Scheduled for its first hearing on March 20 in the Assembly Transportation Committee, the measure allows local governments to submit their annual expenditure reports for streets and roads within seven months of the end of their fiscal year.
Cities will save time and cut costs under AB 636 through the improvement of the quality of final data submitted to the Controller. Under existing law local agencies are required to submit street and road expenditure reports to the Controller within 90 days of the close of the agency’s fiscal year.
Most agencies operate on the fiscal year that runs July 1 – June 30 and the Controller requires that this information is submitted by October. Most audits can take up to six months to complete, which means that local agencies on this schedule may not have complete data by October. The issue is more complicated for local agencies that operate on the federal fiscal year calendar (Jan. 1 – Dec. 31) often do not have correct data in October. This results in local agencies submitting potentially incomplete information in October which can cause confusion to the public and additional work for local agency staff. AB 636 aligns the reporting deadlines to fit each city’s needs by giving all cities seven months to submit their reports after the end of their fiscal year.
AB 636 builds upon the successful approach taken by AB 341 (Achadjian, 2015), which received bipartisan support.
The League encourages all cities support this simple time and cost saving fix to reporting timelines. To find a copy of the bill language, the League’s support letter and a sample support letter go to www.cacities.org/billsearch
and plug in AB 636 into the search function.