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HomeEducation CodeCh. 6Art. 1§ 16104 School District Fund Availability

§ 16104 School District Fund Availability

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

§ 16104 School District Fund Availability

This law says a school district has to spend any money it gets from the state within 1 to 3 years, or else it has to give the leftover money back to the state.

Key Takeaways

  • •Money must be spent within 1‑3 years after the state issues the payment.
  • •If any of the money is still sitting unused after that time, the district has to return it to the state.
  • •Special resolutions can let the district keep money longer for certain items.

Example

A district receives $500,000 to build a new gym. The board decides it will spend the money over the next 2 years.

The district must use (or promise to use) the $500,000 within two years of the date the state issued the payment. If after two years $100,000 is still sitting unused, the district must send that $100,000 back to the state.

How to Calculate

Availability Period (years) = Board's chosen number of years, where 1 ≤ years ≤ 3

  1. Note the date the warrant (payment order) was issued by the Controller.
  2. The school board picks how many years to have to spend the money, but the choice must be at least 1 year and no more than 3 years.
  3. Add the chosen number of years to the warrant date to get the deadline.
  4. By that deadline, any money that has not been pledged (encumbered) must be returned to the State.

The warrant is dated January 1, 2024 and the board chooses 2 years.

Result: By Jan 1, 2026 the district must send the $100,000 that is still unused back to the State.

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

Official Source
View on CA.gov

§ 16104 School District Fund Availability

Any portion of an apportionment paid to a school district under this chapter shall be available for expenditure by its governing board for not less than one year nor more than three years, as the board shall determine, after the date on which the warrant covering that portion of the apportionment was issued by the Controller, provided that no limitation on expenditure shall be applicable with respect to any items the payment or reimbursement of which is required to be made by special resolution pursuant to Section 16057, whether the special resolution is adopted prior or subsequent to the termination of the period of availability herein specified. For the purposes of this chapter, an apportionment shall be deemed to be expended at the time and to the extent that the amount thereof on deposit in the county treasury has been encumbered by the creation of a valid obligation on the part of the school district. Upon the expiration of its period of availability, the unencumbered balance of any apportionment made under this chapter shall become due and payable to the State of California; and the governing board of the school district and the county treasurer shall pay the amount of the unencumbered balance to the Treasurer, out of the funds, and in the manner specified in Section 16100 of this code. The payment shall, on order of the Controller, be deposited in the State School Building Aid Fund in the State Treasury, to be reapportioned by the board. It shall be the duty of the governing body and county treasurer to make the payments to the Treasurer as provided in this section, and it shall be the duty of the Controller to enforce the collection on behalf of the state, provided that notwithstanding the above duties shall not be deemed to exist with respect to any amount heretofore or hereafter due the state occasioned by the termination of the period of availability of expenditure provided by this section where the period of availability of expenditure for the items representing the amount is subsequently made inapplicable by the adoption of a special resolution pursuant to Section 16057. (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

apportionmentgoverning boardControllerunencumbered balanceState School Building Aid Fundspecial resolutionSection 16057

Related Statutes

  • § 15753 School District Fund Availability
  • § 16041 Construction Apportionment Repayment Rules
  • § 16061 School Bond Election Certification
  • § 16066 School Building Fund Disbursements
  • § 16073 School Bond Repayment Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 16104.
View Official Source