§ 101429 School Bond Fund Transfers

This law says money that comes from selling school bonds – the extra fees (premium) and the interest earned – must stay in a special school fund, and can be moved to the state’s main fund to help pay the bond interest, but the extra fees can first be used to cover the cost of issuing the bonds.

Key Takeaways

•Money from bond interest stays in the school fund and can be transferred to the General Fund to pay bond interest.
•Premium (extra fee) money can first be used to pay the costs of issuing the bonds before any transfer.
•All of this money must remain reserved in the school fund until it is used for those purposes.

Example

The state sells bonds to build a new school and gets $10 million plus $1 million in interest and $0.5 million in premium. The $1 million interest stays in the school fund and can be transferred to the General Fund to pay the bond’s interest. The $0.5 million premium is first used to pay lawyers and other costs of issuing the bonds before any of it can be moved to the General Fund.

The law makes sure the interest money is kept safe in the school fund until it’s needed for bond interest, and lets the premium money cover the bond‑issuance costs first, then any leftover can go to the General Fund.

All moneys deposited in the 2024 State School Facilities Fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of the bond issuance before any transfer to the General Fund. (Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)

Key Takeaways

•Money from bond interest stays in the school fund and can be transferred to the General Fund to pay bond interest.
•Premium (extra fee) money can first be used to pay the costs of issuing the bonds before any transfer.
•All of this money must remain reserved in the school fund until it is used for those purposes.

Key Takeaways

Example

Key Terms

References

§ 101429 School Bond Fund Transfers

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References