§ 16158 District Fund Transfer Rules

• •If a whole state‑aided district is absorbed by another district, the old district must quickly give over any money set aside for projects.
• •The receiving district can use that money for any of its projects that were approved in its funding application.
• •The transfer happens right after the merger becomes effective and the funding application is approved.

District A (a small, state‑aided district) is merged into District B (a larger district that just got a state grant). After the merger, District A must send all the grant money it had earmarked for a new library to District B, and District B can spend that money on any of its approved projects, like building a new science lab.

The law says the old district must immediately transfer the earmarked funds, and the acquiring district can use them for any projects it got approval for.