§ 16202 County School Facility Allocation

This law lets a school district ask the county superintendent for money to build a school facility, and tells how the district must pay part of that money back over time.

Key Takeaways

•A district can get money for a school building only after the county superintendent says yes.
•Only up to half of the money received has to be paid back.
•Ten percent follows the normal repayment schedule; forty percent is paid back with interest over up to 20 years.
•The county board can raise the money it needs by a small tuition charge (no more than $160 per student) or a tax.

Example

A small district asks for $100,000 to build a new classroom. The county approves the request and gives the money.

The district has to pay back only part of the $100,000: 10% ($10,000) follows the normal repayment rules, and 40% ($40,000) must be paid back with interest over up to 20 years. In total, the district will never have to repay more than half of the money it got.

How to Calculate

Total repayment = 0.10 × A + 0.40 × A × (1 + r × n)

Find the amount of the grant (A).
Calculate 10% of A – this part is repaid under the regular rules.
Calculate 40% of A – this part is repaid with interest.
Multiply the 40% amount by (1 + r × n) where r is the yearly interest rate and n is the number of years the board chooses (max 20).
Add the results from Step 2 and Step 4. If the sum is more than 50% of A, only 50% of A is required.

Grant of $100,000, interest rate 3% per year, board decides to pay back over 20 years.

Result: Step 2: 0.10 × 100,000 = $10,000 Step 3: 0.40 × 100,000 = $40,000 Step 4: $40,000 × (1 + 0.03 × 20) = $40,000 × 1.60 = $64,000 Step 5: $10,000 + $64,000 = $74,000, but the law caps repayment at 50% of $100,000 = $50,000. So the district only has to repay $50,000 total (the $10,000 plus $40,000 plus enough interest to reach $50,000).

With the approval of the county superintendent of schools, a school district may make application for an allocation under this article. Facilities for which an apportionment is made under this section shall be made available for use by the county superintendent of schools until he or she ceases to conduct the classes therein or until the superintendent of schools of a county other than the county whose superintendent of schools approved the application made under this section acquires jurisdiction over the location of the facility, whichever first occurs. Not more than 50 percent of the amount of any apportionment made pursuant to this section shall be repaid. Repayments shall be made in the following manner: Ten percent of the amount of the apportionment shall be subject to repayment by the district to the extent, and in the manner prescribed in Article 1 (commencing with Section 16000) of this chapter for apportionments other than those made pursuant to Section 16039. Forty percent of the amount of the apportionment shall be repaid in full with interest by the district, in the annual amounts and over the period as the board may determine, not to exceed 20 years from the date the apportionment became final. The county board of supervisors of the county whose superintendent of schools conducts classes in the facility during any fiscal year shall at the time or times within the fiscal year as may be agreed upon between the county and the school district, but in any case not later than the end of the fiscal year, pay to the school district having the obligation to repay the apportionment made under this section for the construction of the facility, an amount equal to the amount the district is required to repay in that fiscal year with respect to the 40 percent of the amount of the apportionment described above. The county board of supervisors may raise the amount required through a general tax levy or through a tuition charge not to exceed one hundred sixty dollars ($160) a year per pupil by the county superintendent of schools to the school districts of residence of pupils attending the facility other than the district having the obligation to repay or through a combination of these. Upon application of a school district and written approval of the county superintendent of schools the board may amend any apportionment previously received by a district for exceptional children by providing that the same shall be deemed to have been made with reference to this section, in which event all the incidents of this section shall be deemed applicable thereto, except that only the unpaid balance of the apportionment at the time of the amendment of the apportionment with interest accrued to that date shall be repaid as prescribed in this section. The county superintendent of schools shall notify the county board of supervisors of his or her intention to approve a school district’s application for an allocation under this article before he approves the application. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

This law lets a school district ask the county superintendent for money to build a school facility, and tells how the district must pay part of that money back over time.

Key Takeaways

•A district can get money for a school building only after the county superintendent says yes.
•Only up to half of the money received has to be paid back.
•Ten percent follows the normal repayment schedule; forty percent is paid back with interest over up to 20 years.
•The county board can raise the money it needs by a small tuition charge (no more than $160 per student) or a tax.

Example

A small district asks for $100,000 to build a new classroom. The county approves the request and gives the money.

How to Calculate

Total repayment = 0.10 × A + 0.40 × A × (1 + r × n)

Find the amount of the grant (A).
Calculate 10% of A – this part is repaid under the regular rules.
Calculate 40% of A – this part is repaid with interest.
Multiply the 40% amount by (1 + r × n) where r is the yearly interest rate and n is the number of years the board chooses (max 20).
Add the results from Step 2 and Step 4. If the sum is more than 50% of A, only 50% of A is required.

Grant of $100,000, interest rate 3% per year, board decides to pay back over 20 years.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 16202 County School Facility Allocation

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