Charter Schools Bill Faces Uphill Climb

SB 846 Faces Unexpected Test in Assembly Local Government Committee



SB 846 from Senator Sam Aanestad (R-Grass Valley) is moving forward in the legislative process after passing out of the Assembly Committee on Education last week. However, the measure that easily passed out of the Senate earlier this year is facing a new and unexpected round of opposition in the Assembly. SB 846 will be heard WEDNESDAY, June 28th (TOMORROW) in the Assembly Local Government Committee, where stiff opposition is expected.

SB 846 evens the playing field between charter and public schools by allowing charter schools to access “dry period financing.”

Dry period financing allows charter schools to obtain “temporary” loans from county treasurers, just like public school districts receive. Charter schools, like public school districts and other local agencies, sometimes face cash-flow problems. They require the ability to borrow money in the short-term so that they can pay salaries and buy supplies until anticipated revenues are received.

SB 846 does not award any special privilege to charter schools in California,” said Senator Aanestad. “This measure merely equals the playing field. My bill simply allows charter schools to adopt the same kinds of policies and practices that are widely used in public schools today.”

Charter schools, unlike public schools, are not currently required to deposit revenues with the local county treasurer’s office. This means that treasurers are often reluctant to temporarily lend money to charter schools.

SB 846 does offer several safeguards to county treasurers. Charter schools would be REQUIRED to keep all funds in the custody of the county treasurer, plus meet all constitutional requirements that public schools must comply with. Then, and only then, would treasurers have the authority to temporarily transfer funds. County treasurers can also choose to reject Charter School deposits. This is a VOLUNTARY proposal.

SB 846 will assist numerous charter schools throughout the state which are currently in good fiscal and academic standing,” said Senator Aanestad.

SB 846 has the support of the California Charter Schools Association and CharterVoice. It had faced no opposition until last week, when the Assembly Local Government Committee initially refused to hear the bill unless substantial amendments were made. Committee leaders reversed course this week and agreed to hear the bill during this tomorrow’s hearing, but opposition is expected.