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AB 2440

Arts and Music in Schools—Funding Guarantee and Accountability Act: allowable uses: pooled funding: funding certifications.

2025-2026 Regular Session Introduced by Al Muratsuchi and 1 co-sponsor

Allows LEAs to pool arts funding with staffed arts expenditures at least 80% for instruction, while tightening supplementation, reporting, and audits.

From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 17). Re-referred to Com. on APPR.
#artsandmusicinschools—fundingguaranteeandaccountabilityact #fundingcertifications #pooledfunding #allowableuses
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Bill Summary · AB 2440

Summary of AB 2440 (2025-2026) – Arts and Music in Schools Funding: Pooled Funds and Certifications

Purpose and intent

AB 2440, introduced by Assembly Member Muratsuchi, amends the Arts and Music in Schools—Funding Guarantee and Accountability Act (Proposition 28 framework) to authorize pooled funding by local educational agencies (LEAs) and to tighten funding certifications and reporting. The bill seeks to preserve a dedicated, minimum annual appropriation for arts education while adding requirements around pooling, expenditure alignment, and verification that funds supplement rather than supplant arts programming.

Key provisions and changes

  • Pooled funding authorization (Section 8820 and 8821 adjustments):

    • LEAs would be allowed to pool funds allocated under the Arts and Music in Schools program.
    • Conditions for pooling include:
    • Expenditures for each schoolsite must be in proportion to the schoolsite’s allocation.
    • Expenditures must comply with an expenditure plan adopted by the principal or program director.

  • Funding allocation framework remain intact with added flexibility:

    • The Act still provides a minimum annual funding source (1% of total state and local revenues included in the minimum funding guarantee, calculated annually by the Director of Finance).
    • Funds are allocated to LEAs and then to schoolsites using a 70/30 approach based on overall enrollment and enrollment of economically disadvantaged pupils.

  • Enhanced annual certification and accountability (Section 8820 and 8821):

    • LEAs would certify, each year, that funds are used to supplement and not supplant arts education programs and that prior-year expenditures supported supplementation.
    • Introduces a detailed calculation for “existing funds available” for arts education, comparing prior-year expenditures (with adjustments for current-year changes) against current-year arts expenditures.
    • For LEAs with enrollments of 500+ pupils, at least 80% of funds must be used to employ certificated or classified staff for arts instruction; the remainder supports training, materials, and partnerships.
    • Requires a board-approved annual report posted on district and state education websites detailing programs funded, staffing, pupils served, and sites with arts programs funded by these dollars.
    • Caps administrative expenses at 1% of funds received.

  • Expenditure reporting and pooling safeguards (Section 8820 and 8821):

    • Funds pooled must be tracked; unexpended funds may revert to the department after a three-year period and be redistributed.
    • Charter schools’ closures trigger final expenditure reporting and recovery of unexpended funds.

  • Audits and compliance:

    • Annual audits must assess whether funds were expended in accordance with certifications and requirements.

  • Work permits (non-substantive alignment):

    • The bill includes nonsubstantive changes to a separate provision governing work permits for minors (age 14–16), aligning related references.

Affected parties

  • Primary: Local educational agencies (K-12 districts, county offices of education, charter schools, and state special schools) and their schoolsites.
  • Secondary: Principals/program directors responsible for expenditure plans; district and state education departments conducting oversight, reporting, and audits.
  • Beneficiaries: Students receiving arts education in K–12 settings, including economically disadvantaged pupils.

Procedural and timeline notes

  • The bill is part of the ongoing Prop 28 framework and provides for ongoing annual appropriations and expenditures, with May Revision projections informing funding amounts.
  • It introduces a three-year spending horizon for pooled funds and annual reporting/audits to ensure compliance.
  • The bill underwent committee referrals and amendments in early 2026, with a unanimous-2/3 vote requirement noted for Prop 28-related amendments.

Overall, AB 2440 aims to increase flexibility in funding usage while strengthening accountability measures to ensure that arts and music education funding remains supplemental and well-tracked across California public schools.

Compiled from official sources — confirm details with the bill’s official record.

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