t e n t a t i v e b u d g et to th e g o v e r n i n g b o a r d on o r b e f o r e t h e f i f t e e n t h d a y o f J u ly , a d d in g su c h in f o r m a tio n as i s n e c e s s a r y to d e t e r m i n e t h e a m o u n ts n e c e s s a r y t o be r a i s e d by t a x e s on p r o p e r t y f o r t h e y e a r t o w h ic h t h e b u d g e t i s i n t e n d e d t o a p p ly * A u th o r ity o f g o v e rn in g b o a r d .
The a u t h o r i t y f o r
t h e g o v e r n i n g b o a r d t o be t h e s o l e a g e n t f o r d e t e r m i n i n g th e n eed ed revenue t o o p e ra te th e sc h o o ls i n each d i s t r i c t i s c o n ta in e d in th e C o n s titu tio n o f th e S ta te o f C a lif o r n ia , A r t i c l e IX , S e c t i o n 6 , w h ic h s t a t e s ,
,fs u c h r e v e n u e f o r
each sch o o l d i s t r i c t as th e g o v ern in g b o ard t h e r e o f s h a l l d e te r m i n e .”^
T h is l a n g u a g e c l e a r l y s p e c i f i e s who i s t o
d e te rm in e th e rev e n u e n e e d e d , b u t i t does n o t sa y j u s t how s u c h n e e d e d r e v e n u e i s t o b e d e t e r m i n e d .
As i n d i c a t e d
i n t h e p r e c e d i n g s t a t e m e n t , t h e la w r e q u i r e s t h a t a l l
^ C o n s t i t u t i o n o f t h e S t a t e o f C a l i f o r n i a , 1948 (S a cram en to , C a l i f o r n i a : C a l i f o r n i a S t a t e P r i n t i n g P l a n t ) .
151 r e v e n u e a c c r u i n g t o t h e d i s t r i c t s h a l l be l i s t e d , a n d t h a t i n a d d i t i o n , w h a te v e r i s n e c e s s a r y to m eet th e r e q u i r e m e n t s s p e c i f i e d by t h e g o v e r n i n g b o a r d s h a l l be p r o v i d e d by d i s t r i c t t a x , s u b j e c t t o t a x r a t e l i m i t a t i o n a u t h o r i z e d by t h e C a l i f o r n i a S t a t e l e g i s l a t u r e . I t i s a l s o th e r e s p o n s i b i l i t y o f th e c o u n ty s u p e rin te n d e n t o f sc h o o ls to p ro v id e th e n e c e s s a ry a d v e r t i s i n g f o r th e b u d g e t h e a r in g and f o r th e su b m iss io n o f th e a d o p te d b u d g e t to th e c o u n ty a u t h o r i t i e s r e s p o n s ib le f o r m ak in g t h e a c t u a l t a x l e v y . C a r e f u l r e v i e w o f t h e E d u c a t i o n Code p r o v i s i o n s r e q u i r i n g o r a u th o r i z i n g th e c o u n ty s u p e r in te n d e n t o f s c h o o l s t o a d d t o o r make c h a n g e s i n t h e b u d g e t s i n harm ony w i t h t h e C o n s t i t u t i o n o f t h e S t a t e o f C a l i f o r n i a , in d ic a te s th a t i t is
th e d u ty and r e s p o n s i b i l i t y o f th e
c o u n ty s u p e r i n te n d e n t o f s c h o o ls to su p p ly d a ta on: 1.
C ash b a l a n c e s o r a n e s t i m a t e o f s u c h b a l a n c e s
i f th e a c tu a l d a ta a re n o t a v a i la b l e . 2.
A l l s o u r c e s o f r e v e n u e o t h e r t h a n t h a t t o be
d e r i v e d fro m p r o p e r t y i f t h e d a t a a r e n o t s u p p l i e d b y t h e d istric ts. I f th e d i s t r i c t f a i l s
to l i s t incom e r e c e i v a b l e ,
o r i f t h e a m o u n ts a r e e i t h e r more o r l e s s t h a n may be r e a s o n a b ly e x p e c te d , th e c o u n ty s u p e r i n te n d e n t o f s c h o o ls
152 i s r e q u i r e d t o i n d i c a t e s u c h c h a n g e s a s h e deems n e c e s s a r y i n o r d e r t o b r i n g t h e a m o u n ts i n harm ony w i t h t h e e x p e c t e d rev en u e• Beyond t h i s , t h e r e d o e s n o t a p p e a r t o be a n y a u t h o r i t y f o r th e c o u n ty s u p e r in te n d e n t o f s c h o o ls to make c h a n g e s i n t h e b u d g e t .
He c a n n o t c h an g e a n y p r o p o s e d
e x p e n d i t u r e i t e m o r r e d u c e t h e b u d g e t i n a n y way w h a t e v e r . He may make a n y s u g g e s t i o n s h e deems a d v i s a b l e , b u t t h e r e i s no r e q u i r e m e n t t h a t t h e d i s t r i c t m u st f o l l o w h is su g g e stio n s.
To do o t h e r w i s e w o u ld d e p r i v e t h e
g o v e r n i n g b o a r d o f t h e r i g h t o r d u t y a s s i g n e d t o i t by t h e C o n s t i t u t i o n o f C a l i f o r n i a w h ic h p l a c e s u p o n t h e g o v e rn in g b o a rd f u l l r e s p o n s i b i l i t y and a u t h o r i t y t o d e te rm in e th e b u d g e t.
rz
A s sista n c e to d i s t r i c t s .
S e v e r a l q u e s t i o n s w ere
i n c l u d e d i n t h e q u e s t i o n n a i r e t o t h e c o u n ty s u p e r i n t e n d e n t s o f sc h o o ls re g a rd in g a s s i s t a n c e re n d e re d sc h o o l d i s t r i c t s by c o u n ty o f f i c e s .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s
w ere r e q u e s t e d t o i n d i c a t e t h e k i n d o f a s s i s t a n c e w h ic h m o st n e a r l y r e p r e s e n t e d t h e p r o c e d u r e f o l l o w e d b y t h e c o u n ty .^
^ C o n s t i t u t i o n o f t h e S t a t e o f C a l i f o r n i a , A r t i c l e IX, S e c tio n 6. ^I n f r a , AppOhdi^ A, p . 2 6 4 , Item 1 7 .
153 T a b le XXXI shows t h e f r e q u e n c y o f r e s p o n s e s g i v e n by c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s *
I t is p o in te d out
t h a t some c o u n t i e s i n c l u d e d o n l y a few r e s p o n s e s , w h i l e o t h e r s r e p r e s e n t e d a much w i d e r r a n g e *
C o n se q u e n tly ,
t h e r e was no d e f i n i t e r e l a t i o n s h i p b e tw e e n t h e t o t a l r e s p o n s e s a n d t h e nu m b er o f c o u n t i e s r e p o r t i n g * N in e c o u n t i e s , o r 1 8 . 3 7 p e r c e n t o f t h e f o r t y - n i n e c o u n tie s r e p o r t i n g p r e p a r e d th e e n t i r e b u d g e ts f o r a l l d i s t r i c t s w ith o u t s u p e r in te n d e n ts , and th ir t y - t w o s t a t e d t h e i r p r o c e d u r e was t o p r e p a r e t h e b u d g e t s f r o m d a t a f u r n is h e d by th e d i s t r i c t s . 6 4 .9 0 p e r c e n t .
T h is nu m b er r e p r e s e n t e d
I f t h e t o t a l r e p l i e s f o r q u e s t i o n s !,a n
a n d r,b ,! w ere a d d e d t o g e t h e r , w h ic h i s l o g i c a l b e c a u s e i t c a n be a ssu m e d t h a t a c o u n t y c o u l d f o l l o w t h e two p ro ced u res l i s t e d ,
a t o t a l o f fo rty -o n e c o u n tie s out of
f o r t y - n i n e r e p o r t e d t h a t t h e y e i t h e r p r e p a r e d b u d g e ts e n t i r e l y o r p r e p a r e d them fro m d a t a f u r n i s h e d b y t h e d is tric ts • The common p r a c t i c e r e p o r t e d was t h a t t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s m et w i t h t h e b o a r d s o f s m a l l d i s t r i c t s f o r th e purpose o f p r e p a r in g th e b u d g e ts .
It
c a n b e s e e n t h a t i f f o r t y - o n e o r 83*27 p e r c e n t o f t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s w e re w h o l l y r e s p o n s i b l e f o r t h e b u d g e t s o r p r e p a r e d t h e b u d g e t s f ro m d a t a f u r n is h e d , th e y e x e r c is e d a d e cid ed in flu e n c e in th e
TABLE XXXI
FREQUENCY OF RESPONSES FROM COUNTY SUPERINTENDENTS OF SCHOOLS SHOWING ASSISTANCE RENDERED SCHOOL DISTRICTS IN PREPARING DISTRICT BUDGETS
Procedure
Districts Employing Superintendent No Superintendent
Districts Consisting of Large Cities
-
9
-
. b*
9
32
-
c.
28
7
32
d.
5
2
8
e*
21*
37
13
Procedures referred to ares a. County prepares entire budget, b* County prepares the budget from data furnished by districts and with one or more representatives of the district* c* County advises only* d* Gives no help except balances, valuations, etc* e* County types final budget for the district*
155
a d m in is tr a tio n o f th e l o c a l d i s t r i c t s .
A f u r th e r a n a ly sis
o f t h e r e s p o n s e s show ed t h a t t h e n i n e c o u n t i e s r e p r e s e n t e d 264 d i s t r i c t s , a n d t h e t h i r t y - t w o c o u n t i e s r e p r e s e n t e d 1 ,2 4 4 d i s t r i c t s , o r a t o t a l o f 1 ,5 0 8 sc h o o l d i s t r i c t s . T h is t o t a l r e p r e s e n t e d 6 6 .2 0 p e r c e n t o f t h e t o t a l num ber of d i s t r i c t s
in th e s t a t e .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w e re a s k e d w hat p e r c e n t o f t h e b u d g e t p r e p a r a t i o n was p e r f o r m e d b y t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s , o t h e r t h a n f u r n i s h i n g c a s u a l a d v ic e and s u g g e s tio n s and f u r n i s h i n g b a la n c e s , 5 in c o m e , e t c . , a n d r e s p o n s e s g i v e n a r e shown on T a b le XXXII. The d i s t r i b u t i o n was s u c h a s t o i n d i c a t e t h a t no c l e a r l y d e f i n e d p a t t e r n o f p r o c e d u r e was f o l l o w e d i n p r e p a r in g s c h o o l d i s t r i c t b u d g e ts a s th e y r e l a t e to a s s i s t a n c e g iv e n by c o u n ty s u p e r i n te n d e n t s o f s c h o o ls . H ow ever, t h e m e d ia n o f 75 f o r t h e one a n d two t e a c h e r g r o u p s was w e l l ab o v e t h e m e d ia n o f 25 f o r t h e l a s t g ro u p o f e i g h t o r m ore t e a c h e r s .
The t h r e e t o s e v e n g ro u p
m e d ia n o f 6 2 .7 3 v a r i e d o n l y a s m a l l am ount fro m t h e f i r s t . W h ile t h e d i s t r i b u t i o n was s c a t t e r e d i n a l l g r o u p s , t h e t e n d e n c y d e f i n i t e l y was t o w a r d g r e a t e r a s s i s t a n c e f o r sm a ll d i s t r i c t s .
G r e a t e r s i g n i f i c a n c e was g i v e n t o t h e
e x t e n t t o w h ic h t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s
^ I b i d . , Item 20.
156 TABLE X X X II
FREQUENCY DISTRIBUTION OF PERCENTAGE OF BUDGET PREPARATION ASSISTANCE GIVEN TO SCHOOL DISTRICTS WITH VARYING NUMBER OF TEACHERS AS REPORTED BY 1*6 COUNTY SUPERINTENDENTS OF SCHOOLS
a. Per Cent
1 to 2 Teachers
Frequencies b« 3 to 7 Teachers
c.
8 or More Teachers
90-99.9
12
8
1
80-89.9
10
6
3
70-79.9
2
1
1
60-69.9
1h
11
2
50-59.9
-
2
1
12
11
40-1*9.9
5
30-39.9
-
1
1
20-29.9
-
1
3
10-19.9
-
1
30
3
3
13
Total
k6
46
16
Median
75.00
62.73
2 5 .0 0
0- 9.9
157 ren d ered a s s is ta n c e
in budget p r e p a r a t i o n in l i g h t o f th e
f a c t t h a t t h e r e w e re a p p r o x i m a t e l y 1 , 6 0 0 e l e m e n t a r y s c h o o l d istric ts
in C a lif o r n ia w ith l e s s th an e ig h t te a c h e rs*
W h ile t h e t o t a l num ber o f p u p i l s r e p r e s e n t e d was s m a l l a s co m p ared t o t h e t o t a l a v e r a g e d a i l y a t t e n d a n c e f o r t h e s ta te , n e v e rth e le ss,
i t d e f i n i t e l y p la c e d th e c o u n ty
s u p e r i n t e n d e n t s o f s c h o o l s i n a m o st i m p o r t a n t p l a c e i n r e l a t i o n to th e a d m in is tr a tio n o f sch o o l d i s t r i c t b u d g e ts• B u d g e t p r e p a r a t i o n b y c o u n ty s u p e r i n t e n d e n t s .
The
q u e s t io n a r i s e s w h e th e r th e c o u n ty s u p e r i n te n d e n t o f s c h o o l s b y la w s h o u l d be a u t h o r i z e d t o p r e p a r e b u d g e t s f o r a l l d i s t r i c t s w ith l e s s th an e ig h t te a c h e rs*
D istric ts
w h ic h h a v e e i g h t o r more t e a c h e r s may em ploy a d i s t r i c t s u p e r i n t e n d e n t o f s c h o o l s , and i f n o t a s u p e r i n t e n d e n t , t h e p r i n c i p a l may s e r v e a s s u c h i n m a t t e r s p e r t a i n i n g t o b u d g e t p r e p a r a t i o n and a d m i n i s t r a t i o n .
C o u n ty s u p e r i n t e n
d e n t s o f s c h o o l s w ere a s k e d w h e t h e r t h e y f a v o r e d e n a c tm e n t o f a la w r e q u i r i n g th em t o p r e p a r e b u d g e t s f o r t h e b o a r d s f o r d i s t r i c t s w ith seven o r l e s s te a c h e r s .
To t h i s
q u e s t io n t h i r t y - s e v e n r e p l i e d i n th e n e g a t iv e and e le v e n in th e a f f ir m a tiv e .
A s e c o n d q u e s t i o n was w h e t h e r o r n o t
^ I b i d . , Item 2 2 .
158 th e p r e s e n t p ro ce d u re o f p e rm is s iv e a s s i s t a n c e sh o u ld c o n tin u e .7
To t h i s q u e s t i o n f o r t y - f i v e c o u n t i e s r e p l i e d
i n t h e a f f i r m a t i v e a n d two i n t h e n e g a t i v e *
One w h ic h
r e p l i e d t o t h e f o r m e r q u e s t i o n g a v e no a n sw e r* Of t h e e l e v e n who r e p l i e d ”y e s ” t o t h e f i r s t q u e s t i o n , s e v e n g a v e . a ny e s M a n s w e r t o t h e s e c o n d q u e s t i o n * H ow ever, t h e f i r s t q u e s t i o n h a d a r a t i o o f t!n o ft t o ,fy e s ” o f 3 . 3 6 , a n d t h e s e c o n d r a t i o was 2 2 . 5 i n f a v o r o f t h e l!y e s ,f a n s w e r , a n d i t was q u i t e c l e a r t h a t t h e p r e s e n t p r a c t i c e a s f a r a s t h e la w was c o n c e r n e d was more a c c e p ta b le . The q u e s t i o n was a s k e d w h e t h e r t h e c o u n ty s u p e r in te n d e n ts o f s c h o o ls had any e v id e n c e o r ” se n se d f e e l i n g ” t h a t th e d i s t r i c t s r e s e n t e d th e a s s i s t a n c e g iv e n th em i n b u d g e t p r e p a r a t i o n . f o r t y - s e v e n s a i d wn o . ,f
Q
O nly one s a i d ny e s f1 a n d
C o n s i d e r i n g t h a t t h e c o u n ty
s u p e r i n t e n d e n t o f s c h o o l s m ig h t w e l l be t h e l a s t p e r s o n t o o b s e r v e a n y o p p o s i t i o n , t h e r e s p o n s e was so u n a n im o u s t h a t i t was r e a s o n a b l e t o assum e t h a t a t l e a s t t h e r e was no o p p o s i t i o n o f a n y c o n s e q u e n c e .
7Ib id .,
Item 23.
8Ib id .,
Item 1 8 .
I t c a n a l s o be a ssu m e d
159
t h a t t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s w ould s o conduct h is o f f ic e
t h a t no s e r i o u s r e s e n t m e n t w o u ld e x i s t ,
w h ic h g i v e s f u r t h e r w e i g h t t o t h e r e p l i e s g i v e n b y t h e c o u n ty s u p e r i n te n d e n t s o f s c h o o ls . I n a n s w e r t o t h e q u e s t i o n w h e t h e r t h e r e was e v i d e n c e t h a t t h e d i s t r i c t s w o u ld l i k e t o h a v e t h e c o u n t y assum e a g r e a t e r r e s p o n s i b i l i t y i n b u d g e t p r e p a r a t i o n , e ig h t e e n c o u n ty s u p e r i n te n d e n t s o f s c h o o ls f e l t t h a t th e d i s t r i c t s w ould l i k e m ore h e l p a n d t w e n t y - f i v e f e l t t h e y q w ould n o t . h e g a l r e q u ir e m e n ts o f c o u n ty s u p e r i n t e n d e n t s . S e v e r a l p r o v i s i o n s o f la w s p e c i f i c a l l y r e q u i r e t h e c o u n ty s u p e rin te n d e n t o f sc h o o ls to p e rfo rm c e r t a i n a c ts o r f u n c t i o n s a n d o t h e r s e c t i o n s , w h i l e n o t so s p e c i f i c , im p ly t h a t s i m i l a r a c t s s h a l l be c a r r i e d o u t .
A c t i o n on
th e p a r t o f th e c o u n ty s u p e r in te n d e n t o f s c h o o ls , i f p e r f o r m e d i n one way w o u ld c a r r y o u t t h e s p e c i f i c i n t e n t o f t h e l a w , a n d i f p e r f o r m e d o t h e r w i s e w o u ld t e n d t o c i r c u m v e n t t h e la w a n d i t s
o b v io u s i n t e n t .
I n h arm o n y w i t h t h e p r o v i s i o n s o f t h e la w d i s t r i c t s f r e q u e n t l y b u d g e t f o r a n e ed i n e x c e s s o f w hat th e maximum t a x r a t e
^ Ib id . ,
i s e x p e c te d to p ro d u ce .
Item 1 9 .
I f such i s th e
160 c a s e , t h e b u d g e t w i l l b e s h o r t w h a t e v e r am ount i s n o t p r o d u c e d b y t h e maximum t a x r a t e . I n r e s p o n s e t o t h e q u e s t i o n r e g a r d i n g w hat p o l i c y was f o l l o w e d by t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s i f i t became known p r i o r t o a d o p t i o n o f t h e b u d g e t t h a t t h e am ount r e q u i r e d fro m d i s t r i c t t a x e s c o u l d n o t be r a i s e d f ro m t h e maximum t a x , i t was f o u n d t h a t t h e f r e q u e n c y o f r e p l i e s w h ic h s t a t e d t h e c o m ity s u p e r i n t e n d e n t s o f s c h o o l s r e q u i r e d a c u t b a c k t o e q u a l incom e was twenty.-*-0
T h is
re p re se n te d a r a tio
o f 4 0 .8 o f t h e t o t a l o f f o r t y - n i n e
c o u n tie s r e p o r tin g .
T w e n ty -th re e , o r a r a t i o o f 4 6 .9
recom mended a c u t b a c k , w h i l e o n l y n i n e , o r a r a t i o 1 5 .7 a d v is e d th e d i s t r i c t s
of
t o l e a v e t h e am o u n ts a s
o r i g i n a l l y e n te r e d , even w ith
th e
r a t e w o u ld l i k e l y n o t p r o d u c e
t h e n e c e s s a r y a m o u n ts .
T w e n t y - f i v e , o r 5 1 .0 p e r c e n t
s t a t e d th e y c a lle d th e
d is tric ts *
a t t e n t i o n to th e f a c t .
k n o w le d g e t h a t t h e t a x
I t is p o in te d out th a t
some c o u n t i e s r e p o r t e d m ore t h a n one p o l i c y f o l l o w e d w h ic h a c c o u n t e d f o r t h e f a c t t h a t t h e t o t a l f r e q u e n c y o f r e s p o n s e s e x c e e d e d t h e num ber o f c o u n t i e s .
The r a t i o s
r e p r e s e n t t h e p e r c e n t a g e o f a p o s s i b l e f r e q u e n c y o f 100 p er c e n t.
The p o l i c i e s l i s t e d a n d t h e f r e q u e n c y o f
1 0 I b i d . , Item 1 1 .
161 r e s p o n s e s a r e g i v e n i n T a b l e X X X III.
W h ile t h e e v i d e n c e
i s n o t t o o c l e a r , t h e r e i s am ple r e a s o n t o assum e t h a t th e c o u n ty s u p e r in te n d e n ts o f sc h o o ls e x e r c i s e a d e c id e d d eg ree o f in flu e n c e in th e d i r e c t i o n o f e i t h e r f o r c in g a c u t b a c k o f b u d g e t e d n e e d s t o t h e e s t i m a t e d in c o m e , o r o f m ak in g s u c h r e c o m m e n d a tio n , w h ic h h a s a b o u t t h e same e f f e c t .
I f a b udget i s re d u c e d to e q u al e x p e c te d
incom e a n d t h e incom e s u b s e q u e n t l y p r o v e s s u f f i c i e n t t o h a v e m e t t h e o r i g i n a l b u d g e t , t h e d i s t r i c t w o u ld t h e n be d e p r i v e d o f t h e f u n d s w h ic h t h e g o v e r n i n g b o a r d o r i g i n a l l y b u d g e te d a s n e ed e d re v e n u e . T h is p r a c t i c e v i r t u a l l y f o r c e s a r e d u c t i o n o f re v e n u e s and i s c l e a r l y a v i o l a t i o n o f th e C o n s t i t u ti o n o f C a l i f o r n i a w h ic h p l a c e s s u c h a u t h o r i t y o n l y w i t h t h e g o v e r n i n g b o a r d s o f t h e s c h o o l, d i s t r i c t s .
P ersonal
i n t e r v i e w s w i t h a n um ber o f c o u n t y s u p e r i n t e n d e n t s o f s c h o o ls d e m o n stra te d th e f a c t t h a t u n le s s th e d i s t r i c t s re d u c e d t h e i r b u d g e ts th e c o u n ty s u p e r i n te n d e n t s o f s c h o o l s t h e m s e l v e s d i d so p r i o r to s u b m i t t i n g t h e b u d g e t s t o t h e c o u n ty a u d i t o r s .
T h is was c o n f i r m e d b y s c h o o l
d i s t r i c t o f f ic ia ls in sev eral in sta n c e s . A ccu m u lativ e b u i l d i n g f u n d .
The la w p r o v i d e s f o r
th e e s ta b lis h m e n t o f an a c c u m u la tiv e b u ild in g fund to w h ic h f u n d s a r e t o b e a d d e d e a c h y e a r d u r i n g i t s
162 TABLE X X X III
FREQUENCY OF RESPONSES FROM k9 COUNTY SUPERINTENDENTS OF SCHOOLS GIVING POLICIES FOLLOWED IN ADVISING SCHOOL DISTRICTS RELATIVE TO BUDGET EXCEEDING PROBABLE INCOME Frequency of Responses
Ratio of Frequency to Counties Reporting
25
$1.0
b#
23
hS*9
c#
20
2*0.8
d#
-
6*
9
Policies
-
15.?
Policies referred to are: a* Call the districts attention to the fact# b# Suggest or recommend a reduction# c# Require a cutback to equal the available income# d. Make no reference to the item# e* Advise the district to continue to keep the amount high if the need justifies it#
163
e x is te n c e T h e
am ount t o be a d d e d a n n u a l l y i s
s p e c i f i e d i n t h e b u d g e t f o r t r a n s f e r , a n d c a n be c h a n g e d o n ly upon f i l i n g th e p r o p e r a f f i d a v i t w ith th e a u d it o r and t r e a s u r e r o f th e c o u n ty .
W h a te v e r am ount i s p r o v i d e d
i s an o r d e r on t h e a u d i t o r a n d i s n o t s u b j e c t to c h a n g e e x c e p t a s p r o v i d e d by l a w .
A q u e s t i o n was a s k e d w h e t h e r
t h e am ount o f a c c u m u l a t e d b u i l d i n g f u n d t r a n s f e r was r e d u c e d a f t e r t h e b u d g e t y e a r was u n d e r w a y . - ^
F iv e
c o u n ty s u p e r i n te n d e n t s o f s c h o o ls r e p l i e d i n th e a f f i r m a t i v e a n d t h i r t y i n t h e n e g a t i v e . ' On t h e a s s u m p t i o n t h a t t h e q u e s t i o n was c l e a r l y u n d e r s t o o d b y t h o s e r e p o r t i n g , t h e c o u n t i e s r e d u c i n g t h e a n n u a l t r a n s f e r am ount w i t h o u t c o m p ly in g w i t h t h e p r o v i s i o n s o f t h e E d u c a t i o n Code w e re c l e a r l y w ith o u t le g a l a u t h o r i t y . O u tsta n d in g l i a b i l i t i e s . p ro v id e s th a t d i s t r i c t s
The C a l i f o r n i a la w
s h a l l o p e r a t e on a n a c c r u a l
b a s i s . 1 3 In d e te rm in in g th e b e g in n in g b a la n c e f o r a d istric t,
it
i s n e c e s s a r y t o a s c e r t a i n fro m e a c h d i s t r i c t
t h e am ount o f o u t s t a n d i n g o b l i g a t i o n s f o r t h e p r e c e d i n g
■ ^ E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n s 5 9 6 1 - 5 9 6 3 . ^ I n f r a , A p p e n d ix A, p . 2 6 3 , I t e m 1 4 . ■ ^ C o n s titu tio n o f th e S t a t e o f C a l i f o r n i a , A r t i c l e X I, S e c t i o n 1 8 .
164 f is c a l y ear.
C o m p lete d a t a s h o u l d be u s e d t o a v o i d e r r o r s
i n r e p o r t i n g t h i s a m o u n t. t h e t o t a l a m o u n t.
The b u d g e t fo rm s p e c i f i e s o n l y
How ever, t h e
s t a t e does su p p ly a s p e c ia l
fo rm f o r l i s t i n g a l l o u t s t a n d i n g o b l i g a t i o n s i n d e t a i l . T h is i n f o r m a t i o n i s f u r n i s h e d t h e c o u n ty by t h e d i s t r i c t on t h e p r e s c r i b e d f o r m .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s
w ere a s k e d w hat t h e p r a c t i c e was i n t h e i r c o u n t i e s 14 re g a rd in g th is s u b je c t. The q u e s t i o n a n d t h e f r e q u e n c y of r e p lie s are l i s t e d
i n T a b le XXXIV.
In th e case of a
,fy e s M o r ttn o M a n s w e r w i t h o u t a b re a k d o w n , i t m u st be a ssu m e d t h a t t h e a n s w e r r e f e r r e d t o e a c h o f t h e f o u r ite m s • U n less th e c u r r e n t l i a b i l i t i e s a r e l i s t e d i n f u l l i t is
im p o ssib le to have a t r u e n e t b e g in n in g b a la n c e
f i g u r e t o u s e i n b u d g e t m a k in g .
The f i s c a l y e a r e n d s on
t h e t h i r t i e t h d a y o f June a n d t h e n e x t y e a r b e g i n s on t h e f i r s t day o f J u ly .
I t i s e x t r e m e l y i m p r o b a b l e , and i n
f a c t v i r t u a l l y im p o s s ib le , f o r d i s t r i c t s to be a b le to p a y a l l o b l i g a t i o n s f o r t h e p r e c e d i n g y e a r on o r b e f o r e th e l a s t day o f Ju n e •
F a i l u r e t o l i s t o b l i g a t i o n s fro m
th e p re c e d in g y e a r w i l l r e s u l t in an in a c c u r a te b e g in n in g b a la n c e f i g u r e .
I t is th e p r a c tic e
i n some c o u n t i e s t o
n o t c l o s e t h e i r boo ks u n t i l a few d a y s a f t e r J u l y f i r s t
1 4 l n f r a , A ppendix A, p . 2 6 6 , Item 2 6 .
165
TABLE XXXIY
FREQUENCY GF RESPONSES GIVEN BY COUNTY SUPERINTENDENTS OF SCHOOIS STATING WHETHER A DETAILED BREAKDOWN OF INFORMATION FOR OUTSTANDING OBLIGATIONS IS FURNISHED AT TIME OF BUDGET FILING
Information Furnished 1.
Frequency of Responses
Converted to "Yes11 "No"
Person or firm to wilom obligation is due.
8
15
Description of material or service*
8
15
Budget classification of each item*
27
3k
9
It*
Amount.
27
3k
9
5.
"Yes11*
7
0
0
6.
"No"**
9
0
0
2* 3*
* A "Yes" answer was assumed to include all of the items 1 to It, inclusive* ** A "No" answer was assumed to include none of the items 1 to k9 inclusive*
166 in o r d e r to p e rm it d i s t r i c t s
to p r e s e n t w a rra n ts and
h a v e them c l e a r e d a s o f t h e l a s t d a y o f J u n e , The r e p o r t t h a t n i n e c o u n t i e s r e q u i r e d no b re a k d o w n o f a n y k i n d g a v e e v i d e n c e t h a t t h i s p h a s e o f b u d g e t m ak in g was n o t b e i n g done i n a m a n n e r w h ic h w o u ld p r o d u c e a c c u r a t e budget a c c o u n tin g .
I t i s n o t a ssu m e d t h a t a n e s t i m a t e i s
n e c e s s a r i l y la c k in g in each o f th e n in e c o u n tie s , b u t u n l e s s a d e t a i l i s r e q u i r e d , w h a t e v e r am ount i s u s e d , i f a n y , c o u l d be n o t h i n g b u t a v e r y p o o r g u e s s . R e p o rtin g p r i o r y e a r e x p e n d i tu r e s .
The E d u c a t i o n
Code r e q u i r e s t h a t t h e e s t i m a t e d e x p e n d i t u r e s f o r t h e l a s t p r e c e d in g f i s c a l y e a r s h a l l be e n te r e d on th e b u d g e t by. t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s , ^
The l a n g u a g e
i s m a n d a to r y b y t h e u s e o f t h e w ord f,s h a l l . ff
The
q u e s t i o n n a i r e to c o u n ty s u p e r i n te n d e n t s 6f s c h o o ls c o n t a i n e d t h r e e ite m s w h ic h a s k e d c e r t a i n q u e s t i o n s r e g a r d in g th e p r a c t i c e s fo llo w e d i n c o n n e c tio n w ith th e se e n t r i e s .
The b u d g e t f o r m p r o v i d e s a c o lu m n ,
r e f e r r e d t o a s ’’Column O n e , ” i n w h ic h b o t h t h e incom e a n d e x p e n d i t u r e s f o r t h e l a s t p r e c e d i n g y e a r a r e t o be l i s t e d .
^ E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n £ 5 0 2 ( a ) . I n f r a , A p p e n d ix C, p . 2 7 6 .
167 C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w ere a s k e d who made s u c h e n t r i e s on t h e b u d g e ts *
17
F o rty -fiv e c o u n tie s re p o rte d
t h a t t h e c o u n t y made t h e e n t r i e s , t h r e e s a i d b o t h c o u n ty a n d d i s t r i c t made th e m , a n d on e s t a t e d t h e d i s t r i c t s made th e e n tr ie s * The o f f i c i a l s o f t h e c o u n t y i n w h ic h t h e d i s t r i c t s made t h e e n t r i e s w e re i n t e r v i e w e d a n d t h e r e a s o n s a d v a n c e d f o r re q u irin g th e d i s t r i c t s
t o make t h e n e c e s s a r y e n t r i e s
f o r e x p e n d i t u r e s w ere l a r g e l y i n t h e a r e a o f a c c o u n t i n g . I t was c o n t e n d e d t h a t t h e c o u n t y c o n s i s t e n t l y h a d b e e n w o r k in g on a p r o g r a m o f d i s t r i c t a c c o u n t i n g r e s p o n s i b i l i t y * To r e l i e v e t h e d i s t r i c t s o f t h i s r e s p o n s i b i l i t y i n t h e o p i n i o n o f t h e c o u n t y w ould t e n d t o c a u s e a b rea k d o w n i n t h e g ood w ork a c c o m p l i s h e d i n a c c o u n t i n g a n d b o o k k e e p in g on t h e d i s t r i c t l e v e l .
The a rg u m e n t was a d v a n c e d t h a t
i f t h e c o u n t y s u p p l i e d t h e d a t a t h e d i s t r i c t s w o u ld t e n d t o l e a n o n t h e c o u n ty f o r k e e p i n g t h e i r f i n a n c i a l r e c o r d s r a t h e r t h a n do i t t h e m s e l v e s *
T h e se a rg u m e n ts
a p p e a r e d good a n d r e a s o n a b l e , b u t i t was b e l i e v e d t h a t t h e e m p h a s is f o r p r o p e r b o o k k e e p in g s h o u l d be u p o n some b a s i s o t h e r t h a n t h i s one i t e m .
I t i s l i k e l y good
p ro c e d u re f o r th e d i s t r i c t and c o u n ty to v e r i f y th e a m o u n ts a n d p r o v i d e d t h e c o u n ty t a k e s f u l l r e s p o n s i b i l i t y f o r th e a c c u ra c y o f th e e n t r i e s ,
t h e r e may be no r e a s o n
-LYI n f ra~7 Appendix A, p . 2 6 7 , Item 2 9 .
168 t o assum e t h e la w i s b e i n g i g n o r e d * ■A q u e s t i o n was a s k e d w h e t h e r t h e e x p e n d i t u r e i te m s i n e a c h b u d g e t c o rre s p o n d w ith th e c o u n ty s u p e r i n te n d e n t o f s c h o o l s ’ a n n u a l r e p o r t f i g u r e s b e f o r e p u b l i c a t i o n an d no f i n a l a d o p tio n . P o rty -o n e c o u n ty s u p e r i n te n d e n t s o f s c h o o l s r e p l i e d t h a t s u c h a v e r i f i c a t i o n was made a n d s e v e n r e p l i e d t h a t i t was n o t . An i n q u i r y was made c o n c e r n i n g w h e t h e r i t w o u ld be d e s i r a b l e t o r e q u i r e o n l y t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s an d n o t t h e d i s t r i c t t o i n s e r t p r i o r y e a r c o s t s a n d incom e i n ,!Column One” o f t h e b u d g e t b e f o r e b u d g e t s a r e r e t u r n e d on J u l y f i f t e e n t h . ^
T h irty -th re e a ffirm a tiv e
a n s w e r s a n d s i x t e e n n e g a t i v e a n s w e r s w ere r e c e i v e d .
T h is
q u e s t i o n a ssu m e d t h a t no o r i g i n a l e n t r y w o u ld be made by th e d i s t r i c t .
A g e n e ra l rev iew o f th e d i s t r i c t b u d g e ts
a n d a t l e a s t t w e n t y - f i v e random c h e c k s g ave e v i d e n c e t h a t r e a s o n a b l e c a r e h a d b e e n u s e d t o h a v e t h e am o u n ts i n p r o p e r o r d e r so t h a t t h e p r e c e d i n g y e a r ’ s e n t r i e s r e s u l t e d in a b a la n c e d b u d g e t.
H ow ever, one c o u n ty t r a n s m i t t e d
b u d g e t s t o t h e s t a t e w h ic h w ere v e r y b a d l y o u t o f b a l a n c e f o r e v e ry e le m e n ta ry d i s t r i c t .
I b i d . , Item 28. 19
I b i d . , Item 2 7 .
The e n d in g b a l a n c e s f o r
169
t h e p r e c e d i n g y e a r w e re e n t i r e l y d i f f e r e n t fr o m t h e b e g in n in g b a la n c e s f o r th e n e x t y e a r . E n t r i e s i n ’'Column One11 s h o u l d be t h e r e s p o n s i b i l i t y o f th e c o u n ty a s r e q u i r e d by la w . e n trie s ,
I f t h e d i s t r i c t s make
t h e s e s h o u l d be p r o p e r l y v e r i f i e d a n d c o r r e c t e d
i f n ecessary .
T h is w o uld l i k e l y f u l f i l l t h e l e g a l r e q u i r e
m ent t h a t th e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s make s u c h e n trie s . p r o c e d u r e s f o l l o w e d t o m eet d e f i c i t .
The p r o p o s e d
e x p e n d itu r e s of sc h o o l d i s t r i c t b u d g e ts , i f b u d g e ts a re p r e p a r e d w i t h e m p h a s is u p o n t h e n e e d , f r e q u e n t l y w i l l be i n e x c e s s o f t h e incom e due t o t a x l i m i t a t i o n .
When s u c h
i s th e c a s e , th e d i s t r i c t m ust red u c e i t s p ro p o se d e x p e n d i t u r e s t o m ee t t h e in c o m e .
The c o u n t y s u p e r i n t e n d e n t
o f s c h o o l s , w h i l e n o t r e q u i r e d t o do so b y l a w , g e n e r a l l y n o t i f i e s t h e d i s t r i c t t h a t t h e incom e i s l e s s t h a n p ro p o se d e x p e n d itu r e s b u d g e te d .
An i n q u i r y was made
r e g a r d i n g th e p o l i c y o r p r o c e d u r e recom m ended t o t h e d istric t.
20
F i v e s t a t e m e n t s w ere g i v e n a s p o s s i b l e
p r o c e d u r e s a n d c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s w ere r e q u e s t e d t o i n d i c a t e w h ic h w ere u s e d .
I f m ore t h a n one
s u g g e s t i o n was o f f e r e d t h e y w e re r e q u e s t e d t o s t a t e the' o r d e r o f u s e b y a s s i g n i n g t h e n um ber f,l ff t o t h e one m ost
2 0 I b i d . , Item 1 .
170 f r e q u e n t l y u s e d a n d t h e n um ber 112 ” t o t h e one n e x t i n im p o rta n c e .
T a b l e XXXV shows t h e f r e q u e n c y d i s t r i b u t i o n .
I t was f o u n d t h a t r e d u c i n g o r e l i m i n a t i n g t h e u n d i s t r i b u t e d r e s e r v e was done m o s t f r e q u e n t l y a n d tw e n ty -tw o gave i t f i r s t im p o rta n c e .
In o rd e r to secu re
a s i n g l e f i g u r e w h ic h w o u ld i n d i c a t e t h e t o t a l i m p o r t a n c e g iv e n to e ac h o f th e f i v e p r o c e d u r e s , an in v e r s e w e ig h tin g was g i v e n t o e a c h f r e q u e n c y .
T h is was done b y a s s i g n i n g
a w e i g h t i n g o f f i v e t o t h e nu m ber tfl ” i n o r d e r o f u s e a n d b y a s s i g n i n g a w e i g h t i n g o f f o u r t o t h e nu m b er f£ . fl Number H5 f! was g i v e n a w e i g h t i n g o f o n e .
I t was f o u n d
*
t h a t t h e t o t a l t i m e s e a c h p r o c e d u r e was u s e d d i d n o t m easure th e im p o rta n c e .
By u s e o f t h e i n v e r s e w e i g h t i n g
th e e lim in a tio n o f u n d is tr ib u te d r e s e r v e re c e iv e d a r a t i n g o f 151 w h ic h was w e l l a b o v e t h e n e x t n e a r e s t o f n i n e t y - n i n e , w h ic h r e f e r r e d t o a r e d u c t i o n w i t h i n t h e m a j o r c la ss ific a tio n s .
R e d u c t i o n i n g e n e r a l r e s e r v e was t h i r d .
M a jo r c l a s s i f i c a t i o n s .
The E d u c a t i o n Code was
am ended r e c e n t l y t o e l i m i n a t e " F i x e d C h a r g e s 11 fr o m t h e r e q u ir e d l i s t o f m ajo r c l a s s i f i c a t i o n s .
I t may c o n t i n u e
to be u se d by a u t h o r i t y o f th e S t a t e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n .
The p r i n c i p a l p u r p o s e s f o r w h ic h
fu n d s a r e b u d g e te d i n t h i s c l a s s i f i c a t i o n a r e in s u r a n c e and re tire m e n t p u rp o ses.
These ite m s a r e a p a r t o f t h e c o s t
171 TABLE XXXV
FREQUENCY DISTRIBUTION OF THE ORDER OF USE OF PROCEDURES FOLLOWED BY COUNTY SUPERINTENDENTS OF SCHOOLS IN BUDGET ADMINISTRATION WHEN INCOME FAILS TO MEET BUDGET REQUIREMENTS
Procedure
Frequency of Order of Use
1
—
Notes
'
">J
J il
■'
1
f
3
H
5
Total
W W J - M W J ■■-i-M'i
wm.m -
a*
2
3
6
1
b.
9
6
1
k
c•
22
8
3
d.
3
e*
£
n
Inverse Weighting
10
1
5 l
3
12
1,2
21
81
33
151
29
99
9
30
This table reads as" follows: Tiro county superintendents of schools rated nan as the procedure used most; three rated this procedure as the next used most; etc. Inverse weighting was computed by assigning to number one order of use a Weighting of five; to number two a weighting of four; etc*
Procedures referred to ares a* The deficit is pro-rated over entire budget* b* The general reserve is reduced or entirelyeliminated* c* The undistributed reserve is reduced or entirely eliminated* d* One or more specific classifications are reduced* e. Nothing is done except to notify the district of the deficit*
172 o f f u n c t i o n s l i s t e d e lse w h e re in th e b u d g e t.
For in s ta n c e ,
i n s u r a n c e may b e f o r b u s o p e r a t i o n u n d e r ”A u x i l i a r y S e r v i c e s , 11 o r workmen* s c o m p e n s a ti o n w h ic h a p p l i e s t o ev ery g ro u p in g .
The r e s u l t i s t h a t t h e e x p e n d i t u r e s a n d
b u d g e t do n o t r e f l e c t a n a c c u r a t e c o s t f o r i n d i v i d u a l m ajo r c l a s s i f i c a t i o n s .
I f ”F i x e d C h a r g e s ” a s a c l a s s i f i c a
t i o n w ere n o t u s e d , t h e v a r i o u s i t e m s o f i n s u r a n c e , r e t i r e m en t a n d o t h e r s w ould be b u d g e t e d i n t h e c l a s s i f i c a t i o n i n w h ic h t h e s e r v i c e i s l i s t e d . T h is p r o p o s a l was r e f e r r e d t o t h e c o u n ty 21 s u p e r in te n d e n ts o f s c h o o ls i n th e c o u n ty q u e s t i o n n a i r e . x T h i r t y - t w o gave t h e i r a p p r o v a l a n d s i x t e e n i n d i c a t e d t h e i r d isa p p ro v a l. The same q u e s t i o n was a n s w e r e d b y t h e c i t y s u p e r i n t e n d e n t s o f s c h o o l s who r e p l i e d t w e n t y - f o u r f o r t h e p r o p o s a l a n d t w e n t y - f i v e a g a i n s t i t . 22 The q u e s t i o n o f i n c l u d i n g ’’Food S e r v i c e s ” a s a m a j o r b u d g e t c l a s s i f i c a t i o n was i n c l u d e d i n t h e c o u n t y 23 q u e stio n n a ire . T h i r t y - t h r e e c o u n ty s u p e r in te n d e n ts o f s c h o o l s b e l i e v e d i t t o be d e s i r a b l e a n d n i n e d i d n o t .
2^ I b i d . ,
Item 42;
*^I n f r a , A p p e n d ix B, p . 2 7 5 , I t e m 9 . ^ ^ I n f r a , A p p e n d ix A, p . 2 7 0 , I t e m 4 3 .
175 S e v e n g a v e no r e p l y .
A r a t i o o f a l m o s t 3*5 t o one i s
e v id e n c e t h a t th e c o u n ty s u p e r i n te n d e n t s o f s c h o o ls f e e l a n e e d f o r t h i s a d d i t i o n t o t h e b u d g e t fo rm . C i t y s u p e r i n t e n d e n t s o f s c h o o l s w ere a s k e d t h e same q u e s t i o n .
24
T h i r t y w e re i n f a v o r o f a d d i n g f1Food
S e r v i c e s 11 a s a s e p a r a t e c l a s s i f i c a t i o n a n d f o u r t e e n w ere opposed.
The r a t i o was f o u n d t o b e two t o one i n f a v o r
o f th e p r o p o s a l. Budget t r a n s f e r s .
A f te r th e budget h as been
a d o p t e d , f u n d s may be t r a n s f e r r e d fro m one m a j o r c l a s s i f i c a t i o n to a n o th e r o n ly upon f i l i n g a w r i t t e n r e s o l u t i o n by th e g o v e rn in g b o a rd o f th e sc h o o l d i s t r i c t w i t h t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s .
In th e case
o f d i s t r i c t s n o t g o v e r n e d by a b o a r d o f e d u c a t i o n , t h e a p p r o v a l o f t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s m u st be o b ta in e d .
A u t h o r i t y f o r m ak in g t r a n s f e r s i s f o u n d
i n S e c t i o n 6308 o f t h e E d u c a t i o n Code w h ic h r e a d s i n p a r t as fo llo w s: 6 3 0 8 . . . . T r a n s f e r s may be made f ro m t h e u n d i s t r ib u t e d r e s e r v e to any e x p e n d itu re c l a s s i f i c a t i o n o r b e tw e e n e x p e n d i t u r e c l a s s i f i c a t i o n s a t an y t im e b y w r i t t e n r e s o l u t i o n o f t h e b o a r d o f e d u c a tio n o f any sc h o o l d i s t r i c t go v ern ed by a b o a r d o f e d u c a t i o n , when f i l e d w i t h t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s a n d t h e c o u n ty a u d i t o r ,
I n f r a , Appendix B, p . 2 7 5 , Item 1 0 .
174 o r by w r itte n r e s o lu tio n of th e b o ard of t r u s t e e s of any sc h o o l d i s t r i c t n o t g o v ern ed by a b o a rd o f e d u c a t i o n , when a p p r o v e d b y t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o ls and f i l e d w ith th e c o u n ty a u d i t o r . . . . The q u e s t i o n was a s k e d w h e t h e r t h e c o u n ty c o n s i s t e n t l y o b t a i n e d p r o p e r a u t h o r i z a t i o n by b o a r d r e s o l u t i o n t o make t r a n s f e r s f ro m one b u d g e t c l a s s i f i c a t i o n to a n o th e r.* ^
T h ir ty - s e v e n r e p l i e d t h a t such r e s o l u ti o n s
w ere r e q u i r e d a n d t e n r e p l i e d t h e y w e re n o t . answ er.
Two g a v e no
The la w i s s p e c i f i c i n t h i s r e q u i r e m e n t and t h e
f a c t t h a t 2 0 . 4 8 p e r c e n t o f t h e c o u n t i e s do n o t c o n s i s t e n t l y f o l l o w t h e la w i s e v i d e n c e t h a t t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s i s a d m i n i s t e r i n g t h e b u d g e t la w i n a m a n n e r w h ic h i s s u b j e c t t o c o n s i d e r a b l e q u e s t i o n .
P erso n al
i n t e r v i e w s r e v e a l e d t h a t some c o u n t y s u p e r i n t e n d e n t s o f sc h o o ls r e q u ir e d a s in g le r e s o l u t i o n to co v er s e v e r a l o v e rd ra fts .
I t w o uld a p p e a r t h a t t h e c o u n t y s u p e r i n t e n d e n t
o f s c h o o l s who c o n s i s t e n t l y p e r m i t s o v e r d r a f t s may be s u b j e c t t o c r i t i c i s m on t h e p a r t o f t h e a g e n c y w h ic h f u r n i s h e s h i s o f f i c i a l b o n d , a s t h e la w i n b o t h S e c t i o n s 6308 a n d 6107 o f t h e E d u c a t i o n Code p r o h i b i t a p p r o v a l o f a n y e x p e n d i t u r e b e y o n d t h e b u d g e t c l a s s i f i c a t i o n a m o u n t. The la w d o e s n o t r e q u i r e t h a t a copy o f t h e a p p r o v e d t r a n s f e r be r e t u r n e d t o t h e d i s t r i c t .
In re p ly
t o t h e q u e s t i o n o f w h e t h e r a co p y o f e a c h a p p r o v e d t r a n s f e r ^ I n f r a , Appendix A, p . 2 6 8 , Item 3 7 .
175 i s fu r n is h e d th e d i s t r i c t ,
t h i r t y - t h r e e c o u n ty
s u p e rin te n d e n ts of sc h o o ls re p o rte d in th e a ffirm a tiv e * F o u rte e n r e p l i e d in th e n e g a tiv e *
26
I t i s -not c l e a r how
t h e d i s t r i c t w ould know w h e t h e r i t s r e s o l u t i o n : h a d b e e n a p p r o v e d u n l e s s n o t i f i c a t i o n w e re made*
The la w d o e s n o t
r e q u i r e t h a t a u n i f o r m n o t i c e be f u r n i s h e d t h e d i s t r i c t f o r e a c h t r a n s f e r w h ic h h a s b e e n a p p ro v e d *
T h i s w ould
be a p p l i c a b l e o n l y f o r d i s t r i c t s w i t h o u t b o a r d s o f e d u c a tio n . The la w m akes a f u r t h e r p r o v i s i o n i n S e c t i o n 6 3 0 8 .1 o f t h e E d u c a t i o n Code t h a t : 6 3 0 8 .1 A t t h e c l o s e o f a n y s c h o o l y e a r t h e c o u n t y s u p e r i n t e n d e n t o f - s c h o o l s , may w i t h t h e c o n se n t o f th e g o v e rn in g b o a rd o f a s c h o o l d i s t r i c t p r e v i o u s l y g i v e n , make s u c h t r a n s f e r s b e tw e e n t h e u n d i s t r i b u t e d r e s e r v e and any e x p e n d itu r e c l a s s i f i c a t i o n o r c l a s s i f i c a t i o n s o r b a la n c e any e x p e n d itu re c l a s s i f i c a t i o n s o f th e b u dget o f th e d i s t r i c t f o r such sch o o l y e a r as a re n e c e s s a ry to p e r m i t th e p a y m e n t o f o b l i g a t i o n s o f t h e d i s t r i c t in c u r r e d d u rin g su ch school y e a r . What c o n s t i t u t e s 11t h e c l o s e o f a n y s c h o o l y e a r u i s not c le a r.
The m e a n in g c o u l d be one t h i n g t o one p e r s o n
a n d s o m e th i n g d i f f e r e n t t o a n o t h e r .
I t is b e lie v e d th a t
t h i s s e c t i o n s h o u l d b e am ended t o s p e c i f y a d e f i n i t e tim e f o r t h e t e r m lfc l o s e o f t h e y e a r ’1 a n d t h a t s u c h c o n s e n t g i v e n by t h e g o v e r n i n g b o a r d s h o u l d be r e q u i r e d i n w r i t i n g *
P6
I b i d . , Item 38
176 R e p l i e s fr o m c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s on t h e i r i n t e r p r e t a t i o n o f " c l o s e o f a n y s c h o o l y e a r rt r e s u l t e d i n a v a r i e t y o f a n s w e r s , r a n g i n g fro m t h e f i r s t day o f May 27 t o t h e m o n th o f A u g u s t , I t i s b e lie v e d such c o n fu sio n e x is ts th a t i t
i s m o s t d i f f i c u l t t o a d m i n i s t e r t h e la w
w ith any d eg ree o f re a s o n a b le u n i f o r m i t y . Summary *
The c o u n t y s u p e r i n t e n d e n t o f s c h o o l s i s
r e q u i r e d t o f u r n i s h t o a l l s c h o o l d i s t r i c t s b u d g e t fo rm s p r e s c r i b e d by t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n . The t e n t a t i v e b u d g e t m u st be f i l e d w i t h t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s on o r b e f o r e J u l y f i r s t .
The
d i s t r i c t i s r e q u i r e d t o s u p p l y e s t i m a t e s o f incom e o t h e r t h a n t a x e s on p r o p e r t y a n d t h e p r o p o s e d e x p e n d i t u r e s . The c o u n t y s u p e r i n t e n d e n t o f s c h o o l s m u st f u r n i s h t h e b e g in n in g b a la n c e and e x p e n d itu r e s f o r th e p r e v io u s y e a r . I t was f o u n d t h a t t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o ls gave g r e a t e r a s s i s t a n c e to s c h o o ls w ith l e s s th a n s e v e n t e a c h e r s t h a n t o t h o s e w i t h e i g h t o r m ore t e a c h e r s . F o rty -o n e c o u n ty s u p e r in te n d e n ts o f sc h o o ls r e p o r t e d th e y p r e p a r e d b u d g e t s f o r s m a ll s c h o o l s .
W h ile m o st c o u n ty
s u p e r in te n d e n ts o f sc h o o ls s t a t e d th e y p re p a re d d i s t r i c t b u d g e t s , t h e y w e re o p p o s e d t o a m a n d a to r y r e q u i r e m e n t
91
I b id .,
Item 3 6 .
177 t h a t t h e y m u st do t h i s .
T hey p r e f e r r e d t o c o n t i n u e t o do
so on a p e r m i s s i v e b a s i s . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s s t a t e d t h e y d i d n o t e x p e r i e n c e a n y f e e l i n g o f r e s e n t m e n t f ro m d i s t r i c t s on a c c o u n t o f a s s i s t a n c e r e n d e r e d .
On t h e c o n t r a r y , a
m a j o r i t y e x p r e s s e d t h e o p i n i o n t h a t t h e d i s t r i c t s w o u ld welcom e m ore h e l p . I t was f o u n d t h a t 4 0 . 8 p e r c e n t o f t h e c o u n t y s u p e r in te n d e n ts o f sc h o o ls r e q u ir e d a r e d u c tio n o f th e d i s t r i c t b u d g e t t o m e e t e x p e c t e d in c o m e , a n d 4 6 . 9 p e r c e n t recom m ended a r e d u c t i o n .
T h is v i r t u a l l y f o r c e d a r e d u c t i o n
o f incom e i n many i n s t a n c e s .
T h is i s c o n t r a r y t o t h e
p r o v is io n s o f th e C o n s titu tio n o f th e S ta te o f C a li f o r n ia . F iv e c o u n tie s changed th e s p e c i a l a c c u m u la tiv e b u i l d i n g f u n d t r a n s f e r when d i s t r i c t f u n d s w ere s h o r t o f m e e tin g th e f u l l b u d g et r e q u ir e m e n ts . C u r r e n t l i a b i l i t i e s w ere f o u n d t o b e l i s t e d w i t h o u t c o m p l e t e i d e n t i f i c a t i o n i n many c o u n t i e s .
I t was f o u n d
t h a t t h e c o u n t y s u p e r i n t e n d e n t o f s c h o o l s was c o m p ly in g w i t h t h e la w by l i s t i n g e x p e n d i t u r e s f o r t h e p r e v i o u s y e a r on t h e d i s t r i c t b u d g e t s , b y a r a t i o o f e l e v e n t o o n e . Seven c o u n ty s u p e r i n te n d e n t s o f s c h o o ls o u t o f a t o t a l o f f o r t y - e i g h t re sp o n d in g s t a t e d th e y d id n o t check t h e e x p e n d i t u r e s l i s t e d on t h e b u d g e t w i t h t h e i r a n n u a l re p o rt.
178 The m o st common p r o c e d u r e u s e d t o m e e t a b u d g e t s h o r t a g e was t o e l i m i n a t e o r r e d u c e t h e u n d i s t r i b u t e d reserve*
One o r m ore c l a s s i f i c a t i o n s w ere s e c o n d i n
i m p o r t a n c e . . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w ere i n f a v o r o f e l i m i n a t i n g MF i x e d C h a r g e s 11 a n d p r o r a t i n g in s u r a n c e and r e t i r e m e n t to o t h e r c l a s s i f i c a t i o n s . C i t y s u p e r i n t e n d e n t s o f s c h o o l s w ere e q u a l l y d i v i d e d on t h e s u b j e c t .
B oth c i t y a n d c o u n t y '
s u p e r i n t e n d e n t s o f s c h o o l s w ere i n f a v o r o f e s t a b l i s h i n g a c l a s s i f i c a t i o n f o r ,fFood S e r v i c e s . ” T h ir ty - s e v e n c o u n ty s u p e r i n te n d e n t s o f sc h o o ls r e p o r t e d t h e y r e q u i r e d r e s o l u t i o n s i n o r d e r to make a b u d g e t t r a n s f e r a n d t e n s t a t e d r e s o l u t i o n s w ere n o t re q u ire d .
Much c o n f u s i o n was f o u n d t o e x i s t r e g a r d i n g
w h a t was m e a n t b y nc l o s e o f t h e y e a r ” t r a n s f e r s .
CHAPTER VIII
PROPOSALS FOR REVISION OF BUDGET ACT E x p e n d i t u r e s p r i o r to b u d g e t a d o p t i o n ,
School
d i s t r i c t s a re r e q u i r e d to expend a l a r g e p e r c e n t o f th e a n n u a l b u d g e t s e v e r a l m o n th s b e f o r e I t s f i n a l a d o p t i o n . In f a c t ,
t h e la w w h ic h r e q u i r e s t h a t t e a c h e r s s h a l l be
em p lo y ed u n l e s s n o t i f i e d t o t h e c o n t r a r y on t h e f i f t e e n t h da y o f May, o b l i g a t e s a t l e a s t 60 t o 65 p e r c e n t o f t h e b u d g e t s i x w eeks b e f o r e t h e t e n t a t i v e b u d g e t i s r e q u i r e d to be f i l e d .
O t h e r com m itm ents s u c h a s r e p a i r s t o
b u i l d i n g s a n d e q u ip m e n t d u r i n g t h e summer, a n d o r d e r s f o r s c h o o l a n d o p e r a t i o n a l s u p p l i e s may w e l l b r i n g t h e t o t a l e x p e n d i t u r e com m itm ents t o a s h i g h a s 90 p e r . c e n t o f t h e p r o p o s e d b u d g e t , when i n e f f e c t t h e r e i s no b u d g e t o r a n y c e r t a i n t y r e g a r d i n g t h e incom e f o r t h e y e a r . A c t u a l e x p e n d i t u r e o f f u n d s f o r p e r s o n n e l and o t h e r n e e d s d u r i n g J u l y and A u g u s t a r e made w i t h o u t a n y a u t h o r i z a t i o n f o r fu n d s as i s r e q u ir e d by f i n a l a d o p tio n o f t h e d i s t r i c t b u d g e t d u r i n g t h e f i r s t week o f A u g u s t , Budget p r e p a r a t i o n .
T h is p r o b l e m was t h e b a s i s o f
s e v e r a l q u e s t io n s p r e s e n t e d to th e c o u n ty s u p e r i n te n d e n t s o f s c h o o l s f o r t h e i r r e a c t i o n and ju d g m e n t, s i n c e t h e y m u st assum e a l a r g e s h a r e o f t h e a d m i n i s t r a t i v e p r o b le m s
18 0 o f b u d g e tin g and f i n a n c e f o r t h e d i s t r i c t s * The f o l l o w i n g two s t a t e m e n t s w e re i n c l u d e d i n t h e q u e s t i o n n a i r e to c o u n ty s u p e r i n te n d e n t s o f s c h o o ls : T h e re a r e two s c h o o l s o f t h o u g h t r e g a r d i n g t h e p r e p a r a tio n o f b u d g e ts : I. One i s , t h e n e e d s o f t h e p r o g r a m a r e f i r s t d e te rm in e d and th e fu n d s a r e p r o v id e d to m eet th e needs. T h is w ould r e q u i r e t h a t t h e r e be no t a x lim its . T h is a ssu m e s t h a t t h e G o v e r n in g B o a rd o f t h e d i s t r i c t w o u ld be f u l l y r e s p o n s i b l e t o t h e p e o p le . I f t h e p e o p l e w ould n o t go f o r t h e t a x r a t e t o m e e t t h e n e e d s , t h i s f a c t w o u ld g o v e r n t h e a c t i o n o f th e b o ard . The b o a r d w o u ld b e p l a c e d i n t h e p o s itio n o f g r e a te r r e s p o n s i b i li t y to th e p e o p le . I t a l s o a ssu m e s t h a t t h e p e o p l e w o u l d . i n many c a s e s w elcom e a b e t t e r e d u c a t i o n a l p r o g r a m e v e n t h o u g h I t w o u ld c o s t more m oney. II. The o t h e r m e th o d i s t o p r e p a r e t h e b u d g e t so a s t o k e e p w i t h i n t a x l i m i t a t i o n s , w o r k in g w i t h i n a g i v e n am ount o f f u n d s - i n o t h e r w o rd s - g e a r t h e e d u c a t i o n a l p r o g r a m t o a f i x e d am ount o f in c o m e . a. To w h i c h d o e s t h e c o u n t y s u b s c r i b e a s a n a c c e p ta b le p ro ced u re? b.
?tfhich t e n d s t o b e t h e p r a c t i c e a t p r e s e n t ?
The f o l l o w i n g r e p l i e s w e re r e c e i v e d i n a n s w e r t o wa w a n d nb M. a b o v e : a.
I - 26;
I I - 15;
R a tio o f 1 .7 6 t o 1 .
b.
I -
I I - 41;
R a tio o f 1 to 1 3 .6 6 .
3;
The nu m b er o f c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s who s u b s c r i b e d t o s t a t e m e n t I I a s a n a c c e p t a b l e p r o c e d u r e i s e v i d e n c e t h a t t h e y w e re n o t f u l l y a w are o f t h e p u r p o s e s
^ I n f r a , Mpp e n d ix A, p . 2 6 7 , Item 3 1 .
181 o f d e s ira b le budget procedure.
Some s u p e r i n t e n d e n t s
e x p r e s s e d o p p o s i t i o n t o t h e re m o v a l o f t a x l i m i t s , p o s s i b l y n o t so much f r o m t h e i r own p e r s o n a l p o i n t o f v ie w , b u t fr o m t h e i r k n o w le d g e o f t h e r e a c t i o n w h ic h t h e y f e l t w o u ld come fro m t h e p e o p l e w i t h i n t h e i r c o u n t i e s . The same q u e s t i o n was a s k e d c i t y s u p e r i n t e n d e n t s Q o f s c h o o l s a n d t h e i r r e s p o n s e was a s . f o l l o w s : a.
I
- 29; I I - .1 7 ;
R a tio o f 1 .7 0 to 1 .
b.
I
-
R a tio o f 1 to 4 .1 1 .
9;
I I - 37;
The r e p l i e s f r o m t h e c i t y s u p e r i n t e n d e n t s o f s c h o o l s w e re s i m i l a r
t o t h e r e p l i e s fr o m c o u n t y s u p e r i n t e n d e n t s
of
sc h o o ls, b u t
w i t h a much l o w e r r a t i o i n b o t h na n . a n d ftb.M
S ta te m e n t I p re s e n ts , th e . p h ilo s o p h y t h a t i n budget p r e p a r a t i o n , w h eth er f o r a .s c h o o l d i s t r i c t o r any o th e r e n t e r p r i s e , th e r e a l n eed s o f th e p ro g ra m .sh o u ld f i r s t be d e te rm in e d .
A f t e r t h i s h a s b e e n d o n e , t h o s e i n whom
a u t h o r i t y a n d r e s p o n s i b i l i t y . r e s t s s h o u l d d e t e r m i n e ways and m eans t o m e e t t h e n e e d .
T h i s w o u ld n o t p r e s u p p o s e t h a t
t h e g o v e r n i n g b o a r d w o uld a c t w i t h o u t g i v i n g , d ue c o n s i d e r a t i o n to th e a b i l i t y o f th e d i s t r i c t to r a i s e fu n d s , and be r e s p o n s i b l e f o r a ta x b u rd en w h ic h ,th e p e o p le c o u ld and w ould s u p p o r t .
I n f r a , A ppendix B, p . 2 7 3 , Ite m 3 .
182 T h is p r o p o s a l , w o u l d . p l a c e t h e r e s p o n s i b i l i t y s q u a r e l y b e f o r e a n d u p o n t h e b o a r d ..a n d i f t h e p e o p l e w o u ld n o t s u p p o r t th e. b o a r d t h e r e s h o u l d b e a n o p p o r t u n i t y f o r p ro p e r e x p re ss io n o f th e fa c t*
The. law . a t t h e p r e s e n t
t im e f i x e s t h e m ax im um .tax r a t e a n d t h i s , g o v e r n s t h e a b i l i t y o f th e b o ard to p ro v id e an a c c e p ta b le e d u c a tio n a l program .
T h e re i s n o l o g i c a l r e a s o n why t h e d e c i s i o n f o r
d e t e r m i n i n g t h e s u p p o r t f o r t h e . s c h o o l s , f o r w h ic h t h e b o ard i s r e s p o n s ib le .s h o u ld n o t be th e r e s p o n s i b i l i t y o f th e b o a rd . The m e th o d now u s e d , o f n e c e s s i t y , g i v e s und ue e m p h a s is a n d a t t e n t i o n . t o
t h e a s s e s s e d . v a l u a t i o n , w h ic h
i n many c a s e s i s . n o t a v a i l a b l e t o e i t h e r t h e c o u n t y s u p e r in te n d e n t o f s c h o o ls o r th e sch o o l, d i s t r i c t u n t i l a f t e r th e ta x r a t e
i s f i x e d by th e c o u n ty b o a rd o f
su p e rv iso rs. A ssessed v a lu a tio n s .
In r e p ly to th e q u e s tio n to
c o u n ty s u p e r in te n d e n ts o f s c h o o ls a s k in g th e d a te a s s e s s e d v a l u a t i o n s , a r e made a v a i l a b l e t o s c h o o l d istric ts,
t h e f o l l o w i n g r e p l i e s w e re r e c e i v e d fr o m c i t y
and c o u n ty s u p e r in te n d e n ts o f s c h o o l s : 3
3 I n f r a , Appendix A, p . 2 6 8 , Ite m 32; A ppendix B, p . 2 7 4 , Item 5 .
183 R e c e ip t o f v a lu a tio n in fo rm a tio n by:
C i t y C o u n ty S u p ts . S u p ts.
On o r b e f o r e J u l y 1 5 . A f t e r J u l y 15 a n d b e f o r e
A ugust 1 5 .
On o r a f t e r A u g u s t 1 5 .
20
21
16
7
11
18
Of t h e c i t y s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t i n g , 2 3 . 4 p e r c e n t d i d n o t know t h e i r v a l u a t i o n s u n t i l a f t e r b u d g e t s w e re a d o p t e d .
Of t h e f o r t y - s i x c o u n t y
s u p e r i n t e n d e n t s o f s c h o o l s r e p l y i n g , e i g h t e e n o r 3 9 .1 p e r c e n t , r e p o r t e d t h a t a s s e s s e d v a l u a t i o n s w e re unknown u n t i l a f t e r A u g u s t 1 5 , a n d t h e y w ere o p e r a t i n g , i n t h e d a r k a s f a r a s incom e was c o n c e r n e d .
D i s t r i c t s in th e s e c o u n tie s
w e re r e q u i r e d t o p l a n , make com m itm en ts by c o n t r a c t a n d make a c t u a l e x p e n d i t u r e s m o n th s b e f o r e . t h e y knew w h e t h e r t h e y w o u ld h a v e f u n d s t o m e e t t h e i r o b l i g a t i o n s .
The
o n l y a l t e r n a t i v e w o u ld be t o l i m i t t h e e d u c a t i o n p ro g r a m to a " s a f e " m arg in . The e i g h t e e n c o u n t i e s r e p r e s e n t e d 561 s e p a r a t e s c h o o l d i s t r i c t s w h ic h w ere r e q u i r e d t o o p e r a t e f o r a t l e a s t f o u r m o n th s w i t h o u t k n o w le d g e o f w h a t t h e i r incom e w o u ld be a n d w h a t i s s t i l l m ore t r a g i c , , w e l l up t o 90 p e r c e n t o f t h e t o t a l " e x p e c t e d o r h o p e d f o r " incom e was a l r e a d y c o m m itte d o r o b l i g a t e d . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w e re a s k e d i f t h e r e w a s . a t e n d e n c y on t h e p a r t o f t h e a s s e s s i n g
184 o f f i c i a l s n o t to r e le a s e v a lu a tio n s o r in fo rm a tio n as to w h e t h e r t h e r e was t o b e a c h a n g e , p a r t i c u l a r l y a n i n c r e a s e , to c o u n ty s u p e r i n te n d e n t s o f s c h o o ls o r d i s t r i c t s u n t i l a f t e r th e a d o p tio n o f th e b u d g e t.
4
To t h i s q u e s t i o n t w e n t y - t h r e e r e p l i e d i n t h e a f f i r m a t i v e and tw e n ty - f i v e i n th e n e g a t i v e .
Of t h e
e i g h t e e n who. s t a t e d t h a t v a l u a t i o n s w e re unknown u n t i l a f t e r A u g u s t 1 5 , e i g h t . s t a t e d t h e y b e l i e v e d t h e r e was a te n d e n cy f o r a s s e s s i n g o f f i c i a l s , to w ith h o ld in f o r m a tio n r e l a t i v e t o v a l u a t i o n s u n t i l , a f t e r t h e b u d g e t s w e re a d o p t e d . One c i t y s u p e r i n t e n d e n t o f s c h o o l s s t a t e d t h a t a s s e s s e d v a l u a t i o n s , ^ a r e a s e c r e t , we n e v e r g e t t h e m . 11 The p r e s e n t p r o c e d u r e t e n d s t o o p e r a t e t o . g u a r a n t e e a maximum t a x r a t e by k e e p i n g t h e b u d g e t h i g h e n o u g h t o be c e r t a i n th a t_ a n y in c re a s e in v a lu a tio n w i l l s t i l l r e q u i r e t h e maximum t a x r a t e .
T h is p ro c e d u re c o m p le te ly
n u l l i f i e s any re a s o n a b le b u d g et p r e p a r a t i o n o r a d m in is tr a tio n .
I t t e n d s t o g i v e t r u t h t o t h o d e f i n i t i o n so m e tim e s
g i v e n t o s c h o o l d i s t r i c t b u d g e t s : f,A s c h o o l b u d g e t i s a c o m p ila tio n o f f i g u r e s d e sig n ed and a rra n g e d to g u a ra n te e a maximum t a x r a t e . ” Good b u d g e t p r o c e d u r e .
Good b u d g e t, p r o c e d u r e w o u ld
c o m p l e t e l y d i v o r c e a s s e s s e d v a l u a t i o n s fro m t h e n e e d s .
^ I n f r a , A ppendix A, p* 2 6 8 , Item 3 3 .
185 E m p h a s is f a r b e y o n d t h e a t t e n t i o n i t d e s e r v e s i s o f t e n g iv e n to th e ta x r a t e .
The t a x r a t e i s n o t b a s i c .
b a s i c i t e m i s t h e am ount o f money t o be r a i s e d .
The
The
a s s e s s e d v a lu a ti o n , i n , r e a l i t y h a s no r e l a t i o n s h i p to a c tu a l needs.
I t . is . o n l y a n e x p r e s s i o n . o f a n e q u i t a b l e
c o m p a ra tiv e r a t i n g o f p r o p e r t y f o r p u rp o s e s o f v a lu e s , on th e a ssu m p tio n t h a t e ach d o l l a r o f v a lu e s h o u ld s u p p o rt its
j u s t sh a re o f fu n d s to m eet th e n e e d s .
The t a x r a t e
i s sim p ly a r a t i o o f th e n eed to th e v a lu e o f p r o p e r t y , and i t can v a ry w ith o u t a f f e c t i n g e i t h e r th e p r o p e r ty v a lu e o r n e e d .
The g o v e r n i n g b o a r d o f a s c h o o l d i s t r i c t
a n d t h e l o c a l c o u n t y a s s e s s o r b o t h c a n b e t h e " w h ip p in g b o y s " f o r t h e t a x r a t e , a s i t u a t i o n w h ic h i s i l l o g i c a l . E l i m i n a t i o n o f maximum t a x r a t e s w ould g i v e t h e g r e a te s t a s s is ta n c e in th e p r e p a r a tio n o f a r e a l i s t i c s c h o o l d i s t r i c t b u d g e t w h ic h w o uld h a v e t o s t a n d on i t s own m e r i t s . I n r e p l y t o w h e t h e r t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w o u ld l i k e t o h a v e v a l u a t i o n s , a t, a n e a r l i e r d a t e t h a n now s u p p l i e d , t h i r t y - s i x
s t a t e d t h e y b e l i e v e d t h e la w
s h o u l d b e amended t o r e q u i r e t h a t a s s e s s e d v a l u a t i o n s be made a v a i l a b l e t o s c h o o l d i s t r i c t o f f i c i a l s o n t h e f i r s t day o f Ju n e.
5
E l e v e n s t a t e d t h e y w o u ld s e t t h e d a t e a s
5 I b i d . , Ite m 3 4 .
186 t h e f i f t e e n t h d a y o f J u l y a n d one s t a t e d t h a t no m a n d a to r y d a te s h o u ld be f i x e d by la w .
I t i s e v id e n t t h a t th e
p resen t s itu a tio n is u n sa tis fa c to ry . Change i n a v e r a g e d a i l y a t t e n d a n c e r e p o r t i n g y e a r . A p r o p o s a l d i r e c t e d to c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls s u g g e s te d a c o m p lete c h a n g e -in th e a v e ra g e d a i l y a tte n d a n c e y e a r w h ic h w o u ld r e q u i r e a s s e s s m e n t s t o b e made a v a i l a b l e b y t h e f i r s t d a y o f May.
T h e , p r o p o s a l a s k e d i f i t w ou ld
b e d e s i r a b l e t o s p e e d up t h e a s s e s s m e n t d a t e so t h e d i s t r i c t v a l u a t i o n w o u ld b e known on May f i r s t a n d change th e av erage d a ily a tte n d a n c e r e p o r tin g y e a r fro m .J u ly f i r s t J u n e t h i r t i e t h t o J a n u a r y f i r s t - D ecem ber t h i r t y - f i r s t so t h e s t a t e in c o m e , a v e r a g e d a i l y a t t e n d a n c e , e x c e s s c o s t s , t r a n s p o r t a t i o n , e t c . , w ou ld b e a v a i l a b l e , t o t h e d i s t r i c t o n o r b e f o r e May f i r s t .
The t o t a l incom e w ou ld b e known
b e f o r e t h e d i s t r i c t com m its i t s e l f f o r e x p e n d i t u r e o b lig a tio n s .
T h is p r o c e d u r e w ould make i t p o s s i b l e t o
h o ld s p e c i a l e l e c t i o n s to e x ce ed th e tax . l i m i t a t i o n to m eet b u d g e t n eed s p r i o r to f i n a l b u d g e t a d o p tio n i n A u g u st. To t h i s q u e s t i o n t h i r t y - s i x c o u n t y s u p e r i n t e n d e n t s o f s c h o o ls r e p l i e d i n th e a f f i r m a t i v e and tw e lv e i n th e
6 I b i d . , Item 3 0 .
187 n e g a tiv e *
W h ile no g e n e r a l s t a t e m e n t c a n b e m ade,
i t was n o t e d t h a t among t h e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s w h o - .r e p l i e d i n t h e n e g a t i v e , many h a v e h a d r a t h e r l i m i t e d c o n ta c t w ith th e f i n a n c i a l a d m i n i s t r a t i o n o f sc h o o ls* The same q u e s t i o n was a s k e d t h e c i t y s u p e r i n t e n d e n t s o f sc h o o ls.
7
Of t h e f o r t y - e i g h t who r e p l i e d , f o r t y - t w o
f a v o r e d t h e p r o p o s a l a n d s i x w ere o p p o s e d t o i t .
The
r a t i o o f My e s w t o wn o w f o r t h e c i t y s u p e r i n t e n d e n t s o f s c h o o l s was s e v e n t o one a s c o m p a red t o t h r e e t o o n e f o r th e c o u n ty s u p e r i n te n d e n t s o f s c h o o l s . Proposed b u d g et p ro c e d u re .
A f u r th e r p ro p o sa l,
som ewhat s i m i l a r t o t h a t c o n t a i n e d i n t h e i t e m a b o v e a n d Q c o n t a i n i n g some o f t h e f e a t u r e s o f s t a t e m e n t I i n I t e m 3 1 , ° 9 was l i k e w i s e s u g g e s t e d . T h is p r o p o s a l a s k e d i f i t w o u ld be d e s ir a b le to g iv e g r e a t e r a t t e n t i o n to th e p r e p a r a tio n o f t h e p r e l i m i n a r y b u d g e t , a c c o m p a n i e d .b y a p u b l i c h e a r i n g o r a d v e r t i s e d m e e t i n g t o b e h e l d on o r b e f o r e May f i r s t . F o llo w in g t h i s m e e tin g , t h e b o a rd c o u ld c a l l a s p e c i a l t a x e l e c t i o n to p r e s e n t th e needs to th e p e o p le i f th e
7 I n f r a , A p p e n d ix B, p . 2 7 4 , I t e m 4 . 8S upra, p . 180. ^ I n f r a , A p p e n d ix A, p . 2 6 8 , I t e m 3 5 .
18 8 n e e d s e x c e e d t h e e s t i m a t e d in c o m e .
The J u l y f i f t e e n t h -
t w e n t i e t h m e e t i n g w o u ld b e e l i m i n a t e d a n d n e c e s s a r y c h a n g e s i n incom e a n d p r o p o s e d e x p e n d i t u r e s w o uld b e made t h r o u g h c o n f e r e n c e s , e t c . , b e tw e e n c o u n t y a n d d istric t.
The f i n a l b u d g e t w o u ld b e a d o p t e d i n A u g u s t
a s now p r o v i d e d b y l a w . T h i r t y - n i n e c o u n t y s u p e r i n t e n d e n t s o f s c h o o l s w e re in f a v o r o f t h i s s u g g e s tio n and seven w e re -n o t. w e re t h r e e who gave no r e p l y .
T here
Of t h e s e v e n who r e p l i e d
i n t h e n e g a t i v e , f o u r a l s o w e re n o t i n f a v o r o f e l i m i n a t i n g t h e maximum t a x r a t e s .
O nly two who r e p l i e d
tfn o ff a l s o r e p l i e d t h e same f o r p a r t !,a n o f I t e m 3 1 . ^
It
i s s i g n i f i c a n t t h a t o n l y one c o u n t y s u p e r i n t e n d e n t o f s c h o o l s was o p p o s e d t o a l l t h r e e p r o p o s a l s . C ity s u p e rin te n d e n ts o f sc h o o ls r e p lie d t h i r t y tw o i n f a v o r a n d t w e l v e a g a i n s t t h e same p r o p o s a l w h ic h w o u ld e l i m i n a t e t h e . J u l y m e e tin g .^ - 1
The r a t i o o f My e s ff t o
" n o ” was 2 . 6 6 t o 1 f o r c i t y s u p e r i n t e n d e n t s o f s c h o o l s and 5 .5 9 to 1 f o r c o u n ty s u p e r in te n d e n ts , o f s c h o o ls . I n p e r s o n a l i n t e r v i e w s i t . was f o u n d t h a t t h e r e was a f e a r o f re m o v in g t h e t a x l i m i t a t i o n , due l a r g e l y t o t h e ^ S upra, p . 180. I n f r a , Appendix B, p . 2 7 4 , Item 6 .
189 e x p e c te d r e a c t i o n o f c e r t a i n p r o p e r t y ow ners*
Some
r e a l l y b e l i e v e d t h a t a t a x l i m i t a t i o n w as a good t h i n g . H ow ever, t h e i n t e r v i e w s s u b s t a n t i a t e d t h e r e a c t i o n r e c e i v e d fro m t h e q u e s t i o n n a i r e s c o n c e r n i n g t h e d e s i r a b i l i t y , o f g iv in g g r e a t e r a t t e n t i o n to a p r e lim in a r y o r t e n t a t i v e b u d g e t w h ic h w o u ld be h e a r d , a t a n a d v e r t i s e d h e a r in g *
The tim e e le m e n t w o u ld p e r m i t t h e g o v e r n in g b o a r d
to c a l l an e le c t i o n to r a i s e th e ta x r a t e i f n e c e ssa ry * T h e re was a l s o a d e c i d e d r e a c t i o n b y . t h o s e i n t e r v i e w e d t o th e e lim in a tio n o f th e J u ly f i f t e e n t h - tw e n tie th m e e tin g *
P r a c t i c a l l y , e v e ry o n e , i n t e r v i e w e d , f e l t i t was
a w a s te o f tim e a n d e f f o r t a n d t h a t m ore a t t e n t i o n s h o u ld b e g i v e n t o t h e t e n t a t i v e b u d g e t p r o p o s a l* 4 s u m m a r iz a tio n o f t h e q u e s t i o n n a i r e r e a c t i o n s fro m t h e c o u n ty s u p e r i n t e n d e n t s , o f s c h o o l s r e v e a l e d th e fo llo w in g : I te m 3 0 , Ite m 3 1 , Ite m 3 5 ,
(C hange i n a v e r a g e d a il y a tte n d a n c e y e a r)
Xes - 3 6 ,
Ho - 1 2 .
(Ho t a x r a t e l i m i t a t i o n ) Xes - 2 6 ,
No - 1 5 .
( H e a r in g on May 1 , no J u l y m e e tin g )
Xes - 3 9 , No -
C i t y s u p e r i n t e n d e n t s o f s c h o o l s w e re a s k e d i f t h e y w o u ld f a v o r t h e
p r o c e d u r e s t a t e d i n Ite m 6
except th a t in
p la c e o f p ro v id in g a ta x r a t e , in c r e a s e .e le c t i o n , th e r e
7*
190 w o u ld b e no t a x l i m i t a t i o n . ^ ?
The f u l l r e s p o n s i b i l i t y o f
d e te r m i n i n g t h e am ount o f t h e b u d g e t w o u ld b e p l a c e d u p o n t h e g o v e r n in g b o a r d . Of t h e f o r t y - e i g h t who r e p l i e d , t h i r t y w ere i n f a v o r and e ig h te e n a g a in s t e lim in a tin g th e - ta x l im i ta t io n s a n d p l a c i n g t h e - f u l l r e s p o n s i b i l i t y - f o r .d e te r m in in g t h e am ount o f money n e c e s s a r y t o o p e r a t e t h e s c h o o ls u p o n t h e g o v e r n in g b o a r d o f t h e d i s t r i c t .
The r a t i o o f ny e s tr t o
”n o rl
w as 1 .6 6 t o 1 . In asm u ch a s t h e l a s t q u e s t i o n , d i f f e r e d fro m th e p r e c e d i n g q u e s t i o n o n ly i n t h e e l i m i n a t i o n o f t h e t a x l i m i t a t i o n , t h e r e p l i e s m u st b e c o n s t r u e d - t o r e f e r t o t h e e lim in a tio n o f th e ta x l i m i t a t i o n .
I t i s e v id e n t t h a t th e
c i t y s u p e r i n t e n d e n t s o f s c h o o l s , w h ile i n f a v o r o f c h a n g in g t h e p r e l i m i n a r y b u d g e t f i l i n g d a t e , w ere n o t e q u a l l y i n f a v o r o f e l i m i n a t i n g .th e t a x l i m i t a t i o n , a lt h o u g h t h e r a t i o o f 1 .6 6 t o 1 d o e s g iv e a r e a s o n a b l e m a rg in i n f a v o r o f e lim in a tin g su c h ta x l im i ta t io n . D u rin g t h e l a s t f i v e y e a r s , 541 d i s t r i c t s h a v e r a i s e d t h e i r t a x l i m i t b y v o te o f t h e p e o p l e . 1 ^ t h a t tim e v e r y few e l e c t i o n s f a i l e d . To
I b i d *, Ite m 7 .
13„
Su pra, p . 1 3 6 .
D u rin g
The. f a c t t h a t t h e
191 t h e g o v e r n in g b o a r d a n d c o u n ty s u p e r i n t e n d e n t o f s c h o o ls w e re r e q u i r e d t o p r e s e n t th e . n e e d s o f t h e d i s t r i c t to t h e p e o p le r e s u l t e d , i n a lm o s t e v e r y i n s t a n c e , . i n t h e , s u c c e s s f u l p a s s a g e o f t h e p r o p o s a l..
T h is i s e v id e n c e t h a t w hen t h e
p e o p le a re , p r o p e r l y in f o rm e d t h e y w i l l , i n v a r i a b l y , s u p p o r t th e e x p e n d itu re o f fu n d s f o r t h e i r s c h o o ls . At a r e c e n t c o n fe re n c e o f ,c i t y s u p e r in te n d e n ts o f s c h o o l s , a p p r o x i m a t e ly f i f t e e n s t a t e d t h e i r d i s t r i c t s w ere o p e r a tin g w ith a v o te d ta x and e a c h s u p e r in te n d e n t r e p o r te d he h ad e x p e rie n c e d l i t t l e e le c tio n .
o r no d i f f i c u l t y w i t h t h e
One c i t y s u p e r i n t e n d e n t o f s c h o o l s s t a t e d t h a t
w henever you t e l l th e ,p e o p le th e s t o r y o f th e n e ed s f o r e d u c a t i o n you w i l l a lw a y s s e c u r e t h e i r s u p p o r t . The p r o c e d u r e t o p l a c e t h e f u l l r e s p o n s i b i l i t y o f d e te r m i n i n g t h e s c h o o l d i s t r i c t b u d g e t u p o n t h e g o v e rn in g b o a r d w ould r e q u i r e t h e s c h o o l o f f i c i a l s t o k e e p th e c i t i z e n s w e l l in fo r m e d r e g a r d i n g t h e n e e d s , o f t h e s c h o o l s , an d w o u ld t e n d t o e n l i s t r e a l s u p p o r t .
P e o p le who a r e
w e l l a n d p r o p e r l y in fo rm e d w i l l i n v a r i a b l y g iv e t h e i r s u p p o r t t o t h e g o v e rn m e n t a n d i t s
f u n c t i o n s , ev en to th e
p o i n t o f a p p r o v in g t h e l e v y i n g o f t a x e s w h ic h t h e y w i l l have to p ay . B udget h e a r in g .
The c i t y s u p e r i n t e n d e n t s o f
s c h o o l s w ere r e q u e s t e d t o g i v e t h e num ber o f p e r s o n s who
192 a t t e n d e d t h e b u d g e t h e a r i n g s , h e l d i n A u g u s t o f e a c h y e a r* They w ere a s k e d t o g i v e t h e n u m b er o f p e r s o n s who a t t e n d e d t h e l a s t h e a r i n g h e l d i n A u g u st o f 1949 a n d t h e a v e r a g e 14 f o r th e p a s t f i v e y e ars* The f o l l o w i n g r e p l i e s w ere re c e iv e d : Number A tte n d in g
In 1949
0
A v e ra g e F o r F iv e Y e a rs
38
27
1 to
5
8
20
6 to
30
3
2
O v er
31
1
1
I n v e s t i g a t i o n r e v e a l e d t h a t many d i s t r i c t s g a v e little
o r no p u b l i c i t y to su ch h e a rin g s *
In f a c t , th e
b u d g e t i s e i t h e r s p e n t o r c o m m itte d up t o a b o u t 90 p e r c e n t , so l i t t l e
o r no o p p o r t u n i t y i s g i v e n t o make a n y
c h an g e e v e n i f i t i s d e s i r a b l e . to s u p p o r t t h e p r o p o s a l b e fo re e x p e n d itu re s
T h e re i s am p le r e a s o n
to havea h e a rin g
on t h e b u d g e t
a r e c o m m itte d . I t . i s . b e l i e v e d t h a t
m ore p u b l i c i t y s h o u ld b e g i v e n t o s u c h a h e a r i n g , n o t p r i m a r i l y to g e t p e o p le to a t t e n d f o r t h e p u r p o s e o f o p p o s in g e x p e n d i t u r e s , b u t f o r t h e p u r p o s e o f in f o r m in g th em r e g a r d i n g t h e i r s c h o o l s a n d t h e . n e e d f o r p r o p e r s u p p o r t* P r o p e r l y h a n d le d , t h i s p r o c e d u r e s h o u ld e n l i s t s u p p o r t* I t was a l s o f o u n d - t h a t i n some i n s t a n c e s t h e b u d g e t
I n f r a , A ppendix B» p . 2 7 5 , Item 1 1 .
193 h e a r i n g s a r e o f t e n s e t a t a tim e a n d p l a c e i n c o n v e n i e n t t o t h e p e o p le a n d t h e y c a n n o t b e p r e s e n t .
Such a p ro c e d u re
t e n d s to g e n e r a t e s u s p i c i o n a n d d i s t r u s t .
A sch o o l p ro p e rly
o p e r a t e d s h o u ld h a v e no h e s i t a n c y i n p e r m i t t i n g t h e p e o p le t o know a l l t h e f a c t s . I h i l e t h e e v id e n c e i s n o t c o n c l u s i v e , i t i s s u f f i c i e n t to
j u s t i f y th e s t a te m e n t t h a t a m a j o r i t y o f t h e
c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s , b y m ore t h a n f i v e t o o n e , f a v o r a c h an g e I n t h e b u d g e t a c t w h ic h w o u ld r e q u i r e a p u b l i c h e a r i n g on t h e t e n t a t i v e b u d g e t o n May f i r s t a n d t h a t t h i s b u d g e t be re a s o n a b ly r e a l i s t i c
i n e x p re s s in g th e
e d u c a t i o n a l n e e d s o f t h e d i s t r i c t a n d make p o s s i b l e th e s u p p ly in g o f t h e n e c e s s a r y t a x r a t e t o m e e t t h e n e e d s . H ow ever, I t w o u ld b e n e c e s s a r y t o h a v e k n o w le d g e o f t h e a s s e s s e d v a lu a tio n s by la y f i r s t i f th e ta x r a t e r e q u ir e d r a i s i n g i n o r d e r t o s u p p ly t h e n e e d e d f u n d s . The p r o c e d u r e w h ic h w o u ld b e s t f i t good b u d g e ta r y p r a c t i c e w o u ld b e t h e p r o p o s a l f o r t h e May f i r s t p u b l i c h e a r in g , e lim in a tin g th e J u ly m e e tin g s , w ith th e f u r t h e r p r o v i s i o n t h a t t h e r e s h o u ld b e no t a x l i m i t a t i o n .
T h is
w o u ld h a v e t h e f o l l o w i n g a d v a n t a g e s : 1.
The b u d g e t w o u ld be p r e p a r e d , c o n s i d e r e d by
t h e g o v e r n in g b o a r d a n d a d o p te d f o l l o w i n g a p u b l i c h e a r i n g p r i o r to o f f e r in g c o n tr a c ts to te a c h e r s o r o th e r e m p lo y e e s .
194 2.
The n e c e s s i t y o f h a v in g v a l u a t i o n s a t a n e a r l y
d a t e w o u ld be e l i m i n a t e d . 3.
R e a s o n a b le a d ju s tm e n t w o u ld b e p o s s i b l e i n
A u g u s t when t h e b u d g e t was f i n a l l y a d o p te d . 4.
The d i s t r i c t w o u ld h a v e a w e l l p r e p a r e d b u d g e t
p r o p o s a l u n d e r w h ic h t o o p e r a t e d u r i n g J u l y an d A u g u s t, p e n d in g f i n a l a d o p t i o n . 5.
The p r e s e n t J u l y m e e tin g w o u ld b e e l i m i n a t e d
a s i t w o u ld n o t p e rf o r m a n y w o r th w h ile f u n c t i o n . 6.
R eal b u d g et p r e p a r a tio n and f i n a n c ia l
a d m i n i s t r a t i o n w o u ld b e a c h i e v e d , w h ic h i s n o t p o s s i b l e u n d e r t h e p r e s e n t la w a n d p r a c t i c e . 7.
The e m p h a sis w ould b e p l a c e d u p o n t h e b u d g e ta r y
n e ed s o f th e d i s t r i c t r a t h e r th a n upon th e ta x r a t e . 8.
B e t t e r com m unity p a r t i c i p a t i o n w ould be
a c h i e v e d b y t h e p e o p le o f t h e d i s t r i c t i n f i n a n c i a l p l a n n i n g a t . a tim e when s u c h p a r t i c i p a t i o n w ould be e f f e c t i v e , r a t h e r t h a n a f t e r a l l com m itm ents h a v e b e e n made a n d t h e b u d g e t h a s b e e n i n o p e r a t i o n f o r a t l e a s t two m o n th s . 9.
The b u d g e t w o u ld b e a r e a l f i n a n c i a l p l a n
b u i l t u pon th e " e d u c a tio n a l n e ed s o f th e d i s t r i c t , a s p l a n n i n g w ould b e done p r i o r t o m ak in g a n y o b l i g a t i o n s . I t w o u ld b e a f i n a n c i a l g u id e f o r t h e d i s t r i c t r a t h e r t h a n a n i n s t r u m e n t t o f i x a t a x r a t e w h ic h w o u ld b e so
195 u n r e a l i s t i c a s to be w o rth le s s as a f i n a n c ia l p la n . 10.
t o o p p o r t u n i t y w o u ld b e a f f o r d e d f o r th e
p e o p le to s u g g e s t o r r e c o m m e n d .a d d itio n a l s e r v i c e s w h ic h t h e y d e s i r e a n d f o r w h ic h t h e y a r e w i l l i n g t o pay* 11.
The b o a r d a n d a d m i n i s t r a t o r w o u ld h a v e a n
a n n u a l a p p r a is a l by th e p u b lic o f t h e i r a d m in is tr a tio n o f t h e d i s t r i c t a s f a r a s f i n a n c i a l m anagem ent i s c o n c e rn e d . Summary.
C o u n ty a n d c i t y s u p e r i n t e n d e n t s o f
s c h o o l s w ere r e q u e s t e d to e x p r e s s t h e i r r e a c t i o n s t o w h e th e r t h e y s u p p o r t e d t h e p r i n c i p l e t h a t a b u d g e t s h o u ld b e p r e p a r e d to t r u l y m e e t t h e n e e d s o f t h e d i s t r i c t a n d t h a t t h e r e s h o u ld be no t a x l i m i t a t i o n , o r w h e th e r t h e y s u p p o r t e d t h e t h e o r y t h a t a b u d g e t s h o u ld b e p r e p a r e d to f i t i n t o a f i x e d incom e s e t b y a t a x r a t e s t r u c t u r e . T w e n ty - s ix c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w ere i n f a v o r o f t h e f i r s t p r i n c i p l e a n d f i f t e e n w ere o p p o se d t o i t .
They a l s o s t a t e d t h a t t h e p r e s e n t p r a c t i c e
was f o r t y - o n e i n f a v o r o f t h e s e c o n d p r i n c i p l e , a s c o m p ared to t h r e e o p p o se d t o i t .
C ity s u p e rin te n d e n ts o f
s c h o o l s r e p o r t e d t h e y s u p p o r t e d t h e f i r s t i d e a tw e n ty t h r e e to s i x t e e n a n d t h a t t h e i r p r a c t i c e was e i g h t t o t h ir t y - o n e in fa v o r o f th e second p r i n c i p l e .
196 C i t y a n d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s i n d i c a t e d t h a t a s s e s s e d v a l u a t i o n s w ere n o t a v a i l a b l e u n t i l a f t e r b u d g e t a d o p tio n s h ad ta k e n p l a c e .
T w en ty -
t h r e e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s b e l i e v e d a s s e s s in g o f f i c i a l s w ith h e ld in fo rm a tio n u n t i l a f t e r b u d g e ts h a d b e e n a d o p te d .. h e l d no s u c h b e l i e f .
T w e n ty - f iv e s t a t e d t h e y
S u g g e s te d p r o p o s a l s w h ic h w ould
r e q u i r e b u d g e ts to be s u b m i tt e d f o r p u b l i c h e a r i n g on May f i r s t r e c e i v e d a f a v o r a b l e r e p l y fro m b o t h t h e c i t y an d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s .
T h ese p r o p o s a l s w o u ld
i n some c a s e s r e q u i r e an. e l e c t i o n t o r a i s e t h e t a x r a t e , a n d i n o t h e r s t o rem ove t h e t a x r a t e l i m i t a t i o n s , p l a c i n g t h e f u l l r e s p o n s i b i l i t y u p o n t h e g o v e r n in g b o a r d . The p r o p o s a l t o c h a n g e t h e a v e ra g e , d a i l y a t t e n d a n c e r e p o r t i n g y e a r l i k e w i s e r e c e i v e d a f a v o r a b l e r e p l y fro m t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s . . C i t y s u p e r i n t e n d e n ts o f sc h o o ls a ls o fa v o re d th e p r o p o s a l. The c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s d e f i n i t e l y f a v o r e d a r e v i s i o n i n t h e p r e s e n t b u d g e t p r o c e d u r e so a s t o h a v e b u d g e ts a p p ro v e d p r i o r to e x p e n d i t u r e s b e in g c o m m itte d .
B e t t e r b u d g e t p r e p a r a t i o n w o u ld r e s u l t i f
m ore e m p h a s is w ere p l a c e d u p o n t h e e x p e n d i t u r e s r a t h e r th a n upon th e ta x r a t e i t s e l f .
B o th c i t y a n d c o u n ty
s u p e rin te n d e n ts o f s c h o o ls , by a s u b s ta n t ia l m a jo r ity , e x p r e s s e d a p p r o v a l t o t h e re m o v a l o f t a x l i m i t a t i o n s .
CHAPTER IX DEGAD INTERPRETATIONS OP BUDGET ACT 11A t t h e o u t s e t i t may b e o b s e r v e d t h a t a n y a t t e m p t t o a p p l y l i t e r a l l y a l l t h e p r o v i s i o n s o f s c h o o l la w w o u ld l e a d t o h o p e l e s s c o n f u s i o n . ,fl
T h is q u o t a t i o n i s
ta k e n
fro m a n o p i n io n r e n d e r e d b y t h e ju d g e i n t h e c a s e to w h ic h r e f e r e n c e i s made a n d i t i s p a r t i c u l a r l y a p p l i c a b l e t o t h e i n v e s t i g a t i o n s made, i n c o n n e c ti o n w i t h t h e s t u d y o f b u d g e t s , a s h a s b e e n e v id e n c e d i n p r e v i o u s c h a p t e r s . Many o f t h e a n s w e rs r e c e i v e d fro m c o u n ty s u p e r in te n d e n ts o f s c h o o ls i n r e p ly to th e q u e s tio n s s u b m i tt e d to th em g a v e e v id e n c e t h a t t h e r e w e re s e r i o u s q u e s tio n s re g a rd in g th e i n t e r p r e t a t i o n o f th e p r o v is io n s o f t h e E d u c a tio n Code o f C a l i f o r n i a i n c o n n e c ti o n w i t h s c h o o l d i s t r i c t b u d g e ts . in te rv ie w s w ith c i t y , o f s c h o o ls .
T h is was a m p l i f i e d b y p e r s o n a l
c o u n ty a n d d i s t r i c t s u p e r i n t e n d e n t s
The p r o b le m was c o m p lic a te d f u r t h e r b y t h e
f a c t t h a t a d i f f e r e n c e o f o p i n io n was fo u n d t o e x i s t among m em bers o f t h e C a l i f o r n i a S t a t e . D e p a rtm e n t o f E d u c a tio n .
I t was d e te r m in e d t h a t t h e s tu d y w o u ld be
i n a d e q u a t e u n l e s s t h e q u e s t i o n s c o n c e r n in g t h e m e a n in g o f
1----------------
H o rto n v . W h ip p le , 58 C a l . A pp. 1 8 9 .
198 t h e la w r e g a r d i n g b u d g e ts w ere c l a r i f i e d *
A num ber o f
q u e s t i o n s w ere s u b m i t t e d to t h e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n r e q u e s t i n g h i s o p i n i o n on t h e l e g a l i n t e r p r e t a t i o n o f t h e la w . L ocal r u l in g s .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s
w ere r e q u e s t e d to t r a n s m i t r u l i n g s o r o p i n io n s w h ic h t h e y h a d r e c e i v e d fro m t h e i r l o c a l c o u n ty o f f i c i a l s c o n c e r n in g b u d g e ts a n d b u d g e t a d m i n i s t r a t i o n .
A c c o rd in g
t o s t a t e m e n t s m ade b y c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s t h e r e h a v e b e e n many l o c a l r u l i n g s . re c e iv e d .
H ow ever, n o n e w ere
I t i s b e lie v e d t h a t th e r e g u la tio n s and
r u l i n g s e m a n a tin g fro m v a r i o u s c o u n ty o f f i c i a l s h a v e b e e n i n t h e fo rm o f v e r b a l d e c i s i o n s , l a r g e l y c o n f i n e d to t h e a p p r o v a l o r d i s a p p r o v a l o f some p a r t i c u l a r p r o c e d u r e t h e c o u n ty o r s c h o o l d i s t r i c t w is h e d to f o l l o w . p e r s o n a l i n t e r v i e w s c o n fir m e d t h i s .
Many
I t was f o u n d a l s o
t h a t m any o f t h e p r o c e d u r e s f o l lo w e d i n t h e v a r i o u s c o u n t i e s w ere h a n d e d down o v e r a p e r i o d o f y e a r s , a n d i n m any c a s e s t h e d a t e o f o r i g i n o r who made t h e d e c i s i o n was unknow n.
H ow ever, t h e f a c t re m a in e d t h a t
t h e p o l i c i e s a n d p r o c e d u r e s i n e f f e c t w ere i n f l u e n c e d b y t h e d e c i s i o n s made b y t h e l o c a l d i s t r i c t a t t o r n e y , c o u n ty c o u n s e l , a n d m ore p a r t i c u l a r l y by t h e c o u n ty a u d i t o r . "
S ta te r u lin g s ,
A s e r i o u s s i t u a t i o n w as fo u n d t o
e x i s t i n r e g a r d t o o b t a i n i n g i n t e r p r e t a t i o n s o f la w .
In
C a l i f o r n i a th e d i s t r i c t a t t o r n e y o r c o u n ty c o u n s e l i s th e l e g a l a d v i s e r f o r a l l c o u n ty an d s c h o o l d i s t r i c t o f f i c i a l s . Any d e c i s i o n made b y t h e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n i s n o t c o n s i d e r e d b i n d i n g upon a n y c o u n ty o f f i c i a l .
As h e s e e s f i t ,
a
c o u n ty o f f i c i a l may o r may n o t o p e r a t e u n d e r a C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n r u l i n g .
The A t t o r n e y G e n e ra l
o f C a lif o r n ia i s th e le g a l, a d v is e r f o r th e C a lif o r n ia S t a t e D e p a rtm e n t o f E d u c a tio n a n d a l l a c t s o r d e c i s i o n s o f t h e S u p e r i n te n d e n t o f P u b l i c I n s t r u c t i o n o r t h e D e p a rtm e n t o f E d u c a ti o n a r e s u b j e c t t o t h e a p p r o v a l o f th is o f f ic e r.
T h is r e s u l t s i n t h e p o s s i b i l i t y o f h a v in g
a s t a t e r u l i n g fro m t h e A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , a p p ro v e d o r d is a p p r o v e d b y t h e A t t o r n e y G e n e ra l o f C a l i f o r n i a , f o llo w e d b y f i f t y - e i g h t d i f f e r e n t i n t e r p r e t a t i o n s made b y c o u n ty o f f i c i a l s , a l l t r y i n g to a d m i n i s t e r t h e same E d u c a tio n Code s e c t i o n . T h is i s i l l u s t r a t e d by a r e c e n t s i t u a t i o n i n one o f t h e c o u n t i e s o f t h e s t a t e a s r e p o r t e d by a c o u n ty s u p e rin te n d e n t o f s c h o o ls .
The l o c a l c o u n ty c o u n s e l
h a d r u l e d t h a t a n e le m e n ta r y d i s t r i c t , w h ic h h a d w ith d ra w n fro m a h i g h s c h o o l d i s t r i c t f o r t h e p u r p o s e o f
e s t a b l i s h i n g a new h i g h s c h o o l d i s t r i c t , w as no l o n g e r a p a r t o f t h e j u n i o r c o l l e g e d i s t r i c t o f w h ic h i t was o rig in a lly a p a rt.
The new h i g h s c h o o l d i s t r i c t
s u b s e q u e n t l y becam e a . p a r t o f a new j u n i o r c o l l e g e d is tric t.
The A t t o r n e y G e n e ra l o f C a l i f o r n i a r u l e d t h a t
t h e r e was no a u t h o r i t y f o r a n y d i s t r i c t t o w ith d ra w fro m a ju n io r c o lle g e d i s t r i c t , t h e r e f o r e , th e d i s t r i c t c o n t i n u e d to re m a in i n t h e o r i g i n a l j u n i o r c o l l e g e d is tr ic t..
The r e s u l t w as t h a t t h e l o c a l t a x i n g . o f f i c i a l s
o f t h e c o u n ty t a x e d o n t h e b a s i s t h a t t h e d i s t r i c t h a d w ith d ra w n fro m t h e j u n i o r . c o l l e g e d i s t r i c t a n d was a p a r t o f t h e new j u n i o r c o l l e g e d i s t r i c t .
The C a l i f o r n i a
S t a t e D e p a rtm e n t o f E d u c a ti o n a p p o r t i o n e d s t a t e f u n d s a n d c a l c u l a t e d e q u a l i z a t i o n a i d on t h e b a s i s t h a t t h e d i s t r i c t h a d n o t w ith d r a w n .
T h is c o n d i t i o n c o n ti n u e d
f o r tw o y e a r s a n d f i n a l l y w as r e s o l v e d .b y th e C a l i f o r n i a S t a t e L e g i s l a t u r e w h ic h v a l i d a t e d a l l . p r e v i o u s a c t s a n d p r o v i d e d f o r t h e w ith d r a w a l o f a n e le m e n t a r y d i s t r i c t fro m a j u n i o r c o l l e g e d i s t r i c t . T h is s i t u a t i o n i s c i t e d a s a n ex am p le o f t h e c o n f u s i o n w h ic h c a n an d d o e s e x i s t a s a r e s u l t o f t h e c o n f l i c t b e tw e e n l o c a l a n d s t a t e a u t h o r i t i e s , b o t h l e g a l l y c h a r g e d w i t h a d v i s i n g p u b l i c s c h o o l o f f i c i a l s , a n d who a r e r e q u i r e d to a d m i n i s t e r d i f f e r e n t a s p e c t s o f a s i n g l e
201
p r o b le m .
T h is i s o n e o f t h e b a s i c r e a s o n s f o r th e
d if f e r e n c e s in p o l i c i e s , p ro c e d u re s and p r a c tic e s in th e a d m in is tr a tio n o f sc h o o l d i s t r i c t b u d g e ts .
C o n fu s io n
w i l l c o n t i n u e t o e x i s t u n t i l t h e s t a t e la w p l a c e s t h e s o le r e s p o n s i b i l i t y f o r th e i n t e r p r e t a t i o n o f sc h o o l l e g i s l a t i o n in th e h ands o f a s in g le o f f i c e r . G e n e ra l r e s e r v e . it
The la w i s m a n d a to ry -in t h a t
s t a t e s t h e t e n t a t i v e b u d g e t s h a l l c o n t a i n a n am ount
to b e known a s t h e g e n e r a l r e s e r v e .
What h a p p e n s a n d who
i s r e s p o n s i b l e i f no e n t r y i s made i n t h e b u d g e t f o r t h i s p u rp o se ?
What h a p p e n s i f o n l y a to k e n am ount i s e n t e r e d ?
Has t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a n y A u t h o r i t y to make a n y c h a n g e s o r t o do a n y t h i n g e x c e p t t o o f f e r w h a te v e r s u g g e s t i o n s h e deem s n e c e s s a r y ?
What h a p p e n s
i f t h e am ount b u d g e te d f o r a l l . p u r p o s e s i n c l u d i n g t h e g e n e r a l r e s e r v e , . u s i n g t h e maximum t a x r a t e , i s . m ore t h a n t h e t o t a l incom e f o r t h e d i s t r i c t ?
I s th e r e s e r v e d i s
r e g a r d e d f i r s t i n a n a tt e m p t t o make t h e b u d g e t b a l a n c e , o r m u st w h a te v e r am ount i s b u d g e te d b e a f r o z e n am o u n t, l e f t i n t a c t f o r e x p e n d i t u r e d u r i n g . t h e f o l lo w in g y e a r a s a n e n d in g b a la n c e ?
May t h e g e n e r a l r e s e r v e b e
expended d u rin g t h e .c u r r e n t y e a r? T h e se q u e s t i o n s a n d o t h e r s w e re s u b m i tt e d t o th e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n .
The memorandum c o n t a i n i n g h i s . i n t e r p r e t a t i o n s
p
h a s b e e n made a p a r t o f t h i s s t u d y . ■
I n r e p ly to th e
q u e s t i o n w h e th e r a d i s t r i c t h a s a n y a u t h o r i t y h o t t o b u d g e t a g e n e ra l r e s e r v e , and w hat i s th e r e s u l t i f i t f a i l s to do s o , t h e A d m i n i s t r a t i v e A d v i s e r f o r . t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n s t a t e d i t i s m a n d a to ry t h a t a d i s t r i c t In c lu d e a g e n e ra l r e s e r v e a s a p a r t o f i t s b u d g e t.
annual
T h is m u st b e i n a n am ount, w h ic h in . t h e ju d g m e n t
o f t h e g o v e r n in g b o a r d o f t h e s c h o o l d i s t r i c t w i l l b e s u f f i c i e n t to p r o v i d e t h e f u n d s n e c e s s a r y t o p a y s u c h o b l i g a t i o n s a s t h e d i s t r i c t , may l a w f u l l y p a y d u r i n g t h e n e x t s u c c e e d in g f i s c a l y e a r b e fo re , f u n d s . f o r th e c u r r e n t y ear a re a v a ila b le .
The o p i n i o n f u r t h e r s t a t e d t h e
g o v e r n in g b o a rd may n o t a b u s e t h e d i s c r e t i o n g iv e n b y b u d g e ti n g a n am ount w h ic h I t know s w i l l b e i n s u f f i c i e n t to m e e t t h e r e q u i r e m e n ts o f t h e d i s t r i c t .
F a ilu r e on th e p a r t
o f t h e g o v e r n in g b o a rd t o i n c l u d e a p r o p e r g e n e r a l r e s e r v e , i n t h e o p i n i o n o f t h e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , w o u ld . c o n s t i t u t e a n e g l e c t o r r e f u s a l t o make a b u d g e t a s p r e s c r i b e d i n E d u c a ti o n Code S e c t i o n 6 5 0 7 ,® w h ic h r e a d s : 63G7. I f t h e g o v e r n in g b o a r d o f a n y s c h o o l d i s t r i c t n e g l e c t s o r r e f u s e s to make a s c h o o l d i s t r i c t b u d g e t
^ I n f r a , A ppendix F, p p . 2 9 8 -3 0 7 ^ I b i d . , I , Q u e s tio n 1 .
203 a s p r e s c r i b e d b y t h i s a r t i c l e , t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h a l l n o t make a n y a p p o r tio n m e n t o f S t a t e o r c o u n ty s c h o o l money f o r th e p a r t i c u l a r sc h o o l d i s t r i c t f o r th e c u r r e n t sch o o l y e a r. H ow ever, t h i s s e c t i o n h a s n o t b e e n am ended t o k e e p i t i n a c c o r d w i t h c h a n g i n g ,p r o v i s i o n s o f t h e a p p o r tio n m e n t la w , and t h e p e n a l t y , w h ile , o r i g i n a l l y s e v e r e , i s now a lm o s t w i t h o u t m e a n in g , s i n c e t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s d o e s n o t a p p o r t i o n s c h o o l fu n d s e x c e p t i n l i m i t e d a m o u n ts fro m t h e c o u n ty s c h o o l s e r v i c e f u n d . The la w p r o v i d e s t h a t i f a d i s t r i c t f i n d s i t s e l f w i t h o u t f u n d s i t m u st r e g i s t e r w a r r a n t s w h ic h r e q u i r e t h e p ay m en t o f 5 p e r c e n t i n t e r e s t .
Of i t s e l f t h i s i s
a p e n a l t y in a sm u c h a s t h e p ay m en t o f i n t e r e s t c o u ld b e a v o id e d b y m a k in g p r o p e r p r o v i s i o n f o r a g e n e r a l r e s e r v e . W henever a g o v e r n in g b o a rd o f a s c h o o l d i s t r i c t s u b m its a d i s t r i c t b u d g e t w i t h o u t a g e n e r a l r e s e r v e t o t h e c o u n ty s u p e r i n t e n d e n t , o f s c h o o l s , i t i s t h e d u t y o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s t o n o t i f y t h e g o v e r n in g b o a rd t h a t th e . b u d g e t i s in c o m p le te an d t h a t i t m u st i n c l u d e s u c h a r e s e r v e a s p r o v i d e d i n S e c t i o n 6304 o f t h e E d u c a tio n C ode, .a p a r t o f w h ic h r e a d s : 6 3 0 4 . The c o u n ty s u p e r i n t e n d e n t o f s c h o o ls s h a l l ex am in e t h e . t e n t a t i v e b u d g e t a n d a f t e r i n d i c a t i n g t h e r e o n s u c h c h a n g e s a s h e deem s d e s ir a b le o r n e c e s s a r y , s h a l l r e tu r n th e t e n t a t i v e b u d g e t to t h e g o v e r n in g b o a r d . . •
204 The c o u n ty s u p e r i n t e n d e n t o f s c h o o l s h a s no f u r t h e r a u t h o r i t y a f t e r n o t i f y i n g t h e g o v e r n in g b o a r d , e x c e p t t o im p o se t h e p e n a l t y p r o v i d e d i n S e c t i o n 6307 o f t h e E d u c a tio n C ode.
4
I t- was fo u n d fro m i n t e r v i e w s w i t h c o u n ty a n d d i s t r i c t s u p e r i n t e n d e n t s o f s c h o o l s t h a t t h e r e w e re v a r i o u s p r a c t i c e s f o l lo w e d b y s c h o o l d i s t r i c t s an d c o u n t i e s c o n c e r n in g w h at o c c u r s i f t h e incom e f o r t h e d i s t r i c t i s i n s u f f i c i e n t t o m e e t a l l t h e r e q u i r e m e n ts o f t h e b u d g e t .
S h o u ld t h e
g e n e r a l r e s e r v e be Mf r o z e n n i n t o t h e b u d g e t a n d w h a te v e r am ount i s b u d g e te d b e h e l d i n t a c t , r e g a r d l e s s o f t h e f a c t t h a t t h e d i s t r i c t i s u n a b le t o m eet i t s m o st u r g e n t n e e d s ; o r s h o u ld t h e r e s e r v e be p r o r a t e d .w ith o t h e r b u d g e te d i t e m s ; o r s h o u ld i t b e e n t i r e l y e l i m i n a t e d a n d w h a te v e r f u n d s a r e . p r o v i d e d d i v e r t e d to m e e t t h e r e q u i r e m e n ts o f o t h e r e x p e n d i t u r e c l a s s i f i c a t i o n s ? . . I n r e p l y to t h i s s e r i e s o f q u e s t i o n s t h e A d m i n i s t r a t i v e A d v is e r f o r . t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n was o f t h e o p i n i o n t h a t t h e b u d g e t o p e r a t e s o n ly t o l i m i t t h e e x p e n d i t u r e s w h ic h may b e made f o r e a c h m a jo r c l a s s i f i c a t i o n of. s c h o o l d i s t r i c t e x p e n d itu re s .
O b l i g a t i o n s o f t h e . s c h o o l d i s t r i c t a r e to
b e p a i d by. t h e d i s t r i c t a s t h e y . a c c r u e an d a r e l i m i t e d t o t h e am ount b u d g e te d f o r e a c h c l a s s i f i c a t i o n . 4
I b i d . , I , Q u e s tio n 2 .
The
205 o p i n i o n f u r t h e r s t a t e d t h e r e i s n o t h i n g i n t h e la w w h ic h r e q u i r e s , e x p r e s s l y o r i m p l i e d , t h a t th e . incom e o f a d i s t r i c t be d i s t r i b u t e d t o t h e v a r i o u s c l a s s i f i c a t i o n s o f e x p e n d i t u r e . I f t h e incom e i s
i n s u f f i c i e n t to m eet a l l c l a s s i f i c a t i o n
n e e d s a n d w h a te v e r i s p a i d an d c h a r g e d to v a r i o u s c l a s s i f i c a t i o n s e x h a u s t s t h e incom e b e f o r e a l l n e e d s a r e s a t i s f i e d , t h e r e 'w o u l d b e n o t h i n g l e f t to m e e t t h e g e n e r a l r e s e r v e r e q u i r e m e n t .^ The f a c t t h a t a g e n e r a l r e s e r v e i s b u d g e te d d o e s n o t g u a ra n te e th e r e w i l l b e a g e n e r a l r e s e r v e .
I f th e
incom e p r o v i d e s s u f f i c i e n t f u n d s , t o m e e t a l l c l a s s i f i c a t i o n am o u n ts i n c l u d i n g t h e g e n e r a l r e s e r v e , t h e r e w i l l be a r e s e r v e a t t h e b e g in n i n g o f t h e s u b s e q u e n t y e a r . I n r e p l y to t h e q u e s t i o n w h e th e r t h e g e n e r a l r e s e r v e may b e e x p e n d e d p r i o r to t h e f i r s t d a y o f J u l y , t h e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n s t a t e d t h e , g e n e r a l r e s e r v e may n o t b e e x p e n d e d d u r i n g t h e y e a r i n w h ic h i t . i s
b u d g e te d .
I f t h e incom e i s i n s u f f i c i e n t t o p r o v i d e a r e s e r v e t h e r e a r e no f u n d s t o s p e n d o r to be c o n s i d e r e d , b u t i f t h e incom e i s
s u f f i c i e n t to p ro v id e a g e n e ra l r e s e r v e , i t can
be s p e n t o n ly d u rin g th e su b s e q u e n t y e a r . 5
I b id .,
I , Q u e s tio n 3 .
^ I b id . , I , Q u e s tio n 4 .
206 B udget t r a n s f e r s .
S e c t i o n s 6308 a n d 6 3 0 8 .1 o f t h e
E d u c a tio n Code p r o v i d e t h a t e x p e n d i t u r e s m u st b e l i m i t e d t o t h e am ount s p e c i f i e d f o r e a c h m a jo r c l a s s i f i c a t i o n u n l e s s a t r a n s f e r fro m on e c l a s s i f i c a t i o n t o a n o t h e r h a s b e e n a d o p te d a n d f i l e d b y t h e g o v e r n in g b o a rd o f th e s c h o o l d i s t r i c t w i t h t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s . F o r d i s t r i c t s g o v e rn e d by a b o a rd o f t r u s t e e s ,
th e
a p p r o v a l o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o ls i s re q u ire d . Q u e s tio n s h a v e a r i s e n r e g a r d i n g t h e a d m i n i s t r a t i o n o f t h i s s e c t i o n o f t h e la w .
F i r s t , a re e x p e n d itu re s
c o n s i d e r e d l e g a l w h ic h h a v e b e e n made b y t h e d i s t r i c t w ith t r a n s f e r s made on t h e b o o k s o f t h e d i s t r i c t i f t h e b o a rd h a s n o t a d o p te d t h e p r o p e r r e s o l u t i o n a n d s e c u r e d a p p r o v a l fro m t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a s r e q u i r e d ? F u r t h e r , w h at i s t h e l i a b i l i t y o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a n d t h e c o u n ty a u d i t o r i f s u c h e x p e n d i t u r e s h a v e b e e n a p p ro v e d ?
May t h e g o v e r n in g b o a r d a d o p t a
b l a n k e t r e s o l u t i o n a u t h o r i z i n g t r a n s f e r s o f w h a te v e r a m o u n ts a r e r e q u i r e d fro m tim e t o tim e i n o r d e r t o k e e p c l a s s i f i c a t i o n s s o l v e n t , o r m u st e a c h t r a n s f e r s p e c i f y t h e am ount a n d t h e c l a s s i f i c a t i o n t o w h ic h t h e am o u n ts a p p ly ? W hat i s m e a n t b y t h e flc l o s e o f t h e y e a r ” r e f e r r e d t o i n S e c t i o n 6 3 0 8 .1 o f t h e E d u c a tio n Code w h e re i t
is s ta te d :
207 6 3 0 8 .1 . A t t h e c l o s e o f a n y s c h o o l y e a r t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s m ay, w i t h t h e c o n s e n t o f t h e g o v e r n in g b o a r d o f a s c h o o l d i s t r i c t p r e v i o u s l y g i v e n , make s u c h t r a n s f e r s b e tw e e n t h e - u n d i s t r i b u t e d r e s e r v e and any e x p e n d itu re c l a s s i f i c a t i o n o r c l a s s i f i c a t i o n s o r b a la n c e any e x p e n d itu re c l a s s i f i c a tio n s o f th e b u d g et o f th e d i s t r i c t f o r su ch sc h o o l y e a r a s a r e n e c e s s a r y t o p e r m i t t h e pay m en t o f o b lig a tio n s o f th e d i s t r i c t in c u r r e d d u rin g su ch school y e a r. T h e se q u e s t i o n s w ere s p e c i f i c a l l y r e f e r r e d t o t h e A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n .
The r e p l y r e c e i v e d s t a t e d t h e r e i s no
a u t h o r i t y f o r e i t h e r t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s o r t h e c o u n ty a u d i t o r to a p p ro v e a n y e x p e n d i t u r e fro m a m a jo r c l a s s i f i c a t i o n o f a s c h o o l d i s t r i c t b u d g e t i n e x c e s s o f t h e am ount b u d g e te d u n l e s s t h e p r o p e r r e s o l u t i o n h a s b e e n a d o p te d by t h e g o v e r n in g b o a r d a n d p r o p e r l y f i l e d a n d a p p ro v e d w h ere n e c e s s a r y , a u t h o r i z i n g a t r a n s f e r fro m some o t h e r c l a s s i f i c a t i o n i n s u c h a n am ount n e c e s s a r y t o m e e t a l l e x p e n d i t u r e s i n e x c e s s o f t h e o r i g i n a l b u d g e te d am ount The c o u n ty s u p e r i n t e n d e n t o f s c h o o l s may p a y o n ly t h e o r d e r s w h ic h a r e p r o p e r l y draw n a n d f o r w h ic h f u n d s a r e a v a i l a b l e , a s p r o v i d e d i n S e c t i o n 6107 o f t h e E d u c a ti o n Code w h ic h r e a d s : 6 1 0 7 . The c o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h a l l e x am in e e a c h o r d e r o n s c h o o l d i s t r i c t fu n d s t r a n s m i t t e d 7... ".. 1
I b i d . , V, Q u e s tio n s 1 and 2 .
208 t o h im , i n t h e o r d e r i n w h ic h i t i s r e c e i v e d i n h i s o ffic e . I f i t a p p e a rs t h a t th e o r d e r i s p r o p e r ly d raw n f o r t h e p ay m en t o f l e g a l l y a u t h o r i z e d e x p e n s e s a g a in s t th e p r o p e r fu n d s o f th e d i s t r i c t , and t h a t t h e r e a r e s u f f i c i e n t m oneys i n t h e f u n d o r f u n d s a g a i n s t w h ic h t h e o r d e r i s draw n t o p a y i t , h e s h a l l i n d o r s e u p o n i t ,fe x a m in e d a n d a p p r o v e d ,11 a n d s h a l l , in a t t e s t a t i o n t h e r e o f , a f f i x h i s s ig n a tu r e and n u m b er a n d d a t e t h e r e q u i s i t i o n a n d t r a n s m i t i t d i r e c t l y t o t h e c o u n ty a u d i t o r , i n t h e o r d e r i n w h ic h th e o r d e r i s r e c e iv e d in h i s o f f i c e . The g o v e r n in g b o a rd may a d o p t a b l a n k e t r e s o l u t i o n c o v e r i n g a l l t r a n s f e r s , w h ic h may b e made b y t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a t t h e nc l o s e o f t h e y ear* 1 a s p r o v i d e d i n S e c t i o n 6 3 0 8 .1 - o f t h e E d u c a tio n Code w h ic h i s q u o te d on p a g e 207 o f t h i s s t u d y . A d o p tio n o f b u d g e t .
Q
The la w p r o v i d e s t h a t t h e
t e n t a t i v e b u d g e t s h a l l be f i l e d w i t h t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s on o r b e f o r e t h e f i r s t d a y o f J u l y a n d a g a i n r e t u r n e d t o h im on o r b e f o r e t h e t w e n t i e t h d a y o f J u l y , a f t e r h a v in g b e e n r e t u r n e d t o t h e g o v e r n in g b o a r d o f t h e s c h o o l, d i s t r i c t on o r b e f o r e t h e f i f t e e n t h d a y o f J u l y . ^ The E d u c a tio n Code m akes n o s p e c i f i c r e f e r e n c e t h a t t h e b u d g e t s h a l l be a d o p te d a t e i t h e r a r e g u l a r o r a s p e c i a l m e e tin g o f t h e b o a r d .
H ow ever, E d u c a tio n Code S e c t i o n
6306 ( a ) s p e c i f i c a l l y s t a t e s t h a t t h e g o v e r n in g b o a rd
8 I b i d . , V, Q u e s tio n 3 . E d u c a t i o n Code o f C a l i f o r n i a , S e c t i o n s 6 3 0 1 -6 3 0 5 .
209 s h a l l Hf i n a l l y a d o p t 11 t h e b u d g e t a n d f i l e
i t w ith th e
p ro p e r a u th o ritie s # The q u e s t i o n a r i s e s a s t o w h e th e r t h e t e n t a t i v e o r p u b l i c a t i o n b u d g e t m u st b e a c t e d u p o n a t e i t h e r a s p e c i a l o r r e g u l a r m e e ti n g , a n d i f s o , w h a t w o u ld b e t h e e f f e c t i f t h e g o v e r n in g b o a r d f a i l s t o p r o p e r l y a d o p t t h e b u d g e t i n e i t h e r fo rm .
T h e re was e v id e n c e t h a t
c o n s i d e r a b l e l a x n e s s e x i s t e d i n r e g a r d t o b u d g e ts b e in g h a n d le d a t m e e tin g s o f t h e b o a rd #
I n many i n s t a n c e s t h e
d a t e s on t h e b u d g e t fo rm s w ere q u i t e i r r e g u l a r , a n d i n some c a s e s , i t was v i r t u a l l y i m p o s s i b l e t o h a v e h e l d m e e tin g s on t h e d a t e s s p e c i f i e d #
T h e re was l e s s e v id e n c e
o f i r r e g u l a r i t y i n t h e f i n a l a d o p t i o n m e e ti n g . I n r e p l y t o t h e q u e s t i o n r e g a r d i n g a n y a c t i o n b e in g t a k e n e x c e p t a t s p e c i a l o r r e g u l a r b o a r d m e e ti n g s , t h e A d m i n i s t r a t i v e A d v is e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n s t a t e d t h e r e i s no a u t h o r i t y f o r a g o v e r n in g b o a r d t o make a n y c h a n g e s o r a c t on a n y b u d g e t m a t t e r a t a n y tim e e x c e p t a t a r e g u l a r o r s p e c i a l m e e tin g o f t h e b o a rd .
S e c t i o n 2 2 0 4 .2 o f t h e E d u c a ti o n Code s p e c i f i c a l l y
p r o v id e s t h a t no a c t io n a u th o r iz e d o r r e q u ir e d by th e g o v e r n in g b o a r d s h a l l b e t a k e n e x c e p t a t a s p e c i a l o r r e g u l a r m e e tin g o f t h e g o v e r n in g board#"**0 I n f r a , A ppendix F , p# 3 0 3 , I I I , Q u e stio n 1#
210
E d u c a tio n Cod© S e c t i o n 2 2 0 4 .2 r e a d s : 2 2 0 4 .2 . Mo a c t i o n a u t h o r i z e d o r r e q u i r e d b y la w s h a l l b e t a k e n b y t h e g o v e r n in g b o a rd o f a s c h o o l d i s t r i c t e x c e p t i n a m e e tin g o p e n to t h e p u b l i c . C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s a r e n o t r e q u i r e d b y la w t o v e r i f y t h a t t h e s t a t e m e n t s c o n c e r n in g a c t i o n s t a k e n by t h e b o a r d p u r s u a n t t o t h e la w a c t u a l l y to o k p la c e by r e q u ir in g t h a t a c e r t i f i e d copy o f th e re c o rd s o f t h e b o a r d w i t h r e s p e c t t o s u c h a c t i o n s ta k e n fro m t h e m in u te s o f t h e b o a rd b e a t t a c h e d t o t h e b u d g e t, n o r i s su ch r e q u ir e d to be f u r n is h e d b y th e b o a rd .
I n q u i r y was
made w h e th e r s u c h a r e q u ir e m e n t was w i t h i n t h e a u t h o r i t y o f th e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n .
The
A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n s t a t e d t h a t i n h i s o p i n i o n t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n h a d no a u t h o r i t y to r e q u i r e t h a t t h e g o v e r n in g b o a rd o f t h e s c h o o l d i s t r i c t a t t a c h c e r t i f i e d c o p ie s o f r e c o r d s t a k e n fro m t h e m in u te s o f t h e b o a r d c o v e rin g th e a p p ro v a l o f e i t h e r th e t e n t a t i v e b u d g e t o r t h e p u b l i c a t i o n b u d g e t o r t h e a d o p t i o n o f t h e a d o p te d b u d g e t.
The f a c t t h a t t h i s
i n f o r m a t i o n i s n o t c o m p le te on
t h e b u d g e t fo rm a s now p r e s c r i b e d d o e s n o t i n v a l i d a t e th e b u d g e t i t s e l f ,
in a s m u c h a s t h e m in u te s o f t h e g o v e rn in g
b o a rd c o n s t i t u t e th e a u t h o r i t a t i v e and o f f i c i a l r e c o r d . ^ —
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L e t t e r , A l f r e d E . b e n t z t o P ra n k M. W r ig h t, F e b ru a ry 1 0 , 1 9 5 0 .
211
B udget h e a r in g s .
The la w s e t s t h e p r o c e d u r e f o r
h o l d i n g a p u b l i c h e a r i n g on t h e p r e l i m i n a r y o r p u b l i c a t i o n b u d g e t.
The n e x t t o l a s t s e n t e n c e o f S e c t i o n 6334. o f t h e
E d u c a ti o n Code s t a t e s ,
MThe h e a r i n g may. b e c o n c lu d e d on
s u c h p r e l i m i n a r y b u d g e t w hen t h e r e a r e no r e q u e s t s o n f i l e f o r f u r t h e r h e a r i n g . 11
The q u e s t i o n was r a i s e d
r e g a r d i n g t h e l e n g t h o f tim e r e q u i r e d f o r a h e a r i n g . S u p p o se s e v e r a l p e r s o n s , f o r r e a s o n s b e s t known to t h e m s e lv e s , s h o u ld f i l e
a lo n g s e r i e s o f p a r t i c u l a r s f o r
e x t e n s i v e h e a r i n g s w h ic h w o u ld r e q u i r e tim e b e y o n d t h a t a l l o c a t e d b y t h e g o v e r n in g b o a r d o f t h e s c h o o l d i s t r i c t . M ust t h e b o a rd c o n t i n u e t h e h e a r i n g . u n t i l a l l p r o t e s t s a r e h e a r d , o r d o e s i t h a v e a u t h o r i t y t o l i m i t t h e num ber o f j
p r o t e s t s . a n d t h e tim e f o r e a c h so a s t o c o m p le te t h e h e a r i n g w i t h i n a p r e d e t e r m in e d s p e c i f i e d t im e , w h ic h m ig h t b e a n e v e n in g o r a p o r t i o n o f a d a y , a s su m in g a r e a s o n a b l e tim e w o u ld b e a llo w e d f o r t h e h e a r i n g .
U n d er t h e p r o v i s i o n s
o f t h e E d u c a ti o n Code i t w o u ld a p p e a r t h a t t h e b o a r d may be r e q u i r e d t o c o n t i n u e th e . h e a r i n g u n t i l a d i s p o s i t i o n h a s b e e n made o f a l l r e q u e s t s o n f i l e .
To t h i s p ro b le m t h e
A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n g a v e a s h i s o p i n i o n t h a t t h e h e a r i n g m u st be c o n c lu d e d i n tim e f o r a n y n e c e s s a r y r e v i s i o n a n d a d o p t i o n o f t h e b u d g e t by t h e g o v e r n in g b o a rd o f t h e d i s t r i c t an d its
s u b m is s io n t o t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s i n
212
tim e f o r him t o p r o p e r l y a n d l e g a l l y t r a n s m i t i t
t o th e
c o u n ty a u d i t o r , c o u n ty b o a r d o f s u p e r v i s o r s a n d t h e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n b e fo r e th e f i f t e e n t h d a y o f A u g u st*
The o p i n i o n f u r t h e r s t a t e d t h e g o v e r n in g
b o a r d w o u ld h a v e t h e a u t h o r i t y t o a d o p t p r o c e d u r e s w h ic h w o u ld p r o v i d e a n o r d e r l y h e a r i n g , i n c l u d i n g a tim e l i m i t f o r e a c h p r o t e s t , w h e reb y a l l p r o t e s t s w ould b e g i v e n c o n s i d e r a t i o n . 12 P e n a lty f o r v i o l a t i o n o f b u d g e t a c t *
One o f t h e
few p r o v i s i o n s o f t h e E d u c a ti o n Code w h ic h s p e c i f i e s a p e n a l t y f o r f a i l u r e t o a c t i n t h e m an n er s e t f o r t h t h e r e i n i s i n r e l a t i o n t o c e r t a i n p r o v i s i o n s h a v in g t o do w i t h th e a d o p t i o n o f t h e s c h o o l d i s t r i c t b u d g e t.
The E d u c a ti o n Code
r e q u ir e s t h a t th e b u d g et s h a l l be p u b lis h e d , a h e a r in g s h a ll b e h e l d a n d t h e b u d g e t s h a l l b e a d o p te d o f f i c i a l l y i n f i n a l fo rm b y t h e g o v e r n in g b o a rd o f t h e s c h o o l d i s t r i c t . 1 ^ S e c t i o n 6335 o f t h e E d u c a ti o n C ode, w h ic h p r e s c r i b e s a p e n a lty f o r any v i o la t io n , r e a d s : 6 3 3 5 . Any v i o l a t i o n o f t h i s a r t i c l e o r a f a i l u r e t o com ply w i t h i t s p r o v i s i o n s by t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s o r b y t h e g o v e r n in g b o a r d o f any sc h o o l d i s t r i c t i s p u n is h a b le u n d e r S e c t i o n 176 o f t h e P e n a l C ode. 1
p
13
I n f r a , A p p e n d ix F , p . 3 0 5 , V I I , Q u e s t i o n 1 .
E d u c a tio n Code o f C a l i f o r n i a , S e c t io n s 6 3 3 1 -6 3 3 6 .
213 The A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n was a s k e d w h e th e r f a i l u r e
to
com ply w i t h a n y o f t h e f o l l o w i n g w o u ld c o n s t i t u t e a v i o l a t i o n s u f f i c i e n t to c a u se th e p e rs o n s r e s p o n s ib le to b e s u b j e c t t o t h e p e n a l t y im p o sed b y E d u c a ti o n Code S e c tio n 6335: 1.
F a i l u r e to p u b l i s h n o t i c e o f h e a r in g *
2*
F a i lu r e to h o ld h e a r in g w ith in d a te s p r e s c r ib e d
3.
F a ilu r e to p r o p e r ly a d o p t and r e c o rd r e s o l u ti o n
b y law *
o f th e b o a rd o f th e f i n a l b u d g e t a d o p tio n . 4.
F a i l u r e t o p r o p e r l y s i g n a n d c o m p le te t h e
b u d g e t, g i v i n g d a t e s a n d o t h e r i n f o r m a t i o n r e q u i r e d . The f u r t h e r q u e s t i o n was r a i s e d w h e th e r i f t h e g o v e r n in g b o a rd was fo u n d t o h a v e v i o l a t e d t h e la w i n a n y p a r t i c u l a r w h ic h w ould make i t s u b j e c t to t h e p e n a l t y p r e s c r i b e d , w ould i t b e l i a b l e a s a b o a r d , o r w o u ld t h e b o a rd m em bers b e l i a b l e a s i n d i v i d u a l s . The A d m i n i s t r a t i v e A d v i s e r f o r t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n e x p r e s s e d t h e o p i n i o n t h a t t h e p e n a l s t a t u t e s a r e t o be s t r i c t l y c o n s t r u e d , a n d f a i l u r e to p u b l i s h n o t i c e o f h e a r i n g o r f a i l u r e to h o l d a h e a r i n g a s p r o v i d e d b y la w a r e v i o l a t i o n s p u n i s h a b l e u n d e r E d u c a ti o n Code S e c t i o n 6 3 3 5 .
The o p i n i o n f u r t h e r s t a t e d
t h a t f a i l u r e o f t h e g o v e r n in g b o a r d t o p r o p e r l y a d o p t a n d
214 r e c o r d r e s o l u t i o n s , o r f a i l u r e to p r o p e r ly s ig n and c o m p le te t h e b u d g e t w ould n o t s u b j e c t t h e b o a rd to t h e p e n a l t y p r o v id e d *
14
I n r e p l y t o w h e th e r t h e b o a rd m em bers a s i n d i v i d u a l s w o u ld b e l i a b l e u n d e r t h e la w , t h e l e t t e r s t a t e d t h e m em bers w ould b e s u b j e c t t o t h e p e n a l t y a s i n d i v i d u a l s , e x c e p t t h o s e m em bers who may h a v e e n d e a v o re d t o co m p ly w i t h t h e la w , b u t w hose e n d e a v o rs w e re n u l l i f i e d by th e a c t io n , o r la c k o f a c t io n by a m a jo r ity o f th e b o a rd . Sum m ary.
To su m m arize a n y d i s c u s s i o n d e a l i n g w i t h
t h e l e g a l i n t e r p r e t a t i o n o f t h e s c h o o l la w l e a d s t o t h e c o n c l u s i o n e x p r e s s e d b y a ju d g e who made t h i s s t a t e m e n t i n p r e f a c i n g a l e g a l o p i n io n c o n c e r n in g a s c h o o l m a t t e r , ttA t t h e o u t s e t i t may b e o b s e r v e d t h a t a n y a t t e m p t t o a p p ly l i t e r a l l y a l l t h e p r o v i s i o n s o f s c h o o l la w w o u ld l e a d to h o p e l e s s c o n f u s i o n . M P ro m * th e a n s w e rs r e c e i v e d fro m c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s a n d o t h e r s i t w as e v i d e n t t h a t many q u e s t i o n s c o n c e r n i n g t h e i n t e r p r e t a t i o n o f t h e la w w ere t h e c a u s e o f *
m uch o f t h e c o n f u s i o n w h ic h a p p e a r e d to e x i s t I n t h e a d m in is tra tio n o f th e le g a l p h a ses o f budget a d m in is tra tio n . I n f r a , A p p e n d ix P , p . 3 0 4 , V I, Q u e s tio n 1 . •*~5 I b i d . , V I, Q u e s tio n 2 .
215
C a l i f o r n i a la w p l a c e s t h e l e g a l i n t e r p r e t a t i o n o f l e g i s l a t i o n in th e h and s o f th e l e g a l a d v is e r f o r th e c o u n ty i n a d v i s i n g c o u n ty o f f i c i a l s a n d i n t h e A tto r n e y G e n e ra l o f C a l i f o r n i a , who i s t h e l e g a l a d v i s e r f o r s ta te o f f ic ia ls .
T h is r e s u l t s i n t h e p o s s i b i l i t y o f
f i f t y - e i g h t c o u n ty o p i n i o n s a n d a s t a t e o p i n i o n a l l o f w h ic h c o n c e iv a b ly c o u ld b e d i f f e r e n t . W h ile t h e la w r e q u i r e s t h a t a g e n e r a l r e s e r v e b e b u d g e te d , i t
d o e s n o t f o l l o w t h a t i t i s t o b e f!f r o z e n fl a s
a n ite m w h ic h t a k e s p r e c e d e n c e o v e r a l l o t h e r b u d g e te d ite m s .
I f t h e incom e o f a d i s t r i c t i s n o t s u f f i c i e n t t o
m e e t a l l b u d g e te d r e q u i r e m e n t s , p a y m e n ts a r e t o b e made a s r e q u ir e d an d c h a rg e d a g a in s t th e p ro p e r c l a s s i f i c a t i o n s . I f a t th e end o f th e y e a r a l l th e p ro p o se d e x p e n d itu re s h a v e n o t b e e n made a s b u d g e te d , w h a te v e r c l a s s i f i c a t i o n s , i n c l u d i n g t h e g e n e r a l r e s e r v e i t e m , a r e l e f t w it h o u t s u f f i c i e n t m oney t o m e e t t h e i r r e q u i r e m e n t s .
B u d g et
c l a s s i f i c a t i o n s s e r v e a s a l i m i t a t i o n on e x p e n d i t u r e s , a n d c a n n o t b e e x c e e d e d e x c e p t a s p r o v i d e d b y la w . B u d g e t t r a n s f e r s may b e made o n l y u p o n p r o p e r r e s o l u t i o n s h a v in g b e e n a d o p te d , a n d n e i t h e r t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o ls n o r t h e c o u n ty a u d i t o r h a s a u t h o r i t y t o a p p ro v e w a r r a n t s i n e x c e s s o f t h e am o u n ts b u d g e te d u n d e r t h e v a r i o u s c l a s s i f i c a t i o n s u n l e s s p r i o r a p p ro v e d t r a n s f e r s h a v e b e e n m ad e .
216 B u d g e t h e a r i n g s m u st b e h e l d a s p r o v i d e d b y la w , b u t th e g o v e r n in g b o a r d may l i m i t p r o t e s t s to a r e a s o n a b l e t i m e , a n d t h e la w may n o t b e c ir c u m v e n te d by a d e l i b e r a t e a tte m p t to f i l i b u s t e r * B o a rd m em bers o r c o u n ty o f f i c i a l s a s i n d i v i d u a l s a r e l i a b l e U n d er p e n a l t y im p o se d b y la w i f t h e y f a i l to p u b lis h th e b u d g e t f o r p u b lic h e a r in g o r f a i l to h o ld a p u b lic h e a rin g as r e q u ir e d , b u t th e y a re n o t l i a b l e f o r f a i l u r e to a d o p t o r t o p r o p e r l y s i g n t h e b u d g e t .
CHAPTER X SUMMARY AND CONCESSIONS The s t u d y o f p o l i c i e s a n d p r o c e d u r e s u s e d i n t h e a d m i n i s t r a t i o n o f s c h o o l d i s t r i c t b u d g e ts b r o u g h t f o r t h m any a s p e c t s o f t h e t o t a l p ro b le m some o f w h ic h , w h ile r e l a t e d , w e re c o n s i d e r e d n o t a p a r t o f t h e m a jo r in v e s tig a tio n .
I t was fo u n d d i f f i c u l t a t tim e s t o make
su ch d e te rm in a tio n .
The p l a n o f p r o c e d u r e was t o b r i n g
o u t t h e b a s i c p ro b le m s t o w h ic h t h e s t u d y was d i r e c t e d a n d a l s o t o i d e n t i f y t h e r e l a t e d p r o b le m s , many o f w h ic h w ere d i r e c t o u tg r o w th s o f t h e s t u d y i t s e l f .
I n many
i n s t a n c e s t h e l e s s m in o r ite m s w ere d i s p e n s e d w i t h b y m e n tio n o f t h e f a c t t h a t t h e y w ere n o t a p a r t o f t h e s t u d y . I n t h e c a s e o f t h e m a jo r o u t g r o w t h s , t h e s e w e re d i s c u s s e d and a m p lifie d o n ly a s f a r a s th e y r e f e r r e d d i r e c t l y to t h e s t u d y , w i t h t h e s t i p u l a t i o n a n d re c o m m e n d a tio n t h a t s u c h ite m s b e made t h e s u b j e c t o f f u t u r e i n v e s t i g a t i o n s . Many c o n c l u s i o n s w ere r e a c h e d , some o f g r e a t e r m a g n itu d e t h a n o t h e r s .
A few seem ed t o o r i g i n a t e fro m
t h e s t u d y a s a w h o le a n d o t h e r s w ere m ore s p e c i f i c a n d re s tric te d .
T hose w h ic h w e re o f g e n e r a l im p o r ta n c e an d
m a g n itu d e w e re d e s i g n a t e d a s m a jo r c o n c l u s i o n s , a n d o t h e r s o f a m ore l i m i t e d n a t u r e w e re i d e n t i f i e d a s m in o r c o n c l u s i o n s .
2X8 H ow ever, t h e i n f e r e n c e s h o u ld n o t b e draw n t h a t t h e s o c a l l e d m a jo r o r g e n e r a l c o n c l u s i o n s w e re o f g r e a t e r im p o r ta n c e t h a n t h o s e r e f e r r e d t o a s m in o r o r s p e c i f i c c o n c lu s io n s .
The p r o p e r i n t e r p r e t a t i o n w ould b e a
c o m p a ris o n o f t h o s e c o n c l u s i o n s o f w id e a p p l i c a t i o n r u n n i n g th ro u g h o u t th e s tu d y , a s c o n tr a s te d to th o s e d e a lin g w ith s p e c if ic p ra c tic e s o r p ro c e d u re s. I.
GENERAL CONCLUSIONS
The f o l l o w i n g s i x c o n c l u s i o n s w h ic h h a v e b e e n r e a c h e d a r e som ew hat g e n e r a l i n n a t u r e i n t h a t t h e y a r e n o t n e c e s s a r i l y t h e o u tg r o w th o f a n y one s p e c i f i c i n v e s t i g a t i o n , b u t a r e c o n c l u s i o n s draw n fro m t h e s t u d y a s a w h o le . 1.
I n f l u e n c e o f c o u n ty s u p e r i n t e n d e n t o f s c h o o l s .
I t becam e i n c r e a s i n g l y e v i d e n t a s t h e s tu d y p r o g r e s s e d a n d fro m t h e f i n d i n g s w h ic h w ere r e a s o n a b l y c o n c l u s i v e , t h a t t h e p o l i c i e s a n d p r o c e d u r e s fo u n d to e x i s t i n t h e a d m i n i s t r a t i o n o f s c h o o l d i s t r i c t b u d g e ts w ere e i t h e r t h e r e s u l t o f d i r e c t c o n t r o l b y t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s o r c o n t r o l e x e r c i s e d o r assu m ed b y t h a t o f f i c e r * T h e se c o n t r o l s m ore o f t e n t h a n n o t w e re a c c e p t e d b y t h e d i s t r i c t s th e m s e lv e s , r a t h e r th a n th ro u g h any a tte m p t o f c o e r c i o n o n t h e p a r t o f t h e c o u n ty s u p e r i n t e n d e n t o f
219 s c h o o ls .
I t was r e v e a l e d t h a t t h e c o m ity s u p e r i n t e n d e n t
o f s c h o o ls , b ecau se o f th e v e ry n a tu re o f h is o f f i c e and h i s r e l a t i o n s h i p w i t h t h e s c h o o l d i s t r i c t s , h a d m ore i n f l u e n c e a n d e f f e c t on s c h o o l d i s t r i c t b u d g e t a d m i n i s t r a t i o n t h a n a n y o t h e r s i n g l e o r co m b in ed g ro u p o f p e rso n s o r s i t u a t i o n s . T h is i n f l u e n c e was e v id e n c e d b y t h e f a c t t h a t b u d g e ts w e re r e a d i l y g ro u p e d b y c o u n t i e s i n s u c h m a t t e r s a s b u d g e tin g g e n e r a l r e s e r v e s , b a l a n c i n g b u d g e t s , r e c o r d i n g r e c o r d s o f m e e tin g s h e l d r e l a t i v e to b u d g e t a d o p t i o n s , l i s t i n g v a r i o u s incom e i t e m s , r e d u c t i o n o f b u d g e te d n e e d s and t r a n s f e r p o l i c i e s . W h a te v e r t h e p a t t e r n o f p r o c e d u r e f o l l o w e d , i t was g e n e r a l l y fo u n d t h a t a l l d i s t r i c t s w i t h i n t h e c o u n ty , w i t h r a r e e x c e p t i o n , f o llo w e d t h e sam e g e n e r a l p a t t e r n . F o r i n s t a n c e , g e n e r a l r e s e r v e s w ere b u d g e te d b y a l l d i s t r i c t s , o r b u d g e te d b y n o n e .
G e n e ra lly , a l l d i s t r i c t s
w i t h i n a c o u n ty l i s t e d c e r t a i n incom e i t e m s , o r n o n e l i s t e d su ch ite m s . fo u r re a so n s.
P r i n c i p a l l y , t h i s p a t t e r n was due t o
F irs t,
a p p r o x i m a t e ly 68 p e r c e n t o f t h e
s c h o o l d i s t r i c t b u d g e ts w ere made b y c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls th e m s e lv e s , o r u n d e r su ch c lo s e s u p e r v is io n o r d i r e c t i o n t h a t t h e p o l i c y o r p h i lo s o p h y o f t h e c o u n ty was c a r r i e d o v e r i n t a c t to th e d i s t r i c t .
S e c o n d , t h e la w
r e q u i r e s t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s to make
220
s u c h s u g g e s t i o n s o r c h a n g e s a s h e deem s n e c e s s a r y i n t h e s c h o o l d i s t r i c t b u d g e ts .
M aking t h e s e c h a n g e s g i v e s t h e
c o u n ty s u p e r i n t e n d e n t o f s c h o o l s u n l i m i t e d o p p o r t u n i t y t o i n f l u e n c e t h e c o u r s e o f a c t i o n o f t h e g o v e r n in g b o a r d s o f t h e s c h o o l d i s t r i c t s w i t h i n h i s c o u n ty .
T h ird , th e
p r e p o n d e r a n c e o f s m a l l , a d m i n i s t r a t i v e l y w eak s c h o o l d i s t r i c t s m akes i t m ore o r l e s s in c u m b e n t u p o n th e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s t o s e t o r f i x t h e p o l i c y to b e fo llo w e d .
F o u r t h , t h e r e i s am ple r e a s o n t o b e l i e v e t h a t
t h e a v e r a g e g o v e r n in g b o a r d o f a s c h o o l d i s t r i c t i s i g n o r a n t o f t h e m e a n in g o f t h e r e q u i r e m e n t s o f t h e E d u c a tio n C ode, w i t h t h e r e s u l t t h a t t h e a d v ic e a n d p h i l o s o p h y o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s i s
ta k e n
a s t h e la w i t s e l f . 2.
4 d m in is tr a tiv e ly s tr o n g d i s t r i c t s in d e p e n d e n t.
I t was f o u n d t h a t c i t y , l a r g e e l e m e n t a r y , h i g h s c h o o l , u n i f i e d a n d J u n i o r c o l l e g e d i s t r i c t s , w i t h some e x c e p t i o n s , g e n e r a l l y e x p r e s s e d a l e s s d e p e n d e n t a t t i t u d e up o n t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a n d g e n e r a l l y a d m i n i s t e r e d t h e i r a f f a i r s i n c l o s e r h arm o n y w i t h t h e p r o v i s i o n s o f t h e E d u c a tio n C o d e.
T h is a t t i t u d e was due
t o t h e f a c t t h a t s u c h d i s t r i c t s em p lo y ed t r a i n e d a d m i n i s t r a t o r s a n d w e re s u f f i c i e n t l y l a r g e a n d s t r o n g t o p r o p e r l y a d m i n i s t e r t h e i r own s c h o o l s w i t h r e a s o n a b l e in d e p e n d e n c e •
3.
C o n fu s io n i n t h e E d u c a tio n C o d e.
The
in v e s tig a tio n f u r t h e r re v e a le d t h a t th e p ro v is io n s of t h e E d u c a tio n Code w ere n o t c l e a r r e g a r d i n g t h e p r o c e d u r e t o b e f o llo w e d b y v a r i o u s o f f i c i a l s i n t h e p r e p a r a t i o n o r a d m i n i s t r a t i o n o f t h e b u d g e ts o f t h e s c h o o l d i s t r i c t s .
For
i n s t a n c e , S e c t i o n 6302 (b ) o f t h e E d u c a tio n Gode r e q u i r e s t h e g o v e r n in g b o a r d t o f u r n i s h a n e s t i m a t e o f a n t i c i p a t e d in c o m e .
I f s u c h e s t i m a t e i s n o t f u r n i s h e d , t h e c o u n ty
s u p e r i n t e n d e n t o f s c h o o l s s h a l l m ake t h e e s t i m a t e .
Two
a g e n c i e s s h a r e t h e r e s p o n s i b i l i t y w h ic h c a u s e s c o n f u s i o n . I f t h e d i s t r i c t m akes a n y e n t r y a t a l l , p e r h a p s o n l y a t o k e n a m o u n t, t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s h a s no a u t h o r i t y t o make a n y c h a n g e , e v e n th o u g h h e h a s am ple k n o w led g e t h a t t h e d i s t r i c t s e n t i r e l y w ro n g .
e s tim a te i s in a d e q u a te o r
I t was fo u n d t h a t t h e p r a c t i c e f o llo w e d
i n m o st c o u n t i e s was f o r t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o ls to make e s t i m a t e s o f s t a t e
incom e o n l y , l e a v i n g
a l l o t h e r e n t r i e s f o r t h e d i s t r i c t t o c o m p le te . 4*
R e v is io n o f s t a t e b u d g e t f o r m .
A fu rth e r
m a jo r c o n c l u s i o n draw n fro m t h e o v e r - a l l s t u d y was t h e n eed f o r m o d ific a tio n and c l a r i f i c a t i o n o f th e p re s e n t b u d g e t fo rm p r e s c r i b e d b y t h e S u p e r i n t e n d e n t o f P u b l i c In s tru c tio n .
S uch p ro b le m s a s t h e u s e o f r e s t r i c t e d
f u n d s f o r m e a ls f o r n e e d y c h i l d r e n , r e t i r e m e n t a n d e x t r a
222 v o t e d t a x i n c r e a s e s f o r s p e c i f i c p u r p o s e s c a n n o t be h a n d le d p r o p e r l y w i t h o u t c h a n g e s o r a d d i t i o n s i n th e b u d g e t fo rm .
The s t u d y r e v e a l e d t h a t t h e i n t r i c a t e
p ro b le m s o f b u d g e t p r e p a r a t i o n a n d a d m i n i s t r a t i o n s h o u ld n o t b e s p e c i f i e d i n d e t a i l i n t h e E d u c a tio n C o d e.
The
p r o v i s i o n i n t h e E d u c a tio n Gode g i v i n g w id e d i s c r e t i o n a r y p o w e r a n d a u t h o r i t y to t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n i n t h e m a t t e r o f b u d g e t fo rm d e t a i l s i s t o b e com m ended. 5.
A s s e s s m e n ts a n d t a x c o l l e c t i o n s .
W hile t h e
s t u d y was n o t c o n c e rn e d w i t h a s s e s s m e n t s o r t a x l e v y p r o b le m s , n e v e r t h e l e s s , t h e s e ite m s d i d becom e o f m a jo r im p o r ta n c e .
The E d u c a tio n Code u s e s v a r y i n g la n g u a g e i n
d e s c r ib in g c e r t a i n te rm s .
F o r i n s t a n c e , i t was fo u n d
t h a t i n r e f e r r i n g t o t h e a s s e s s m e n t r o l l t h e E d u c a tio n Code u s e s f i v e d i f f e r e n t te rm s i n f i f t e e n d i f f e r e n t refe ren c es. c o n fu s io n . d is tric ts
T h is la n g u a g e u n d o u b te d ly h a s l e d to m uch The b u d g e t i s t h e f i n a n c i a l p l a n o f th e e x p e n d i t u r e n e e d s a n d p r o p o s e d in c o m e .
One
I m p o r ta n t s o u r c e o f incom e i s fro m p r o p e r t y t a x e s . T h e r e f o r e , th e a s s e s s m e n t r o l l becom es a n im p o r t a n t i t e m . The E d u c a ti o n Code a n d t h e R evenue a n d T a x a tio n Code o f C a l i f o r n i a , w h ile n o t i n t o t a l d is a g r e e m e n t i n m o st i n s t a n c e s , do c o n f l i c t i n t h e m an n e r i n w h ic h incom e
223 s h a l l b e co m p u ted a n d i n t h e m a n n e r o f f i x i n g t h e t a x r a t e f o r t h e p u r p o s e o f m e e tin g t h e d i s t r i c t f s incom e n e e d fro m p r o p e r t y t a x e s .
I t w as f u r t h e r fo u n d t h a t i f
f o l lo w e d l i t e r a l l y , t h e la n g u a g e o f t h e E d u c a tio n Code w ould r e s u l t In th e c o n c lu s io n s re a c h e d by th e w r i t e r o f an o p i n i o n r e n d e r e d i n t h e c a s e o f H o rto n v e r s u s W h ip p le i n w h ic h i t was s t a t e d ,
”& t t h e o u t s e t i t may b e o b s e r v e d t h a t
a n y a t t e m p t t o a p p ly l i t e r a l l y a l l t h e p r o v i s i o n s o f th e s c h o o l la w w o u ld l e a d to h o p e l e s s c o n f u s i o n . 11 P r a c t i c e s a n d p r o c e d u r e s i n many i n s t a n c e s do n o t c o n fo rm to e i t h e r t h e E d u c a tio n Code o r t h e R evenue and T a x a tio n C o d e.
As a r e s u l t o f p e r s o n a l i n t e r v i e w s , i t
was f o u n d t h a t t h e u n s e c u r e d p r o p e r t y t a x was c o l l e c t e d s e p a r a t e l y i n some c a s e s . w ith th e se c u re d ta x e s .
I n o t h e r s i t was c o l l e c t e d I t i s n o t c l e a r to w h a t e x t e n t
t h e t o t a l a s s e s s m e n t r o l l w as u s e d to f i x t h e t a x r a t e a s p r e s c r i b e d i n S e c t i o n 6356 o f t h e E d u c a tio n Code o r t o w h at e x t e n t o n ly t h e s e c u r e d p o r t i o n was u s e d .
H ow ever,
t h e r e was e v id e n c e t h a t t h e p r a c t i c e v a r i e d fro m c o u n ty t o c o u n ty . 6.
E lim in a tio n o f ta x r a t e l i m i t a t i o n .
The
r e p l i e s fro m q u e s t i o n n a i r e s , p e r s o n a l i n t e r v i e w s an d v a rio u s a s p e c ts o f th e s tu d y l e d to th e c o n c lu s io n t h a t good p r a c t i c e s and p ro c e d u re s i n sc h o o l d i s t r i c t b u d g e t
a d m i n i s t r a t i o n n e v e r w i l l b e p o s s i b l e u n t i l b u d g e ts c a n be a t r u e p o r t r a y a l o f th e f i n a n c i a l n e e d s o f t h e d is tric ts .
S c h o o l d i s t r i c t b u d g e ts w e re fo u n d t o be
f o r c e d i n t o b a la n c e by e i t h e r a n o v e r e s t i m a t i o n o f in c o m e , o r by a r t i f i c i a l
c u rta ilm e n t o f needed e x p e n d itu re s .
T h ese p r a c t i c e s i n v a r i a b l y r e s u l t i n a n o n - b a la n c e d b u d g e t* E v id e n c e l e d t o a d e f i n i t e c o n c l u s i o n t h a t i f th e n e e d s o f a d i s t r i c t a r e h o n e s t l y p o r t r a y e d , t h e n e c e s s a r y incom e m u st b e p r o v i d e d t o m e e t t h e s e n e e d s .
T h is e v id e n c e l e a d s
to t h e f u r t h e r c o n c l u s i o n t h a t t h e p r e s e n t l e g a l t a x l i m i t s o p e r a t e s a g a i n s t good b u d g e t p r a c t i c e .
B u d g e ts
s h o u ld be b u i l t t o s t a y w i t h i n f i x e d incom e l i m i t s . H ow ever, u n d e r p r e s e n t l i m i t a t i o n s , b u d g e ts a n d t h e i r su b se q u e n t a c c o u n tin g w i l l be n o th in g e x c e p t a f a r - f l u n g e s tim a te , n o t b a se d upon d e f e n s ib le f a c t s o r c o n d itio n s . T h e re was e v id e n c e i n many c o u n t i e s t h a t g r e a t c o n c e rn was e x p r e s s e d t h a t d i s t r i c t b u d g e ts s h o u ld b e l a r g e e n o u g h t o r e q u i r e th e maximum t a x r a t e .
4 s lo n g a s a b u d g e t i s
l a r g e l y a d e v ic e o r a c o m p i l a t i o n o f f i g u r e s t o i n s u r e s e c u r i n g t h e maximum t a x r a t e ,
t h e r e c a n b e no r e a l
b u d g e t p ro c e d u re fo llo w e d . 4 b u d g e t s h o u ld b e a summary o f t h e e d u c a t i o n a l n e e d s o f t h e d i s t r i c t , e x p r e s s e d i n te r m s o f d o l l a r s a n d c e n ts .
T h is n e e d r e q u i r e s t h a t t h e re v e n u e s h o u ld be
f o r th c o m in g to m e e t s u c h n e e d s w h ic h c a n n o t be done i n te r m s o f t a x r a t e s a l o n e .
A f u r t h e r c o n c lu s io n re a c h e d
w as t h a t t h e C o n s t i t u t i o n o f C a l i f o r n i a , a m p l i f i e d b y th e E d u c a tio n C ode, c l e a r l y r e c o g n i z e s t h a t a s c h o o l d i s t r i c t i s a s e p a r a te p o l i t i c a l s u b d iv is io n o f th e s t a t e , w ith a l l t h e r e s p o n s i b i l i t i e s o f a n y o t h e r s u b d i v i s i o n , g o v e rn e d by a b o a rd e le c t e d by th e .p e o p le .
The p e o p le e l e c t th e
g o v e r n in g b o a r d a n d t h e r e a p p e a r s t o b e no r e a s o n why s u c h a b o a rd s h o u ld n o t be h e l d s t r i c t l y a c c o u n t a b l e t o t h e p e o p le o f t h e d i s t r i c t f o r a l l i t s
a c t s , in c lu d in g th e
r i g h t t o f i x th e am ount o f f u n d s n e c e s s a r y t o o p e r a t e t h e s c h o o ls .
A s c h o o l d i s t r i c t i s one o f t h e few a g e n c i e s
w h ic h i s c o m p e lle d t o o p e r a t e w i t h o u t a b a la n c e d b u d g e t. N e i t h e r t h e s t a t e , t h e c o u n ty , n o r m o st c i t i e s a r e r e q u i r e d to w ork w i t h i n t h e fram e w o rk o f a n incom e d e te r m in e d b y a l i m i t e d t a x r a t e , w h ic h i n t h e f i n a l a n a ly s is has l i t t l e
r e a l r e l a t i o n s h i p to t h e am ount o f
fu n d s a c t u a l l y expended. II.
SPECIFIC CONCLUSIONS
The f o l l o w i n g c o n c l u s i o n s a r e n o t t o b e c o n s i d e r e d o f a n y l e s s im p o r ta n c e t h a n th o s e l i s t e d u n d e r g e n e r a l c o n c l u s i o n s w h ic h w ere d i s c u s s e d i n a m ore g e n e r a l m a n n e r. The m a jo r o r g e n e r a l c o n c l u s i o n s r e p r e s e n t e d th o s e d e r i v e d
226 l a r g e l y fro m t h e e n t i r e
s t u d y a s co m p ared to t h e s p e c i f i c
i n v e s t i g a t i o n s w h ic h w e re a p a r t o f t h e s tu d y * 1.
E s t i m a t i n g in c o m e *
I t w as f o u n d t h a t much
c o n f u s io n -e x is te d r e g a r d in g th e s u b je c t o f w hat c o n s t it u t e d incom e fro m p r o p e r t y a n d w h e th e r t h i s Incom e was t h a t d e r i v e d fro m u n s e c u r e d p r o p e r t y o r t h e s e c u r e d , p o r t i o n o f t h e assessm en t r o l l .
The E d u c a tio n Code a n d t h e R evenue an d
T a x a tio n Code do n o t c l e a r l y s t a t e how u n s e c u r e d p r o p e r t y i s t o b e c o n s i d e r e d i n p r e p a r i n g a n e s t i m a t e o f in c o m e . I t was c l e a r l y e v i d e n t t h a t t h e E d u c a tio n Code n e e d e d r e v i s i o n a n d c l a r i f i c a t i o n so t h a t s c h o o l a n d t a x i n g o f f i c i a l s c o u ld know t h e i n t e n t o f t h e la w .
T h is c o n f u s i o n
a n d l a c k o f c l a r i t y i s b e l i e v e d t o b e one o f t h e m a jo r c a u se s o f p o o r b u d g e t p ro c e d u re s and p r a c t i c e s . F a i l u r e to p r o p e r l y b u d g e t Incom e fro m u n s e c u r e d p r o p e r t y was fo u n d t o b e l a r g e l y t h e r e s u l t o f t h e f a c t t h a t t h e la w d o e s n o t r e c o g n i z e t h i s i t e m .
The E d u c a tio n
Code i s e n t i r e l y s i l e n t , a n d t h e o n ly a u t h o r i t y r e s t s w i t h t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n w ho, th r o u g h h i s a u t h o r i t y t o p r e s c r i b e t h e b u d g e t fo rm , may i n c l u d e t h i s i te m . 2.
S u p p le m e n ta l b rea k d o w n fo rm .
4s a re s u lt of
t h e i n v e s t i g a t i o n made r e g a r d i n g t h e s u b j e c t o f a s u p p le m e n ta l b rea k d o w n fo rm , i t was fo u n d t h a t b o th t h e
227 e i t y a n d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s e x p r e s s e d a d e s i r e f o r a u n if o r m docum ent w h ic h w o u ld a s s i s t i n p r e p a r i n g b u d g e ts i n t h e v a r i o u s s c h o o l d i s t r i c t s .
T h is
c o n c l u s i o n was r e a c h e d a s a r e s u l t o f t h e r e p l i e s i n w h ic h 83 p e r c e n t o f t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls a n d 67 p e r c e n t o f th e c i t y s u p e r i n t e n d e n t s o f s c h o o ls r e p l i e d in fa v o r o f th e p ro p o s a l. ‘* 3.
R e c o rd s m a i n t a i n e d b y d i s t r i c t s .
I t was fo u n d
t h a t g e n e r a l l y a c c e p t a b l e p r a c t i c e s w e re f o llo w e d by d i s t r i c t s i n t h e m a in te n a n c e o f r e c o r d s fro m w h ic h b u d g e ts c o u ld b e p r e p a r e d .
O nly a few c o u n ty s u p e r i n t e n d e n t s o f
s c h o o ls r e p o r t e d t h a t d i s t r i c t s
in t h e i r c o u n tie s f a i l e d
t o m a i n t a i n r e c o r d s o f some k i n d . . 4 w e ig h te d r a t i n g gave t h i s p r a c t i c e a s c o r e o f t w e n ty - s e v e n a s com pared t o 184 f o r th e p r a c t i c e o f m a in ta in in g f u l l y ite m iz e d r e c o rd s fro m w h ic h t o p r e p a r e t h e n e x t y e a r * s b u d g e t .
T h is f i n d i n g
l e d t o t h e c o n c l u s i o n t h a t d i s t r i c t s w ere d o in g a r e a s o n a b l y a c c e p t a b l e j o b , e v e n th o u g h many w e re s m a ll a n d w ere r e q u i r e d to o p e r a t e t h e s c h o o l s w it h o u t a d m i n i s t r a t o r s who c o u ld g i v e a n y a p p r e c i a b l e tim e t o th e b u s i n e s s m an a g em en t.
4 f u r t h e r c o n c l u s i o n was t h a t th e
c o u n ty s u p e r i n t e n d e n t o f s c h o o l s was e x e r c i s i n g a c o n s t r u c t i v e in f lu e n c e i n th e m a tte r o f r e c o r d k e e p in g .
T h is g i v e s
s t r e n g t h t o t h e c o n c l u s i o n t h a t a lt h o u g h i t was p o i n t e d o u t
228
i n t h e g e n e r a l o r m a jo r c o n c l u s i o n s t h a t t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s was e x e r c i s i n g much i n f l u e n c e in th e e s ta b lis h m e n t o f p o l i c i e s and p ro c e d u re s , t h i s i n f l u e n c e s h o u ld b y n o m eans b e c o n s i d e r e d d e t r i m e n t a l . Upon i n v e s t i g a t i o n i t was fo u n d t h a t a s d i s t r i c t s becam e l a r g e r r e c o r d s w ere m a i n t a i n e d i n b e t t e r f a s h i o n . D i s t r i c t s w i t h e i g h t t e a c h e r s or. m ore show ed a h i g h e r p e r c e n t m a in ta in in g a c c e p ta b le r e c o r d s th a n th o s e w ith l e s s te a c h e rs.
T h is s i t u a t i o n was e v id e n c e d b y t h e f a c t t h a t
s c h o o l d i s t r i c t s w i t h e i g h t o r m ore t e a c h e r s h a d a m e d ia n o f 9 2 ,5 8 p e r c e n t m a i n t a i n i n g g o o d r e c o r d s a s co m p ared t o a m e d ia n o f 58 p e r c e n t f o r d i s t r i c t s w i t h l e s s t e a c h e r s , w h ic h l e d t o t h e f u r t h e r c o n c l u s i o n t h a t , d i s t r i c t s w h ic h em p lo y s u p e r i n t e n d e n t s k e e p b e t t e r r e c o r d s t h a n t h o s e w hich- do n o t , 4.
E n d in g b a l a n c e s .
I t was fo u n d t h a t t h e
e n d in g b a l a n c e s o f d i s t r i c t s b o re l i t t l e
r e la tio n s h ip to
t h e g e n e r a l r e s e r v e b u d g e te d , o r t h e t o t a l g e n e r a l a n d u n d is trib u te d re s e rv e , h u n d red d i s t r i c t s
i l l th o u g h a p p r o x i m a t e ly f o u r
d id n o t b u d g e t a g e n e ra l r e s e r v e ,
n o t f o l l o w t h a t t h e r e w ould be no e n d in g b a l a n c e .
i t d id I t was
fo u n d t h a t t h e p r a c t i c e was t o d e r i v e t h e e n d in g b a la n c e s fro m a v a r i e t y o f s o u r c e s , p r i n c i p a l l y fro m e x t r a f u n d s u n s p e n t fro m t h e b u d g e te d e x p e n d i t u r e c l a s s i f i c a t i o n s ,
229 in co m e n o t a d e q u a t e l y b u d g e te d , o r i n many c a s e s n o t l i s t e d a t a l l , a n d f a i l u r e t o p r o p e r l y e s t i m a t e incom e fro m d e l i n q u e n t t a x e s .
The f a c t t h a t t h e g e n e r a l r e s e r v e
may n o t b e e x p e n d e d d u r i n g t h e y e a r i n w h ic h i t
is
b u d g e te d l e d many, d i s t r i c t s t o k e e p t h i s i te m “lo w ” o r e l i m i n a t e i t e n t i r e l y so a s t o k e e p t h e i r f u n d s “a v a i l a b l e ” d u r i n g t h e y e a r t o m ee t a n y u n f o r e s e e n e m e r g e n c ie s .
T h is
p o l i c y l a r g e l y a c c o u n ts f o r t h e w id e d i f f e r e n c e f o u n d t o e x i s t b e tw e e n e n d in g b a l a n c e s an d b u d g e te d r e s e r v e s . 5*
R e se rv e s.
I t was fo u n d t h a t 75 p e r c e n t o f
t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s r e p o r t e d t h a t i t w as t h e p r a c t i c e i n t h e i r c o u n t i e s t o u s e t h e r e s e r v e ite m s a s a d e v ic e to b a la n c e t h e b u d g e t.
T h a t i s , th e
l a s t ite m to b e c o m p le te d was e i t h e r t h e g e n e r a l o r u n d is trib u te d re s e rv e .
E i t h e r t h e r e s e r v e s w ere r e d u c e d
o r a n y e x t r a f u n d s r e s u l t i n g fro m a n a t t e m p t to o b t a i n t h e maximum t a x r a t e w e re i n c l u d e d .
No r e a l p o l i c y was
f o l lo w e d r e g a r d i n g t h e p r o p e r p e r c e n t a g e o f t h e t o t a l e x p e n d i t u r e s b e in g s e t a s i d e f o r r e s e r v e p u r p o s e s . A p p r o x im a te ly 50 p e r c e n t o f t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s s t a t e d t h a t t h e i r o f f i c e s a d v o c a te d no p o lic y e i t h e r f o r th e u n d is tr ib u te d o r g e n e ra l r e s e r v e s . T h is s t a t e m e n t was f u r t h e r e v id e n c e t h a t t h e r e s e r v e s w ere n o t s e r v i n g t h e p u r p o s e f o r w h ic h t h e y w e re i n t e n d e d .
230 D i s t r i c t s w h ic h f a i l t o b u d g e t a g e n e r a l r e s e r v e w i l l f i n d t h e m s e lv e s i n s e r i o u s d i f f i c u l t y when i t becom es n e c e s s a r y to d e a l w i t h t h e s t a t e o r f e d e r a l g o v e rn m e n t i n c o n n e c ti o n w i t h nem e rg en c y f u n d s ” f o r r e l i e v i n g a d e f i c i t in o p e ra tio n .
F a i l u r e to b u d g e t a g e n e r a l
r e s e r v e h a s c a u s e d d i s t r i c t s t o en d t h e y e a r w i t h o u t one c e n t a v a i l a b l e to them u n t i l new r e v e n u e i s r e c e i v e d . i s b e lie v e d th a t d i s t r i c t s
It
e i t h e r s h o u ld b e u r g e d t o
i n c l u d e p r o p e r r e s e r v e s i n t h e i r b u d g e ts o r t h e la w s h o u ld b e w o rd ed i n s u c h a way t h a t i t w o u ld b e m a n d a to ry u p o n t h e c o u n ty t o r e q u i r e c o m p lia n c e w i t h t h e l a w . 6.
T ax es a b o v e l e g a l l i m i t s .
&n i n v e s t i g a t i o n
was m ade o f t h e m e th o d s a n d p r o c e d u r e s , u s e d i n h a n d l i n g fu n d s p ro v id e d by v o te d ta x in c r e a s e s o r by o p e r a tio n o f t h e v a r i o u s s e c t i o n s o f t h e E d u c a tio n Code w h ic h p ro v id e a d d it i o n a l fu n d s f o r l im i te d p u rp o se s w ith o u t v o te o f th e p e o p le .
I t was fo u n d fro m t h e r e p l i e s fro m
c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s t h a t two o u t o f t h r e e c o u n t i e s do m a i n t a i n a c h e c k on w h e th e r e x t r a v o t e d t a x e s a r e e x p e n d e d f o r t h e p u r p o s e s p e c i f i e d b y v o te o f t h e p e o p le .
The f a c t t h a t s e v e n who r e p o r t e d s u c h a c h e c k was
m a i n t a i n e d d id n o t h a v e a n y s u c h d i s t r i c t s
in t h e i r
c o u n t i e s , q u e s t i o n s t h e v a l i d i t y o f th e a n s w e r s .
From
p e r s o n a l i n t e r v i e w s and r e p o r t s fro m c o u n ty s u p e r i n t e n d e n t s
231 o f s c h o o l s , t h e c o n c l u s i o n h a s b e e n draw n t h a t w h a te v e r c h e c k was made w as f a r fro m a d e q u a t e , e s p e c i a l l y o n t h e e n tire s ta te le v e l. In th e a d m in is tr a tio n o f th e fu n d s r a i s e d beyond t h e t a x l i m i t a t i o n f o r s p e c i f i c p u r p o s e s , i t was fo u n d t h a t o n ly e i g h t e e n c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls r e p o r t e d t h e y h a d s e t up p r o c e d u r e s f o r k e e p in g s u c h fu n d s s e p a r a t e f o r a c c o u n ti n g p u r p o s e s . no s u c h p r o c e d u r e was i n e f f e c t .
F ifte e n s ta te d
I f t h e s i x t e e n who
g a v e n o r e p l y w ere to b e c o n s i d e r e d a s h a v in g no s u c h p r o c e d u r e , t h e c o n c l u s i o n c o u ld b e t h a t t h e s i t u a t i o n was n o t s a t i s f a c t o r y .
No a t t e m p t was made to d e te r m in e
w h e th e r o r n o t t h e s i x t e e n n o t r e p l y i n g h a d d i s t r i c t s re q u irin g e x tra fu n d s.
H ow ever, i t was fo u n d t h a t o f t h e
e i g h t e e n who s t a t e d p r o c e d u r e s h a d b e e n s e t up f o r k e e p in g t h e s e f u n d s s e p a r a t e , o n ly f i f t e e n h a d d i s t r i c t s w i t h e x tr a fu n d s. p ro v id e d ,
Of t h e f i f t e e n who s t a t e d no p r o c e d u r e was
t h i r t e e n h a d d i s t r i c t s w h ic h r e q u e s t e d f u n d s
f o r t h e s p e c i a l l i m i t e d p u r p o s e s s p e c i f i e d i n t h e E d u ca t i o n C o d e. q u e s tio n e d .
The v a l i d i t y o f t h e r e p l i e s may b e I t i s b e lie v e d t h a t th e s i t u a t i o n I s
u n s a t i s f a c t o r y a n d s t e p s s h o u ld b e ta k e n t o i n s u r e t h a t t h i s p h a s e o f b u d g e t m ak in g a n d a c c o u n ti n g i s p r o p e r l y sa feg u a rd ed .
I f t h e e m p h a sis w ere p l a c e d upon t h e am o u n ts
b u d g e te d r a t h e r t h a n u p o n t h e t a x r a t e a n d i t s
232 a c c o u n t a b i l i t y , b e t t e r b u d g e t m a k in g w o u ld r e s u l t .
T h is
p ro b le m i s s t i l l a n o t h e r r e a s o n a g a i n s t t a x r a t e l i m i t a t i o n s . The b r o a d a u t h o r i t y f o r t h e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n t o p r e s c r i b e t h e b u d g e t fo rm l i k e l y c o u ld p ro v id e th e c o n tr o l n e e d e d . A d m i n i s t r a t i o n o f b u d g e ts b y c o u n ty s u p e r i n t e n d e n ts .
I t was fo u n d t h a t t h e c o u n ty s u p e r i n t e n d e n t s o f
s c h o o l s g a v e m a jo r a s s i s t a n c e t o 1 ,5 0 8 s c h o o l d i s t r i c t s i n p r e p a r i n g t h e i r b u d g e ts , r a n g i n g fro m p r e p a r i n g th e e n t i r e b u d g e t t o p r e p a r i n g i t fro m r e c o r d s s u p p l i e d by th e d i s t r i c t .
T h ese d i s t r i c t s r e p r e s e n t e d 68 p e r c e n t o f
a l l th e d i s t r i c t s
in th e s t a t e .
The q u e s t i o n o f w h e th e r
t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h o u l d be a u t h o r i z e d t o p r e p a r e a l l b u d g e ts f o r s m a ll d i s t r i c t s was made th e s u b je c t o f I n v e s tig a tio n .
T h i r t y - s e v e n c o u n ty s u p e r i n t e n
d e n ts o f s c h o o ls r e p o r t e d a g a i n s t m ak in g t h a t o f f i c e r r e s p o n s i b l e f o r b u d g e t p r e p a r a t i o n on a n y b a s i s o t h e r t h a n p e r m i s s i v e a s s i s t a n c e , a s co m p ared t o e l e v e n i n f a v o r . They a l s o r e p o r t e d , b y a m a r g in o f f o r t y - s e v e n t o o n e , t h a t t h e y s e n s e d no o p p o s i t i o n t o t h e p r a c t i c e c a r r i e d on a t p re s e n t.
T hey r e p o r t e d f o r t y - f i v e w ere i n f a v o r o f t h e
la w a s i t now r e a d s a n d two w e re a g a i n s t i t .
T w e n ty - f iv e
c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s f u r t h e r r e p o r t e d t h a t i n t h e i r o p i n i o n t h e d i s t r i c t s w o u ld l i k e m ore h e lp t h a n
233 i s now g i v e n th e m .
E ig h te e n s t a t e d t h a t th e d i s t r i c t s
d i d n o t w is h m ore h e l p .
T h ese s t a t e m e n t s l e a d t o t h e
c o n c lu s io n t h a t th e p r e s e n t p ro c e d u re l i k e l y i s o p e ra tin g a s w e ll a s can be e x p e c te d .
Of c o u r s e , t h e c o u n ty
s u p e r i n t e n d e n t s o f s c h o o l s a n s w e re d fro m t h e i r own p o i n t o f v ie w , an d t h e i r o p i n i o n may b e s u b j e c t t o q u e s t i o n . H ow ever, i t i s v e r y u n l i k e l y t h a t t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls w o u ld n o t c o n d u c t t h e i r o f f i c e s i n r e a s o n a b l e h aim o n y w i t h t h e d e s i r e s o f t h e s c h o o l d i s t r i c t s ,
as
th e y a re d ep en d en t upon th e s u p p o rt o f th e e l e c t o r s in a l l b u t f iv e c o u n tie s o f th e s t a t e . 8.
B udget t r a n s f e r s .
Upon i n v e s t i g a t i o n i t was
fo u n d t h a t a p p r o x i m a t e ly 25 p e r c e n t o f t h e c o u n ty s u p e r in te n d e n ts o f s c h o o ls r e p o r tin g s t a t e d th e y d id n o t r e q u i r e b u d g e t t r a n s f e r s fro m t h e i r d i s t r i c t s
in o rd e r
t o e x c e e d e x p e n d i t u r e s i n a n y m a jo r b u d g e t c l a s s i f i c a t i o n . I t was fo u n d t h a t f o u r t e e n c o u n t i e s d i d n o t r e t u r n a n a p p ro v e d c o p y o f a b u d g e t t r a n s f e r r e q u e s t u p o n i t s a p p ro v a l.
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s who p e r m i t
e x p e n d i t u r e s i n e x c e s s o f t h e am ount a p p ro v e d i n th e o r i g i n a l b u d g e t, w i t h o u t s e c u r i n g a n d g i v i n g a p p r o v a l t o th e t r a n s f e r , a r e a c t i n g i n d i r e c t v i o l a t i o n o f th e la w .
F u r th e r m o r e , t h e r e i s r e a s o n t o b e l i e v e t h a t th e b o n d o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s , a s w e l l a s t h a t o f th e c o u n ty a u d i t o r , may b e s u b j e c t to l e g a l a c tio n .
I t i s n o t b e l i e v e d t h e c o u n ty s u p e r i n t e n d e n t s o f
s c h o o ls d e l i b e r a t e l y v i o l a t e t h e la w .
R a th e r, th e y
o p e r a t e o n a p o l i c y o f g e t t i n g t h e w a r r a n t s a p p r o v e d , and t h e y a s k f o r t h e t r a n s f e r i f a n d when t h e y g e t a ro u n d t o it.
P e r s o n a l i n t e r v i e w s v e r i f i e d th e f a c t t h a t th e
la w was n o t u n d e r s t o o d b y som e.
The c o n c l u s i o n was
r e a c h e d t h a t c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s a n d s c h o o l d i s t r i c t s s h o u ld b e s p e c i f i c a l l y a d v i s e d o f t h e la w a n d t h e c o n s e q u e n c e s i f t h e la w i s n o t f o l l o w e d .
The
p r o v is io n a llo w in g t r a n s f e r s a t th e end o f th e y e a r by u s e o f a s i n g l e r e s o l u t i o n i s h i g h l y q u e s t i o n a b l e , due t o t h e f a c t t h a t t h e la w d o e s n o t l i m i t o r d e f i n e w hat i s m e a n t b y f,a t t h e c l o s e o f t h e y e a r . ”
Some c o u n ty
s u p e r in te n d e n ts o f s c h o o ls o p e ra te u n d e r t h i s a u th o r i ty f o r a g r e a te r p o r tio n o f th e y e a r.
I t was d e f i n i t e l y
d e te r m in e d t h a t g r e a t c o n f u s i o n e x i s t s i n r e g a r d t o t h i s s e c t i o n o f th e la w .
In f a c t , th e q u e s tio n r e g a r d in g t h i s
i te m was a n s w e re d b y t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s i n s u c h a v a r i e t y o f ways t h a t t h e a n s w e rs w ere d i s c a r d e d a s b e in g u s e l e s s .
9*
W ith h o ld in g o f a s s e s s e d v a l u a t i o n s *
Upon
i n v e s t i g a t i o n i t was fo u n d t h a t a b o u t h a l f o f t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s b e l i e v e d t h a t t h e t a x i n g an d a s s e s s in g o f f i c i a l s d e l i b e r a t e l y w ith h e ld in fo rm a tio n r e g a r d i n g a s s e s s e d , v a l u a t i o n s i n o r d e r t o k e e p fro m th e d i s t r i c t s k n o w le d g e o f i n c r e a s e s w h ic h may h a v e i n c u r r e d f o r t h e s u c c e e d in g f i s c a l y e a r*
I n many i n s t a n c e s
d i s t r i c t s c o u ld n o t t a k e f u l l a d v a n ta g e o f t h e maximum ta x ra te *
E ig jh t c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls s t a t e d
t h e y b e l i e v e d t h e i n f o r m a t i o n w as h e l d u n t i l a f t e r b u d g e ts w e re a c t u a l l y a d o p t e d .
T h is im p r e s s io n was
c o n f ir m e d t h r o u g h a p e r s o n a l i n t e r v i e w w i t h a s t a t e o f f i c i a l who a s s e r t e d t h e p r a c t i c e d e f i n i t e l y e x i s t e d two y e a r s a g o .
R e c e n t i n f o r m a t i o n was t o th e e f f e c t
t h a t t h i s p r a c t i c e was n o t b e in g p u r s u e d by a n y g r e a t nu m b er o f t a x i n g a n d a s s e s s i n g o f f i c i a l s .
I t was a l s o
fo u n d t h a t t h e a s s e s s i n g o f f i c i a l s i n m any i n s t a n c e s a r e i n f a v o r o f re m o v in g th e t a x l i m i t a t i o n , p l a c i n g s q u a r e l y u p o n t h e g o v e r n in g b o a r d o f t h e s c h o o l d i s t r i c t th e r e s p o n s ib ility f o r sch o ol d i s t r i c t ta x e s .
T h is a p p r o v a l
may b e a n a t t e m p t on t h e p a r t o f t h e c o u n ty a s s e s s o r s t o e s c a p e t h e v i o l e n t c r i t i c i s m w h ic h h a s b e e n d i r e c t e d a g a i n s t them b e c a u s e o f t h e r i s e i n s c h o o l d i s t r i c t t a x e s due l a r g e l y t o i n c r e a s e d a s s e s s e d v a l u a t i o n s , and t o th e p r a c t i c e o f w i t h h o ld i n g v a l u a t i o n s u n t i l l a t e
in th e y e a r
236 A l s o , i t was fo u n d t h a t t h e c o u n ty a s s e s s o r s i n some c o u n tie s e x p e rie n c e g r e a t d i f f i c u l t y in p re p a rin g t h e i r r o l l s o n tim e b e c a u s e o f l a c k o f p e r s o n n e l an d fu n d s # 10.
Change i n b a s i c b u d g e t p r o c e d u r e .
C i t y and
c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w e re p r e s e n t e d t h r e e b a s ic p r o p o s a ls to
ch an g e th e la w r e g a r d i n g f i l i n g
b u d g e ts w h ic h i n v o lv e d a n e a r l i e r f i l i n g d a t e f o r th e t e n t a t i v e b u d g e t a c c o m p a n ie d b y a p u b l i c h e a r i n g , e lim in a tio n o f th e ta x l i m i t a t i o n , and a change i n th e a v e ra g e d a il y a tte n d a n c e r e p o r tin g y e a r .
I t was fo u n d
t h a t t h e c i t y a n d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s , b y a r a t i o o f 1 .7 0 to 1 , w ere i n f a v o r o f e l i m i n a t i n g th e t a x r a t e l i m i t a t i o n a n d p l a c i n g u p o n t h e g o v e r n in g b o a r d s o f t h e s c h o o l d i s t r i c t s t h e r e s p o n s i b i l i t y o f d e te r m i n i n g t h e am ount t o b e r a i s e d .
By a m a r g in o f t h i r t y - s i x t o
t w e l v e , c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s f a v o r e d a c h an g e i n t h e a v e r a g e d a i l y a t t e n d a n c e r e p o r t i n g y e a r t o make i t b e g in w ith th e c a le n d a r y e a r , and f i l i n g
th e t e n t a t i v e
b u d g e t on May f i r s t , a c c o m p a n ie d b y a p u b l i c h e a r i n g . The c i t y s u p e r i n t e n d e n t s o f s c h o o l s e x p r e s s e d t h e i r f a v o r f o r t y - t w o to s i x .
C o u n ty s u p e r i n t e n d e n t s o f s c h o o l s ,
t h i r t y - n i n e t o s e v e n , and c i t y s u p e r i n t e n d e n t s o f s c h o o l s , t h i r t y - t w o to t w e l v e , f a v o r e d t h e p r e s e n t a v e r a g e d a i l y a tte n d a n c e r e p o r tin g y e a r w ith ta x l i m i t a t i o n , b u t
237 p r o v i d i n g a May f i r s t t e n t a t i v e b u d g e t f i l i n g d a t e w ith a p u b lic h e a r in g ,
t o a d d i t i o n a l q u e s t i o n a s k e d th e c i t y
s u p e r i n t e n d e n t s o f s c h o o ls w h e th e r t h e y w o u ld f a v o r t h e l a s t p r o p o s a l , e x c e p t t h e t a x r a t e l i m i t a t i o n w ould b e e lim in a te d .
T h e i r r e p l i e s w ere t h i r t y t o e i g h t e e n
fa v o rin g th e p r o p o s a l• Prom t h e s e d a t a i t was c l e a r t h a t a l l f a v o r e d a b a s i c c h a n g e i n t h e la w .
The p r i m a r y r e a s o n g i v e n b y
some i n e x p l a n a t o r y memorandums was t h a t i t w ould p r o v i d e a n o p p o r t u n i t y t o know w h a t t h e i r b u d g e ts w o u ld b e b e f o r e t h e y c o m m itte d up t o 90 p e r c e n t o f t h e i r b u d g e ts y e t u n f i l e d o r a p p ro v e d b y a n y o n e .
Prom t h e e v id e n c e , i t
was c o n c lu d e d t h a t t h e c i t y a n d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s w o u ld b e i n f a v o r o f a lm o s t a n y c o m b in a tio n o f t h e p r o p o s a l s s u b m i t t e d , a l t h o u g h l e s s w e re c e r t a i n a b o u t th e e lim in a tio n o f th e ta x l i m i t a t i o n s . 11.
L egal in te r p r e ta tio n o f l e g i s l a t i o n .
I n v e s t i g a t i o n o f th e c o n f u s i o n w h ic h e x i s t e d i n c o n n e c ti o n w i t h t h e i n t e r p r e t a t i o n o f l e g i s l a t i o n r e v e a l e d t h a t many c o u n t i e s w e re o p e r a t i n g u n d e r d i f f e r e n t i n t e r p r e t a t i o n s o f c e r t a i n E d u c a ti o n Code s e c t i o n s .
Many o f t h e s e
i n t e r p r e t a t i o n s w ere t h e r e s u l t o f o p i n i o n s g iv e n b y v a rio u s d i s t r i c t a tto r n e y s and t h e i r d e p u tie s o v e r a lo n g p e r io d o f tim e .
M ost o f them h a v e n e v e r b e e n r e d u c e d
238
t o w r i t i n g , a n d i n f a c t , t h e r e was r e a s o n to b e l i e v e t h a t many w e re t r a d i t i o n s w h ic h h a v e b e e n f o l lo w e d w i t h t h e e f f e c t o f la w ,
4 s a r e s u l t o f th e in v e s tig a tio n , i t
i s e v i d e n t t h a t t h e r e i s a n e e d f o r some c e n t r a l m eth o d o r t h e c r e a t i o n o f a s i n g l e a g e n c y t o make i n t e r p r e t a t i o n s o f t h e la w s e n a c te d b y t h e C a l i f o r n i a S t a t e L e g i s l a t u r e . The e n t i r e
s t a t e may t h e n o p e r a t e u n d e r one i n t e r p r e t a t i o n .
At p re s e n t, i t
i s p o s s i b l e t o h a v e one o p i n i o n fro m t h e
A t t o r n e y G e n e ra l o f C a l i f o r n i a a n d f i f t y - e i g h t s e p a r a t e o p i n i o n s fro m t h e l e g a l a d v i s e r s o f e a c h o f t h e f i f t y e i g h t c o u n t i e s , t o s a y n o t h i n g . o f th e o p i n io n s g i v e n b y v a r i o u s d e p u t i e s a n d o t h e r c o u n ty o f f i c i a l s who f e e l t h e y h a v e a r i g h t t o i n t e r p r e t t h e la w a s t h e y se e i t .
CH&PTER XI BBCOMMENDATIONS The s t u d y r e v e a l e d m any p o l i c i e s a n d p r o c e d u r e s w h ic h w e re a c c e p t a b l e an d many w h ic h w ere s u b j e c t t o q u e s tio n .
Some c o u ld be im p ro v e d b y a b e t t e r k n o w led g e
o f t h e e x i s t i n g la w - o n t h e p a r t o f t h o s e who a r e c h a r g e d w ith th e a d m in is tr a tio n o f sc h o o l d i s t r i c t b u d g e ts . O th e r p r o c e d u r e s c o u ld be im p ro v e d w i t h a b e t t e r ■under s t a n d i n g a n d k n o w le d g e o f w h a t c o n s t i t u t e s g o o d b u d g e t p r o c e d u r e , w h i l e o t h e r s w o u ld r e q u i r e a c h a n g e i n t h e la w . T w elve s p e c i f i c re c o m m e n d a tio n s a r e d i r e c t e d to w a rd im p ro v e m e n t i n p r o c e d u r e , c h a n g e i n t h e a d m i n i s t r a t i o n o f t h e b u d g e t a c t a n d r e v i s i o n o f th e E d u c a ti o n Code o f C a l i f o r n i a . F iv e s p e c i f i c a r e a s o r s u g g e s t i o n s w h ic h a r e recom m ended f o r f u t u r e i n v e s t i g a t i o n a r e m a jo r o u tg r o w th s o f t h e s t u d y on p o l i c i e s a n d p r o c e d u r e s i n th e a d m in is tr a tio n o f sc h o o l d i s t r i c t b u d g e ts .
I f fo llo w e d ,
t h e s e s h o u ld p r o v e t o b e o f v a l u e an d s c h o o l d i s t r i c t a d m i n i s t r a t o r s a n d o t h e r o f f i c i a l s may h a v e f a c t s and i n f o r m a t i o n t o g u id e th em i n t h e p r e p a r a t i o n o f s c h o o l d i s t r i c t b u d g e ts .
240 I.
RECOMMENDATIONS IN PROCEDURE ANDADMINISTRATION I n m ak in g t h e s e s p e c i f i c re c o m m e n d a tio n s , no o r d e r
o f im p o r ta n c e h a s b e e n a s s i g n e d a lt h o u g h i t s h o u ld b e r e c o g n i z e d t h a t some a r e o f g r e a t e r im p o r t t h a n o t h e r s . 1.
Work s h e e t fo rm .
As a r e s u l t o f i n f o r m a t i o n
r e c e i v e d fro m b o t h c i t y a n d c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s fro m q u e s t i o n n a i r e r e p l i e s a n d p e r s o n a l i n t e r v i e w s , a n e e d was shown f o r a s u p p le m e n ta l w ork s h e e t fo rm to be u se d in th e p r e p a r a tio n o f sc h o o l d i s t r i c t b u d g e ts . I t i s recom m ended t h a t t h e fo rm be p r e s c r i b e d b y t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a tio n an d t h a t i t be d i s t r i b u t e d th r o u g h t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s i n t h e same m an n er t h e p r e s e n t b u d g e t fo rm s a r e d is trib u te d .
T hat i s ,
t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s
s h a l l p r o v i d e them w ith o u t c o s t to t h e s c h o o l d i s t r i c t s . I t i s f u r t h e r recom m ended t h a t t h i s fo rm s h a l l n o t c o n s titu te a p a r t of th e o f f i c i a l b u d g et b u t th a t i t s h a l l b e a w ork s h e e t o n ly f o r u s e b y t h o s e who a r e c h a r g e d w i t h th e r e s p o n s i b i l i t y o f p r e p a r i n g s c h o o l d i s t r i c t b u d g e ts .
The recom m ended fo rm i s i n c l u d e d
i n A p p e n d ix E .^
1 I n f r a , p p . 2 9 1 -2 9 7 .
241 2*
E s t i m a t i n g incom e fro m u n s e c u r e d p r o p e r t y .
As a r e s u l t o f t h e s t u d y i t i s recom m ended t h a t p a g e t h r e e 2 o f t h e b u d g e t fo rm p r o v i d e d by t h e s t a t e be r e v is e d to i n c l u d e p r o v i s i o n f o r e s t i m a t i n g t h e . incom e fro m u n s e c u r e d p r o p e r t y b y u s i n g 90 p e r c e n t o f t h e u n s e c u r e d r o l l a s t h e b a s i s f o r c o m p u tin g t h e e s t i m a t e d incom e fro m t h i s u s i n g t h e t a x r a t e f o r th e p r e c e d i n g y e a r .
so u rc e ,
T h is r e v i s i o n
w i l l a ll o w f o r a 10 p e r c e n t d e li n q u e n c y w h ic h i s i n h arm o n y w i t h t h e p r o v i s i o n s o f t h e E d u c a tio n Code f o r d e te r m i n i n g t h e t a x r a t e , u s i n g t h e s e c u r e d p o r t i o n o f th e a sse ssm e n t r o l l*
A copy o f t h e p r o p o s e d c h a n g e t o
a p p e a r on p a g e t h r e e o f t h e s t a t e b u d g e t fo rm i s i n c l u d e d i n A p p e n d ix D. 3*
C o n tr o l o f v o t e d t a x .
The s t u d y r e v e a l e d t h e r e
was no c l e a r p r o c e d u r e f o r i n s u r i n g t h a t f u n d s w h ic h a r e r a i s e d b y i n c r e a s i n g t h e t a x l i m i t b y v o t e o f t h e p e o p le f o r s p e c i f i c p u rp o se s a re expended f o r th e p u rp o se s f o r w h ic h t h e y a r e r a i s e d .
W here f u n d s h a v e b e e n l i m i t e d so
a s t o n o t i n c l u d e a l l p u r p o s e s f o r w h ic h t h e g e n e r a l fu n d may b e u s e d , i t
i s recom m ended t h a t p r o p e r p r o c e d u r e s
b e s e t up w i t h i n th e o f f i c e s o f t h e c o u n ty s u p e r i n t e n d e n t
^ I n f r a , A ppendix C, p . 2 7 9 . ^ I n fr a , A ppendix D, p . 2 8 9 .
242 o f s c h o o l s a n d t h e c o u n ty a u d i t o r o f e a c h c o u n ty t o i d e n t i f y e x p e n d i t u r e s so t h a t f u n d s e x p e n d e d fro m t h e p r o c e e d s o f a v o t e d t a x l i m i t e d to s p e c i f i c p u r p o s e s w i l l h e e x p e n d e d o n l y f o r th e p u r p o s e s f o r w h ic h t h e y a r e ra is e d .
T h is m y r e q u i r e a r e s t r i c t e d f u n d fo rm to be
i n c l u d e d a s a p a r t o f th e b u d g e t . C o n tro l o f fu n d s r a i s e d f o r s p e c i f i c p u r p o s e s . T h e re a r e f o u r p r o v i s i o n s i n t h e E d u c a ti o n Code w h ic h a u t h o r i z e t h e g o v e r n in g b o a r d t o i n c l u d e i n i t s b u d g e t a m o u n ts f o r s p e c i f i c p u r p o s e s w h ic h a r e n o t s u b j e c t t o t a x l i m i t a t i o n o r a u t h o r i z a t i o n b y v o te o f t h e p e o p l e . F unds r a i s e d f o r c h i l d c a r e c e n t e r p u r p o s e s m u st be t r a n s f e r r e d o r in c lu d e d in th e c h i l d c a re c e n te r fu n d w h ic h i s s p e c i f i e d i n t h e E d u c a tio n C ode.
I n th e c a s e o f
t h e o t h e r t h r e e w h ic h i n c l u d e f u n d s f o r m e a ls f o r n e e d y c h i l d r e n , f u n d s f o r l o c a l r e t i r e m e n t s y s te m s a n d f u n d s f o r c o n t r a c t i n g w i t h t h e C a l i f o r n i a S t a t e E m ployees* R e tir e m e n t S y s te m , i t
i s recom m ended t h a t t h e b u d g e t fo rm
i n c l u d e t h e n e c e s s a r y s e c t i o n s to p r o v i d e a n a c c o u n ti n g o f th e s e r e s t r i c t e d fu n d s .
T h u s, w h a te v e r am ount o f
m oney i s r a i s e d on a c c o u n t o f t h e s e p u r p o s e s s h a l l be e x p e n d e d e x c l u s i v e l y f o r s u c h p u r p o s e s , and a n y u n e x p e n d e d am ount so r a i s e d s h a l l b e c r e d i t e d t o a b e g in n i n g b a la n c e f o r th e s p e c i f i c p u r p o s e a n d s h a l l n o t
243 r e v e r t to t ii e g e n e r a l f lu id o f t h e d i s t r i c t *
I t is not
p r o p o s e d t h a t t h e r e s h a l l b e s e p a r a t e fu n d s f o r t h e s e t h r e e i t e m s , b u t t h a t t h e am o u n ts s h a l l b e i n c l u d e d i n th e g e n e r a l f u n d a s r e s t r i c t e d a c c o u n ts * Change i n b u d g e t fo rm l i s t i n g p r i o r y e a r 1s e x p e n d itu re s *
The E d u c a tio n Code s p e c i f i c a l l y r e q u i r e s
t h a t t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h a l l l i s t a l l e x p e n d i t u r e s made d u r in g t h e p r i o r y e a r*
The r e p l i e s
fro m th e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s an d p e r s o n a l i n t e r v i e w s w ith a num ber o f s u p e r i n t e n d e n t s i n d i c a t e d th e r e i s c o n s id e ra b le c o n fu s io n re g a rd in g t h i s p ro v is io n * I t i s b e l i e v e d t h a t t h e m a j o r i t y o f t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s and o t h e r s h a v e n o t made th e m s e lv e s f a m i l i a r w i t h t h e r e q u i r e m e n ts o f t h e E d u c a ti o n C o d e. T h e re fo re , i t
i s recom m ended t h a t t h e S u p e r i n t e n d e n t
o f P u b l i c I n s t r u c t i o n am end t h e b u d g e t fo rm to c l e a r l y i n d i c a t e t h a t e n t r i e s i n MColumn O n e ,11 t h e p r i o r y e a r e x p e n d i t u r e c o lu m n , s h a l l b e made b y t h e c o u n ty s u p e r in te n d e n t o f s c h o o ls o n ly , w ith th e p o s s ib le e x c e p tio n o f c i t y d i s t r i c t s w h ic h k e e p a d e q u a te a c c o u n ti n g r e c o r d s * 6* and c it y
F ix e d C h a rg e s a n d Food S e r v i c e s *
The c o u n ty
s u p e r in te n d e n ts o f sc h o o ls in d ic a te d a d e s i r e
t o e l i m i n a t e f,F Ix e d C h a r g e s fr a s a m a jo r c l a s s i f i c a t i o n
a n d t o i n c l u d e a new m a jo r c l a s s i f i c a t i o n t o be known a s ftFood S e r v i c e s . ft I t i s recom m ended t h a t s e r i o u s c o n s i d e r a t i o n be g iv e n b y t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a t i o n , a n d a n y c o m m itte e s a s s i g n e d t o t h e s u b j e c t o f a c c o u n t i n g , to e l i m i n a t i n g f i x e d c h a r g e s a n d m ak in g p r o v i s i o n t h a t t h e ite m s o r d i n a r i l y c l a s s i f i e d u n d e r t h i s g r o u p in g s h a l l b e d i s t r i b u t e d to t h e c l a s s i f i c a t i o n s re fe r*
to w h ich t h e y
F o r i n s t a n c e , r e t i r e m e n t p a y m e n ts f o r c u s t o d i a n s
w o u ld b e l i s t e d w i t h t h e s a l a r i e s o f c u s t o d i a n s o n t h e t h e o r y t h a t a l l r e t i r e m e n t p a y m e n ts m ade b y t h e d i s t r i c t o n b e h a l f o f e m p lo y e e s , i n th e f i n a l a n a l y s i s , a r e d e f e r r e d s a l a r y p a y m e n ts*
I t i s b e l i e v e d t h i s w ould
g i v e a m ore r e a l i s t i c l i s t i n g o f p r o p o s e d e x p e n d i t u r e s . B e c a u se o f t h e f a c t t h a t i n a num ber o f i n s t a n c e s t h e E d u c a ti o n Code p r o v i d e s t h a t c o s t s o f p r o v i d i n g fo o d s e r v i c e s may b e a n e x p e n d i t u r e o f g e n e r a l d i s t r i c t f u n d s , i t seem s h i g h l y a d v i s a b l e t o i d e n t i f y t h e s e a s a s e p a r a t e ite m .
Jkt t h e p r e s e n t tim e th e la w p e r m i t s p a y m e n ts fro m
th e g e n e ra l fu n d s o f a sc h o o l d i s t r i c t f o r s u p e r v is io n , s a l a r i e s o f o t h e r e m p lo y e e s , r e t i r e m e n t , h o u s in g an d e q u ip m e n t, r e p la c e m e n t o f e q u ip m e n t, m a in te n a n c e o f p h y s i c a l p l a n t , i n s u r a n c e , u t i l i t i e s , g a rb a g e d i s p o s a l a n d m e a ls f o r n e e d y c h i l d r e n .
S e v e r a l o f t h e s e ite m s
u n d o u b te d ly w o u ld be c h a r g e d to t h e p r o p e r c l a s s i f i c a t i o n s o f m a in te n a n c e , c a p i t a l o u t l a y , e tc *
H ow ever, o t h e r s
d e f i n i t e l y a r e c o n n e c te d w i t h t h e o p e r a t i o n o f fo o d s e rv ic e s • I n o r d e r to p r o v i d e p r o p e r b u d g e tin g i t i s recom m ended t h a t a new m a jo r c l a s s i f i c a t i o n be i n c l u d e d i n t h e fo rm p r e s c r i b e d b y t h e S u p e r i n t e n d e n t o f P u b lic I n s t r u c t i o n f o r s c h o o l d i s t r i c t b u d g e ts * ^*
B u d g et t r a n s f e r s *
The E d u c a tio n Code
s p e c i f i e s t h e m an n e r i n w h ic h t r a n s f e r s may b e made b e tw e e n m a jo r b u d g e t c l a s s i f i c a t i o n s .
H ow ever, i t d o e s
n o t p r o v i d e f o r p r o p e r n o t i f i c a t i o n to t h e s c h o o l d i s t r i c t o f w h e th e r o r n o t a t r a n s f e r h a s b e e n a p p ro v e d * T h e re fo re , i t
is...recom m ended t h a t t h e E d u c a tio n
Code be am ended t o p r o v i d e t h a t t h e e o u n ty s u p e r i n t e n d e n t o f s c h o o l s s h a l l r e t u r n on e c o p y o f t h e a p p ro v e d t r a n s f e r t o t h e s c h o o l d i s t r i c t im m e d ia te ly u p o n i t s a p p r o v a l in o r d e r t h a t th e d i s t r i c t may h a v e k n o w le d g e o f w h e th e r t h e t r a n s f e r h a s b e e n a c t e d u p o n f a v o r a b ly * I t i s f u r t h e r recom m ended t h a t p r o p e r p r o c e d u r e be s e t u p i n t h e o f f i c e s o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a n d t h e c o u n ty a u d i t o r o f e a c h c o u n ty t o i n s u r e v
t h a t no d i s t r i c t s h a l l m ake e x p e n d i t u r e s i n e x c e s s o f a n y m a jo r b u d g e t c l a s s i f i c a t i o n u n l e s s a t r a n s f e r h a s b e e n
246
f i l e d a n d a p p ro v e d a s p r o v i d e d i n S e c t i o n 6308 o f t h e E d u c a tio n Code# I t i s f u r t h e r recom m ended t h a t t h e p r o v i s i o n f o r m ak in g t r a n s f e r s a t t h e 11c l o s e o f t h e y e ar* 1 a s p r o v i d e d i n S e c t i o n 6308#1 o f t h e E d u c a ti o n Code be am ended so t h a t t h e te r m ”a t t h e c l o s e o f a n y s c h o o l y e a r ” be id e n tif ie d by d a te s . I t i s recom m ended t h a t t h i s p e r i o d a p p ly o n l y t o t r a n s f e r s to b e made a f t e r t h e c l o s e o f t h e f i s c a l y e a r i n o r d e r t h a t o n ly m in o r a d ju s tm e n t s may b e made f o r t h e p u r p o s e o f c l o s i n g t h e b o o k s o f t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s a n d t h e c o u n ty a u d i t o r . 8. school d i s t r i c t s .
A s s e s s e d v a l u a t i o n s t o b e made a v a i l a b l e t o A p p r o x im a te ly 50 p e r c e n t o f t h e
c o u n tie s o f th e s t a t e r e p o r t t h a t a s s e s s e d v a lu a tio n i n f o r m a t i o n i s n o t made a v a i l a b l e to them i n o r d e r t o a s s i s t i n p r e p a r i n g b u d g e ts a n d e i g h t c o u n ty s u p e r i n t e n d e n t s o f s c h o o ls s t a t e t h e y do n o t r e c e i v e i n f o r m a t i o n c o n c e r n in g c h a n g e s i n v a l u a t i o n s w i t h i n t h e i r c o u n t i e s u n t i l a f t e r t h e s c h o o l d i s t r i c t b u d g e ts a r e a d o p te d . I f t a x l i m i t a t i o n s a r e t o c o n ti n u e i t i s recom m ended t h a t c o u n ty t a x i n g an d a s s e s s i n g o f f i c i a l s be r e q u i r e d b y la w t o make a v a i l a b l e t o t h e g o v e r n in g b o a r d s o f s c h o o l
247 d i s t r i c t s , p r i o r t o Ju n e f i r s t ,
a re a s o n a b le e s tim a te o f
th e p ro b a b le changes in a s s e s s e d v a lu a tio n s .
T h u s,
d i s t r i c t s w i l l h a v e t h i s i n f o r m a t i o n t o a s s i s t th em i n p r e p a r i n g t h e i r t e n t a t i v e b u d g e ts w h ic h m u st b e f i l e d w ith t h e c o u n ty s u p e r i n t e n d e n t s o f s c h o o l s on o r b e f o r e t h e f i r s t day o f J u l y o f e a c h f i s c a l y e a r . 9.
A ssessm en t r o l l .
I t i s recom m ended t h a t t h e
s e c t i o n s o f t h e E d u c a tio n Code w h ic h r e f e r to a s s e s s m e n t r o l l s a n d i n w h ic h v a r i o u s fo rm s o f la n g u a g e a r e u s e d b e am ended to u s e i d e n t i c a l w o rd in g i n a l l s e c t i o n s when, t h e m e a n in g i s
t h e sa m e.
The E d u c a tio n Code s h o u ld
s p e c i f y how t a x e s fro m u n s e c u r e d p r o p e r t y a r e to be c o m p u ted so t h a t t h e c o l l e c t i o n o f t h i s p o r t i o n o f t h e t a x o n p r o p e r t y may b e p r o p e r l y i d e n t i f i e d .
T h e re a p p e a r s
t o be no l o g i c a l r e a s o n why t h e incom e fro m t h i s s o u r c e s h o u ld n o t be d e te r m in e d i n t h e same m an n e r a s i s t h e d i s t r i c t t a x r a i s e d fro m t h e u n s e c u r e d p o r t i o n o f th e assessm en t r o l l . I t I s recom m ended t h a t a new s e c t i o n be a d d e d t o t h e E d u c a tio n Code w h ic h w ould r e q u i r e t h a t incom e fro m u n s e c u r e d p r o p e r t y be e s t i m a t e d o n t h e b a s i s o f th e p r i o r y e a r * s t a x r a t e a p p l i e d to 90 p e r c e n t o f th e u n se c u re d p o r tio n o f th e a sse ssm e n t r o l l .
E dke a l l o t h e r
e s t i m a t e s o f in c o m e , t h i s w o u ld r e q u i r e t h a t c o r r e c t i o n s
248 be made i n t h e e s t i m a t e a t t h e tim e t h e a s s e s s e d v a l u a t i o n i s made a v a i l a b l e t o th e g o v e r n in g b o a rd o f t h e s c h o o l d is tric t. S e c t i o n 6356 o f t h e E d u c a tio n Code s h o u ld be am ended a d d in g ws e c u r e d p o r t i o n o f th e * 1 so t h e w o rd in g w o u ld b e , tlT hey s h a l l d e d u c t t e n p e r c e n t fro m t h e s e c u re d p o r t io n of th e l a s t g e n e ra l a sse ssm e n t r o l l f o r th e d is tr ic t.* * T hese c h a n g e s w o u ld c l e a r up t h e c o n f u s i o n w h ic h now e x i s t s , r e q u i r i n g t h a t p r o p e r c o n s i d e r a t i o n b e g iv e n t o t h a t p o r t i o n o f t h e d i s t r i c t 1s incom e r e p r e s e n t e d b y u n s e c u r e d p r o p e r t y , a n d w o u ld rem ove a n y p o s s i b i l i t y o f u s in g th e u n se c u re d p o r tio n o f th e a sse ssm e n t r o l l t w ic e i n d e te r m i n i n g t h e in co m e f o r t h e d i s t r i c t . Incom e i t e m s . in i t s
The E d u c a tio n Code i s n o t c l e a r
d e f i n i t i o n o f ,fs o u r c e s o f incom e o t h e r t h a n t a x e s
o n p r o p e r t y . 11 I t I s recom m ended t h a t t h e E d u c a tio n Code be am ended t o m ore c l e a r l y d e f i n e v a r i o u s s o u r c e s o f in c o m e . T h e se s h o u l d i n c l u d e d e l i n q u e n t t a x e s , r e c e i p t s fro m u n s e c u r e d p r o p e r t y , m u n ic ip a l t a x e s , e t c . d iffic u lty
The p r i n c i p a l
i s t h a t th e r e i s no c l e a r u n d e rs ta n d in g o f
w h at I s m e a n t by tfincom e fro m p r o p e r t y d e r i v e d fro m t a x e s . 11
249 I t i s recom m ended t h i s be i d e n t i f i e d t o i n d i c a t e i t r e f e r s to th e in co m e to be d e r i v e d fro m t h e f i n a l d i s t r i c t t a x c o m p u ta tio n w h ic h i s c o m p u ted fro m th e se c u re d p o r tio n o f th e a sse ssm e n t r o l l* H-*
H e v is io n o f b u d g e t a c t *
I t i s recom m ended
t h a t t h e b a s i c la w p r o v i d i n g f o r s c h o o l d i s t r i c t b u d g e ts b e r e v i s e d to p r o v i d e t h a t t h e t e n t a t i v e b u d g e t s h a l l b e f i l e d w i t h t h e c o u n ty s u p e r i n t e n d e n t o f s c h o o l s on May f i r s t p r e c e d i n g t h e y e a r f o r w h ic h t h e b u d g e t 'i s t o a p p ly , and t h a t th e r e s h a l l be h e ld an a d v e r tis e d b u d g e t h e a r i n g o n o r b e f o r e May f i r s t f o r t h e p u rp o s e o f p r o v i d i n g th e p a t r o n s o f t h e s c h o o l d i s t r i c t a n o p p o r t u n i t y to v o i c e t h e i r a p p r o v a l o r d i s a p p r o v a l o f th e p r o p o s e d t e n t a t i v e b u d g e t*
Any a c t i o n t a k e n a t t h e
p u b l i c h e a r i n g w o u ld be a d v i s o r y t o t h e g o v e r n in g b o a rd an d w ould n o t be b i n d i n g u p o n i t * I t i s f u r t h e r recom m ended t h a t a l l t a x l i m i t a t i o n s p r o v i d e d i n t h e E d u c a tio n Code b e r e p e a l e d , p l a c i n g u p o n t h e g o v e r n in g b o a r d o f t h e s c h o o l d i s t r i c t t h e f u l l r e s p o n s ib ility - o f,,d e te r m in in g ..th e . a m o u n t m o n e y n e c e s s a r y t o m a i n t a i n th e ., s c h o o l s . I t i s . f u r th e r - r e c o m m e n d e d t h a t . t h e p r o v i s i o n r e q u i r i n g t h a t a m e e tin g be h e l d b e tw e e n J u l y f i f t e e n t h a n d t w e n t i e t h b e r e p e a le d *
250
I t i s recom m ended t h e p r e s e n t f i n a l a d o p ti o n m e e tin g a n d p u b l i c h e a r i n g t o b e h e l d d u r i n g t h e f i r s t w eek o f A u g u s t b e r e t a i n e d . I f t h e s e re c o m m e n d a tio n s a r e a d o p te d i t w i l l be p o s s i b l e , .to p r o v i d e b a la n c e d b u d g e t s , e l i m i n a t i n g p r a c t i c a l l y a l l o f th e d i f f i c u l t i e s
c o n c e r n in g v a r i o u s
r e s t r i c t e d f u n d s now p r o v i d e d i n t h e E d u c a tio n C ode, a n d t h e f u l l r e s p o n s i b i l i t y o f d e te r m i n i n g t h e am ount o f f u n d s t o be e x p e n d e d w i l l b e p l a c e d u p o n t h e g o v e rn in g b o a r d a n d t h e p e o p le o f t h e d i s t r i c t .
I t fu r th e r w ill
make i t p o s s i b l e t o a d o p t a t e n t a t i v e b u d g e t, g i v i n g th e p e o p le a n o p p o r t u n i t y t o know i t s
c o n te n ts and to e x p re s s
t h e i r o p in io n f o r o r a g a i n s t any p ro p o se d e x p e n d itu re s on a c c o u n t o f p e r s o n n e l , o p e r a t i o n , m a in te n a n c e a n d o t h e r e x p e n d i t u r e s , b e f o r e com m itm ents a r e made p r i o r t o t h e b e g in n i n g o f t h e f i s c a l y e a r f o r w h ic h t h e b u d g e t i s to a p p ly . 12.
I n t e r p r e t a t i o n o f sc h o o l la w .
A t th e p r e s e n t
tim e C a l i f o r n i a p r o c e d u r e r e q u i r e s t h a t t h e d i s t r i c t a t t o r n e y o r c o u n ty c o u n s e l o f e a c h c o u n ty s h a l l b e t h e l e g a l a d v i s e r f o r a l l c o u n ty o f f i c i a l s a n d s c h o o l d i s t r i c t s w ith in th e r e s p e c tiv e c o u n tie s .
A ll s t a t e
o f f i c i a l s a r e g u id e d b y t h e a d v ic e o f t h e A t t o r n e y G e n e ra l o f C a l i f o r n i a a n d i t i s e n t i r e l y p o s s i b l e t h a t
251
h e may g i v e a n o p i n io n w h ic h w i l l g u id e t h e s t a t e o f f i c i a l s a n d v a r i o u s d i s t r i c t a t t o r n e y s may g iv e c o n t r a r y o p i n i o n s w h ic h c o u n ty o f f i c i a l s a r e r e q u i r e d t o f o l l o w . I n o r d e r t o rem o v e t h e c o n f u s i o n w h ic h now e x i s t s , i t i s recom m ended t h a t p r o p e r l e g i s l a t i o n h e e n a c t e d e i t h e r b y t h e C a l i f o r n i a S t a t e l e g i s l a t u r e , o r by v o t e o f t h e p e o p l e , to p r o v i d e o n e c e n t r a l a g e n c y w h ic h s h a l l r e n d e r o p i n io n s o n a l l e d u c a t i o n l e g i s l a t i o n .
O p in io n s
r e n d e re d s h a l l b e b in d in g upon a l l o f f i c i a l s w ith in th e s t a t e a n d s h a l l h a v e t h e e f f e c t o f la w , s u b j e c t t o f u r t h e r d e te rm in a tio n by th e s t a t e c o u r ts . I t i s f u r t h e r recom m ended t h i s i n t e r p r e t a t i o n r e s p o n s i b i l i t y be p la e e d in th e C a lif o r n ia S ta te D e p a rtm e n t o f E d u c a ti o n , u n d e r t h e a d m i n i s t r a t i o n o f t h e S u p e r i n te n d e n t o f P u b l i c I n s t r u c t i o n . II.
RECOMMENDATIONS FOR FUTURE STUDY
D u rin g t h e c o u r s e o f t h e s t u d y m any i s s u e s p r e s e n t e d t h e m s e l v e s , some o f w h ic h w ere o f m in o r c o n s i d e r a t i o n . T h e se w ere d i s p e n s e d w i t h b y s u c h a s t a t e m e n t .
O th e rs ,
w h ile n o t a p a r t o f t h e s t u d y , w e re fo u n d t o be c l o s e l y r e l a t e d a n d t h e s t u d y w o u ld h a v e b e e n m ore c o m p le te i f t h e y c o u ld h a v e b e e n made a p a r t o f i t .
H ow ever, t h e s e
ite m s w ere n o t d i r e c t l y c o n c e rn e d w i t h t h e s u b j e c t o f
252
p o l i c i e s and p ro c e d u re s u se d in th e a d m in is tr a tio n o f s c h o o l d i s t r i c t b u d g e ts .
I t i s recom m ended t h a t th e
f o l l o w i n g f i v e p ro b le m s b e made t h e s u b j e c t o f f u t u r e i n v e s t i g a t i o n b y t h o s e who a r e i n t e r e s t e d i n t h i s g e n e r a l fie ld : ffse o f a s s e s s m e n t r o l l .
D u rin g t h e c o u r s e o f
t h e i n v e s t i g a t i o n t h e r e was e v id e n c e t h a t c o u n ty t a x i n g o f f i c i a l s may h a v e u s e d o n ly t h e s e c u r e d p o r t i o n o f t h e a s s e s s m e n t r o l l i n d e te r m i n i n g t h e d i s t r i c t t a x r a t e , o r t h e y may h a v e u s e d t h e f u l l a s s e s s m e n t r o l l .
I t Is
recom m ended t h a t t h i s s u b j e c t be s t u d i e d t o d e te r m in e w h a t p r a c t i c e s a r e f o l lo w e d i n t h e f i f t y - e i g h t c o u n t i e s o f th e s t a t e . B u d g et e x p e n d i t u r e s a n d in c o m e . b u d g e ts w ere n o t a v a i l a b l e p r i o r t o 1 9 4 9 -5 0 . a s tu d y o f t h i s
D is tric t T h e re fo re ,
s u b j e c t w ould h a v e t o b e made a f t e r
e x p e n d i t u r e s a c t u a l l y h a d b e e n made f o r 1 9 4 9 -5 0 a n d a l s o a l l incom e h a d b e e n d e te r m in e d f o r t h e same y e a r .
The
p r o b le m c o u ld e n co m p ass t h e r e l a t i o n s h i p b e tw e e n t h e am ount a c t u a l l y b u d g e te d a n d t h e am ount o f incom e r e c e i v e d . I t i s b e l i e v e d t h i s s u b j e c t w ould g i v e v a l u a b l e i n f o r m a t i o n t o t h o s e c o n c e rn e d w i t h b u d g e t a n a l y s i s .
253 3*
B e g in n in g b a l a n c e s *
I t i s recom m ended a
s t u d y be made o f t h e a d e q u a c y o f b e g in n i n g b a l a n c e s .
The
p r e s e n t s tu d y c o n c e rn e d i t s e l f o n ly w ith th e f a c t s a s th e y e x is t.
The p r a c t i c e s f o llo w e d i n d i s t r i c t s c o n c e r n in g
w h e th e r e m p lo y e e s a r e p a i d o n a t e n o r tw e lv e m o n th b a s i s w ould h a v e a d e c i d e d e f f e c t u p o n t h e a d e q u a c y o f t h e b e g in n i n g b a l a n c e .
L ik e w i s e , t h e p o l i c y f o l lo w e d i n t h e
paym ent o f c u r r e n t o b l ig a t io n s w i l l have an e f f e c t . w o u ld b e o f m a t e r i a l a s s i s t a n c e t o a l l d i s t r i c t s
It
i n th e
s t a t e t o know w h a t i s a n a d e q u a te b a la n c e u n d e r v a r y i n g c o n d itio n s o f o p e r a tio n . 4.
A d eq u acy o f r e s e r v e s .
I t i s recom m ended t h a t
a s t u d y be made o f t h e a d e q u a c y o f r e s e r v e s t o d e te r m in e i f t h e am ount a c t u a l l y b u d g e te d f o r u n d i s t r i b u t e d a n d g e n e r a l r e s e r v e s m e e ts t h e n e e d s o f t h e s c h o o l d i s t r i c t . The p r a c t i c e fo u n d t o e x i s t o f d e p e n d in g u p o n e x t r a f u n d s i n t h e m a jo r c l a s s i f i c a t i o n s an d e x t r a incom e n o t b u d g e te d h a s to a v e r y l a r g e e x t e n t f i l l e d t h e n e e d f o r w h ic h r e s e r v e s a r e i n t e n d e d .
I t w ould be v e r y d e s i r a b l e
t o d e te r m i n e , i n a d d i t i o n to t h e p r a c t i c e s i n e x i s t e n c e , w h a t s h o u ld b e t h e am ount t o p r o v i d e a n a d e q u a te r e s e r v e . ffis tra t a x c o l l e c t i o n s ♦
I t was fo u n d i n t h e
s t u d y t h a t e x t r a t a x c o l l e c t i o n s , a b o v e th o s e b u d g e te d f o r in c o m e , a c c r u e d t o m any s c h o o l d i s t r i c t s .
I t is
254 b e l i e v e d a s t u d y s h o u ld b e made t o d e te r m i n e t h e am ount o f s u c h e x t r a c o l l e c t i o n s a n d t h e c o n d i t i o n s u n d e r w h ic h t h e y a r e c o l l e c t e d i n a n a t t e m p t t o e s t a b l i s h some r e a s o n a b l e m eth o d w h e re b y t h e am ount o f d e l i n q u e n t t a x e s f o r a n y g iv e n y e a r m ig h t b e p r e d e t e r m i n e d .
The same p ro b le m
e x i s t s c o n c e r n i n g o t h e r incom e s u c h a s incom e fro m u n s e c u r e d p r o p e r t y , s o l v e n t c r e d i t s , m u n ic ip a l t a x e s a n d o t h e r m is c e lla n e o u s ite m s .
S u ch a s t u d y l i k e l y s h o u ld
c o v e r th e e x p e rie n c e o f s e v e r a l y e a r s .
256
A p p o rtio n m e n t o f t h e C a l i f o r n i a St a t e S c h o o l Fund f o r t h e F i s c a l Y e a r E n d in g Ju n e 5 0 , 1 9 5 0 . S a c ra m e n to , C a l i f o r n i a : C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , N ovem ber, 1 9 4 9 , 103 p p . C a l i f o r n i a S c h o o l A c c o u n tin g M a n u al, P a r t s I - I V , B u l l e t i n o f t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a t i o n , V o l. X I I I , No. 2 . S a c ra m e n to , C a l i f o r n i a : C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a t i o n , J u n e , 1 9 4 4 . 71 p p . C o n s t i t u t i o n o f t h e S t a t e o f C a l i f o r n i a (As am ended a n d i n f o r c e O c to b e r 1 , 1 9 4 9 ) . P p . v - c x l v i i i , S t a t u t e s o f C a l i f o r n i a , 1 9 4 9 . S a c ra m e n to , C a l i f o r n i a : S t a t e D e p a rtm e n t o f F i n a n c e , P r i n t i n g D i v i s i o n , (D ocum ents S e c t i o n ) . 3 ,7 5 4 p p . C o n s t i t u t i o n o f t h e U n ite d S t a t e s a n d o f t h e S t a t e o f C a l i f o r n i a , a n d O th e r D o c u m en ts, 1 9 4 8 . ^ C o n s titu tio n o f t h e S t a t e o f C a l i f o r n i a - 1 8 7 9 ,h ( I n c l u d i n g am endm ents a d o p te d t o N ovem ber 2 , 1 9 4 8 ) . S a c ra m e n to , C a l i f o r n i a : C a l i f o r n i a L e g i s l a t u r e , A s se m b ly , 1 9 4 8 . P p . 1 9 5 -4 3 6 . DeYoung, C h r is A n th o n y , B u d g e ta r y P r a c t i c e s i n P u b l i c S c h o o l A d m i n i s t r a t i o n . E v a n s to n , I l l i n o i s : N o r th w e s te rn U n iv e r s ity , S ch o o l o f E d u c a tio n , 1 9 3 2 . 152 p p . ________ , B u d g e tin g i n P u b l i c S c h o o l s . G a rd e n C i t y , New Y o rk : D o u b le d a y , D o ran a n d Company, I n c . , 1 9 3 6 . 610 p p . E d u c a tio n C ode, S t a t e o f C a l i f o r n i a , 1 9 4 9 . S a c ra m e n to , C a l i f o r n i a : S t a t e D e p a rtm e n t o f F i n a n c e , P r i n t i n g D i v i s i o n , (D ocum ents S e c t i o n ) . 941 p p . G overnm ent Code o f t h e S t a t e o f C a l i f o r n i a , A d o p te d A p r i l 1 3 , 1 9 4 3 . D e e r i n g 1s C a l i f o r n i a C o d e s. S an F r a n c i s c o , C a l i f o r n i a : B a n c r o f t- W h itn e y Company, 1 9 4 4 . 199 p p . H andbook o f I n s t r u c t i o n s f o r t h e C l a s s i f i c a t i o n o f S c h o o l E x p e n d itu re s , B u lle t in o f th e C a lif o r n ia S ta te D e p a rtm e n t o f E d u c a t i o n , N o. 4 . P r e p a r e d b y C om m ittee o n U n ifo rm S c h o o l A c c o u n tin g o f t h e P u b l i c S c h o o l B u s in e s s O f f i c i a l s A s s o c i a t i o n o f t h e S t a t e o f C a lif o r n ia and th e D iv is io n o f R e se a rch an d S t a t i s t i c s
257 o f t h e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n . S a c ra m e n to , C a l i f o r n i a : C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , 1 9 3 9 . 64 p p . K e t l e r , P ra n k G ., R e s e rv e F unds i n P u b l i c / S c h o o l F i n a n c e . New Y o rk : T e a c h e r s C o l l e g e , C o lu m b ia U n i v e r s i t y , 1 9 3 1 . 77 p p . M oehlm an, A r t h u r B e r n a r d , P u b l i c S c h o o l F i n a n c e . R and M cN ally a n d Company, 1 9 2 7 . 508 p p .
New Y o rk :
M o r r is o n , H e n ry C ., S c h o o l R e v e n u e . C h ic a g o , I l l i n o i s : The U n i v e r s i t y o f C h ic a g o P r e s s , 1 9 3 0 . 328 p p . The M anagem ent o f S c h o o l M oney. C h ic a g o , I l l i n o i s : The U n i v e r s i t y o f C h ic a g o P r e s s , 1 9 3 2 . 522 p p . P e t e r s o n , B a s i l H ., ^ P u b lic H e a r in g s on S c h o o l B u d g e ts i n t h e U n ite d S t a t e s . 11 U n p u b lis h e d D o c t o r 1s d i s s e r t a t i o n , The U n i v e r s i t y o f C a l i f o r n i a , B e r k e l e y , 1 9 3 5 . 207 p p . R e e d e r , W. G ., wIm p ro v em en ts o f B u d g e tin g , A c c o u n tin g , A u d i t i n g , a n d R e p o r ti n g P r o c e d u r e s , 11 R e s e a r c h P ro b le m s i n S c h o o l F i n a n c e . W a s h in g to n , D. C . : A m e ric a n C o u n c il on E d u c a t i o n , 1 9 3 3 . P p . 1 0 3 - 1 1 1 . R ev en u e a n d T a x a tio n Code o f t h e S t a t e o f C a l i f o r n i a , A d o p te d May 1 6 , 1 9 3 9 . D e e r in g * s C a l i f o r n i a C o d e s. S an F r a n c i s c o , C a l i f o r n i a : B a n c r o f t- W h itn e y Company, 1 9 4 4 . 816 p p . T r i g g s , D ean E . , tfThe D e t e r m in a t io n o f t h e G e n e ra l R e s e rv e R e q u ir e d i n t h e S c h o o l D i s t r i c t s o f V e n tu ra C o u n ty .11 U n p u b lis h e d M a ste r* s t h e s i s , The U n i v e r s i t y o f S o u th e r n C a l i f o r n i a , L os A n g e le s , 1 9 4 8 . 77 p p . T w e n te , Jo h n W ., B u d g e ta r y P r o c e d u r e f o r a h o c a l S c h o o l S y s te m . M o n t p e l i e r , V e r m o n t : C a p i t a l C i t y P r e s s , 1 9 2 3 . 184 p p .
APPENDIX
APPENDIX A (1 )
Sam ple fo rm l e t t e r d a te d N ovem ber 2 8 , 1 9 4 9 , fro m F ra n k M. W rig h t, A s s o c i a t e S u p e r i n t e n d e n t o f P u b l i c I n s t r u c t i o n o f th e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , t o t h e f i f t y - e i g h t C o u n ty S u p e r i n t e n d e n t s o f S c h o o ls o f C a l i f o r n i a tr a n s m i t ti n g a q u e s tio n n a ir e c o n c e rn in g th e su rv e y o f p ro c e d u re s and p o l i c i e s in d i s t r i c t budget a d m in is tra tio n .
(2 )
Q u e s tio n n a ire :
A S u rv e y o f p r o c e d u r e s a n d P o l i c i e s
U sed i n C o n n e c tio n w i t h t h e A d m i n i s t r a t i o n o f S c h o o l D i s t r i c t B u d g e ts b y C o u n ty S u p e r i n t e n d e n t s a n d C ountjr O f f i c e s o f t h e S t a t e o f C a l i f o r n i a .
260
GEORGE E. HOGAN D eputy Superintendent; Chief, Division of Departm ent Adm inistration
ROY E. SIMPSON lerintendent of Public Instruction a n d Director of Education
HERBERT R. STOLZ D eputy Superintendent; Chief, D ivision of Special Schools an d Services
STATE OF CALIFORNIA
DEPARTMENT OF EDUCATION SACRAMENTO 14
November 28, 19l*9
TO?
JAY DAVIS CONNER A ssociate Superintendent; Chief, D ivision of Instruction AUBREY A. DOUGLASS A ssociate Superintendent; Chief, D ivision of State C olleges an d Teacher Education FRANK M. WRIGHT A ssociate Superintendent; Chief, D ivision of Public School Administration
County Superintendents of Schools
FROM? Frank M® W right, A ssociate Superintendent of Public In s tru c tio n SUBJECT?
Survey of Procedures and P o lic ie s in D is tr ic t Budget A dm inistration
The follow ing statem ents and questions re p re se n t a c a re fu lly worked out l i s t of p ra c tic e s , procedures and p o lic ie s which are e ith e r followed or might be considered desirab leo The purpose i s to ob tain inform ation r e la tiv e to presen t p ra c tic e s and procedures to the end th a t th e a d m in istra tio n of school d i s t r i c t budgets may be improved® This may r e s u l t i n changing budget form s, in s tru c tio n s , and in some cases the law and p o ssib ly the S ta te Constitution® I t i s s p e c if ic a lly pointed out th a t nothing in t h i s study w i l l be used which w i l l r e f l e c t adversely upon the county superinten dent or h is or her adm inistration® I f , by chance, any answers would prove to be em barrassing, e ith e r th e item w i l l not be used in the f i n a l study r e p o rt, or the id e n tity of the county w i l l be withheld® The study i s c o n stru ctiv e in nature and th e o b jec tiv e i s to improve procedure and law whereby the a d m in istra tio n of budget making w i l l be benefited® Supplementary statem ents regarding any item w i l l be welcome, and any c o n fid e n tia l statem ents w i l l be used only u n id e n tifie d , i f used a t all® In conclusion, i t i s recognized th a t to ask you as a County Superintendent to read and express your re a c tio n s to over kO questions or statem ents i s a ‘’chore®’5 However, i t w i l l be deeply ap p reciated i f I may have your fran k c o n sid era tio n of the questions ra is e d and i f the enclosed survey re p o rt may be completed and retu rn e d a t th e e a r l i e s t date possible®
261 A SURVEY OF PROCEDURES AMD POLICIES USED IN CONNECTION fflTH THE ADMINISTRATION CF SCHOOL DISTRICT BUDGETS■BY COUNTY SUPERINTENDENTS AND COUNTY OFFICES OF THE STATE OF CALIFORNIA County s________________ By: 1«
2.
Pa t e :_______________ ,
\ n What po licy does the county follow when i t becomes known a f t e r th e ta x r a te has been fixed, th a t the d i s t r i c t s income from a l l sources w ill not meet th e proposed budgeted expenditures? In d ica te by assigning a number or numbers to the follow ing statem ents in order of use. Also id e n tify th e one procedure which more re g u la rly or uniform ly rep re se n ts the general county policy by underlining the statem ent: a.
The d e f i c i t i s p ro -ra te d over e n tir e budget • • • • • •
b.
TheGeneral Reserve i s reduced or e n tir e ly elim inated
c.
TheU ndistributed Reserve i s reduced, or e n tir e ly elim inated • • « • • • • • » . . • ................. . . . . . ____
d.
Oneor more s p e c ific c la s s if ic a tio n s are reduced. • . • __
e.
Nothing i s done except to n o tify the d i s t r i c t of th e d e f i c it
Regardless of what i s being done a t p re se n t, what i s the p o licy which th e county b e lie v e s d e sira b le fo r th e d i s t r i c t to budget fo r reserv es expressed, in terms of reserves to th e t o t a l outgo? a*
General Reserve • • • _______ p e rc en t.
b.
U ndistributed Reserve ________ p erc en t.
c.
No po licy • • • • • •
(Page 1 of 10 pages)
.
__
262
3* What is the percentage o r r a tio of reserv es to t o t a l outgo which rep re se n ts th e p olicy a c tu a lly followed a t p re s e n t, expressed in percent of re serv e s t o th e t o t a l outgo?
In
a.
General Reserve • • •
percent*
b«
U ndistributed Reserve
percent*
c*
No p o lic y • « . .
* • ______
»
Does the county advocate or recommend th a t each d i s t r i c t budget: a*
A General Reserve? * * * * *
b»
An Undistributed. Reserve? •
.» __________ *
5*
Would i t be d e sira b le to elim in ate the p resen t U ndistributed and General Reserves and combine a l l reserv e s in to a sin g le reserve fund? . . . ......................................................................................... ..............
6.
I f a sin g le reserv e fund i s provided, should i t be a v a ila b le fo r -expenditure only:
7*
a.
During the c u rre n t year? • • • • ________»
b*
During th e succeeding y ear only?
*
Is i t g e n erally the p resen t p ra c tic e to keep the General Reserve "low" and the U ndistributed. Reserve "high” so as to make funds "av a ila b le"? • .................... ............
8* Do th e d i s t r i c t s tend, to in crease the amount budgeted in each c la s s if ic a tio n beyond th a t which may be s p e c if ic a lly item ized in order to a c tu a lly provide some reserv e in each c la s s if ic a tio n fo r unsp ecified needs? • • • • • • • • • • • • • * _ _
9* Would i t be d e sira b le to add in a d d itio n to th e U ndistributed Reserve as now provided a sim ila r item in each c la s s if ic a tio n to be known as a "contingency" or " c la s s if ic a tio n reserve" in order to provide a more r e a l i s t i c budget and one which a c tu a lly re p re se n ts item ized proposed expenditures? • • • * * * • ______
(Page 2 of 10 pages)
10*
11*
263 Is e ith e r the General Reserve or U ndistributed Reserve used as a means to balance the budget, th a t i s , the reserv es are th e l a s t amounts entered and in such amounts so as to make the budget balance a g a in st " a n tic ip a te d ” ta x income? • • • . ______
What i s the po licy the county follow s p rio r to the adoption of the d i s t r i c t budget when th e amount required to be raise d by d i s t r i c t tax es i s abviously above th a t which may be a v a ila b le from a l l known sources, including d i s t r i c t taxes: a*
C all th e d i s t r i c t 's a tte n tio n to the f a c t * • • • ^ ___
b*
Suggest or recommend a reduction • • • • • • • •
_____
c* Require a cutback to equal the a v a ila b le income « d*
Make no referen ce to the item • • • • » • • • • •
e«
Advise th e d i s t r i c t to continue to keep the amount high i f th e need j u s t i f i e s i t • . • •
f•
What do you do i f your recommendation i s not followed
_____
12*
When an e x tra tax r a te above s ta tu to ry lim its i s required to provide funds fo r e ith e r meals fo r needy ch ild ren or non c e rtific a te d . re tire m e n t, or both, does the county s e t up procedures to req u ire and in su re th a t funds ra ise d by such a tax ra te be used only fo r the purpose or purposes sp ecified ?
13*
When an e x tra tax i s required fo r meals and/or retirem en t i s i t found to be d i f f i c u l t to id e n tify expenditures f o r fre e meals and retirem en t due to the f a c t t h a t presen t budget form makes no sp e c ific pro v isio n fo r showing the proposed expenditures as a sep arate item? • • • • • • • • • • *
l lu
I f the d i s t r i c t must reduce i t s proposed expenditures a f t e r th e budget year i s under way due to not receiv in g a n tic ip a te d ta x income, does the county p o licy provide fo r any changes or red uction in the amount budgeted or sp e c ifie d in the d i s t r i c t budget fo r: a 0 Accumulative Building Fund request • • • • • « • _______ b«
N o n -c ertific ated Retirement from e x tra tax levy
c*
Meals fo r needy c h ild re n from ex tra ta x levy (Page 3 of 10 pages)
_______
. . _____
264
13>.
I f the income fo r a d i s t r i c t i s le s s than proposed expenditures, does the county lim it w arrant approval to c o n tra c t o b lig a tio n s incurred by the d i s t r i c t before any other expenditures w ill be approved? Such fix ed o b lig a tio n s as s a la r ie s of te a c h e rs, cu stodians, bus d riv e rs , c le rk s , e t c ., employed on a c o n tra c t, and any and a l l other c o n tra c ts entered in to by the d i s t r i c t are included in " c o n tra ct o b lig a tio n s .”
16.
When d i s t r i c t s by a vote of th e people have ra is e d th e tax lim its fo r sp e c ific purposes i s th ere a system atic check to lim it th e voted ta x levy 'expenditures to only the purpose or purposes sp e c ifie d when th e ta x was voted? . . • • • • • ___
17.
In a s s is tin g d i s t r i c t s prepare budgets which procedures given below most n early rep re se n t those follow ed in county o ffice s D is tr ic ts Employing Supt. No Supt.
a*
County prepares e n tir e budget:
b„
County prepares the budget from d ata furn ish ed by d i s t r i c t s and w ith one or more re p re se n ta tiv e s of th e d is tric t:
c.
County advises only:.
d.
Gives no help except balan ces, v a lu a tio n s, e tc .
e.
County types f in a l budget fo r the d i s t r i c t
D is tr ic ts Consisting of Large C itie s
18.
Is th ere any evidence or “sensed, fe e lin g " th a t th e d i s t r i c t s resen t "a ssista n ce " given by th e county in budget preparation?
19.
I s th ere evidence th a t the d i s t r i c t s would lik e to have the county assume g re a te r re s p o n s ib ility in budget p rep aratio n and. ad m inistration? ____
•f
(Page
h
of 10 pages)
20.
21.
265 Other than giving casual advice and suggestions and. fu rn ish in g b alances, income, e t c . , what percent of the budget p rep a ratio n does the county perform fo r th e schools in the county having: a. 1
or 2 teach ers ••
b. 3
to 7 teach ers • • _________%
c. 8
or more teach er
%
_________%
(Note: For in sta n c e , does the county perform $0 percent of the work in preparing the d i s t r i c t budgets in the 1 teacher schools in the county or what portion? Likewise f o r other siz e d i s t r i c t s . )
What percentage of th e d i s t r i c t s keep in v o ices, b i l l s , w arrant stubs or copies or records in reasonably proper form so th a t p a st y e a r fs expenditures may be determined, on the d i s t r i c t le v e l in a: a#
1 or 2 tea ch e r school . . .
________ %
b#
3 to 7 teach er school . . .
%
c.
8 or more tea ch e r school •
%
22.
Should the county be required by law to prepare a l l budgets fo r d i s t r i c t s w ith 7 or le s s te a c h e rs and submit them to the various boards fo r adoption by th e governing boards of the d i s t r i c t s ?
23.
Should the County Superintendent continue to be perm itted to a s s i s t d i s t r i c t s prepare budgets on a perm issive b a sis as i s now c u rre n tly done? . • • • • • • • • • • • • • • • * » ____
2k•
In d ica te the most common p ra c tic e s o r procedures used by d i s t r i c t s in preparing budgets in th e county by ra tin g them Ml n, H2n, e t c . , in order of common use. I f item is not follow ed, i n s e r t "none". a.
Use only t o t a l of p rio r y ear co sts by c la s s if ic a tio n e x clu siv ely as b a s is fo r next y e a r 's expenditures.
b«
Use inform ation from b i l l s , in v o ic es, warrant stubs w ithout having any re g u la r books
(Page S of 10 pages)
c#
Use inform ation derived, e n tir e ly from books and records of p rio r year • • # • • • • • • # # »
d.#
Prepare estim ate of needs w ith only guidance from p rio r y ear expenditures • • « • .....................
e.
Prepare f u l l and complete breakdown of needs, by item izing a c tu a l proposed expenditures, giving in f u l l and complete ta b u la tio n l i s t of p o sitio n s , se rv ic e s to be performed and m ate ria ls and. su p p lies to be purchased • # • • « • • « • • • #
f;
Purely an estim ate w ithout reference to p a st experience or the d e t a i l needs of the d i s t r i c t #
25>* Do the governing boards of the d i s t r i c t s g en erally prepare or req u est p rep aratio n of budgets by f i r s t determ ining the tax r a te they wish to have s e t , and. then preparing the budget to stay w ithin th e income from such ta x ra te ? # # . • • —__
260 Does the county re q u ire a d e ta ile d breakdown of c u rren t l i a b i l i t i e s to accompany th e item a t the time th e budget i s f i le d to include th e follow ing: Person o r firm to whom o b lig a tio n is due* D escription of m a teria l or service# Budget c la s s if ic a tio n of each item# Amount#
(Item ize in reasonable degree#)
27# Would, i t be d e sira b le to req u ire only th e County Superin tendent and not the d i s t r i c t to in s e r t p rio r year co sts and income in Column One of the d i s t r i c t budget before the budgets are returned, to the d i s t r i c t s on July 15th? * #
(Page 6 of 10 pages)
28*
Are the e n tr ie s f o r expenditure in each budget c a re fu lly compared w ith a c tu a l expenditures to the end th a t th e 267 budget e n tr ie s correspond with the county su p e rin te n d en t's annual rep o rt before p u b lic a tio n and: f i n a l adoption? « * •______
29#
Who supplies the estim ated or a c tu a l expenditure amounts as required in Column One of th e budget fo r the proceding c u rre n t year? a*
The school d i s t r i c t ? • •
b.
The county o ffice ? • • .
__
30* Would i t be d e sira b le to speed up the assessment date so the d i s t r i c t v alu a tio n would be known on May 1 s t, and change a pd*ac rep o rtin g year from July 1 st to June 30th to January 1 st to December 31st so th a t the s ta te income, a*d*a., excess c o sts, tra n s p o rta tio n , e t c . , would be a known firm fig u re a v a ila b le to the d i s t r i c t on or before May 1 st so th a t the t o t a l income would be known to the d i s t r i c t before committing i t s e l f fo r expenditure obligations* This procedure would, make i t p o ssib le to hold sp e cia l e le c tio n s to exceed the ta x lim ita tio n s to meet budget needs p rio r to f i n a l budget adoption in August*
31*
There are two schools of thought regarding th e p rep aratio n of budgets: I*
One i s , th e needs of th e program are f i r s t determined and the funds are provided to meet th e needs. This would, r e quire th a t th e re be no tax lim its* This assumes th a t the Governing Board of the d i s t r i c t would be fu lly responsible to th e people* I f the people would not go fo r the ta x ra te to meet the needs, t h i s f a c t would, govern the a c tio n of the board. The board would, be placed, in th e p o sitio n of g re a t e r r e s p o n s ib ility to th e people* I t also assumes th a t the people would in many cases welcome a b e tte r educational program even though i t would c o st more money.
I I . The oth er method, is to prepare th e budget so as to keep w ithin tax lim ita tio n s , working w ith in a given amount of funds - in other words - gear the educational program to a fix ed amount of income. a. b.
To which does the county subscribe as an acceptable procedure? .................................
.
Which tends to be the p ra c tic e a t present? • • ________
(Page 7 of 10 pages)
268 32.
On what date i s the assessed v alu atio n furnished by th e county assessing o f f i c i a l s to the d i s t r i c t s as e ith e r a c tu a l or estim ated?
33*
If to be or
th ere a tendency.on the p a rt of th e assessin g o f f i c i a l s not re le a s e v alu atio n s or inform ation as to whether th e re is to a change, p a rtic u la rly an in c re a se , to County Superintendents d i s t r i c t s u n til a f t e r th e adoption of the budget? • « • ____
Should the law req u ire and make mandatory th a t the assessed v alu a tio n be made a v a ila b le to d i s t r i c t s on o r before: a.
June 1 st •
.................
b© July l5 th • c«
I f o th e r d a te , please in d ic a te
35» Would i t be d e sira b le to give g re a te r a tte n tio n to the p rep aratio n of th e prelim inary budget, accompanied by a public hearing or ad v ertised meeting to be held, on or before May 1 st? Following t h i s meeting th e board could c a l l a sp e c ia l ta x e le c tio n to present needs to th e people i f th e needs exceed the estim ated income© E n tire ly elim inate the July l5 th -2 0 th m eeting, making such changes in income and proposed expenditures as necessary through conferences, e t c . , between county and d i s t r i c t . The .fin a l budget to be adopted in August as now provided by law.
36.
What is the calendar date when th e "close of th e school year" begins in order to make " tra n s fe rs a t th e close of th e year" as s e t fo rth in Education Code Section 6308? • . * • ________
37*
Does th e county c o n s is te n tly ob tain proper a u th o riz a tio n by board, re s o lu tio n to make each tra n s fe r as provided in Section 6308.1 of the Education Code and the approval required under Section 6308?
(Page 8 of 10 pages)
'i
269 38*
Is a copy of each approved tra n s fe r furnished the d i s t r i c t ?
39•
Does the county make any e f f o r t to o b tain v e r if ic a tio n th a t budget meetings a re held as required by law by re q u irin g copies of: a.
Board re s o lu tio n s « • • • • • •
b.
Examination of Board minutes •
____________
hO« Does the ‘county re q u ire th a t proper e n tr ie s be made c e rtify in g to d a te s , time and place of a l l meetings held or to be held as req u ired by law, and provided fo r on th e budget form, and signed by an authorized o f f i c i a l of the d i s t r i c t ; and th a t such a u th o riz a tio n be made on: a*
A ll copies furnished the County S uperintendent, county a u d ito r, s ta te and d i s t r i c t ? * • • • • • •
______
b*
On one o f f i c i a l copy only? • • • • « * • • • • • _______
c.
On no copies, except as d i s t r i c t may provide?
•_______
Ul*
Is th e re a need fo r a supplemental breakdown form fo r the p rep aratio n of the prelim inary budget, which form would not be a p a rt of th e p u b lic a tio n or f in a l budget and. which would, provide U to 10 sub-item s in each c la s s if ic a tio n in order to p resen t a d e t a i l of proposed expenditures fo r each major c la s s if ic a tio n ? This form would serve as a worksheet fo r the d i s t r i c t and th e County Superintendent • • • •_____
1*2.
Would i t be d e sira b le to elim in ate “Fixed. Charges0 as a major c la s s if ic a tio n , d is trib u tin g insurance and. other items among th e o th er c la s s ific a tio n s ? That i s , retirem en t fo r tea ch e rs to be charged to 2a - Teachers S a la rie s , and bus insurance under T ran sp o rta tio n , etc* • * • • • • • • • • __
(Page 9 of 10 pages)
270 1*3# Would i t be d e sira b le to have a sep arate e n try fo r “Food S erv ices” which would include a l l lunch operation co sts and meals fo r needy children? . • • ................................................................ ................
hh» Does the county concern i t s e l f r e la tiv e to income items being reasonably r e a l i s t i c ? For instance* a d i s t r i c t makes no* or a t l e a s t only a token en try fo r taxes le v ied on unsecured p roperty when fo r the p a st se v era l y e ars t h is item has c o n s is te n tly provided income in a s u b s ta n tia l amount. Does the county i n s i s t th a t a reasonable amount be included as ’’income” or i f t h i s fa c to r l e f t e n tir e ly to the d i s t r i c t ? • • . •
Li5o In handling unsecured pro p erty , which of th e follow ing procedures (or procedure) i s follow ed in th e county? • a.
E n tire ly disregarded? » « • • • • • • • . • » • » •
______
b.
Placed w ith Secured w ith no attem pt to keep separate? • • • » • • • • • • • • • • • • «
______
c0 - Kept se p a ra te , and c o lle c tio n s required? . • . . •
______
d*
Tax levy made, but no reasonable e f f o r t made to make c o lle c tio n s ? • « • • • • • • • * • » •
fage 10 of 10 pages)
_____
APPENDIX B Sam ple fo rm l e t t e r fro m P ra n k M. W r ig h t, A s s o c i a t e S u p e rin te n d e n t o f P u b lic I n s t r u c t i o n o f th e C a l i f o r n i a S t a t e D e p a rtm e n t o f E d u c a ti o n , t o s i x t y - t h r e e s e l e c te d C ity S u p e rin te n d e n ts o f S c h o o ls o f C a l i f o r n i a t r a n s m i t t i n g a q u e s t i o n n a i r e c o n c e r n in g t h e s u r v e y i n c o n n e c ti o n w i t h t h e a d m i n i s t r a t i o n o f s c h o o l d i s t r i c t b u d g e ts . Q u e s tio n n a ire :
A S u rv e y o f P r o c e d u r e s a n d
P o l i c i e s U sed i n C o n n e c tio n w i t h t h e P r e p a r a t i o n a n d A d m i n i s t r a t i o n o f S c h o o l D i s t r i c t B u d g e ts b y P u b l i c S c h o o l A d m i n i s t r a t o r s a n d G o v e rn in g B o a rd s o f C a l i f o r n i a S c h o o l D i s t r i c t s .
272 ROY E. SIMPSON perintendent of Public Instruction and Director of Education
GEORGE E. HOGAN D eputy Superintendent; Chief, D ivision jof Departm ent Adm inistration HERBERT R. STOLZ D eputy Superintendent; Chief, D ivision of Sp ecial Schools and Services
STATE OF CALIFORNIA
DEPARTMENT OF EDUCATION SACRAMENTO 14
JAY DAVIS CONNER A ssociate Superintendent; Chief, D ivision of Instruction AUBREY A. DOUGLASS A ssociate Superintendent; Chief, D ivision of State C olleges an d T eacher Education FRANK M. WRIGHT A ssociate Superintendent; Chief, D ivision of Public School Adm inistration
A state-wide survey and study is being carried out in connection with the administration of school district budgets. It will be most helpful to have your personal appraisal of the questions and proposals raised as contained in the accompanying pages. It is recognized that such requests are numerous and much valuable time is consumed in their handling• However* the attached sheets have been carefully prepared so that a minimum of time will be necessary to complete them. It is very essential to have the thinking of school administrators in order to know what changes or improvements may be desirable in budget administration* or whether the present practices and procedures are acceptable. It will also be most helpful to obtain a state-wide summary of procedures and practices currently followed by school district administrators and governing boards® It is recognized that there may be statements on which you may hesitate to express an opinion if any publicity is given to your individual response® Please be assured that whatever is furnished will be held in strict confidence. This study is not one in which individual district information is to be used* but rather* to formulate collective thinking from those who administer our schools. In order to simplify the problem for you* there is enclosed a self-addressed envelope in which to return your report* It will be appreciated if you will complete and return the study at your earliest convenience® If you wish to refer the report to other members of your staff it will be acceptable. Sincerely yours*
Frank M® Wright Associate Superintendent of Public Instruction
FMfrwh
273 A SURVEY OF PROCEDURES AND POLICIES USED IN CONNECTION WITH THE PREPARATION AND ADMINISTRATION OF SCHOOL DISTRICT BUDGETS BY PUBLIC. SCHOOL ADMINISTRATORS AND GOVERNING BOARDS OF CALIFORNIA SCHOOL DISTRICTS
County s_
School D is tr ic t Reportings Reported bys^
Dates
T itle g
o Regardless of what i s being done now, what percent do you b eliev e the Reserves should be of the T o tal Outgo? a*
General Reserve o * «
percent
bo
U ndistributed Reserve
_________ percent
2* Would you r a th e r have a sin g le reserv e in place of th e now General and U ndistributed Reserves which would be a v a ila b le fo r use a t any time? * * . * » * 3® There are two schools of thought regarding prepar a tio n of budgets? I*
One is t h a t th e needs of the program are f i r s t determined and the funds are provided to meet the needso This would re q u ire th a t th ere be no tax. lim its o This assumes th a t the Governing Board of the d i s t r i c t would be f u l l y resp o n si ble to the peopleo I f the people would not go fo r the ta x r a te to meet th e needs, t h is f a c t would govern the a c tio n of th e board* The board would be placed in the p o s itio n of g re a te r r e s p o n s ib ility to th e people* I t a lso assumes th a t th e people would in many cases welcome a b e tte r ed u catio n al program even though i t would cost more money*
(Page 1 of 3 Pages)
II#
The other method i s to prepare the budget so as to keep w ith in ta x lim ita tio n s , working w ith in a given amount of funds - in other words - gear the educatio n al program to a fix e d amount of income* a*
To which does th e d i s t r i c t subscribe as an acceptable procedure? •
b*
Which tends to be the p ra c tic e a t present?
h* Would i t be d e sira b le to speed up the assessm ent date so the d i s t r i c t v a lu a tio n would be known on May 1 s t, and change a*d«a« re p o rtin g year from July ls t-J u n e 30th to January 1 s t - December 31st so t h a t the s ta te income, a*d*a*, excess c o s ts , tra n s p o rta tio n , etc®, would be a known firm fig u re a v a ila b le to the d i s t r i c t on or before May 1 s t so th a t th e t o t a l income would be known to the d is t r i c t b efore committing i t s e l f fo r expenditure obligations*, This procedure would make i t p o ssib le to hold s p e c ia l e le c tio n s to exceed the tax lim ita tio n s to meet budget needs p rio r to f i n a l budget adoption in August * ....................* * * 5*
At what date do you receiv e reasonably authenic inform ation about the assessed v a lu a tio n fo r th e next year? o o o o o e o * o o o o o « « a o *
6
-
A m inim um to ta l of s ix copies of the budget shall be prepared for d istrib u tion as fo llo w s: (a ) school district, (b ) county sup erin ten d en t of schools, (c ) county auditor, .copy o f P u b lica tio n B u d g e t,a s resu b m itted ,n o t later than J u ly 20th , (d ) county auditor, copy o f A dopted B udget, (e ) county board of supervisors, copy o f A dopted B udget, (f) S ta te D epartm ent of E ducation, copy of A dopted B udget. The county sup erin ten d en t o f sch ools shall tr a n sm it.a copy of the-Adopt'ed B u d get to the county auditor, th e county board of supervisors, and to the B ureau o f School A ccounts’ and R ecords, State D epartm ent of E ducation, Sacram ento 14, n ot la ter than A ugust 15th . County superin ten d en ts, a t th eir discretion, m ay require a lesser num ber from certain d istr ic ts during the p relim in ary sta g e s (J u ly .1st T en ta tive B udget and J u ly 2 0 th P u b lica tio n B u d g e t). More th an six copies w ill freq u en tly be desirable, sp ecifically in the case of the larger d istr ic ts: to provide a com plete copy fo r tra n sm itta l'to a new sp aper-for p u b lication ,'or to provide a copy in d istrict file s 'a t a ll tim es, or for other purposes.
6. P R E L IM IN A R Y D R A FT S
‘
: ; '
\
V
U n less sep arate sets o f blan ks are used for each of the th ree'ch ron ological sta g e s-o f the budget it is su ggested th at all e n tr ie s in the T en tative B u d get and the P u b lica tio n B u d g et should be made in p en cil in order th at changes m ay be made w ith ou t d efacin g the budget.
7. TW O -Y E A R C O M PARISO N Column 1 o f th e budget provides for actual (fin al) or estim a ted (sem i-final) data from school d istrict (or county superintend en t of schools) records o f incom e and ex p en d itu res fo r th e yea r 1 948-49 fo r com parative pu rp oses. . , j , ■
‘ 8. BA LAN C IN G OF IN C O M E A N D OUTGO
.
.
..
,
.
The sequence of— B eg in n in g B alance, J u ly 1, plu s incom e R E Q U IR E D TO EQUAL E xpenditures .plus E nding B alance, June 3 0 — has been designed to follow , su b sta n tia lly , the sequence em ployed in th e A nnual R eport of the P u blic Schools," Form No. J-26. In th e preparation of th is budget it is recom m ended th at if p o ssib le all entries be m ade and balanced in colum n 1 (even though p artially on an estim ated b a sis) prior to a n d 'as a guide for th e preparation of en tries for colum n 2 f or the en su in g budget fiscal' year. . , -. < ■
9. D E T E R M IN A T IO N O F D IST R IC T TA X R E Q U IR E M E N T D eterm ination o f Current D istr ict T a x es R equired to B alance B u d g et 1 9 4 9 -5 0 . can be m ade on ly a ft e r ‘all other en tries have b e e n ’made. The to ta l of IY . E xp en d itu res (p ro p o sed ) and V . E nding B alance, June 30, is entered as V I., a grand total. T his grand total is th en carried back to item ' III. I f I. B eg in n in g B alance J u ly 1, and II. Incom e ex cep t C urrent D istr ic t T axes, have b een com pleted, th e n ecessary ta x am ount can th en bo com puted as the am ount required to produce the predeterm ined grand total, I I I . . . . . . . . . T he Current D istr ict T a x es R equired To B alance B u d g e tffo r 1949-50, as entered on page 3, sh all be entered in th e Sum m ary of Current Tax R equirem ents fo r 1 9 4 9 -5 0 on page 2, as Item B .l.a , or the p ro p er,p ortion or p ortion s o f ,such amount sh a ll be entered as Item s B .2 . a ( l ) and B .2 .a .( 2 ) . ' ■ i .•. ‘ . .. . ‘ . .
10. A C CO UN TING M A N U A L
•'
-c
:
-
-
■
The CALIFO RNIA SCHOOL ACCOUNTING M ANUAL, A B u lle tin of th e C alifornia S ta te .D epartm ent of E ducation, V ol. X III, N o. 2, June, 1944, should b e u sed as a guid e in the classification of exp en d itu res and as a check lis t to 'a v o id om ission of budget provision for essen tial purposes. . •; ■ ’' •-, , * , .________ __
11. ACCRUAL A C C O U N TIN G In Column 1 fo r 1 9 4 8 -4 9 : „ a. Include as Incom e ( I I ) and as A ccounts R eceivable, Jun e 3 0 (V ) am ounts'accrued but u n collected (se e also Form No. J -43-A ) ; b. Include as E xpenditures and T ran sfers (I V ) and as Current L ia b ilities (V ) am ounts accrued but unpaid (see also Form No. J -4 3 ).
12. MAJOR C L A SSIFIC A T IO N S
. . .
:~
The m ajor classifications of expenditures, and appropriations, are: ■ ■ , , • 1. A dm inistration * ‘ 6. ‘ F ix ed C harges 2. Instru ctio n 7. C apital O utlays1 1■ 3. O peration of School P la n t 8. Community Services' 4. M aintenance of School P la n t .' *■ T. T ran sfers' • . : * 5. A u x ilia ry Services U n d istrib u ted R eserve (appropriation only) The lim itation on exp en d itu res, s h a ll-b e in term s of th e se 'm a jo r classifications, am ong .w hich,,A ppropriation T ran sfers may be made as prescribed by E ducation Code Section 6308.
13. M INOR C L A SSIF IC A T IO N S
‘
t
*n
■i
' . *t .i*3"*
*
'
')
s *
.
’
*
The / ‘object su b -cla ssifica tio n s o f expenditures, S a la ries and W ages, and Other E xpense, required in the a n a ly s is ’of1the 1949-50 bu dget may be used in rep ortin g actual, or estim ated, expenditures for 1 9 48-49 i f rqadily available.*; ' *» ' J . x. j 4 *, ■
14. SPE C IA L A C C O U N TS
' '
* ' * "'
^
*
1
Certain accounts, such a s : E m ergency Cash Fund. Cash C ollections aw aitin g deposit, In v e stm en ts in U . S. Bonds, A ccou nts R eceivable, Stores and P repaid E xpense, R eserve Cash, and A ccum ulative C afeteria E quipm ent R ep la cem en t-R eserv e are provided e sp ec ia lly for the u se of the larger school d istricts. T hese accounts are to be used on ly as needed; , th ey m ay be inserted-ton -the blank line provided on the sp ecial fund p ages, as appropriate. School farm account or accou nts sh a ll :be in clu d ed (in P art'O ne, General Fund. ■
15. SALE OF R EA L P R O P E R T Y Funds derived from the sale o f real property or from 'insu ran ce indem nities^ required to be reserved for capital outlay p u rp oses only, should be deposited in the B u ild in g F u n d ,-o r budgeted for capital outlay- from th e General Fund. '
16. SALARY .M ONEY
•
2
,/?h
.L
, -T. •
1
-
.
.
I f th at portion, o f estim ated S ta te aid, w hich is required to “ . . . be expended during th e same fiscal year for .the paym ent of salaries of persons em ployed by th e d istrict in p o sitio n s, requiring certification qualifications -or for the paym ent of tu ition by the d istrict to another d is tr ic t” , exceeds the proposed ex p en d itu res for th ese purposes, .application for-exem p tion m ust be made through the county superintendent o f schools (Form No. J - l l l ) , and u n less exem ption is granted, provision m ust be m ade for a tax levy su fficie n t fo r the “ o th er ” expenditure requirem ents. ’ • J' • • • • *
Superintendent of Public Instruction R everse cf P a g e 1
Form No. J-41 (Page 2)
BUDGET
278
District of........................................ -. County, California SUMMARY OF CURRENT TAX REQUIREMENTS FOR 1949-50 F
u n d and
P u r po se
See Budget Page
Amount of Taxes Required
Tax Rate Limit*
6
$.........................................
None
3 8
$....... .............................
A. B O N D IN T E R E S T A N D R E D E M P T IO N ............................ B. G E N E R A L (All Other School) P U R P O SE S: 1. Amounts Subject to Tax Rate Limit
$.................................... $... 2. 'Amounts Exempt from Tax Rate Limit a. General Fund (1) Meals for needy pupils (Ed. Code Sec. 1 6 4 2 0 ).... (2) District contribution to Employees Retirement under State Employees Retirement System b. Retirement Tax Fund (1) District contribution to Employees Retirement under District Retirement Plan (Ed. Code Secs. 14725, 1 4 7 7 5 ).......................................................... 3. Total General Purposes (excluding Bond Interest and Redem ption)............................
3
&
Actual Tax Rates Levied $............................ (Bond I & S) This column is for the use of the county auditor, or for the entry of data secured from him.
None
3
See Ed. Code Sections 6351 and following.
12
None $ ..
None
$ .......................... (Gen’l Purposes)
*The Tax Rate Limit for General Purposes (all other than bond interest and redemption) is : a. The rate authorized for this school district by Ed. Code Section 6357, Subsection............. ; or, b. The rate authorized by an election held.......................................................................... (date) as provided by Ed.. Code Sec. 6358 whereby the maximum rate was increased from $................ to.$.................to provide money for the purpose of...................................................................................................................................... for the year or years 19.......-19 to 19....... -19........ N O TES: 1. Refer to the latest statutes or consult your county superintendent of schools for information regarding local tax rates required for certain allowances of State Aid. 2. Neither the adoption of a budget nor the approval thereof by the county superintendent of schools guarantees receipt of taxes equal to the full amount of the tax requirement shown hereon, especially if such amount is greater than can be produced by a tax levy at the maximum rate.
NOTICES OF ADOPTION A N D TRANSMITTAL To The County Superintendent of Schools: 1. TENTATIVE BUDGET. This budget is hereby filed by the governing board of the school district. .Signed............................
Date of meeting. 2.
......... Clerk/Secretary
P U B L I C A T I O N B U D G E T . T h e g o v e r n in g b o a rd , h a v in g m a d e o n ...................................................................... , 1949 su ch r e v isio n s, a d d itio n s, and c h a n g e s a s it d e e m s d e sir a b le or n e c e ssa r y , p e n d in g p u b lic a tio n , p u b lic h e a r in g and fin al a d o p tio n , h e r e b y r e tu r n s th e b u d g e t.
T h e p u b lic h e a r in g on th is b u d g e t w ill b e h eld
at...:................................................................................... .................... (Place)
o n ..............................................................
........,
1949 a t ....................................................o ’c lo c k ........................m.
S ig n e d ............................................................................... C le r k /S e c r e ta r y
3.
A D O P T E D B U D G E T . T h is b u d g e t w a s a d o p ted b y th e g o v e r n in g b oard o f th e d istr ic t. A ll a c tio n w a s ta k e n o n th is b u d g e t d u r in g r e g u la r o r a u th o r iz e d sp e c ia l m e e tin g s o f th e g o v e r n in g b oard.
Signed..................................
Date of meeting.
Clerk/Secretary
To The Board of Supervisors, The County Auditor, and The Superintendent of Public Instruction: This budget has been examined and approved by................. (C ounty Su perin tendent of S ch ools)
.1949 J-41
By........................................................................................... Deputy Page 2 SCHW ABACHER-m CY
Form No. J-41 (Page 3)
BUDGET
279
....................................................................................... D is t r ic t o f ......................................................................................C o u n ty , C a lif o r n ia P art O ne— G E N E R A L F U N D * (E d u c a tio n C o d e S e c t io n 5 0 0 3 ) Col. 1 1948-49 Actual, or Estimated I.
Col. 2 1949-50 Budget
B E G IN N IN G B A L A N C E , J U L Y 1
C ash in C o u n ty T r e a s u r y ............................................................................................. E m e r g e n c y C ash F u n d .................................................................................................. C ash C o lle c tio n s a w a itin g d e p o s it .......................................................................... I n v e s tm e n ts in U . S. B o n d s ( a t c o s t ) ................................................................... A c c o u n ts R e c e iv a b le ...................................... . . . . . ................................................. S to r e s ................... .............................................................................................................. P re p a id E x p e n s e s ........................................................................................................... T o t a l C u rren t A s s e t s .......................................................................................... L e s s : C u rren t L i a b i l i t i e s ........................................... ..................................... ..................... N e t B e g in n in g B a l a n c e ....................................................................... ............. Note: The Beginning Balance in Column 2 should be the same as the Ending Balance in Column 1, on page 5, subject to correction of semi-final estimates. •
II .
(Income for 1948-49 should include Ending Accounts Receivable; see instruction 11a)
IN C O M E F e d e r a l- S t a te V o c a tio n a l E d u c a tio n a p p o r tio n m e n ts .................................. O th e r F e d e r a l g r a n t s .................................................................................................... S ta t e S c h o o l F u n d A p p o r tio n m e n ts an d A llo w a n c e s : A p p o r tio n m e n ts on A .D .A . ( B a s ic S ta te A id an d S ta te E q u a liz a tio n A id ) ............................................................................................. A llo w a n c e s fo r e x c e s s c o s ts ( E x c e p tio n a l M i n o r s ) ............................. A llo w a n c e s fo r tr a n sp o r ta tio n ........................................................................... O th e r S ta te A id ....................................................................................................... C o u n ty A id T a x on S o lv e n t C r e d i t s ........................................................................................ D e lin q u e n t (C o u n ty ) T a x e s ............................................................................... J u n io r C o lle g e T u itio n T a x ............................................................................... A p p o r tio n m e n ts fr o m C o u n ty S c h o o l S e r v ic e F u n d .......................... O th e r C o u n ty A i d .................................................................................................... C u rren t M u n icip a l T a x e s fo r S c h o o ls ................................................................... D is t r ic t T a x e s on U n se c u r e d P r o p e r ty ............................................................... D e lin q u e n t M u n icip a l an d D is t r ic t T a x e s ............................................................ Note: Delinquent taxes may be applied to Current Liabilities in excess of Total Current Assets to the extent authorized by Section 18 of Article XI of the State Constitution.
T r a n s fe r s fr o m o th e r D is t r ic t s ................................................................................. O th e r In c o m e .......................................................................................... . ..................... T o ta l In c o m e o th e r th a n C u rren t D is tr ic t T a x e s ................................. C u rren t D is tr ic t T a x e s R e c e iv e d 1948-49 .............................................................................. C U R R E N T D IS T R IC T B U D G E T 1949-50
TAXES
R E Q U IR E D
TO
xxxxxxxx
BALANCE
xxxxxxxx
=
Note: This Tax Requirement amount must appear also in the Summary of Current Tax Requirements on page 2. T o ta l In c o m e (e x c lu s iv e o f I B e g in n in g B a l a n c e ) ......................................................................................................... I I I . T O T A L , B E G I N N I N G B A L A N C E P L U S I N C O M E (I p lu s I I ; m u st eq u al V I .................................................................................................................... *This district maintains..............................................School Farm Accounts, included in Part One, General Fund. **See Instruction 9.
= = = = =
Page 3 J -4 1
tCHWABACKER -FHEY
Form No. J-41 (Page 4)
BUDGET
28G
District of.
County, California Col. 1 1948-49 Actual, or Estimated
Part On©—GENERAL FUND — C o n tin u e d IV. EXPENDITURES A N D TRANSFERS 1
1. Administration Salaries and W ages.................................................... ............................. Other Expense.............................................. .............................................. T o t a l . . . . . * * • • . . . 9
Col. 2 1949-50 Budcret
T ran sfers for 1948-49 should inclu de E ndin g Current L ia b ilitie s; see in stru ctio n l i b )
..........................
2. Instruction 2a. Teachers Salaries (certificated) .......................... ........................................................ 2b. Other Expense of Instruction.. ................................................................................ Salaries and W ages (non-certificated).......................................... Audio visual education service (county contract)...................... Library ...................................... ........................................................... Other Expense...................................................................................... xxxxxxxx Total Instruction................................................................... .................................
3. Operation of School Plant Salaries and W ages................................................................................... Other Expense.................................................................. ......................... T otal.......................................................................................................... _.
4. Maintenance of School Plant Salaries and W ages.................................................................................. Other Expense............................................................................................ T otal ........ ...............................................................................
5. Auxiliary Services 5a. Transportation of Pupils Salaries and W ages................ Other Expense........................ T o ta l.................................. 5b. Other Auxiliary Services Salaries and W ages................ Other Expense........................ T o ta l.................................. Total Auxiliary Services.
6. Fixed Charges 6a. Interest on Current Liabilities. 6b. Other Fixed Charges.................. Total.............................................. Total Current Expense (applicable to unit cost calculations) --------------------(forward to page 5 ) ..........................................................................................................
------- -------------.............................
Notes: 1. The budget of the Personnel Commission of the Merit System in the total amount of $ is included in 1. Administration, $ .and 7. Capital Outlay, $............................. (Education Code Section 14110). 2. This district................................................a member of the County Library System. (Enter “is” or “is not”) 3. Expenses by contract or job (force) account should be classified as Other Expense without proration of any portion to Salaries and Wages, except when segregation is readily available. 4. Cafeteria supervision and other current expense amounts from the^ general fund, as authorized by law, for the cafeteria or school lunch program are included in 5b. Other Auxiliary Services.
Page 4 _ mm
SCHWABACKER-FREY
Form No. J-41 (Page 6)
BUDGET
281 .County, California
______ District of......................... ................ Part One—GENERAL FU N D —Concluded
IV. EXPENDITURES AND TRANSFERS (concluded)
Col. 1 1948-49 Actual, or Estimated
Col. 2 1949-50 Budget
(E xp en d itu res and T ran sfers for 1948-49 should inclu de E ndin g Current L ia b ilitie s ; sea in stru ction l i b )
Total Current Expense (brought forward from page 4 )..................
7. Capital Outlay Land.................................................... .......................................................... Improvement of Grounds.. . . . . . . . 7 . . . . ' . .7 .............. *...................... Buildings........................................................................................................ Equipment.................................................................................................... Total • . . . ••............... ................................. ....................
8. Community Services Salaries and W ages.................................................................................... Other Expense............................................................................................ T otal.................................................................................................. .. T. Transfers (not classified as expenditures)....................................... - > Note: This classification includes tuition payments to other districts and certain other items, as listed in the California School Accounting Manual. See also instruction 10.
xxxxxxxx
UNDISTRIBUTED RESERVE. Note: An Undistributed Reserve may be provided; it may be transferred to other appropriation classifications during the fiscal year as provided by Education Code Section 6301c.
Total Expenditures and Transfers............................................ ............
V. ENDING BALANCE, JU N E 30 Cash in County Treasury........................................................ ....................... ............................. Emergency Cash Fund................................................................................ .... ........................ Cash Collections awaiting deposit................................................................ ........................ Investments in U. S. Bonds (at co st)............................................................ ........................ Accounts Receivable (included in II. Incom e)...................................... ... ...... .................. Stores.............................................................................. ................................................................. Prepaid Expenses......................................................... - ....................... GENERAL RESERVE JUN E 30, 1950 for 1950-51 ........................... xxxxxxxx Note: A General Reserve is required by law to provide cash for that portion of the succeeding year before taxes and state funds be come available. See Education Code Section 6301b.
Total Current A s s e t s .................................................................................................... Less: Current Liabilities (included in IV. Expenditures).................................. ............................ Net Ending Balance.................................... ........................................... ..........................
xxxxxxxx
Note: The Ending Balance in Column 1 should be the same as the Beginning Balance in Column 2, on page 3, subject to correction of semi-final estimates.
VI. TOTAL, EXPENDITURES AND TRANSFERS PLUS ENDING BALANCE (IV plus V ; must equal III) ........................ Page 5 J-4 t
5 CMWA BACH ER - FHEY
Form No. J-41 (Page 6)
BUDGET
282
......... ....................................................District of..............................................
County, California
Part Tw o—B O N D IN T E R E S T A N D SIN K IN G F U N D (Education Code Sections 7407, 7436, 7464, 7465, 7516, 7517 and 7531) Secure all data for Part T w o from the county auditor Col. 1 1948-49 Actual, or Estimated
CoL 2 1949-50 Budget
I.
B E G IN N IN G B A L A N C E , J U L Y 1 .....................................................................................
II.
IN C O M E Premiums and Accrued Interest............................................................................................................................... Miscellaneous Income.................................. ..................................................... ........................................................ District Taxes Received 1948-49................................................................................................... xxxxxxxx DISTRICT TA X ES REQUIRED TO BALANCE BUDG ET 1949-50 xxxxxxxx ___________ Total...................................................... . ......................................... ......................................................................
III.
T O T A L , B E G IN N IN G B A L A N C E P L U S IN C O M E .
IV.
E X P E N D IT U R E S A N D T R A N S F E R S Bond Interest................................ ................................. Bond Redemption.......................................................... Transfers to General Fund (Ed. Code Section 7465) Total Expenditures and Transfers....................
V.
E N D IN G B A L A N C E , J U N E 30
VI. T O T A L , E X P E N D IT U R E S A N D T R A N S F E R S P L U S E N D IN G B A L A N C E ............................................................................................
Note: As in Part One—G EN ER A L F U N D : 1
III. TO TA L, B E G IN N IN G BA L A N C E P L U S INCOM E must equal VI. TO TAL, E X P E N D IT U R E S A N D T R A N SF E R S PLUS E N D IN G BALANCE. 2. I. B E G IN N IN G BA LAN C E (column 2) should be the same as V. E N D IN G BA LAN C E (column 1).
Page 6 J -4 1
eCHW ABACMEft-roCY
Form No. J-41 (Page 7)
BUDGET
283 .County, California
.District of.................. Part Three—B U IL D IN G F U N D (Education Code Section 7401 and following) Col. 1 1948-49
I.
Actual, or Estimated
B E G IN N IN G B A L A N C E , J U L Y 1
Col. 2 1949-50 Budget
Cash in County Treasury........................................................................................................... Investments in U. S. Bonds (at c o st)...................................... .............................................. T otal................................ ............................... ...................................................................... Less: Current Liabilities..................................... . • . . .............. — N e t ......................................................................................................................................... II. IN C O M E Federal grants............................................................................................................................. Sale of Bonds............................................................................................................................... Sale of Property.................................. ....................................................... .............................. Other Income.......................................................................... .......................... ....................... T otal .................................... ...................................................................................... III. T O T A L , B E G IN N IN G B A L A N C E P L U S IN C O M E
..............
IV. E X P E N D IT U R E S 4. M aintenance of School Plant (Only as authorized by law and by the call for the election) Salaries and W ages ............................................................................................................ Other E x p en se ............................................................................................ ........... ........... Total ...................................................................................................... ....................... 6. Fixed Charges 6b. Other Fixed Charges (employer’s contribution to retirement fund)......................................................................................... ................... ......................... 7. Capital Outlay Land......................................................................................................................................... Improvement of Grounds................................................................................................... Buildings.................................................................. ......................... .......... ...................... Equipment.................................................................................................... ...................... Total................................................................................................................................. Total expenditu res.................... .............................................................. ....................... V . E N D IN G B A L A N C E , J U N E 30 Cash in County Treasury.................................................................................... ...................... Investments in U. S. Bonds (at c o st)..................................................................................... T otal.................................................................................................... .. Less: Current Liabilities............................................................................................ N e t ................................................................................................................ VI. T O T A L , E X P E N D IT U R E S P L U S E N D IN G B A L A N C E .......... Note: As in Part One— G EN ER A L F U N D : 1. III. TO TA L, B E G IN N IN G BA LAN C E PLU S INCOM E must equal VI. TO TA L, E X P E N D IT U R E S PLU S E N D IN G BALANCE. 2. I. B E G IN N IN G BA LAN C E (column 2) should be the same as V. E N D IN G BA LA N C E (column 1). 3. II. IN C O M E and IV. E X P E N D IT U R E S in column 1 may be on the accrual basis.
Page 7 SCHWABACHER -FREY
BUDGET
Form No. J-41 (Page 8)
2 g 4
....................................................... District of......................... ......................................... ....County, California
Part Four—SPECIAL ACCUMULATIVE BUILDING FU N D (Education Code Sections 5961 to 5968) I.
Col. 1 1948-49 Actual, or Estimated
BEGINNING BALANCE, JULY 1
Col. 2 . 1949-50 Budget
Cash in County Treasury...............................................................................................................................-................ Investments in U. S. Bonds (at c o st)......................................................... .... .............................................................. T otal ................................................................................ .................................................................................... Less:Current Liabilities............................................................................................ — .— ---- ---------- ---------------------
Net.............................................................................. ................................................................................... II. IN C O M E Transfers (Funds not required for other than capital ou tlay)............................................................................. District Taxes paid into Fund 1948-49....................................................................................... xxxxxxxx x x x x x x x x ............. ..................... . DISTRICT TA XES REQ U IRED to be paid into Fund 1949-50---Note: This Tax Requirement must appear also in the Summary of Cur rent Tax Requirements on page 2. This amount is subject to the tax rate limits of the Education Code. This amount is determined by the affidavit which establishes the Special Accumulative Building Fund. Other Income.................................................................................................... ............................. ......................... T otal............................................................................................................ .............................................................. III. T O T A L , B E G IN N IN G B A L A N C E P L U S IN C O M E ....................
- ...-
IV. E X P E N D IT U R E S A N D T R A N S F E R S 7. Capital Outlay Land.............................................................................................................................................................................. Improvement of Grounds....................................................................................................................................... Buildings..................................................................................................................................................................... Equipment.................................................................................................... ............................. ......................... Total...................... .................................................................................................................................................. T. TRANSFERS (remainder “after all expenditures have been made”) ---------------------- ------------------Total Expenditures and Transfers....................................................................................................................... V.
E N D IN G B A L A N C E , J U N E 30 Cash in County Treasury............................................................................................................... . Investments in U. S. Bonds (at c o st) . . . . ........................................ ............................
T otal........................................... -........ Less:Current Liabilities............................................................................................ ............................. N e t............................................................................................................................................................................... V I. T O T A L , E X P E N D IT U R E S A N D T R A N S F E R S P L U S E N D IN G B A L A N C E ....................................... r = = = = = Note: As in Part One—GENERAL FUND: 1. III. TOTAL, BEGINNING BALANCE PLUS INCOME must equal VI. TOTAL, EXPENDITURES AND TRANSFERS PLUS ENDING BALANCE. 2. I. BEGINNING BALANCE (column 2) should be the same as V. ENDING BALANCE (column 1). 3. II. INCOME and IV. EXPENDITURES in column 1 may be on the accrual basis.
Page 8
J-41
.
_____ ____
Form No. J-41 (Pago 9)
BUDGET
285 County, California
.............................................................. District of.................. Part Five—EMERGENCY SCHOOL BUILDING FUND (Education Code Section 5029)
See Education Code Sections 5021 to 5034, inclusive, (1947) or amendments thereto, and orders, prescriptions and rules issued by the State Allocation Board, or other competent authority, regarding establishment, encumbering, expenditure, period of avail ability, reversion of certain balances, and auditing of Emergency School Building Funds.
I.
Col. 1 1948-49 Actus.1 on* Estimated
BEGINNING BALANCE, JULY 1
Col. 2 1949-50 Budget
Cash in County T reasury. ...................................................................... .......................................................................
Total........................................................................................ Less:Current Liabilities........................................................................ N e t.................................... .......................................................
II. INCOME State A llocations.......................................................................... Other Income................................................................................ T otal........................................................................................
III. TOTAL, BEGINNING BALANCE PLUS INCOME IV. E X P E N D IT U R E S 4. Maintenance of School Plant (Applicable only for authorized “repair”) Salaries and W ages...................................................................................... Other E x p e n se ............................................................................................ T otal................ ............................................................................................ 6. Fixed Charges 6b. Other Fixed Charges (employer’s contribution to retirement fund)......................................................................................................... 7. Capital Ouday Land .............................................................................................................. Improvement of Grounds.................................................................. ....... Buildings .................................................................. .................................... Equipment ................................ .................................................................... T otal............................................................................................................ Total E xpenditures.................................................................................... V.
E N D IN G B A L A N C E , J U N E 30 Cash in County Treasury................................................................................
T o ta l. .......................................................... ............................................ Less:Current Liabilities............................................................................................ N e t ...................... ........................................................................................
VI. TOTAL, EXPENDITURES PLUS ENDING BALANCE......... Note: As in Part One—G E N E R A L F U N D : 1. III. TO TA L, B E G IN N IN G BA LAN C E PLU S IN C O M E must equal VI. TO TA L, E X P E N D IT U R E S PL U S E N D IN G BALANCE. 2. I. B E G IN N IN G BA LAN C E (column 2) should 'be the same as V. E N D IN G BA LAN C E (column 1). 3. II. INCO M E and IV. E X P E N D IT U R E S in column 1 may be on the accrual basis.
Page 9 ttM W A B A C H E R -m C V
Form No. J-41 (Page 10)
BUDGET
...............................................................................of.:.:....’.
286 ......:...... r................ County, California
........................
Part Six—C A F E T E R IA -----------------------------(Education Code Sections 19301 to 19313) .
I.
.
Col. 1
B E G IN N IN G B A L A N C E , JU L Y 1
Actual,^or E stim ated
.
,
Col. 2
’
1949-50 B udget
C ash in--------------------------------------- ** “ O p eratin g” cash ...........................................................................................................-------................................ ..................... ..........— ...— -----“R e se rv e ” ca sh ..................................................................................... -...............-...............-............................ C ash C ollection s a w a itin g d e p o s it ..................................................— -------... — .......................... A c co u n ts R eceivab le ........................................................................................... -................. - — —------- -------- — ------.......... ...............................*— S to res and P repaid E x p e n s e .............................................................................................................. ....................................... •---------- :— ,----------L e ss:C u r re n t L iab ilities ........................................................ .’.... ...............:----------------- ----------------- -------------- ------------------------------------A ccu m u la tiv e C afeteria E q u ip m en t R ep la cem en t R e se r v e ................................................ —;----- !--------------------------------------------N e t ........................................-.............................................................................................................. ...............^................... .............................................. «■
II.
IN C O M E '
" '
. •
-