Cal. Code Regs. tit. 2 § 991
The budget of a fund may contain an appropriation for contingencies, limited to 10% of its non-contingency appropriations. An additional appropriation for contingencies may be included in the General Fund or in a separate Contingency Fund, limited to 10% of the following base:
Total appropriations of funds which do not include a contingency appropriation, reduced by appropriations for bonded debt service.
These amounts are appropriated through the budget process. However, to make them specific and to authorize expenditures against them, a four-fifths vote of the board is required.
Whether in a separate fund or within a fund, all contingencies appropriations are collected in a separate budget unit. The financing fund for each appropriation is designated.
Cal. Code Regs. Tit. 2, § 991