Education finance: Education Equalization Act: Equalization Reserve Account.

Senator Cortese's proposal to establish an Equalization Reserve Account within California's General Fund aims to address per-pupil funding disparities among the state's school districts. The account would receive automatic transfers from the General Fund during fiscal years when the state's required education funding increases, with the transfer amount matching contributions to the Public School System Stabilization Account.

The bill designates these funds specifically for non-basic aid school districts - those receiving state apportionments above the constitutional minimum requirement. Upon legislative appropriation, the account would distribute funding to increase per-pupil amounts in these districts according to formulas set by the Legislature. Any interest earned on the account balance would remain within the fund.

Implementation requires voter approval of a constitutional amendment with two key provisions: excluding these funds from calculations of minimum education funding obligations and state appropriations limits, and mandating that the Legislature allocate a percentage of the account annually to increase per-pupil funding in non-basic aid districts. The bill maintains existing funding levels for all districts while creating a dedicated mechanism to address spending gaps between districts.