AB 1438 (2025) — School finance: administrative employee-to-teacher ratio: Paradise Unified School District.

AMENDED IN ASSEMBLY MARCH 28, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

ASSEMBLY BILLNo. 1438

CHAPTER 193

Statutes of 2025

[ Approved by Governor October 1, 2025. Filed with Secretary of State October 1, 2025. ]

URGENCY STATUTE

Introduced by Assembly Member Gallagher

February 21, 2025

An act to amend Section 41404.5 of the Education Code, relating to education finance, and declaring the urgency thereof, to take effect immediately.

Vote: 2/3 Appropriation: no Fiscal committee: yes Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law sets forth the maximum ratios of administrative employees to each 100 teachers in the various types of school districts. Existing law requires the Superintendent of Public Instruction to determine, for each current fiscal year, for each school district in the state, the total number of administrative employees and the total number of teachers, except as provided, the total maximum number of administrative employees that should be employed by the school district based upon the application of the appropriate ratio prescribed by law, and the number of administrative employees in excess of the number allowable without penalty, as provided. Existing law requires the Superintendent to determine a reduction in state support resulting from excess administrative employees, as specified, and requires the school district’s 2nd principal apportionment for the current fiscal year to be reduced by that amount. Existing law exempts the Paradise Unified School District from that reduction in state support for the 2021–22 fiscal year to the 2023–24 fiscal year, inclusive.

This bill would further exempt the Paradise Unified School District from that reduction in state support for the 2024–25 fiscal year to the 2026–27 fiscal year, inclusive. The bill would require the Paradise Unified School District to, by September 1, 2026, submit a report related to the administrative employee-to-teacher ratio to the Superintendent, the Department of Finance, and the appropriate budget and policy committees of both houses of the Legislature, as specified. By imposing additional reporting requirements on the Paradise Unified School District, the bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Paradise Unified School District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

This bill would declare that it is to take effect immediately as an urgency statute.

The people of the State of California do enact as follows:

SECTION 1.

Section 41404.5 of the Education Code is amended to read:

41404.5.

(a) A school district with an average daily attendance of more than 400,000 as of the 2016–17 second principal apportionment shall be exempt from any reduction in state support pursuant to Section 41404 for the 2019–20 fiscal year to the 2021–22 fiscal year, inclusive. A school district subject to this exemption shall submit the following to the Superintendent, the Department of Finance, and the budget committees of both houses of the Legislature:

(1) By September 1, 2019, a report containing the administrator-to-teacher ratio calculated pursuant to this article for the 2011–12 fiscal year to the 2019–20 fiscal year, inclusive, a description of the reasons for not meeting the ratio requirement for each fiscal year in which the ratio was not met, including the estimated impact on pupils, and a plan setting out goals for meeting the ratio by the 2023–24 fiscal year.

(2) By each September 1 from 2020 to 2022, inclusive, a report detailing the administrator-to-teacher ratio calculated pursuant to this article for the prior fiscal year and the progress towards meeting the goals set out in the report provided pursuant to subdivision (a).

(b) The Los Angeles Unified School District shall submit the following to the Superintendent, the Department of Finance, and the budget committees of both houses of the Legislature:

(1) By September 1, 2023, a report containing the ratio of administrative employees to teachers calculated pursuant to this article for the 2011–12 fiscal year to the 2022–23 fiscal year, inclusive, a description of the reasons for not meeting the ratio requirement for each fiscal year in which the ratio was not met, including the estimated impact on pupils and the number of teachers and administrators above the required ratio, and a plan setting out goals for meeting the ratio by the 2025–26 fiscal year.

(2) By each September 1 from 2024 to 2025, inclusive, a report detailing the ratio of administrative employees to teachers calculated pursuant to this article, including the number of teachers and administrators above the required ratio, for the prior fiscal year and the progress towards meeting the goals set out in the report provided pursuant to paragraph (1).

(c) (1) The Paradise Unified School District shall be exempt from any reduction in state support pursuant to Section 41404 for the 2021–22 fiscal year to the 2023–24 fiscal year, inclusive.

(2) (A) The Paradise Unified School District shall be exempt from any reduction in state support pursuant to Section 41404 for the 2024–25 fiscal year to the 2026–27 fiscal year, inclusive. The Paradise Unified School District shall, by September 1, 2026, submit to the Superintendent, the Department of Finance, and the appropriate budget and policy committees of both houses of the Legislature, a report containing all of the following:

(i) The administrator-to-teacher ratio calculated pursuant to this article for the 2024–25 fiscal year to the 2026–27 fiscal year, inclusive, including the number of teachers and administrators above the required ratio for the prior fiscal year.

(ii) A description of the reasons for not meeting the ratio requirement for each fiscal year in which the ratio was not met, including the estimated impact on pupils.

(iii) A plan setting out goals for meeting the ratio by the 2026–27 fiscal year.

(iv) The progress towards meeting the ratio by the 2026–27 fiscal year.

(B) The report required pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances concerning the recovery of the City of Paradise from the devastating Camp Fire and its impact on the Paradise Unified School District.

SEC. 3.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 4.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to continue addressing the unique circumstances concerning the recovery of the City of Paradise from the devastating Camp Fire and its impact on the Paradise Unified School District, it is necessary for this act to take effect immediately.