State Budget Calendar		School District Budget Calendar		County Oversight and Reporting Calendar
		Budget Development	Budget Review and Adoption
July	* (7/1) Budget Act takes effect (assuming budget passed on time).		* (By 7/1) District board holds public hearing, adopts budget, and files with county superintendent.
	* (Last week) Legislature considers cleanup or other pending bills.
August	* (8/13) Deadline for fiscal committees to meet and report bills to floors.	* (Mid-month) Board receives results of state achievement tests from previous spring.	* (Within 45 days after governor signs Budget Act) District makes public any revisions to budget revenues and expenditures.	* (By 8/15) County superintendent approves, gives conditional approval, or disapproves district budget.
	* (8/31) Constitutional deadline for passage of regular bills to become law in January.
September	* Legislature recesses until January (odd-numbered years).		* (By 9/15) District files prior-year financial reports with county.	* (By 9/8) In case of county conditional approval or disapproval, a district board reviews county's recommendations and responds, then files with county superintendent.
	* State agencies develop budget proposals for the coming year.
	* Governor must sign or veto legislation by 9/30 or within 30 days of Legislature's recess.		* (By 9/30) Board adopts appropriation limit for current year and actual appropriations limit for the following year.	* (9/22) County must notify State Superintendent of Public Instruction of tentative disapproved budgets.
October	* Department of Finance begins fiscal review for next year.	* (Last week) Board reviews goals and objectives for school year, sets budget planning time line.		* (10/8) County superintendent notifies state superintendent of approval or disapproval of all district budgets. When budget is disapproved, a Budget Review Committee may be formed and must report its recommendations by 10/31.
		* (By 10/31) Board must select adoption process for following fiscal year.		* (By 10/15) County reviews and certifies district’s prior-year financial reports), files with State.
			* (10/31) End of first interim period for examination of district financial condition.	* (10/31) County submits Gann forms to California Department of Education (CDE).
November	* Department of Finance updates estimates of revenues and expenditures for coming year.			* (By 11/30) For districts with disapproved budgets, county superintendent develops and adopts fiscal plan and budget using Budget Review Committee input.
	* (11/30) Legislature must adjourn two-year session (even-numbered years).
December	* Governor makes final decisions in preparation for January budget proposal.		* (By 12/15) Board approves First Interim Report on district financial condition, submits to county.
			* (By 12/15 most years) Prior-year audits due to county, state superintendent, and state controller.
January	* (1/10) Governor submits proposed state budget to Legislature.	* (Mid-month) Board reviews program and plans curriculum changes.		* (By 1/14) County must report districts' financial position on first interim reports to state superintendent.
	* (Mid-month) Education and other bills introduced in Legislature.	* (Mid-month) Staff compiles enrollment and staffing projections.
	* (Last week) Committee overview hearing on the budget. The Department of Finance presents budget, and the Legislative Analyst’s Office (LAO) provides initial review.	* (Mid-month) Staff begins development of new budget.
			* (By 1/31) Districts hold public hearing to review audit report.
			* (1/31) End of second interim period for examination of district financial condition.
February	* Department of Finance submits statutory changes necessary to implement budget.	* District works with public, other stakeholders on development of new budget.
	* (Third week) LAO releases “Analysis of the Budget Bill and Perspectives and Issues.”
	* (Late month) Budget committee hearings on revenues.
March	* Subcommittees begin hearings.	* (3/1) Deadline for notice to principals of reassignment to classroom.
		* (3/15) District must send preliminary layoff notices to teachers.
		* Teachers may request a layoff hearing.
			* (3/15) If necessary, district provides county with plan for correction to audit report.
			* (3/17) Deadline for board approval of Second Interim Report on district financial condition; district must submit to county.
April	(4/15) * Tax deadline provides state with information for revising revenue estimates.	* Students take state achievement tests.		* (By 4/16) County must report district financial position on Second Interim Report to SPI.
			* (By 4/1) District must hire auditor.
May	* Department of Finance submits capital outlay finance letters.	* Staff presents draft of budget to board and public.		* (5/15) County must certify that audits have been reviewed and must identify any exceptions involving state funds.
	* (Mid-month) Department of Finance delivers May Revision update to governor. Governor modifies or approves, then submits May Revision to the Legislature.	* 45-day notice of nonre-employment sent to superintendent and other senior management.
	* (Last week) Budget subcommittees complete hearings.	* (By 5/7) Administrative law judge holds teacher layoff hearings if requested.
		* (5/15) District must send final layoff notices to teachers.
June	* Legislative conference committees appointed to resolve budget and other bills with financial impact.		* (By 6/1) District staff projects fund and cash balances (through June 30) if Second Interim Report is qualified or negative.	* County superintendent publishes notices of public hearings on district's budget. EC 42103
	* Assembly and Senate consider budget bill and trailer bills; two-thirds vote in each house needed for passage.	* (6/30) Deadline for final layoff notices to administrators.
	* (6/15) Constitutional deadline for Legislature to pass budget bill.
	* Governor must sign or veto budget bill within 12 days of legislative action. Governor may use line-item veto to reduce or eliminate specific expenditures.

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State budget calendar
The fiscal year for both the state and school districts is July 1 to June 30. The state budget is extremely important because school districts depend on it for most of their revenue. This calendar shows the close timing in the summer between final approval of the state budget, school finance legislation, and the adoption of local district budgets. The state budget is often not approved by the deadline of June 30, forcing districts to begin the new fiscal year with only estimates of the amount of money they will actually receive.

School district budget development
District budget development takes place over several months. Within the deadlines shown on the calendar, districts develop their own schedules to:

• determine whether to hire or replace staff;
• negotiate contracts with all employees; and
• review programs.

Decisions depend on critical estimates of student enrollment, fixed costs, and commitments in employee contracts—as well as best guesses about how much money will be available.

The timing of some decisions is based on legal deadlines. For example, preliminary layoff notices to teachers must be delivered in March, with final notices in May. Thus districts must project enrollments and determine staffing needs long before they know their final revenues and expenditures for the current year or their income for the next one.

School district budget review and adoption
The district governing board (or "school board") and staff must submit a budget to the superintendent of the local county office of education by July 1. Prior to that, a public hearing on the budget is required by law. Most districts use a single adoption calendar, adopting their budgets by July 1 and then revising their estimates for revenues and expenditures after the state budget is final. A few districts go through a second (or “dual”) adoption process, which requires a second public hearing by Sept. 1.

Districts must publicly review their financial position at least twice during the school year. They do so by issuing interim reports for the periods ending Oct. 31 and Jan. 31. At this time, they certify their ability to meet their financial commitments through the rest of the school year and two subsequent years. They must submit these reports, along with their final financial statements and annual fiscal audits, to the local county office of education.

County office of education oversight
Under state law, county superintendents have a number of oversight responsibilities related to district finances. They monitor all districts’ budgets, ongoing financial obligations, and multiyear contracts. Originally put in place in 1991, these responsibilities were strengthened and expanded in 2004 with the passage of Assembly Bill (AB) 2756. (In a similar manner, the state superintendent of public instruction reviews the finances of county offices of education.)

County superintendents can approve, conditionally approve, or disapprove the district budget. If the county disapproves the budget, then the county superintendent either calls for the formation of a budget review committee or appoints an adviser. If the committee (or adviser) and the state superintendent both disapprove the revised budget, then it is up to the county superintendent—in consultation with the state and the local school board—to develop and adopt a budget for the district.

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