Only about 30% of eligible California agencies submit full Senate Bill 90 (SB 90) claims each year, according to estimates from the California Legislative Analyst’s Office (2022). That figure reveals a deeper issue: despite its longstanding role as a financial safeguard, SB 90remains significantly underutilized. Since its passage in 1979, SB 90 has helped reimburse local governments and school districts for the cost of implementing state-imposed mandates—especially those without dedicated funding. And yet, millions of eligible dollars go unclaimed each year. Does your agency have the support and strategy to take full advantage?
The Mandate-Reimbursement Gap
Each year new regulations are passed that require local implementation—whether it’s additional training for school staff, expanded election procedures, or stricter reporting and records management. In many cases, no direct funding accompanies these requirements, forcing agencies to dip into already-stretched general funds.
That’s where SB 90 comes in. If a law imposes new duties on a local agency without a funding source and if the agency lacks fee authority, the state is obligated to reimburse the cost. These reimbursements can be substantial—and, notably, allows agencies to free up unrestricted funds.
So why do so many agencies miss out?
The reality is that SB 90 claiming is complex. It requires thorough documentation, cross-departmental coordination, precise cost tracking, and compliance with deadlines and audit protocols set by the State Controller’s Office. For agencies without a dedicated claims strategy, that process can feel overwhelming—or not worth the effort.
But for those who do it well, the impact is transformative.
From Reactive Filing to Strategic Recovery
Optimizing SB 90 requires a shift from reactive filing to proactive fiscal strategy. That starts with:
- Comprehensive mandate audits – reviewing operations across departments to identify all qualifying activities, including newer or amended mandates;
- Standardized internal workflows – implementing consistent tracking and documentation processes to withstand audits;
- Understanding indirect costs – ensuring agencies are fully accounting for administrative, timekeeping, and other non-obvious expenditures;
- Technology and training – investing in tools and cross-functional education to ensure sustainability in claiming practices.
When agencies get this right, the results are tangible. SB 90 funds relieve the local agency burden of funding those mandated activities, freeing local dollars to maintain existing services, hire new staff, and fund capital improvements—without needing to raise taxes.
Why Now Is the Time to Maximize
California’s legislative environment is only growing more complex. As of 2024, more than 60 active mandates are eligible for reimbursement under SB 90, with several more under review by the Commission on State Mandates. Meanwhile, the State Controller’s Office reports that over $105 million in SB 90 claims were processed in fiscal year 2022–23 alone (State Controller’s Office, 2023).
That figure represents both progress and potential. For every agency receiving reimbursement, many others aren’t—and may be unknowingly absorbing costs that should have been offset.
With inflation, staffing shortages, and infrastructure demands mounting, every dollar matters. And when those dollars are legally owed to your agency, not pursuing them is a decision you can’t afford.
MGT: A Strategic Partner in SB 90 Excellence
For over 20 years, MGT has helped California school districts, cities, and counties not only file SB 90 claims—but maximize them. We provide SB 90 cost-claiming services to over 105 cities and 34 counties across California. Our success is built on a track record of delivering strong, audit-ready claims and solving complex challenges on behalf of our clients.
Whether through audit defense, claim recovery under tight deadlines, or maximizing reimbursement through a comprehensive, agency-wide strategy, we continue to deliver results that protect local public funds and strengthen agency budgets.
Connect with MGT to schedule an SB 90 strategy review: https://www.mgt.us/advisory/performance/fiscal/sb-90-mandated-costs
Sources
- Legislative Analyst’s Office. (2022). The State’s Mandate Reimbursement Process. Retrieved from https://lao.ca.gov
- California State Controller’s Office. (2023). Annual Report on State-Mandated Local Cost Programs. Retrieved from https://www.sco.ca.gov/ard_mancost.html
- California State Controller’s Office. (2024). Claiming Instructions for Fiscal Year 2023–24. Retrieved from https://www.sco.ca.gov/Files-ARD-Local/la_2024_ctr90.pdf
