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Surplus Site Sale Proceeds: Request to Transfer Funds

Due to the current fiscal environment, school districts face limited funding sources for their General Fund obligations. Chapter 2, Statutes of 2009 (Assembly Bill X4 2 – Evans) added Section 17463.7 to the Education Code (EC) to permit school districts to transfer surplus site sale proceeds into their general fund account, under certain circumstances.

Prior to transferring site sale proceeds into their general fund account, school districts must submit the following documents to the Office of Public School Construction (OPSC) in order for their request to be processed:

  1. A letter to the Executive Officer of the OPSC, Lisa Silverman, requesting authorization, pursuant to EC Section 17463.7, from the State Allocation Board (SAB) to transfer site sale proceeds into the district’s general fund account for a one–time general fund purpose.
     
  2. A school board resolution stating that:
     
    1. The school district has presented a plan to the local school board detailing the source and use of the funds and explaining why the expenditure will not result in on–going fiscal obligations for the district.
    2. The school district certifies to the SAB that:
      • The District has no major deferred maintenance needs that cannot be covered by existing capital outlay resources.
      • The sale of the property does not violate the provisions of any local bond act.
      • The real property is not suitable to meet projected school construction needs for the next ten years.
    3. The property sold was purchased entirely with local funds.
    4. The proceeds of the sale will be used for a one–time general fund purpose.
    5. The school district acknowledges that it will be ineligible for the State Deferred Maintenance hardship funding for five years after the transfer of funds into its general fund.
    6. The school district acknowledges that the SAB will reduce any financial hardship funding to the district by the amount transferred into its general fund account.
    7. A copy of the original site purchase agreement that delineates the original purchase price, the number of acres on the site, and the source of funds used to purchase the site.
    8. Documentation of the number of acres being sold from the site.
       

The district's request must be presented to the SAB for approval prior to the funds being transferred by the district.

Contacts

For assistance, please contact: