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SB 743 would create an equalization reserve to reduce funding disparities between basic‑aid and non‑basic‑aid districts

5419022 · July 16, 2025
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Summary

SB 743 would create an Equalization Reserve Account that invests surplus funds and uses returns to provide additional funding to districts that receive less per pupil than basic‑aid (high property tax) districts.

Sen. Dave Cortese presented SB 743, a bill to establish an Equalization Reserve Account designed to invest and distribute funds to districts that remain underfunded relative to basic‑aid districts. Cortese framed the bill as a long‑term effort to reduce funding inequities that persist after the Local Control Funding Formula and Prop 98.

Witnesses supporting the bill included Lisa Andrew (Silicon Valley Education Foundation CEO) and Chris Norwood (Santa Clara…

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