§ 101139 School Bond Fund Transfers

This law says money that comes from bond premiums and interest must stay in the school fund, but it can be moved to the state’s main fund to help pay the interest on those bonds. The premium money can first be used to cover the cost of issuing the bonds before any transfer.

Key Takeaways

•Money from bond premiums and interest must stay in the school facilities fund.
•That money can be transferred to the General Fund to pay bond interest expenses.
•Premium money can first be used to cover the costs of issuing the bonds before any transfer.

Example

The state sells bonds to build a new school. It gets extra cash (premium) and earns interest on those bonds. First, it uses some of the premium money to pay the lawyers and fees for selling the bonds, then moves the rest of the money into the main state fund to help pay the interest on the bonds each year.

The extra cash and interest stay in the school fund, but the state can shift it to the general fund to cover the bond interest costs, after using premium money for the bond‑selling expenses.

All money deposited in the 2016 State School Facilities 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, except that amounts derived from premium may be reserved and used to pay the cost of the bond issuance prior to any transfer to the General Fund. (Added November 8, 2016, by initiative Proposition 51, Sec. 3.)

Key Takeaways

•Money from bond premiums and interest must stay in the school facilities fund.
•That money can be transferred to the General Fund to pay bond interest expenses.
•Premium money can first be used to cover the costs of issuing the bonds before any transfer.

Example

The extra cash and interest stay in the school fund, but the state can shift it to the general fund to cover the bond interest costs, after using premium money for the bond‑selling expenses.

Key Takeaways

Example

Key Terms

References

§ 101139 School Bond Fund Transfers

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References