§ 81349 Lease Payments As Debt

• •If a school district leases a building, half of the future rent payments are treated like a loan they still owe.
• •This rule applies to leases made under this law.
• •It helps figure out how much money the district still has to pay, like a debt.

A school district rents a building for 10 years and has 5 years left on the lease.

Half of the rent they would pay for those 5 years is counted as money they still owe, just like a loan.