AB 876

Current law generally limits the total amount of revenue per pupil that a school

district may receive from general school aids and property taxes in a school year to

the amount of revenue allowed per pupil in the previous school year plus a per pupil

increase, if any, as provided by law. However, current law also includes several

adjustments to the general revenue limit. For example, if a school district increases

the services that it provides by adding responsibility for providing a service

transferred to it from another governmental unit, the school district's revenue limit

is increased by the cost of that service.

This bill creates a school district revenue limit adjustment for costs incurred to

comply with an unfunded mandate. The bill defines an “unfunded mandate” as a

state law requirement enacted after the date on which the bill becomes law for a

school board to take an action or provide a service for which funding is not provided.

To receive a revenue limit adjustment for an unfunded mandate, a school board must

submit a request to the Department of Public Instruction that identifies the

unfunded mandate and the costs incurred to comply with the unfunded mandate and

DPI must approve the request. If a school district receives state funding to comply

with an unfunded mandate, the amount of the revenue limit adjustment is reduced

by the amount of state funding received by the district. The revenue limit

adjustment is not available to a school district for any school year during which the

school board receives state funding equal to or greater than the school district's costs

incurred to comply with the unfunded mandate.