AB 285

Current law generally limits the total amount of revenue a school district may

receive from general school aids and property taxes in a school year. However, there

are several exceptions to the revenue limit. One exception is for excess revenue

approved by referendum for recurring and nonrecurring purposes. This type of

referendum is often referred to as an operating referendum. If the operating

referendum is for a nonrecurring purpose, a school district's authority to raise excess

revenue is approved only for specific school years. If the operating referendum is for

a recurring purpose, the school district's authority to raise excess revenue is

permanent.

Under this bill, a school district's general school aid payment is reduced by a

percentage of the excess revenue approved by operating referenda. The reduction

in general school aid is 20 percent of the excess revenue approved by operating

referenda approved after the date of the bill. Under the bill, the question presented

for an operating referendum must include an estimate of any reduction in general

school aid that will occur if the referendum is approved. The bill also allows a school

board to reduce its revenue limit by adopting a resolution to rescind a portion or all

of its authority to raise excess revenue that has been granted under an operating

referendum.