Budgets: multiyear financial commitments.

Existing law requires the Superintendent of Public Instruction, the Controller, and the Director of Finance to develop and update as necessary, standards and criteria to be reviewed and adopted by the State Board of Education and to be used by local educational agencies in the development of annual budgets and the management of subsequent expenditures from that budget, as specified. Existing law requires these standards and criteria to include, among other things, multiyear commitments, including cost-of-living adjustments. This bill would specify that the multiyear commitments are for only the current fiscal year and the subsequent fiscal year. The bill would require the state board, on or before March 1, 2027, to amend specified related regulations, as provided, and would require the State Department of Education to modify the Standardized Account Code Structure reporting software infrastructure to eliminate reporting fields for a 2nd subsequent fiscal year and, commencing with the 2027–28 fiscal year, ensure that the system reflects a 2-year operational and forecasting structure. Existing law requires the governing board of a school district and each county board of education, on or before July 1 of each year, to adopt a budget, as specified, and requires that budget to be filed with the county superintendent of schools or the Superintendent, respectively. Existing law requires the county superintendent of schools or the Superintendent, as applicable, to, among other things, examine the adopted budget to determine whether it complies with the standards and criteria adopted by the state board for local educational agency budgets and determine whether the adopted budget (1) will allow the school district or county office of education to meet its financial obligations during the fiscal year and (2) is consistent with a financial plan that will enable the school district or county office of education to satisfy its multiyear financial commitments. Existing law req