§ 16102 School District Apportionment Adjustment

If a school district gets money based on a student count that later turns out to be too high, the district must pay back the extra amount in equal yearly payments over 20 years, with interest at the same rate as the original money.

Key Takeaways

•The board can confirm the money even if enrollment was over‑estimated.
•The district must pay back the part that was based on the over‑estimate.
•Repayment is done in equal yearly payments for up to 20 years, with the same interest rate as the original funding.
•If later the district’s actual enrollment matches the original projection, the board can cancel the remaining payments on the excess amount.

Example

A district applied for $200,000 assuming 5,000 students, but later it only has 4,000 students.

The board still gives the $200,000, but the $40,000 that was based on the extra 1,000 students must be paid back in equal yearly installments for the next 20 years, plus interest at the same rate as the rest of the funding.

How to Calculate

Annual installment = (Excess amount to repay) ÷ 20 (plus interest at the rate fixed for the rest of the apportionment)

Find the excess amount – the part of the funding that was based on the higher projected enrollment.
Divide that excess amount by 20 to get the base yearly payment.
Add interest to each yearly payment using the same interest rate that applies to the rest of the funding.

District must repay $40,000 because enrollment was 1,000 students lower than projected.

Result: Base yearly payment = $40,000 ÷ 20 = $2,000. Each year the district pays $2,000 plus 5% interest on the remaining balance.

If the board, between April 5, 1963, and July 1, 1963, approves an application for an apportionment and makes a conditional apportionment to the district making the application and if after the approval it is determined that the projected enrollment of the district is less than that upon which the district’s application was based, any apportionment made by the board under the application is hereby ratified and confirmed and payments shall be made to the district pursuant to the apportionment. The board shall as a condition to any apportionment made under the application require the district to repay in full that portion of the apportionment which it determines to be attributable to the excess projected enrollment upon which the application was based and the district shall be empowered and obligated to comply with the requirement if it accepts the portion of the apportionment. The repayment shall be in equal annual installments made within 20 years from the date the district receives the apportionment. The repayment shall be in addition to any other repayment required by this chapter. The rate of interest shall be the same rate as that fixed for the remainder of the apportionment. If at any time the board determines that the amount of actual enrollment of the district attains the amount of the projected enrollment upon which the district’s application, referred to above, was based, the board may, if it determines that the inclusion of the excess projected enrollment in the application occurred inadvertently, provide that the district shall not be required to pay any further installments for full repayment of that portion of the apportionment attributable to the excess projected enrollment and the unpaid balance of the portion and interest thereon shall thereafter be repaid under the same terms and in the same manner as the balance of the apportionment made under the application. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Key Takeaways

•The board can confirm the money even if enrollment was over‑estimated.
•The district must pay back the part that was based on the over‑estimate.
•Repayment is done in equal yearly payments for up to 20 years, with the same interest rate as the original funding.
•If later the district’s actual enrollment matches the original projection, the board can cancel the remaining payments on the excess amount.

Example

A district applied for $200,000 assuming 5,000 students, but later it only has 4,000 students.

How to Calculate

Annual installment = (Excess amount to repay) ÷ 20 (plus interest at the rate fixed for the rest of the apportionment)

Find the excess amount – the part of the funding that was based on the higher projected enrollment.
Divide that excess amount by 20 to get the base yearly payment.
Add interest to each yearly payment using the same interest rate that applies to the rest of the funding.

District must repay $40,000 because enrollment was 1,000 students lower than projected.

Result: Base yearly payment = $40,000 ÷ 20 = $2,000. Each year the district pays $2,000 plus 5% interest on the remaining balance.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 16102 School District Apportionment Adjustment

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