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HomeEducation CodeCh. 4Art. 2§ 15789 District Fund Transfer Rules

§ 15789 District Fund Transfer Rules

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 15789 District Fund Transfer Rules

When a whole state‑aided school district is merged into another district that gets state money, the old district must instantly give any earmarked funds to the new district, and the new district can spend that money only on the projects it asked for.

Key Takeaways

  • •Earmarked money must be transferred right away once the merger is approved.
  • •The acquiring district can only use the transferred money for projects it applied for and got approved.
  • •This rule applies only when the entire state‑aided district is included in the acquisition.

Example

A small rural school district that receives state aid merges into a larger neighboring district. The small district had $50,000 set aside for a new library.

After the merger is approved, the small district must hand over the $50,000 to the larger district, which can then use that money for the library project it applied for.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 15789 District Fund Transfer Rules

Whenever one or more state-aided districts are included in whole in an acquiring district, and the acquiring district applies for and receives an apportionment, then after the effective date of the inclusion and upon the approval of the application of the acquiring district, the governing board of each component state-aided district shall immediately transfer to the acquiring district all moneys of the component district which are required to be, or have been, earmarked for a project or projects of the district. The acquiring district, upon the transfer to it of the funds, may expend the funds for any projects of the acquiring district as to which its application was approved. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Last verified: January 10, 2026

Key Terms

state-aided districtsacquiring districtearmarkedprojects

Related Statutes

  • § 16158 District Fund Transfer Rules
  • § 15780 School District Boundary Changes
  • § 15785 District Annexation Bond Apportionment
  • § 15788 District Apportionment Transfer Rules
  • § 15790 District Apportionment Adjustments

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 15789.
View Official Source