§ 16101 School District Excess Repayment

This law says that if a school district gets more building space than it should, it has to pay back the extra amount (plus interest) over up to 20 years.

Key Takeaways

•If a school gets more building space than allowed, it must pay back the extra cost.
•The repayment is spread out over up to 20 years with interest at the same rate as the original funding.
•The district can choose to pay the whole remaining balance early, but must include interest up to that date.

Example

A school district was given 10,000 square feet of new classroom space, but the rules say it should only get 8,000 square feet.

Because the district got 2,000 square feet too many, it must pay back the cost of that extra space, plus interest, in equal yearly payments for up to 20 years.

How to Calculate

Excess Amount = Amount Received – Amount Entitled Total Owed = Excess Amount + (Excess Amount × Interest Rate × Years) Annual Installment = Total Owed ÷ 20

Find how much construction area the district actually got.
Find how much area the district was allowed to get (from Section 16044).
Subtract the allowed amount from the amount received to get the excess.
Multiply the excess by the interest rate that was set for the original apportionment, then multiply by the number of years the district will be paying (up to 20).
Add that interest to the excess amount to get the total owed.
Divide the total owed by 20 to get the equal yearly payment.

District got $500,000 worth of construction, but was only entitled to $400,000.

Result: Excess = $100,000 Interest = $100,000 × 0.05 × 20 = $100,000 Total Owed = $100,000 + $100,000 = $200,000 Annual Installment = $200,000 ÷ 20 = $10,000 per year

Notwithstanding any provision of law to the contrary, if an apportionment is or has been made at any time after October 1, 1953, to meet a construction low bid and if the State Allocation Board after approving the apportionment revises the apportionment, and the apportionment finally approved reveals that an applicant school district receives excess construction area to what they are entitled to pursuant to Section 16044, and if a judgment for the collection of the excess apportionment has not been rendered by a court prior to September 11, 1957, the excess apportionment shall be computed by the Controller and shall be repaid pursuant to this section. The district shall repay the amount of excess apportionment, and the interest thereon, in equal annual installments within 20 years from the date it receives the excess apportionment. The rate of interest shall be the same rate as that fixed for the approved apportionment. The district may at any time before the end of the 20-year period for repayment elect to repay, and repay, the balance of the excess apportionment then unpaid, plus interest computed to the date of repayment of such balance. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

This law says that if a school district gets more building space than it should, it has to pay back the extra amount (plus interest) over up to 20 years.

Key Takeaways

•If a school gets more building space than allowed, it must pay back the extra cost.
•The repayment is spread out over up to 20 years with interest at the same rate as the original funding.
•The district can choose to pay the whole remaining balance early, but must include interest up to that date.

Example

A school district was given 10,000 square feet of new classroom space, but the rules say it should only get 8,000 square feet.

Because the district got 2,000 square feet too many, it must pay back the cost of that extra space, plus interest, in equal yearly payments for up to 20 years.

How to Calculate

Excess Amount = Amount Received – Amount Entitled Total Owed = Excess Amount + (Excess Amount × Interest Rate × Years) Annual Installment = Total Owed ÷ 20

Find how much construction area the district actually got.
Find how much area the district was allowed to get (from Section 16044).
Subtract the allowed amount from the amount received to get the excess.
Multiply the excess by the interest rate that was set for the original apportionment, then multiply by the number of years the district will be paying (up to 20).
Add that interest to the excess amount to get the total owed.
Divide the total owed by 20 to get the equal yearly payment.

District got $500,000 worth of construction, but was only entitled to $400,000.

Result: Excess = $100,000 Interest = $100,000 × 0.05 × 20 = $100,000 Total Owed = $100,000 + $100,000 = $200,000 Annual Installment = $200,000 ÷ 20 = $10,000 per year

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 16101 School District Excess 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