SB 1262: Education finance: community colleges: general fund balance.

This bill would prohibit California community college districts from holding an annual unrestricted general fund balance exceeding 50% of their unrestricted general fund expenditures, unless they meet specified conditions. Community college districts would not be allowed to transfer unrestricted general funds to other funds if the receiving fund has a balance of 33% or more of the district's expenditures for the fiscal year. If a district violates these prohibitions, it would be required to distribute the excess funds to nonsupervisory and nonmanagement employees. The bill would consider the costs imposed on local agencies and school districts, and reimbursement would be made if the costs are deemed mandated by the state.