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HomeEducation CodeCh. 6Art. 2§ 16159 District Apportionment Adjustments

§ 16159 District Apportionment Adjustments

Education Code·California
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AI SummaryVerified

§ 16159 District Apportionment Adjustments

This law tells how money that was promised to a school district moves when part of that district is taken by another district, and how the new district has to pay back the state for that money.

Key Takeaways

  • •When a piece of a school district moves to another district, the money tied to that piece moves too.
  • •The new district must start repaying the state for that money, but the repayment is capped by a simple formula.
  • •The Director can adjust the amount until the school project is finished, but any payments already made are not taken back.

Example

District A got state money to build a new school. After the money was approved, a piece of District A is moved into District B. The part that moved includes the land for the new school.

The Director looks at how much of the state money was already spent (or will be spent) on that land. That amount of money now belongs to District B, and District B must start paying the state back for it, but only up to a set maximum.

How to Calculate

Maximum liability = Highest Percentage × Balance Due on the original apportionment

  1. Figure out the highest percentage. This is either the percent of the district’s assessed value that moved, or the percent of the original money that was already spent on the property that moved—whichever is bigger.
  2. Find the balance due on the original apportionment at the time the land is transferred. This is the amount the original district still owes the state.
  3. Multiply the highest percentage (as a decimal) by the balance due. The result is the most the acquiring district has to repay.

District A still owes $1,000,000 on its original state money. The land that moves to District B represents 30% of District A’s total assessed value, and 25% of the original money has already been spent on that land. The higher of the two percentages is 30% (0.30).

Result: Maximum liability = 0.30 × $1,000,000 = $300,000. District B must repay up to $300,000 for the transferred property.

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

Official Source
View on CA.gov

§ 16159 District Apportionment Adjustments

Whenever, subsequent to the date on which a conditional apportionment made to a state-aided district becomes final, less than all of the district is included in another district, the Director of General Services shall determine what portion of the apportionment was expended or will be expended for property acquired or to be acquired by the acquiring district. Any determination made by the Director of General Services under this section may be redetermined by him or her, from time to time, until the project for which the apportionment was made has been completed, and the final cost thereof determined and the final determination has been made pursuant to the final cost. The Director of General Services shall promptly notify the Controller, the governing board of the state-aided district and of the acquiring district, the superintendent of schools, the auditor and the treasurer of the counties having jurisdiction over the districts of each determination and redetermination made by him or her under this section. No redetermination shall be retroactive nor affect the liability of any school district for any payment or annual repayment, or portion thereof, previously made by or on behalf of the district to the state under this chapter. On and after the date of the change of boundaries, the acquiring district succeeds to and is vested with all of the duties, powers, purposes, jurisdiction, and responsibilities of the state-aided district with respect to that portion of the apportionment which the Director of General Services has determined or redetermined under this section was expended, or will be expended, for property acquired or to be acquired by the acquiring district, and the unexpended part of the portion of the apportionment in the state school building fund of the state-aided district shall be transferred to the state school building fund of the acquiring district. In addition, and at the same time, the acquiring district shall become liable for the payment to the state of that portion of the annual repayment and all other payments due the state under Section 16075 and other provisions of this chapter with respect to that portion of the apportionment which the Director of General Services has determined or redetermined was expended, or will be expended for property acquired, or to be acquired by the acquiring district, or, in the event the portion of the apportionment is a lower percentage of the apportionment than the percentage that the assessed valuation in the territory of the state-aided district which was transferred to the acquiring district is of the total assessed valuation of the state-aided district immediately preceding the effective date of the transfer, the acquiring district shall become liable for the payment to the state of that portion of the annual repayment and all other repayments due the state under Section 16075 and other provisions of this chapter with respect to the apportionment which is equal to the percentage of assessed valuation in the territory transferred to the acquiring district. “Annual repayment,” as used in this section, refers to repayment computed under Sections 16070 to 16075, inclusive, and excludes amounts for which the state-aided district is liable under the provisions of Section 16039. Whenever a site for which repayments are being made under Section 16039 is transferred to an acquiring district the acquiring district shall be liable for the repayments required under Section 16039. Notwithstanding the foregoing, the liability of the acquiring district for the repayment of any portion of the apportionment made to the state-aided district shall not exceed the product of the highest percentage referred to above (whether relating to assessed valuation or to the portion of the apportionment expended in the property acquired), multiplied by the balance due on the apportionment made to the state-aided district at the time of the withdrawal on the effective date specified in Section 4064 (Sec. 1, Ch. 95, Stats. 1964, 1st Ex. Sess.) of the territory referred to. The limited liability is hereinafter referred to as “the maximum.” It is the intent of the Legislature that the maximum shall be applied by the Controller, both retroactively and prospectively, provided that as a result of the application (1) no cash refund shall be made to any district; (2) in the event any district has, in the past, paid an amount greater than the maximum, assuming this paragraph had been in effect at that time, the excess shall be credited by the Controller against any apportionment balances for which the district is or may hereafter become liable; and (3) the Controller shall make retroactively any adjustments in the amounts due from other districts by virtue of any adjustments made under (2) above. Notwithstanding the foregoing, any computations required to be made pursuant to this paragraph shall not be reflected in any changes in deductions required to be made pursuant to Section 16080 prior to January 1, 1966. If any subdivision clause, sentence, or phrase of this section is for any reason held to be unconstitutional the decision shall not affect the validity of the remaining portions of this section. The Legislature hereby declares that it would have adopted this section and each subdivision, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, clauses, sentences, or phrases be declared unconstitutional. (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

conditional apportionmentDirector of General Servicesacquiring districtstate-aided districtredeterminationannual repayment

Related Statutes

  • § 16157 District Apportionment Transfer Rules
  • § 15790 District Apportionment Adjustments
  • § 16164 District Annexation Valuation Adjustment
  • § 16165 State School Fund Repayment
  • § 15788 District Apportionment Transfer Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 16159.
View Official Source