AB 71

This bill eliminates recurring operating referenda and limits a nonrecurring operating referendum to no more than four years.

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 the bill, an operating referendum to exceed a school district’s revenue limit may be only for nonrecurring purposes and the referendum may not apply to more than four years.