BP 3100 — BUDGET
Business and Noninstructional Operations BP 3100(a)
BUDGET
The Board of Education recognizes its critical responsibility for adopting a sound budget
each fiscal year that is compatible with the District’s vision, goals, priorities, local control
and accountability plan (LCAP), and other comprehensive plans. The District budget shall
guide administrative decisions and actions throughout the year and shall serve as a tool
for monitoring the fiscal health of the District.
(cf. 0000 – Vision)
(cf. 0200 – Goals for the School District)
(cf. 0400 – Comprehensive Plans)
(cf. 0460 – Local Control and Accountability Plan)
(cf. 3300 – Expenditures/Expending Authority)
(cf. 3460 – Financial Reports and Accountability)
(cf. 9000 – Role of the Board)
The District budget shall show a complete plan and itemized statement of all proposed
expenditures and all estimated revenues for the following fiscal year, together with a
comparison of revenues and expenditures for the current fiscal year. The budget shall
also include the appropriations limit and the total annual appropriations subject to
limitation as determined pursuant to Government Code 7900-7914. (Education Code
42122)
Budget Development and Adoption Process
In order to provide guidance in the development of the budget, the Board shall annually
establish budget priorities based on identified District needs and goals and on realistic
projections of available funds.
The Superintendent or designee shall oversee the preparation of a proposed District
budget for approval by the Board and shall involve appropriate staff in the development
of budget projections.
The Board shall hold a public hearing on the proposed budget in accordance with
Education Code 42103 and 42127.
(cf. 9320 – Meetings and Notices)
(cf. 9322 – Agenda/Meeting Materials)
(cf. 9323 – Meeting Conduct)
The Board shall adopt the District budget on or before July 1 of each year. (Education
Code 42127)
At a public meeting scheduled on a date after the public hearing on the budget, the Board
shall, following its adoption of the LCAP or an annual update to the LCAP, adopt the
budget. The budget shall include the expenditures necessary to implement the LCAP or
the annual update to the LCAP. (Education Code 42127, 52062)
BP 3100(b)
BUDGET (cont.)
The budget that is formally adopted by the Board shall adhere to the State’s standardized
account code structure prescribed by the Superintendent of Public Instruction. The
Superintendent or designee may supplement this format with additional information as
necessary to effectively communicate the budget to the Board, staff, and public.
No later than five days after the Board adopts the District budget or by July 1, whichever
occurs first, the Board shall file with the County Superintendent of Schools the adopted
District budget and supporting data. The budget and supporting data shall be maintained
and made available for public review. (Education Code 42127)
If the County Superintendent disapproves or conditionally approves the District's budget,
the Board shall review and respond to his/her recommendations at a public meeting on
or before October 8. The response shall include any revisions to the adopted budget and
any other proposed actions to be taken as a result of those recommendations. (Education
Code 42127)
Budget Advisory Committee
The Superintendent or designee may appoint a Budget Advisory Committee composed
of staff, board representatives, and/or members of the community. The committee shall
submit recommendations during the budget development process and its duties shall be
assigned each year based on District needs. All recommendations of the committee shall
be advisory only and shall not be binding on the Board, Superintendent or designee.
(cf. 1220 – Citizen Advisory Committees)
(cf. 2230 – Representative and Deliberative Groups)
(cf. 3350 – Travel Expenses)
(cf. 9130 – Board Committees)
(cf. 9140 – Board Representatives)
Budget Criteria and Standards
The Superintendent or designee shall develop a District budget in accordance with State
criteria and standards specified in 5 CCR 15440-15450 as they relate to projections of
average daily attendance (ADA), enrollment, ratio of ADA to enrollment, local control
funding formula revenue, salaries and benefits, other revenues and expenditures,
facilities maintenance, deficit spending, unrestricted general fund balance, and reserves
in addition, he/she shall provide the supplemental information specified in 5 CCR 15451
which addresses the methodology and budget assumptions used, contingent liabilities,
use of one-time revenues for ongoing expenditures, use of ongoing revenues for one-
time expenditures, contingent revenues, contributions, long-term commitments, unfunded
liabilities, status of collective bargaining agreements, the LCAP, and LCAP expenditures.
(Education Code 33128, 33128.3, 33129, 42127.01; 5 CCR 15440-15451)
The District budget shall provide for increasing or improving services for unduplicated
students at least in proportion to the increase in funds apportioned on the basis of the
number and concentration of unduplicated students in accordance with 5 CCR 15496.
BP 3100(c)
BUDGET (cont.)
Unduplicated students are students who are eligible for free or reduced-price meals,
English learners, and/or foster youth. (Education Code 42238.07; 5 CCR 15496).
(cf. 3553 – Free and Reduced Price Meals)
(cf. 6173.1 – Education for Foster Youth)
(cf. 6174 – Education for English Learners)
The Board may establish other budget assumptions or parameters which may take into
consideration the stability of funding sources, legal requirements and constraints on the
use of funds, anticipated increases and/or decreases in the cost of services and supplies,
program requirements, and any other factors necessary to ensure that the budget is a
realistic plan for district revenues and expenditures.
(cf. 2210 – Administrative Discretion Regarding Board Policy)
(cf. 3110 – Transfer of Funds)
Fund Balance
The District shall classify fund balances in compliance with Governmental Accounting and
Financial Standards Board (GASB) Statement no. 54, as follows:
1. Nonspendable fund balance includes amounts that are not expected to be
converted to cash, such as resources that are not in spendable form (e.g.
Inventories and prepaids) or that are legally or contractually required to be
maintained intact.
2. Restricted fund balance includes amounts constrained to specific purposes by their
providers or by law.
3. Committed fund balance includes amounts constrained to specific purposes by the
Board.
4. Assigned fund balance includes amounts which are intended for a specific purpose
but do not meet the criteria to be classified as restricted or committed. The Board
delegates authority to assign funds to the assigned fund balance to the
superintendent and authorizes the assignment of such funds to be made any time
prior to the issuance of the financial statements. The Superintendent may further
delegate the authority to assign funds at his/her discretion.
5. Unassigned fund balance includes amounts that are available for any purpose.
When multiple types of funds are available for an expenditure, the District shall first utilize
funds from the restricted fund balance as appropriate, then from the committed fund
balance, then from the assigned fund balance, and lastly from the unassigned fund
balance.
BP 3100(d)
BUDGET (cont.)
The Board intends to maintain a minimum assigned and unassigned fund balance in an
amount the Board deems sufficient to maintain fiscal solvency and stability and to protect
the District against unforeseen circumstances.
If the assigned and unassigned fund balance falls below the level set by the Board due
to an emergency situation, unexpected expenditures, or revenue shortfalls, the Board
shall develop a plan to recover the fund balance which may include dedicating new
unrestricted revenues, reducing expenditures, and/or increasing revenues or pursuing
other funding sources.
Reserve Balance
The District budget shall include a minimum reserve balance for economic uncertainties
that is consistent with the percentage or amount specified in 5 CCR 15450.
In any year that the District is notified by the Superintendent of Public Instruction that the
amount of monies in the State public school system stabilization account equals or
exceeds three percent of the combined total of general fund revenues appropriated for
school districts and allocated local proceeds of taxes, the District budget shall not contain
a combined assigned or unassigned ending general fund balance that is in excess of 10
percent of these funds. (Education Code 41202, 42127.01)
Long-Term Financial Obligations
The District’s current-year budget and multi-year projections shall include adequate
provisions for addressing the District’s long-term financial obligations, including, but not
limited to, long-term obligations resulting from collective bargaining agreements,
financing of facilities projects, unfunded or future liability for retiree benefits, and accrued
workers’ compensation claims.
(cf. 4141/4241 – Collective Bargaining Agreement)
(cf. 4154/4254/4354 – Health and Welfare Benefits)
(cf. 7210 – Facilities Financing)
(cf. 9250 – Remuneration, Reimbursement and Other Benefits)
The Board shall approve a plan for meeting the District’s long term obligations to fund
non-pension, Other Postemployment Benefits (OPEBS). This plan shall include a specific
funding strategy and the method that will be used to finance the District’s annual fiscal
obligations for such benefits in a manner that continually reduces the deficit to the District
to the extent possible. The Board reserves the authority to review and amend the funding
strategy as necessary to ensure that it continues to serve the best interests of the District
and maintains flexibility to adjust for changing budgetary considerations.
BP 3100(e)
BUDGET (cont.)
When the Superintendent or designee presents a report to the Board on the estimated
accrued but unfunded cost of OPEBS, the Board shall disclose, as a separate agenda
item at the same meeting, whether or not it will reserve a sufficient amount of money in
its budget to fund the present value of the benefits of existing retirees and/or the future
cost of employees who are eligible for benefits in the current fiscal year. (Education Code
42140)
When the Superintendent or designee presents a report to the Board on the estimated
accrued but unfunded cost of workers’ compensation claims, the Board shall disclose, as
a separate agenda item at the same meeting, whether or not it will reserve in the budget
sufficient amounts to fund the present value of accrued but unfunded workers’
compensation claims or if it is otherwise decreasing the amount in its workers’
compensation reserve fund. The Board shall annually certify to the County
Superintendent the amount, if any, that it has decided to reserve in the budget for these
costs. The Board shall submit to the County Superintendent any budget revisions that
may be necessary to account for this budget reserve. (Education Code 42141)
Budget Amendments
No later than 45 days after the governor signs the annual budget act, the Superintendent
or designee shall make available for public review any revisions in budgeted revenues
and expenditures which occur as a result of the funding made available by that budget
act. (Education Code 42127)
Whenever revenues and expenditures change significantly throughout the year, the
Superintendent or designee shall recommend budget amendments to ensure accurate
projections of the District’s net ending balance. When final figures for the prior-year
budget are available, this information shall be used as soon as possible to update the
current-year budget’s beginning balance and projected revenues and expenditures.
In addition, budget amendments shall be submitted for board approval when collective
bargaining agreements are accepted, district income declines, increased revenues or
unanticipated savings are made available to the District, program proposals are
significantly different from those approved during budget adoption, interfund transfers are
needed to meet actual program expenditures, and/or other significant changes occur that
impact budget projections.
Legal Reference:
EDUCATION CODE
1240 Duties of County Superintendent of Schools
33127–33131 Standards and criteria for local budgets and expenditures
41202 Determination of minimum level of education funding
42103 Public hearing on proposed budget; requirements for content of proposed budget
42122–42129 Budget requirements
42130–42134 Financial certifications
42140–42141 Disclosure of fiscal obligations
42238–42251 Apportionments to districts, especially:
BP 3100(f)
BUDGET (cont.)
42238.01–42238.07 Local control funding formula
42602 Use of unbudgeted funds
42610 Appropriation of excess funds and limitation thereon
45253 Annual budget of personnel commission
45254 First year budget of personnel commission
52060–52077 Local Control and Accountability Plan
GOVERNMENT CODE
7900–7914 Appropriations limit
CODE OF REGULATIONS, TITLE 5
15060 Standardized account code structure
15440–15451 Criteria and Standards for school district budgets
15494–15496 Local Control Funding Formula, expenditures
Management Resources:
CALIFORNIA DEPARTMENT OF EDUCATION PUBLICATIONS
California School Accounting Manual
New Requirements for Reporting Fund Balance in Governmental Funds, January 7, 2011
FISCAL CRISIS AND MANAGEMENT ASSISTANCE TEAM PUBLICATIONS
Fiscal Oversight Guide for AB 1200, AB 2756 and Subsequent Related Legislation, September 2006
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Best Practice: Appropriate Level of Unrestricted Fund Balance in the General Fund, 2009
GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS
Statement 75, Accounting and Financial Reporting by Employers for Post-employment Benefits Other
Than Pensions, June 2015
Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, March 2009
WEBSITES
California School Boards Association: www.csba.org
Association of California School Administrators: www.acsa.org
California Department of Education, Finance and Grants: www.cde.ca.gov/fg
California Department of Finance: www.dof.ca.gov
Fiscal Crisis and Management Assistance Team: www.fcmat.org
Government Finance Officers Association: www.gfoa.org
Governmental Accounting Standards Board: www.gasb.org
School Services of California, Inc.: www.sscal.com
Chino Valley Unified School District
Policy Adopted: November 16, 1995
Revised: June 3, 1999
Revised: September 4, 2008
Revised: April 2, 2009
Revised: June 30, 2011
Revised: July 19, 2018