(a) The standards and criteria to be adopted by the State Board of Education pursuant to Section 33127 shall include, but not be limited to, comparisons and reviews, including appropriate methods of projection, of all of the following:
(1) Average daily attendance.
(2) Revenues and expenditures.
(3) Reserves and fund balance.
(4) Multiyear commitments, including cost-of-living adjustments.
(b) In addition to the requirements of subdivision (a), the standards and criteria to be adopted by the State Board of Education pursuant to Section 33127 shall include, but not be limited to, all of the following:
(1) Clear definitions and guidelines for positive, qualified, and negative interim financial certifications pursuant to Sections 42130 and 42131.
(2) District financial health indicators to provide a comprehensive review and assessment of the financial condition of districts and to help identify districts that are developing financial problems before the problems become severe. The indicators shall take into account issues including, but not limited to, all of the following:
(A) Increasing or decreasing balances available for general purposes and general purpose reserve size relative to the standard for the district.
(B) Long-term commitments for rates of increase in significant cost centers that are more or less than current revenue growth rate projections, including the projected cost change of the workforce taking into account the progression of newer hires and existing staff through the salary schedule and likely turnover, and all compensation for the superintendent of the school district and executive positions reporting directly to the superintendent of the school district.
(C) Use of one-time revenues for ongoing costs.
(D) Use of ongoing revenues for one-time costs.
(E) Appropriate recognition and amortization of future commitments including any district-created benefit program.
(F) Facilities maintenance funding adequate to preserve functionality of facilities for their normal life.
(Amended by stats. 2004, Ch. 52, Sec. 2)