Lege Trend: An Education Only Rainy Day Fund

In California school districts have  Rainy Day Funds, at the district level, with the goal of encouraging prudent spending. 

California’s Senate Bill 858 put a cap on revenues in local school rainy day funds. The cap limits school districts to reserving “no more than 6 percent of their budgets in reserve accounts to prepare for economic downturns. “

That cap puts some districts, like Salinas, in jeopardy of not only losing their reserve funds, but also their good credit rating.  The cap sparked this comment from San Diego Public School District, ““This makes a mockery of good fiscal behavior — and local control,” said McAllister, who is chairman of the San Diego Unified School District audit and finance committee.

The Californian    San Diego Union Tribune