§ 100950 Higher Education Bond Interest Use

This rule says that any money the state gets from interest on special education bonds must stay in a special fund, but it can be moved to the main state budget to help pay the bond interest.

Key Takeaways

•Interest earned on education bonds goes into a special fund.
•That money stays in the fund until the state decides to use it.
•It can be transferred to the main budget to help pay the bond’s interest costs.

Example

The state sells a $100 million education bond in 2004. Over the next year, the bond earns $5 million in interest.

The $5 million interest goes into the Higher Education Capital Outlay Bond Fund. Later, the state can move that $5 million into the General Fund to cover the cost of paying interest on the bond.

All money deposited in the 2004 Higher Education Capital Outlay Bond Fund that is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. (Added by Stats. 2002, Ch. 33, Sec. 31. Approved in Proposition 55 at the March 2, 2004, election.)

This rule says that any money the state gets from interest on special education bonds must stay in a special fund, but it can be moved to the main state budget to help pay the bond interest.

Key Takeaways

•Interest earned on education bonds goes into a special fund.
•That money stays in the fund until the state decides to use it.
•It can be transferred to the main budget to help pay the bond’s interest costs.

Example

The state sells a $100 million education bond in 2004. Over the next year, the bond earns $5 million in interest.

The $5 million interest goes into the Higher Education Capital Outlay Bond Fund. Later, the state can move that $5 million into the General Fund to cover the cost of paying interest on the bond.

Key Takeaways

Example

Key Terms

References

§ 100950 Higher Education Bond Interest Use

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References