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HomeEducation CodeDiv. 1Pt. 11Ch. 12Art. 3§ 20006 General Fund Withdrawal Authority

§ 20006 General Fund Withdrawal Authority

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

§ 20006 General Fund Withdrawal Authority

Key Takeaways

  • •The state can borrow money from the General Fund if they haven't sold enough bonds yet.
  • •The borrowed money must be paid back with interest when the bonds are sold.
  • •The interest rate is the same as what the state earns on its investment account.

Example

Imagine the state needs $100 million to build new schools but hasn't sold all the bonds yet.

The state can borrow up to $100 million from the General Fund to start the project. Later, when they sell the bonds, they pay back the $100 million plus interest.

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

Official Source
View on CA.gov

§ 20006 General Fund Withdrawal Authority

For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account during the time the money was withdrawn from the General Fund pursuant to this section, from money received from the sale of bonds for the purpose of carrying out this chapter. (Added by Stats. 1999, Ch. 726, Sec. 1. Approved in Proposition 14 at the March 7, 2000, election.)

Last verified: January 23, 2026

Key Terms

Director of FinanceGeneral Fundunsold bondsPooled Money Investment Account

Related Statutes

  • § 19976 Bond Fund Withdrawal Authority
  • § 100440 Bond Fund Withdrawal Authority
  • § 100640 School Bond Fund Withdrawal
  • § 100840 School Bond Fund Withdrawal
  • § 101028 School Bond Fund Withdrawal

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 20006.
View Official Source