Sen. Dodd: Committee OKs School District Fiscal Health Bill

Wednesday, April 17, 2024

SACRAMENTO – Legislation advanced today from Sen. Bill Dodd, D-Napa, that would help protect the finances of California public schools faced with the challenge of declining enrollment by extending the authority of local school boards to consider the fiscal impact of new charter school applications.

“When it comes to educating our children, locally elected school boards must decide how our precious resources are spent,” Sen. Dodd said. “They must have the tools to recover from financial setbacks due to declining enrollment and focus their funds where they will have the greatest benefit. I appreciate the committee support for my bill, which will help rebuild strong schools and ensure everyone has access to the best education possible.”

Enrollment in California public schools has declined over the past two decades because of several factors including a declining birth rate and migration from California. Because school districts receive their funding based on the number of students they educate, the loss of students has serious financial effects, which require local leaders to make difficult budget choices, including the closing of schools. Compounding financial stress and recovery is the establishment of new charter schools that operate independently from local districts and draw away their public education funds critical to their fiscal health and solvency.

In response, Sen. Dodd introduced Senate Bill 1380, which gives greater authority to local school district boards in considering charter school applications that would negatively impact their financial stability. The bill would clarify that local school districts can deny applications for new charter schools where a campus was closed or when a district has made necessary budget decisions to protect against fiscal insolvency within the last five years due to declining enrollment.  Also, it would authorize county education boards to make a finding to deny charter school petitions that are substantially similar to petitions that were previously denied by a local school board. Finally, the bill wouldn’t impact the continuation of existing charter schools nor require any charter school application from being denied.

SB 1380 is co-sponsored by the California School Boards Association, Napa Valley Unified and Vallejo City Unified school districts. It was approved today by the Senate Education committee.

“SB 1380 will provide school district and county boards of education with better tools to improve the charter authorization process and eliminate redundancy that undermines local control and jeopardizes the integrity of important charter agreements signed in recent years,” said CSBA President Albert Gonzalez. “This legislation protects the long-term fiscal stability of schools and local community input, which is essential for delivering high-quality educational opportunities to students. We applaud Sen. Dodd’s efforts to support our local governing boards, particularly those making difficult decisions to improve services for all students.”

“Protecting the district’s fiscal solvency is my top priority because, without resources, we cannot give our students the quality education they deserve nor support the staff who dedicate themselves to educating them,” said William Spalding, superintendent of Vallejo City Unified School District. “SB 1380 will ensure that the hard work the district has done to recover from bankruptcy will not be compromised. We appreciate Sen. Dodd’s leadership and his commitment to our students.”

“Two-thirds of California’s school districts are getting less funding due to declining enrollment, while operating costs continue to rise,” said Rosanna Mucetti, superintendent of Napa Valley Unified School District. “We’re thankful Sen. Dodd has introduced SB 1380, which will help ensure that adults confidently make fiscal decisions in the best interest of all students.”

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Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Solano, Yolo, Sonoma, Contra Costa, and Sacramento counties. You can learn more about the district and Senator Dodd at www.sen.ca.gov/dodd.