Cal. Code Regs. tit. 5 § 17345
In addition to normal expenditures, the county superintendent may request and the Superintendent of Public Instruction may approve a special reserve for the accumulation of funds over a period of years for the replacement of equipment and for capital outlay purposes. The request for a cumulative reserve shall be accompanied by a resolution of the county superintendent, with the approval of the county board of education, setting forth the purpose of each reserve, the amount to be accumulated each fiscal year, and the plan of expenditure. The cumulative reserve may be expended upon approval by the Superintendent of Public Instruction. The county superintendent shall, on or before July 10 of each fiscal year, report to the Superintendent of Public Instruction the expenditures made during the preceding fiscal year in compliance with the resolution and the approved budget revision. Any moneys not expended for the purposes specified in the resolution, in conformance with the plan prescribed and approved, shall be considered available for general support of the budget for the succeeding year.
Cal. Code Regs. Tit. 5, § 17345