§ 16077 Multipurpose Room Apportionment Repayment

This law says that when a school district gets money for a project that includes a multipurpose room, the board must say exactly how much of that money is for the room, and the district has to pay back that part later, with interest, and the state will keep taking payments each year for up to 10 years or until it’s paid, and any leftover after 40 years is erased.

Key Takeaways

•The board must state the exact amount of money that is for the multipurpose room.
•The district must repay that amount (plus interest) later.
•State deductions continue each year until the amount is paid or 10 years pass, and any leftover after 40 years is erased.

Example

A district receives $500,000 for a new school building, and $120,000 of that is for a multipurpose room.

The board must write down that $120,000 is for the room. The district then has to repay that $120,000 principal (plus interest) over the next years. The state will deduct a payment each fiscal year until the $120,000 is paid off or 10 years have passed. If after 40 years any of that $120,000 is still unpaid, the state cancels the remaining balance.

How to Calculate

Repayment period = the earlier of (a) the number of years needed to repay the principal amount, or (b) 10 years. After 40 years from the start of the fiscal year following the final apportionment, any unpaid principal is cancelled.

Find the principal amount that was set aside for the multipurpose room (the "room portion").
Decide how much will be paid each fiscal year (often an equal yearly amount).
Keep making the yearly payment until the whole room portion is paid off or 10 years have passed, whichever happens first.
Count 40 years from the first day of July of the fiscal year after the apportionment became final. If any of the room portion is still unpaid, that remaining amount is cancelled.
Apply interest to the total apportionment as required by Section 16083.

The district’s room portion is $120,000 and they choose to pay it back in equal yearly amounts over 10 years.

Result: The district pays $12,000 each fiscal year for 10 years. After the 10th payment the whole $120,000 is repaid, so no balance remains to be cancelled after 40 years.

If an apportionment is made for a project which includes a multipurpose room the board shall determine and specify the portion of the apportionment that is allocated to the cost of the multipurpose room. If a district receives an apportionment a portion of which is for a multipurpose room it shall repay the principal amount of such portion of the apportionment as an additional payment as provided by this section. Interest on the total apportionment shall be paid as provided in Section 16083. The repayment is in addition to the repayments required on the total of all apportionments to the district, which shall be repaid as otherwise provided in this chapter. Notwithstanding the provisions of Sections 16083 and 16087 for cancellation of the principal amount of apportionments the Controller shall continue to make the deduction provided by Section 16080 during each fiscal year thereafter until the principal amount of the portion of the apportionment that was allocated to the cost of the multipurpose room and was made and disbursed to the district has been withheld, or for an additional period of 10 years, whichever first occurs. At the expiration of 40 years from the first day of July of the fiscal year next succeeding the fiscal year in which the apportionment became final, the unpaid balance of the principal amount of the portion of the apportionment shall be canceled on the books of the State Controller and the provisions of Section 16083 shall thereupon become applicable thereto and the board shall execute a conveyance to the district as provided in Section 16087. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Key Takeaways

•The board must state the exact amount of money that is for the multipurpose room.
•The district must repay that amount (plus interest) later.
•State deductions continue each year until the amount is paid or 10 years pass, and any leftover after 40 years is erased.

Example

A district receives $500,000 for a new school building, and $120,000 of that is for a multipurpose room.

How to Calculate

Find the principal amount that was set aside for the multipurpose room (the "room portion").
Decide how much will be paid each fiscal year (often an equal yearly amount).
Keep making the yearly payment until the whole room portion is paid off or 10 years have passed, whichever happens first.
Count 40 years from the first day of July of the fiscal year after the apportionment became final. If any of the room portion is still unpaid, that remaining amount is cancelled.
Apply interest to the total apportionment as required by Section 16083.

The district’s room portion is $120,000 and they choose to pay it back in equal yearly amounts over 10 years.

Result: The district pays $12,000 each fiscal year for 10 years. After the 10th payment the whole $120,000 is repaid, so no balance remains to be cancelled after 40 years.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 16077 Multipurpose Room Apportionment Repayment

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References