This section establishes the official name as the “Urban School Construction Aid Law of 1968.”
This chapter may be cited as the “Urban School Construction Aid Law of 1968.”
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(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law states that California wants to help urban school districts by fixing or replacing old and outdated school buildings that were built before 1943. The goal is to make sure students aren't stuck in substandard facilities.
The Legislature hereby declares that it is in the interest of the state and of the people thereof for the state to aid urban school districts of the state in reconstructing, modernizing, or replacing schoolsites and buildings for pupils of the public school system who are now housed in substandard schools constructed prior to 1943.
urban school districts reconstructing schools modernizing school buildings replacing school sites substandard schools schools built before 1943 public school system school facilities school improvement state aid for schools educational infrastructure California school modernization pupil housing old school buildings updating schools
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law section provides definitions for terms used in the chapter. It clarifies that the 'Board' refers to the State Allocation Board, the 'Director' is the Director of Education, and a 'Project' is what a school district seeks funding for. 'Apportionment' is the financial allocation given, and an 'Urban district' is a school district in a city that had a population of at least 50,000 people in 1960.
As used in this chapter:
(a)CA Education Code § 16702(a) “Board” means the State Allocation Board.
(b)CA Education Code § 16702(b) “Director” means the Director of Education.
(c)CA Education Code § 16702(c) “Project” means the purpose or purposes for which a school district has applied for an apportionment or apportionments.
(d)CA Education Code § 16702(d) “Apportionment” means an apportionment made under this chapter unless the context otherwise requires.
(e)CA Education Code § 16702(e) “Urban district” means any school district, the boundaries of which are substantially identical to or which encompass the boundaries of a city having a population in 1960 of not less than 50,000 persons.
State Allocation Board Director of Education school district funding urban district definition project purpose financial apportionment 1960 population criteria city boundaries urban school district funding application
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This section basically says that the Director of General Services is in charge of managing this specific chapter of laws. They also need to help out the board with whatever it might need.
The Director of General Services shall administer this chapter and shall provide any assistance to the board that it may require.
Director of General Services administer chapter provide assistance support board management responsibilities chapter administration board assistance authority role general services legal duties support provisions
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
The State Allocation Board is kept active to manage tasks related to this law. Although board members and legislators aren't paid for their work on this, they can get back any actual and necessary expenses they have while doing these duties, and these payments come from the Urban School Construction Aid Fund.
The State Allocation Board is continued in existence for the purposes of this chapter. The members of the board and the Members of the Legislature meeting with the board shall receive no compensation for their services under this chapter but shall be reimbursed for their actual and necessary expenses incurred in connection with the performance of their duties hereunder, to be paid out of the Urban School Construction Aid Fund.
State Allocation Board Urban School Construction Aid Fund compensation expenses reimbursement board members legislators duty performance school construction actual expenses necessary expenses fund allocation financial reimbursement education funding
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law requires that when funds are being allocated for school facilities, priority should be given to urban districts where students will benefit the most. This decision should take into account the age of current school buildings, how overcrowded they are, how densely populated the area is, and other factors to ensure funds are used where they are most needed.
The board by the adoption of rules shall give priority in allocating funds to urban districts to those districts where the children will benefit most from schoolhouse facilities. This priority shall be based upon the age of existing buildings and the acuteness of overcrowding at the school or schools where the construction or reconstruction will occur, the density of population in the attendance areas affected, or any other factors that will insure that the greatest need will be served.
urban districts fund allocation schoolhouse facilities existing buildings age overcrowding population density attendance areas construction reconstruction greatest need
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This section outlines the responsibilities of a board regarding education funds. The board can set qualifications for school districts to receive funds, as long as those qualifications don't conflict with existing rules. It also establishes the rules and procedures for managing and spending these funds and can create any related necessary policies, procedures, or forms.
In addition to any other powers and duties that are granted the board by this chapter, the board shall:
(a)CA Education Code § 16706(a) Establish any qualifications not in conflict with other provisions of this chapter that it deems will best serve the purposes of this chapter for determining the eligibility of school districts to apportionments of funds under this chapter.
(b)CA Education Code § 16706(b) Establish any procedures and policies in connection with the administration of, and the expenditure of funds made available for the purpose of, this chapter that it deems necessary.
(c)CA Education Code § 16706(c) Adopt any rules and regulations for the administration of this chapter, requiring any procedure, forms, and information, that it may deem necessary.
education funds board responsibilities school district eligibility fund apportionment procedure establishment policy creation fund expenditure administrative rules eligibility qualifications fund management
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This section states that if a school district is getting new property via funding, any old property being replaced must be sold as per the board's instructions. The money from selling the old property should be used to reduce the funding amount. The board can also ask a school district to hand over the title of the old property to the state, which will then sell it in a way to make the most money for the state. The earnings from this sale will also go towards reducing the district's funding. The school district must follow all the board's directions in this process.
The board shall prescribe instructions specifying the manner in which property, real or personal, being replaced through the apportionment, shall be disposed of, and compliance with the instructions shall be a condition upon the making of the apportionment. The net proceeds derived from the disposition shall be contributed in reduction of any apportionment. Any school district affected shall comply with instructions prescribed by the board. The board may require a district to transfer to the state, by any instruments deemed appropriate by the board, title to the replaced property, whereupon, the board shall dispose of the property in any manner it deems appropriate to insure the highest return to the state, and apply the proceeds therefrom in reduction of apportionments to the district. The district affected shall do all things deemed necessary by the board to implement the disposition.
apportionment property disposal school district funding net proceeds title transfer state board instructions replaced property highest return disposition process real or personal property school district compliance funding reduction property title state return district obligations
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law states that funds from the Urban School Construction Aid Fund are specifically for urban districts to rebuild or replace school buildings made before 1943. The money can be used for buying or leasing portable classrooms, acquiring and developing school sites, building new school facilities, renovating existing buildings, or any combination of these. If a district needs to pay for insurance during such construction projects, those costs can be covered by the fund. Additionally, if a school district leases land from the U.S. government for these purposes, it's considered as owning the land for this chapter.
Apportionments from the Urban School Construction Aid Fund created by Section 16728 shall be limited to urban districts and shall be made for the sole purpose of reconstructing or replacing existing substandard buildings constructed prior to 1943. The apportionments shall be made in the manner and subject to the conditions herein provided and in accordance with policies adopted by the board for the following purposes:
(1)CA Education Code § 16708(1) The acquisition, by purchase or lease, and the installation and equipping portable classrooms for instructional purposes.
(2)CA Education Code § 16708(2) The acquisition and development of schoolsites.
(3)CA Education Code § 16708(3) The construction and equipping of permanent school buildings and facilities.
(4)CA Education Code § 16708(4) The reconstruction, renovation, or remodeling of existing school buildings and facilities.
(5)CA Education Code § 16708(5) Any combination of the above.
As a part of these purposes, where a district is required by a contract entered into between itself and a contractor, to obtain at its own expense insurance covering risks incurred during any construction, reconstruction, or alteration for which an apportionment has been made, the cost thereof may be paid either directly, or by way of reimbursement, to the district out of the apportionment, or out of any apportionment made specifically covering the insurance, provided that in other respects the apportionments are eligible for payment under this chapter.
A leasehold or use permit interest held by a school district in land owned in fee simple by the government of the United States may, for all purposes of this chapter, be deemed a purchase of land by the district and to vest title and ownership in the district.
Urban School Construction Aid Fund urban districts substandard buildings portable classrooms schoolsites acquisition permanent school buildings school renovation construction insurance leasehold interest government land title and ownership fund apportionment school facilities development reconstruction funding pre-1943 buildings
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law says that before approving funds to replace old or inadequate school buildings, the board must first check to see if fixing them is a better or more cost-effective option.
The board shall not make any apportionment with respect to an application for replacing inadequate school facilities unless it has first investigated and made a finding that it would not be economical or good practice to rehabilitate the facilities.
school facilities apportionment inadequate facilities economical rehabilitation investigation board decision cost-effective fund approval replacement assessment
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law allows school districts to receive additional funding for building or fixing things like roads, water lines, and other utilities outside the school premises if they are necessary for the school to operate correctly. These projects are considered public works, meaning they serve the community.
In addition to the purposes for which apportionments may be made to school districts under Section 16708, apportionments may also be made to school districts for the construction, repair, attachment, or development of offsite facilities, utilities, or improvements which the board determines are necessary to the proper operation or functioning of the school facilities for which apportionments are made, all of which purposes are hereby declared to be, and are, public works.
school districts apportionments construction repair offsite facilities utilities improvements board decisions proper operation functioning of school facilities public works necessary infrastructure funding for utilities school operation support community service projects
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
When school districts in California apply for and use certain state funds for improvements, the sites and buildings they enhance are considered state property. The state has a legal claim over these properties, and this is made official through a certificate filed by the Director of General Services. If a school district wants to sell or give up a site, the director can release the state's claim, but there might be conditions. If the school district fulfills all its financial obligations to the state, any claim the state has can be cleared, and the equipment they bought becomes theirs completely.
(a)CA Education Code § 16711(a) In making applications for, and in expending apportionments of funds under this chapter, a school district acts as an agent of the state and all sites purchased and improved, all equipment purchased, and all buildings constructed, reconstructed, altered, or added to through the expenditure of funds apportioned under this chapter, are declared to be, and are, the property of the state.
(b)CA Education Code § 16711(b) The Director of General Services shall file with the county recorder of the county in which any site purchased or improved through the expenditure of funds apportioned under this chapter is located a certificate, properly acknowledged, indicating the state’s interest in real property of the district by virtue of this section, without the necessity of particularizing the real property. The recorder shall record and index the certificate in the same manner as abstracts of judgments and the certificate shall constitute constructive notice of the state’s interest in the particular real property affected. The certificate shall as to any party thereafter acquiring real property or any interest therein in the county from the school district have the same force, effect and priority as if it had been a judgment lien imposed upon real property which was not exempt from execution. That effect shall commence upon recordation and continue until the certificate is discharged or released as provided herein.
(c)CA Education Code § 16711(c) Upon request, the Director of General Services shall issue either of the following:
(1)CA Education Code § 16711(c)(1) A release of the state’s interest in any real property or a portion thereof that the district has been authorized by the board to dispose of under this chapter, provided that delivery of the release may be subject to any conditions that may be prescribed by the board to protect the state’s interest.
(2)CA Education Code § 16711(c)(2) A disclaimer of the state’s interest in any real property or a portion thereof of the district, the disposition of which the board is not required to consent to under this chapter, provided that the delivery of the disclaimer may be subject to any conditions that the board deems appropriate to protect the interests of the state, including conditions relating to the amount of consideration to be received from the disposition if the board asserts an interest in the proceeds of the disposition under other provisions of this chapter.
The release or disclaimer shall conclusively protect any third party relying upon the same and shall be acknowledged to permit recordation by the county recorder.
(d)CA Education Code § 16711(d) Upon payment by the district of all amounts required to be paid by it or on its behalf to the state under this chapter both of the following shall occur:
(1)CA Education Code § 16711(d)(1) The Director of General Services shall file with the recorder a release of any certificate. The release shall be recorded and indexed in the same index as the certificate.
(2)CA Education Code § 16711(d)(2) The title to personal property purchased by such school district with funds apportioned under this chapter shall revert thereto without further action by the state.
school district funding state property real property interest Director of General Services county recorder certificate filing property release state claim conditions for release property disposal constructive notice real property disposition payment obligations reversion of property
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law states that a school district can only use certain funds if they have followed a competitive bidding process before awarding any contracts. This means they must allow various companies to compete for the contract to ensure the best value.
A school district shall not expend money apportioned under this chapter unless the contracts under which the funds are expended have been let after competitive bids thereafter pursuant to this code.
school district funds competitive bids contract requirements fund expenditure apportionment restrictions bidding process school contracts fund allocation competitive bidding contract awards public contract guidelines school district budgeting expenditure conditions bid process compliance contractual obligations
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
If a school district in California wants funds for a construction project, it must apply through its governing board using a specific form and include cost estimates certified by an architect or structural engineer. These estimates should not surpass typical building costs for other schools in similar areas, as verified by the Director of General Services. A school district can submit or adjust its application at any time. The Director of General Services reviews applications and gives recommendations, then the board decides whether to approve them, either fully or partially. If approved, funds will be provided, potentially in installments, from the Urban School Construction Aid Fund.
Each school district which desires an apportionment shall submit through its governing board to the board an application therefor in the form and number of copies as the board shall prescribe. Each copy of the application shall be accompanied by a statement of the estimated cost of the project certified by an architect or structural engineer, and by layout plans showing the entire construction project for which the district desires an apportionment.
Estimates of costs for new construction or equipment appearing in an application shall not exceed typical current costs of comparable new construction or equipment by school districts in the same area not receiving an apportionment under this chapter, as determined by the Director of General Services, or if there has been no new construction by school districts in the area, the estimates of costs shall not exceed the reasonable current cost of similar construction or equipment in the area as determined by the Director of General Services.
A school district may at any time file an application or amend or supplement an application. Upon receipt of any application, the Director of General Services shall as promptly as possible prepare a report and recommendation with respect to the application after having received recommendations from the director in respect to any matter which is subject to the jurisdiction or approval of the director or State Department of Education. The board shall, subject to the provisions of this chapter, approve, in whole or in part, or reject each application referred to it by the Director of General Services. If the board approves of the application, either in whole or in part, it shall, by a resolution adopted by it, apportion to the district from the Urban School Construction Aid Fund the amount applied for, or a portion thereof as the board may determine appropriate. However, it may order that the apportionment or any part thereof shall be paid in progressive installments at times and under conditions as it may then prescribe.
school district funding construction project cost application process architect certified estimates Director of General Services Urban School Construction Aid Fund board approval progressive installments structural engineer certification California school construction cost estimate verification school project apportionment application amendment fund disbursement conditions area cost comparison
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law allows a board to approve and allocate funds to a school district for building projects. The board can approve part or all of a school district's funding application, and they can allocate funds in stages as districts are ready to proceed with different parts of the project. If a project's costs exceed estimates, the board can provide additional funds even if it exceeds the original application. However, simply approving an application doesn't guarantee funding; it's not a promise that money will be given.
The board may approve, in whole or in part, an application submitted by a school district under Section 19263 and in any amount, not exceeding the amount applied for, that the board may deem appropriate.
The board may, upon approval of the application, in whole or in part, and subsequently from time to time, make a conditional apportionment or conditional apportionments not exceeding in the aggregate the total amount approved in the application of the district by the board to the applicant school district from the Urban School Construction Aid Fund for any portion or portions of the project that the board determines the district is ready to proceed with. If the board has approved an application and made an apportionment as to a portion or portions of a project, the board may approve the remaining portion or portions of the project and make an additional apportionment or apportionments as it deems appropriate.
If the board determines that the actual cost is in excess of the estimated cost of the specific school plant facilities or sites for which an apportionment to a district has been made, or for which a district’s application has been approved in whole or in part pursuant to this section, the board may make an additional apportionment to the district in an amount equal to the excess even though the additional apportionment will result in the total apportionments to the district exceeding the amount of the application originally approved by the board.
Approval of an application under this section shall not be construed as creating or implying any obligation, commitment or promise on the part of the board or the state to make apportionments under this chapter.
school district funding Urban School Construction Aid Fund building projects conditional apportionment project cost estimates fund allocation excess cost funding board approval construction projects funds distribution
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law states that when a school builds new structures to replace unsafe ones, they can't allocate more space than the unsafe buildings had. Additionally, there is a specific way the board has decided to calculate the size of these buildings.
No apportionment shall be made for new construction, the area of which exceeds the area of the unsafe buildings being replaced under Section 16708. The area of school buildings shall be computed in a uniform manner as prescribed by the board.
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(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This section explains how and when a school district in California can get paid back for certain expenses. If the district spends money or starts work after a specific date and the expense is approved, they can be reimbursed. But if they spent money or started work before their application was approved, they need special permission from the board to get reimbursed.
Payment shall be made in accordance with the terms of an apportionment, either directly or by way of reimbursement, to a school district for expenditures, or commitments therefor, which have been made by the district subsequent to the effective date of this chapter for any items approved by the board in the apportionment. However, if expenditures were made for, or work was commenced with respect to, any item so approved, prior to the time the application of the district containing the item was received by the board, payment or reimbursement for the item, either with state funds or with district funds which the district is required to contribute by the apportionment, shall be made only upon authorization of the board by special resolution citing this section.
school district reimbursement approved expenditures apportionment terms board approval special resolution authorization reimbursement timing expenditure commitments state funds district funds contribution application approval process
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law outlines how the interest rate for school districts on apportioned funds is determined annually. The board, with approval, calculates the average rate of interest the state pays on specific bonds over a set period. This average is adjusted slightly to cover various costs and becomes the rate districts pay for that fiscal year.
Notwithstanding any provision to the contrary, the board, with the approval of the Director of General Services, shall, pursuant to this section, fix the rate of interest to be paid by the districts on the sums apportioned during that fiscal year. Beginning each fiscal year the board shall compute the average of the rates of interest which the state pays upon the state school reconstruction and replacement bonds, sold at the three sales of state school reconstruction and replacement bonds occurring immediately prior to that fiscal year, or, if the board so determines, at all of the sales of the bonds occurring in the two years immediately prior thereto, giving effect to the price at which the state school reconstruction and replacement bonds sold at the sales, and the premium, if any paid, thereon. If an apportionment is made prior to the sale of state school reconstruction and replacement bonds, the board shall use the computed average rate of interest which the state paid on the last sale of state school building bonds. The average rate shall be adjusted to the next highest one-tenth of 1 percent to cover the cost of sale and issuance of the bonds and costs of administration. The adjusted average rate shall be the rate paid by districts on apportionments received during that fiscal year, and shall be compounded annually through the 30th day of June of each year.
interest rate determination district funds apportionment state school reconstruction bonds rate computation fiscal year interest Director of General Services approval bond sales analysis cost of sale adjustment interest compounding school building bonds annual rate fixing
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law explains that payments for school construction projects can be promised and made even if the Urban School Construction Aid Fund doesn't have enough money at the time. However, funds that must go to the General Fund or are needed for other legal purposes can't be used for these payments.
Apportionments may be made irrespective of whether there is on deposit at the time thereof a sufficient amount in the Urban School Construction Aid Fund to permit the payment of the apportionments. Disbursements may be made under any apportionment from any funds in the Urban School Construction Aid Fund irrespective of whether there exists at the time of the disbursement a sufficient amount in the fund to permit the payment in full of all apportionments previously made. However, no disbursements shall be made from any funds in the Urban School Construction Aid Fund required by law to be transferred to the General Fund, or from any moneys therein which the Controller deems necessary to satisfy appropriations from the fund for purposes other than apportionments.
Urban School Construction Aid Fund apportionments disbursements General Fund fund transfer restrictions construction payments Controller assessment fund sufficiency school project funding educational facilities state fund management
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
If a school district in California doesn't fully comply with the state's building requirements, they won't receive any funding for constructing or updating school buildings.
No apportionment shall be made to a district for the construction, reconstruction, or alteration of, or addition to, school buildings if the requirements prescribed by this code for the construction of school buildings are not met by the plans for the entire building program of the district in connection with which the district applied for an apportionment.
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(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law section describes how certain funds given to school districts (called apportionments) need to be repaid. School districts must pay back the money in 30 equal yearly installments, which includes any interest. If a district received more than one set of funds, they add up all payments. The amount a district must repay depends partly on how much money the district's properties are worth compared to the value of properties in similar districts across the state. The Controller calculates the repayment amount each year. If the payment is too high compared to what a small tax can raise, the district can defer, or delay, paying the excess. This delay is added to the next year's payment obligation.
Each district to which an apportionment or apportionments has been made under this chapter shall repay a portion or all of the principal amount of such apportionment or apportionments and the accrued interest thereon in 30 equal annual payments, as shall be determined by the Controller pursuant to this section. If more than one apportionment is made the annual amount payable shall be the sum of the amounts which would be payable on each apportionment if computed separately.
The Controller shall determine the portion of the principal amount of the apportionment or apportionments made to each district to be repaid by the district by diminishing the principal amount by the product of the ratio which the assessed valuation of the district per unit of average daily attendance of pupils in the grades maintained by the district during the preceding fiscal year bears to the assessed valuation per unit of average daily attendance in the same type of districts in the state and one-half of the principal amount of the apportionment or apportionments, except that the amount to be repaid shall not exceed the amount of the principal apportionment or apportionments.
The Controller shall make the computation to determine the annual repayment due in the next fiscal year following the fiscal year in which the apportionment is made. In any year prior to the 1980–81 fiscal year in which the annual repayment exceeds the amount which may be raised by a three-cent ($0.03) tax rate per one hundred dollars ($100) of assessed valuation in the district, the governing board of the school district shall so certify to the Controller whereupon the Controller shall grant a deferment of the annual repayment which is in excess of the amount that would be produced by a tax rate of three cents ($0.03) per one hundred dollars ($100) of assessed valuation of the district. In any year, beginning with the 1981–82 fiscal year, in which the annual repayment exceeds the amount which may be raised by a levy of 0.0075 percent of the full value in the district, the governing board of the school district shall so certify to the Controller whereupon the Controller shall grant a deferment of the annual repayment which is in excess of the amount that would be produced by a tax of 0.0075 percent of the full value of the district. The amount deferred shall be added to the annual repayment for the next succeeding fiscal year.
repayment apportionment school district annual payments Controller assessed valuation property tax rate fiscal year deferment average daily attendance principal amount interest tax levy payment deferment funding formula
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
Each year, the State Controller will deduct a district's annual repayment amount from the district's February, March, April, and May payments from the State School Fund. This money will then be moved to the Urban School Construction Aid Fund and can only be used for transfer to the General Fund.
The Controller shall, during the next fiscal year following that in which he determines the annual repayment as herein provided, deduct the total amount of the annual repayment of each district in equal amounts from each of the February, March, April, and May installments of the apportionments made to the district from the State School Fund and, on order of the State Controller, the amount so deducted shall be transferred to the Urban School Construction Aid Fund. All money transferred to the Urban School Construction Aid Fund under this section shall be available only for transfer to the General Fund.
State Controller annual repayment district apportionments February payments March payments April payments May payments State School Fund Urban School Construction Aid Fund General Fund transfer
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law explains that the Controller is responsible for keeping track of how much money school districts owe the state when they receive state funds. The Controller calculates interest on these funds starting from when the state pays the district until July 1st of the next fiscal year. After that, the interest is added to the original amount owed and continues to grow until everything is paid off.
The Controller shall determine and maintain a record of the amount due the state in connection with each apportionment made to a district under this chapter. He or she shall compute interest, at the rate fixed by the board, on each amount disbursed by the state pursuant to the apportionment, from the date of issuance of the Controller’s warrant covering the payment to the county treasurer of the amount until the first day of July of the fiscal year next succeeding that in which the warrant was issued. Thereafter, interest shall accrue to and be compounded as a part of the principal amount due the state pursuant to the apportionment, through the 30th day of the following June of each year, until the principal and interest have been paid.
Controller's warrant record of amount due interest computation state apportionment district funding fiscal year principal amount compounded interest payment to county treasurer school district debt management
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law requires the Controller to inform the school district's governing board and relevant county officials about any money that will be deducted from the district's funding in the upcoming fiscal year.
Upon computing in any fiscal year the amount to be deducted from the apportionments to the district from the State School Fund during the succeeding fiscal year, the Controller shall notify the governing board of the district and the county auditor of the county, the county superintendent of which has jurisdiction over the district, of the amount to be deducted.
State School Fund fiscal year apportionments deduction school district funding Controller notification governing board county auditor county superintendent district jurisdiction fund deduction notice
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
In a nutshell, if a school district in a county is going to have funding withheld by the state, the county supervisors must collect a special tax from the district's property owners to make up for this lost funding. This tax is set when the county taxes are determined each year. Once collected, the money goes into the county treasury and is credited to the school district's general fund.
The board of supervisors of the county, the county superintendent of which has jurisdiction over any district which under this chapter will have moneys withheld by the Controller from the apportionments to be made to it from the State School Fund during any fiscal year, shall annually at the time the board of supervisors makes the levy of taxes for county purposes, levy a tax upon the property in the district sufficient to raise for the district the amount of money to be withheld by the Controller during the fiscal year in which the tax is levied. The tax, when collected, shall be paid into the county treasury of the county, the county superintendent of schools of which has jurisdiction over the district for which the tax was levied, to the credit of the general fund of the district.
county supervisors school district funding property tax levy State School Fund fiscal year county treasury general fund withheld funding education funding tax collection local tax district apportionments controller county superintendent property owners
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
The board decides how money given to a district for projects can be spent, and these spending rules must be followed by the district's governing board. However, the board can change these rules if it wants to for any reason.
The board shall prescribe in the detail that it deems necessary, the purposes for which moneys apportioned by it or which it requires the district to contribute toward, or in reduction of the cost of a project, may be expended, and the prescription shall be binding upon the governing board of the district, except that it may be changed or modified by the board for any cause that it sees fit.
district funding project expenditure governing board financial contribution expenditure rules modifying prescriptions project costs district projects binding prescription board discretion
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law establishes an urban school construction fund in each county for every school district. The county treasurer is responsible for depositing all designated funds received into this account for each specific school district, according to how the board allocates them.
An urban school construction fund is hereby created in the county treasury in each county for each school district in the county. The county treasurer of each county shall pay into the urban school construction fund of each school district, exactly as apportioned by the board, all moneys received by him or her under this chapter with respect to each school district.
urban school construction county treasury school district fund county treasurer fund allocation board apportionment school construction funding county-specific funds educational infrastructure fund management educational funding process
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law section states that any interest earned from funds allocated to urban school construction projects, which come from state school bonds and are held by the county treasurer, must go into a specific fund called the Urban School Construction Fund.
Interest earned on those portions of deposits in an urban school construction fund representing allocations from the proceeds of state school reconstruction and replacement bonds received by the county treasurer for the benefit of a school district under this chapter shall be paid into the Urban School Construction Fund created by Section 16728.
urban school construction interest earned state school bonds county treasurer Urban School Construction Fund fund allocations school district benefits reconstruction bonds replacement bonds deposit interest
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law sets up a special fund in the state treasury called the Urban School Construction Aid Fund. It's meant to support urban school construction projects. All money that goes into this fund can be spent year-round, without needing yearly budget approvals, as long as it follows the rules set out in this chapter.
A fund in the State Treasury is hereby created, to be known as the Urban School Construction Aid Fund. All money in the Urban School Construction Aid Fund, including any money deposited the fund from any source whatsoever is hereby continuously appropriated without regard to fiscal years for expenditure pursuant to apportionments made under the provisions of this chapter.
Urban School Construction Aid Fund state treasury school construction projects urban schools continuous appropriation fiscal years funding apportionments education funding state fund urban aid budget approvals source of funds project funding educational infrastructure
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
If a school district gets money from the urban school construction fund, they must spend it exactly how it was intended and only on the specified purpose. They also need to report back on how the money was spent to both the board and the Controller.
The governing board of each school district to which an apportionment has been made under this chapter shall expend the moneys in the urban school construction fund of the school district exactly as apportioned by the board and only for the purposes for which the moneys were apportioned to the district, and for no other purpose, and shall make the reports relating to the expenditure of the moneys that the board and the Controller shall require.
urban school construction fund school district funding money apportionment expenditure reports governing board responsibilities fund usage restrictions apportionment compliance construction fund expenditures reporting requirements Controller oversight dedicated fund use school construction funding
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
The Controller must audit the financial records of counties and school districts that get allocated money under this chapter. These audits ensure that the funds are spent correctly and as intended by the guidelines in the chapter.
It shall be the duty of the Controller to make any audit or audits of the books and records of counties and school districts receiving apportionments under this chapter, that he or she may deem necessary from time to time, for the purpose of determining that the money received by school districts as apportionments hereunder has been expended for the purposes and under the conditions authorized by this chapter.
Controller audit financial records counties school districts apportionments funds expenditure authorized purposes compliance money allocation guidelines financial oversight
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law requires that if a school district spends state money on unauthorized projects or spends more than needed for a project, the Controller will notify the district and relevant county officials to repay the extra or misused funds to the State Treasury. The money must then be used for Urban School Construction. If the district doesn't repay within a year, the State will deduct the amount from the district's future funding payments.
Whenever the Controller determines that any money apportioned to a school district has been expended by the school district for purposes not authorized by this chapter, or exceeds the final cost of the project which is authorized by this chapter to be paid therefrom, the Controller shall furnish written notice to the board, the governing board of the school district, the county superintendent of schools, the county auditor, and the county treasurer of the county whose county superintendent of schools has jurisdiction over the school district, directing the school district and the county treasurer to pay into the State Treasury the amount of the unauthorized expenditures, or the amount of the excess apportionment, as the case may be. Upon receipt of the notice, the governing board shall order the county treasurer to pay to the Treasurer, out of any moneys in the county treasury available to the school district for that purpose, the amount set forth in the notice. The amount shall, upon order of the Controller, be deposited in the State Treasury to the credit of the Urban School Construction Aid Fund, to be reapportioned by the board.
It shall be the duty of the governing body and the county treasurer to make the payments to the Treasurer as provided in this section, and it shall be the duty of the Controller to enforce the collection on behalf of the state.
If the district fails to make the payment specified within one year after written notice of the amount due, the Controller shall deduct the amount thereof with interest from date of the notice from the February payment made to the district under Section 14041 in the next succeeding fiscal year.
school district funds unauthorized expenditures state treasury repayment Urban School Construction Aid Fund Controller notice county treasurer payment enforcement excess apportionment reapportionment deduction from payments fiscal year deadline
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This section of the law explains terminology related to school districts involved in state funding and reorganizations. It defines key terms such as 'state-aided district' for those receiving state funds, 'acquiring district' for those absorbing part of another district, and 'original district' for those being combined or altered. Additionally, it specifies that any changes to district boundaries or structure officially occur on the date noted in Section 4060.
(a)CA Education Code § 16733(a) As used in this chapter:
(1)CA Education Code § 16733(a)(1) “State-aided district” means a district to which an apportionment has been made under this chapter.
(2)CA Education Code § 16733(a)(2) “Acquiring district” means a district in which all or a part of, a state-aided district or an applicant district has been included.
(3)CA Education Code § 16733(a)(3) “Original district” means a state-aided or applicant district included in whole or in part in an acquiring district.
(b)CA Education Code § 16733(b) For the purposes of this article as it applies to an original district or to an acquiring district, the effective date of any change of boundaries, annexation, formation of a new district, or other reorganization shall be the date the action became effective for the purposes of Section 4060.
state-aided district acquiring district original district district reorganization boundary change annexation district formation school district restructuring apportionment education funding
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)
This law explains what happens when one school district that receives state aid (money) is taken over by another district. When this happens, the new district takes on all responsibilities and powers related to the state-aided projects in the merged district. This includes managing any funds for construction projects and making any necessary payments back to the state. Essentially, the acquiring district steps into the shoes of the former district and takes over its roles and financial duties.
Whenever, subsequent to the date of an apportionment to a district, the state-aided district is included in whole or in part in another district, the acquiring district in which a state-aid project is located shall, on the effective date of the inclusion, succeed to and be vested with all of the duties, powers, purposes, jurisdiction, and responsibilities of the state-aided district with respect to any apportionment or apportionments for such project and the property acquired or to be acquired from funds provided thereby, and all funds in the urban school construction fund of the state-aided district shall be transferred to the urban school construction fund of the acquiring district. All amounts which would, after the effective date of the inclusion, have been otherwise paid to the state-aided district under the terms of or pursuant to the apportionment, shall be paid to the acquiring district. In addition, the acquiring district shall, on the effective date of the inclusion of the state-aided district in the acquiring district become liable for the annual repayments and other payments due the state under this chapter.
school district merger state-aided district apportionment fund transfer acquiring district urban school construction fund project responsibilities district jurisdiction annual repayments state payments included district
(Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)