A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Section 16 to Article XIIIB thereof, and by amending Section 8 of, and adding Section 8.7 to, Article XVI thereof, relating to education finance.

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. 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 do not receive an apportionment of state funds under the LCFF because their local revenues exceed the amount calculated pursuant to the LCFF are considered "basic aid school districts" or "excess tax entities." This measure would establish the Equalization Reserve Account in the General Fund. The measure 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 transf