"There is a philosophical opposition to governance by ballot measure — where billionaires by virtue of their wealth — are exerting a disproportionate impact on determining curriculum in our schools," said Troy Flint, chief information officer for the California School Boards Assn. "We don't believe that's the best system."

He said financial literacy could have been incorporated into the existing one-semester economics requirement.

"Financial literacy instruction could be included within that larger preexisting economics course without further cluttering the class schedule for high school students — and reducing their ability to take an elective course or a course of interest to them, which this new bill will do."

The final version of the bill attempts to speak to this concern, according to a legislative analysis, by allowing students to substitute personal finance in place of the one-semester course in economics currently required.

Former L.A. schools Supt. Austin Beutner also expressed concern. "What is it that one is going to subtract to create time for financial literacy?

"It's more important for kids to build a foundation in literacy and math before they get to high school," he said. "If they have that, then there's little mystery in personal finance."

The legislation was introduced by Assemblymember Kevin McCarty, D-Sacramento. Not everyone was fully on board from the outset. McCarty introduced a similar bill last year that was amended to make financial literacy an optional component of economic classes, which could be done already. Ranzetta dropped his support of that bill — and even the watered-down version failed to pass.

The fate of the bill on this round changed with the backing of the governor and leaders of each house.

"Financial literacy is a critical tool that pays dividends for a lifetime," said Senate President Pro Tempore Mike McGuire, D-North Coast. "There's a wealth of data about the benefits of learning these valuable lessons in high school, from improving credit scores and reducing default rates to increasing the likelihood that our future generations will maintain three months of savings for emergencies and have at least one kind of retirement account."

"Ensuring our students have the skills and knowledge to thrive is paramount to California's continued success," said Assembly Speaker Robert Rivas, D-Salinas.

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