Dear County and District Superintendents, Chief Business Officials:

Notification of Rescinded School District Reserve Cap Requirements for the 2024–25 Fiscal Year

On March 7, 2024, the California Department of Education notified County and District Superintendents and Chief Business Officers, that the school district reserve cap would be in effect for the 2024–25 fiscal year due to the balance in the Public School System Stabilization Account (PSSSA), as of the 2023–24 Enacted Budget.

As part of the recently enacted 2024–25 Budget Act, the final budget included withdrawals from the PSSSA to fund programs in 2023–24 thereby eliminating the balance in the PSSSA. This letter serves as notification, in accordance with EC Section 42127.01(e), that the statutory limitation on school district reserves is no longer in effect for the 2024–25 budget period.

If you have any questions, please email the Fiscal Oversight and Support Office at SACSINFO@cde.ca.gov.

Sincerely,

Elizabeth Dearstyne, Director
School Fiscal Services Division

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