CA SB 743
in committeeEducation finance: Education Equalization Act: Equalization Reserve Account.
California · 2025-2026 Regular Session · upper
Quick answers
Did CA SB 743 pass?
Not yet. CA SB 743 is in committee as of 2025-08-29 and has not come to a final vote. Latest recorded action (2025-08-29): August 29 hearing: Held in committee and under submission.
What is CA SB 743 about?
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula (LCFF) , as specified. Under existing law, school districts that receive local revenues that exceed the LCFF amount do not receive a specified apportionment of LCFF funds, as provided, and are known as "basic aid school districts" or "excess tax entities." The Classroom Instructional Improvement and Accountability Act, an initiative approved by the voters as Proposition 98 at the November 8, 1988, statewide general election, amended the California Constitution to, among other things, set forth a formula for computing the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts in any given fiscal year. The California Constitution creates the Public School System Stabilization Account in the General Fund and requires the Controller to transfer, pursuant to a schedule provided by the Director of Finance, a specified amount from the General Fund to the account in each fiscal year, except as provided. The California Constitution generally prohibits the total annual appropriations subject to limitation of the state and each local government from exceeding the appropriations limit of the entity of government for the prior fiscal year, adjusted for the change in the cost of living and the change in population. The California Constitution defines "appropriations subject to limitation" for these purposes. This bill would establish the Equalization Reserve Account in the General Fund. The bill would require interest earned on funds in the account to be available, upon appropriation by the Legislature, to increase per-pupil funding in non-basic aid school districts, defined as school districts that received the above-described apportionment of LCFF funds in any of the then preceding 3 fiscal years, in a manner prescribed by the Legislature. The bill would require the Controller, in any fiscal year in which there is an increase over the preceding fiscal year in the minimum amount of revenues the state is required to appropriate for the support of school districts and community college districts, to transfer from the General Fund to the Equalization Reserve Account an amount equal to the total amount transferred from the General Fund to the Public School System Stabilization Account in that fiscal year, as provided. These provisions would become operative only if a constitutional amendment, approved by the voters, (1) excludes funds transferred to or allocated from the account from computations of the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts, from the moneys allocated for purposes of meeting that minimum funding obligation, and from the total annual state appropriations subject to the limitation described above, and (2) requires the Legislature, in each fiscal year, to allocate a percentage of the interest that has been deposited in the account to increase per-pupil funding in non-basic aid school districts.
Who sponsors CA SB 743?
Cortese is the primary sponsor of CA SB 743.
Description
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula (LCFF) , as specified. Under existing law, school districts that receive local revenues that exceed the LCFF amount do not receive a specified apportionment of LCFF funds, as provided, and are known as "basic aid school districts" or "excess tax entities." The Classroom Instructional Improvement and Accountability Act, an initiative approved by the voters as Proposition 98 at the November 8, 1988, statewide general election, amended the California Constitution to, among other things, set forth a formula for computing the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts in any given fiscal year. The California Constitution creates the Public School System Stabilization Account in the General Fund and requires the Controller to transfer, pursuant to a schedule provided by the Director of Finance, a specified amount from the General Fund to the account in each fiscal year, except as provided. The California Constitution generally prohibits the total annual appropriations subject to limitation of the state and each local government from exceeding the appropriations limit of the entity of government for the prior fiscal year, adjusted for the change in the cost of living and the change in population. The California Constitution defines "appropriations subject to limitation" for these purposes. This bill would establish the Equalization Reserve Account in the General Fund. The bill would require interest earned on funds in the account to be available, upon appropriation by the Legislature, to increase per-pupil funding in non-basic aid school districts, defined as school districts that received the above-described apportionment of LCFF funds in any of the then preceding 3 fiscal years, in a manner prescribed by the Legislature. The bill would require the Controller, in any fiscal year in which there is an increase over the preceding fiscal year in the minimum amount of revenues the state is required to appropriate for the support of school districts and community college districts, to transfer from the General Fund to the Equalization Reserve Account an amount equal to the total amount transferred from the General Fund to the Public School System Stabilization Account in that fiscal year, as provided. These provisions would become operative only if a constitutional amendment, approved by the voters, (1) excludes funds transferred to or allocated from the account from computations of the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts, from the moneys allocated for purposes of meeting that minimum funding obligation, and from the total annual state appropriations subject to the limitation described above, and (2) requires the Legislature, in each fiscal year, to allocate a percentage of the interest that has been deposited in the account to increase per-pupil funding in non-basic aid school districts.
- Introduced
- 2025-02-21
- Latest action
- 2025-08-29 — August 29 hearing: Held in committee and under submission.
- Bill type
- bill
- Last updated
- —
Subjects
Sponsors
- Corteseauthor
Committees
Not provided by source.
Action timeline
2025-02-21
Introduced. To Com. on RLS. for assignment. To print.
introduction,referral-committee
2025-02-24
From printer. May be acted upon on or after March 24.
2025-02-24
Read first time.
reading-1
2025-03-12
Referred to Com. on RLS.
referral-committee
2025-03-26
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-04-02
Re-referred to Com. on ED.
referral-committee
2025-04-04
Set for hearing April 9.
2025-04-09
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 736.) (April 9). Re-referred to Com. on APPR.
committee-passage,committee-passage-favorable,referral-committee
2025-04-10
Set for hearing April 21.
2025-04-21
April 21 hearing: Placed on APPR. suspense file.
2025-05-16
Set for hearing May 23.
2025-05-23
From committee: Do pass. (Ayes 5. Noes 0. Page 1211.) (May 23).
committee-passage,committee-passage-favorable
2025-05-23
Read second time. Ordered to third reading.
reading-1,reading-2,reading-3
2025-05-29
Ordered to second reading.
reading-1,reading-2
2025-05-29
Read third time and amended.
amendment-passage,reading-1,reading-3
2025-06-02
Read second time. Ordered to third reading.
reading-1,reading-2,reading-3
2025-06-03
Read third time. Passed. (Ayes 30. Noes 2. Page 1448.) Ordered to the Assembly.
passage,reading-1,reading-3
2025-06-04
In Assembly. Read first time. Held at Desk.
reading-1
2025-06-09
Referred to Com. on ED.
referral-committee
2025-07-07
From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-07-17
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 16). Re-referred to Com. on APPR.
committee-passage,committee-passage-favorable,referral-committee
2025-08-20
August 20 set for first hearing. Placed on APPR. suspense file.
2025-08-29
August 29 hearing: Held in committee and under submission.
Versions
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Votes
Do pass, but first be re-referred to the Committee on [Appropriations]
2025-04-09 · pass · 4-0
Member-level votes (7)
- Gonzalez: yes
- Cortese: yes
- Laird: yes
- Pérez: yes
- Cabaldon: other
- Ochoa Bogh: other
- Choi: other
Placed on suspense file
2025-04-21 · pass · 6-0
Member-level votes (7)
- Grayson: yes
- Wahab: yes
- Richardson: yes
- Cabaldon: yes
- Caballero: yes
- Seyarto: yes
- Dahle: other
Do pass
2025-05-23 · pass · 5-0
Member-level votes (7)
- Caballero: yes
- Wahab: yes
- Cabaldon: yes
- Richardson: yes
- Grayson: yes
- Dahle: other
- Seyarto: other
3rd Reading
2025-06-03 · pass · 30-2
Member-level votes (40)
- Gonzalez: yes
- McNerney: yes
- Weber Pierson: yes
- Becker: yes
- Laird: yes
- Ashby: yes
- Richardson: yes
- Cervantes: yes
- Padilla: yes
- Stern: yes
- Durazo: yes
- Arreguín: yes
- Cortese: yes
- Pérez: yes
- Grove: yes
- Cabaldon: yes
- Grayson: yes
- Allen: yes
- Menjivar: yes
- Smallwood-Cuevas: yes
- Wiener: yes
- Archuleta: yes
- Alvarado-Gil: yes
- McGuire: yes
- Blakespear: yes
- Wahab: yes
- Limón: yes
- Caballero: yes
- Rubio: yes
- Umberg: yes
- Niello: no
- Jones: no
- Valladares: other
- Reyes: other
- Choi: other
- Seyarto: other
- Hurtado: other
- Strickland: other
- Ochoa Bogh: other
- Dahle: other
Do pass and be re-referred to the Committee on [Appropriations]
2025-07-16 · pass · 7-0
Member-level votes (9)
- Muratsuchi: yes
- Lowenthal: yes
- Patel: yes
- Bonta: yes
- Addis: yes
- Alvarez: yes
- Garcia: yes
- Hoover: other
- Castillo: other
Related bills
No related bills recorded for this bill.
Official source
Attribution
Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z
Inspect retained evidence for changes recorded after evidence tracking began:
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