SB-743
Education

Education finance: Education Equalization Act: Equalization Reserve Account.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes a new state fund to reduce funding gaps between California school districts.
  • Requires automatic transfers to the fund when state education funding increases.
  • Mandates legislative allocation of funds to increase per-pupil spending in qualifying districts.
  • Takes effect only if voters approve a related constitutional amendment.

Summary

Senator Cortese's education finance proposal would establish an Equalization Reserve Account in California's General Fund to provide supplemental funding for non-basic aid school districts, which rely on state funding rather than local property tax revenues to meet their base educational needs.

The account would receive automatic transfers from the General Fund in years when the state's constitutionally-required education funding increases. The transfer amount would match funds moved to the Public School System Stabilization Account that year. Non-basic aid districts, defined as those receiving state funding apportionments in any of the previous three fiscal years, would be eligible for additional per-pupil funding from the account through legislative appropriation.

The measure's implementation depends on voter approval of a constitutional amendment that would exclude these funds from state appropriations limits and minimum education funding calculations. The amendment must also require the Legislature to allocate a percentage of the account's funds each year to increase per-pupil funding in eligible districts. Any interest earned on money in the account would be retained for the same purpose.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Education
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Education
Hearing scheduled for , 1021 O Street, Room 1100
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB743 Cortese
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Education Hearing
Senate Committee
Senate Education Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

Contacts

Profile
Al MuratsuchiD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Mia BontaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
David AlvarezD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Dawn AddisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Al MuratsuchiD
Assemblymember
Committee Member
Profile
Dave CorteseD
Senator
Bill Author
Profile
Mia BontaD
Assemblymember
Committee Member
Profile
David AlvarezD
Assemblymember
Committee Member
Profile
Dawn AddisD
Assemblymember
Committee Member
Profile
Josh HooverR
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Leticia CastilloR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member
Profile
Darshana PatelD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Dave Cortese
Dave CorteseD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Latest Voting History

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
302840PASS

Key Takeaways

  • Establishes a new state fund to reduce funding gaps between California school districts.
  • Requires automatic transfers to the fund when state education funding increases.
  • Mandates legislative allocation of funds to increase per-pupil spending in qualifying districts.
  • Takes effect only if voters approve a related constitutional amendment.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Dave Cortese
Dave CorteseD
California State Senator

Summary

Senator Cortese's education finance proposal would establish an Equalization Reserve Account in California's General Fund to provide supplemental funding for non-basic aid school districts, which rely on state funding rather than local property tax revenues to meet their base educational needs.

The account would receive automatic transfers from the General Fund in years when the state's constitutionally-required education funding increases. The transfer amount would match funds moved to the Public School System Stabilization Account that year. Non-basic aid districts, defined as those receiving state funding apportionments in any of the previous three fiscal years, would be eligible for additional per-pupil funding from the account through legislative appropriation.

The measure's implementation depends on voter approval of a constitutional amendment that would exclude these funds from state appropriations limits and minimum education funding calculations. The amendment must also require the Legislature to allocate a percentage of the account's funds each year to increase per-pupil funding in eligible districts. Any interest earned on money in the account would be retained for the same purpose.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Education
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Education
Hearing scheduled for , 1021 O Street, Room 1100
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB743 Cortese
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Education Hearing
Senate Committee
Senate Education Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

Latest Voting History

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
302840PASS

Contacts

Profile
Al MuratsuchiD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Mia BontaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
David AlvarezD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Dawn AddisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Al MuratsuchiD
Assemblymember
Committee Member
Profile
Dave CorteseD
Senator
Bill Author
Profile
Mia BontaD
Assemblymember
Committee Member
Profile
David AlvarezD
Assemblymember
Committee Member
Profile
Dawn AddisD
Assemblymember
Committee Member
Profile
Josh HooverR
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Leticia CastilloR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member
Profile
Darshana PatelD
Assemblymember
Committee Member