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HomeEducation CodeCh. 7Art. 6§ 16592 School District Fund Misuse

§ 16592 School District Fund Misuse

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

§ 16592 School District Fund Misuse

Key Takeaways

  • •Schools must use state money only for approved projects.
  • •If a school spends money on the wrong thing or spends too much, they have to pay it back.
  • •The state will tell the school and the county to return the money.
  • •The returned money goes back to the state for other school projects.

Example

A school gets $50,000 from the state to fix its playground. Instead, they use $20,000 of that money to buy new computers.

The state finds out and tells the school they spent the money wrong. The school has to pay back the $20,000. That money then goes back to the state to be used for another school's project.

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

Official Source
View on CA.gov

§ 16592 School District Fund Misuse

Whenever the Controller determines that any money apportioned to a school district under this chapter has been expended by the district for purposes not authorized by this chapter, or exceeds the final cost of the project which is authorized by this chapter to be paid therefrom, the Controller shall furnish written notice to the board, the governing board of the school district, the county superintendent of schools, the county auditor, and the county treasurer of the county whose county superintendent of schools has jurisdiction over the school district, directing the school district and the county treasurer to pay into the State Treasury the amount of the unauthorized expenditures, or the amount of the excess apportionment, as the case may be. Upon receipt of the notice, the governing board shall order the county treasurer to pay to the Treasurer, out of any moneys in the county treasury available to the school district for that purpose, the amount set forth in the notice. The amount shall, upon order of the Controller, be deposited in the State Treasury to the credit of the State School Construction Fund, to be reapportioned by the board. The governing body and county treasurer shall make the payments to the Treasurer as provided in this section, and the Controller shall enforce the collection on behalf of the state. (Added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Last verified: January 23, 2026

Key Terms

Controllerschool districtState TreasuryState School Construction Fundunauthorized expendituresexcess apportionment

Related Statutes

  • § 16732 Unauthorized Expenditure Recovery
  • § 15752 School District Fund Misuse
  • § 16554 School Construction Fund Disbursement
  • § 16591 State Allocation Board Expenses
  • § 16504 School Construction Fund Appropriation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 16592.
View Official Source