§ 102581 Local Government District Loans

Public Utilities Code·California

AI SummaryVerified

This law lets a city or county give a loan to a school district before the district gets any tax money, and counts that loan as a normal use of the city or county’s funds.

Key Takeaways

•A city or county can loan money to a school district before the district receives tax revenue.
•The loan can be used for setting up the district and running it day‑to‑day.
•That loan counts as a proper, normal expense for the city or county.

Example

A brand‑new school district is being set up and hasn’t collected any tax revenue yet. The nearby city gives the district $20,000 to pay for hiring teachers and buying supplies.

Because the law says a city can lend money to the district before it gets tax money, the city’s loan is allowed and is treated just like any other city spending.

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

Official Source

View on CA.gov

§ 102581 Local Government District Loans

At any time prior to the first receipt by the district of revenues from taxation or other sources, any city or county may lend any available money to the district for the purposes of organization and operation. Such expenditures shall constitute a proper expenditure of city and county funds. (Added by Stats. 1971, Ch. 1374.)

Last verified: January 11, 2026

Key Terms

revenues from taxation or other sources organization and operation proper expenditure of city and county funds

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 102581.

§ 102581 Local Government District Loans

Public Utilities Code·California

AI SummaryVerified

§ 102581 Local Government District Loans

This law lets a city or county give a loan to a school district before the district gets any tax money, and counts that loan as a normal use of the city or county’s funds.

Key Takeaways

•A city or county can loan money to a school district before the district receives tax revenue.
•The loan can be used for setting up the district and running it day‑to‑day.
•That loan counts as a proper, normal expense for the city or county.

Example

A brand‑new school district is being set up and hasn’t collected any tax revenue yet. The nearby city gives the district $20,000 to pay for hiring teachers and buying supplies.

Because the law says a city can lend money to the district before it gets tax money, the city’s loan is allowed and is treated just like any other city spending.

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

Official Source

View on CA.gov

§ 102581 Local Government District Loans

Last verified: January 11, 2026

Key Terms

revenues from taxation or other sources organization and operation proper expenditure of city and county funds

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 102581.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References