School accountability: Office of the Education Inspector General: school financial and performance audits: charter school authorization, oversight, operations, and contracting: data systems.

Assembly Members Muratsuchi and Garcia have introduced comprehensive legislation to strengthen fiscal oversight and accountability across California's educational system through expanded audit requirements, a new Inspector General's office, and enhanced charter school monitoring.

The bill establishes the Office of the Education Inspector General to conduct audits and investigations of educational programs statewide. Appointed by the Governor with Senate confirmation, the Inspector General will oversee programs operated by the Department of Education, school districts, county offices, charter schools, and educational joint powers authorities to detect and prevent fraud while recommending policies to address systemic issues.

Beginning in 2026, the legislation implements standardized audit procedures requiring charter schools to report financial data using the same forms as school districts, phased in over three years based on enrollment size. Charter school auditors must complete 24 hours of continuing education biennially in governmental accounting and compliance. The bill authorizes chartering authorities to charge oversight fees up to 3% of charter school revenue by 2029, with additional fees permitted for schools using rent-free facilities.

The measure restricts nonclassroom-based charter school growth by preventing districts with fewer than 10,000 students from authorizing new schools if doing so would exceed 100% of district average daily attendance. It creates the Charter Authorizing Support Team program to develop uniform authorization practices and oversight tools, particularly supporting smaller authorizing districts.

By 2030, the Department of Education must analyze potential integration of the state's longitudinal student data system with attendance tracking to enable monitoring by unique pupil identifier. The legislation also prohibits charter schools from allocating discretionary funds to parents for educational enrichment activities not provided by credentialed staff.

The bill includes provisions for state reimbursement of mandated local costs as determined by the Commission on State Mandates.