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Surplus Site Sale Proceeds (on or after January 1, 2016)

Education Code Section (EC) 17463 provides guidance for school district to transfer surplus site sale proceeds into their general fund account, under certain circumstances. School districts that utilize the authority authorized by EC Section 17463 are prohibited from participating in any State Allocation Board administered programs for ten years, as outlined in EC Section 17463(c). 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 OPSC, Lisa Silverman, requesting authorization, pursuant to EC Section 17463, 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 any SAB-administered program funding for ten years after the transfer of funds into its general fund.
    6. The school district acknowledges that the SAB will reduce any state funding received by the district by the amount of any remaining funds derived from the sale of the surplus property and any unencumbered interest earned on those funds.
    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.

 

Surplus Site Sale Proceeds (prior to January 1, 2016)

From July 29, 2009 through December 31, 2015, due to the fiscal environment at this time, school districts faced limited funding sources for their General Fund obligations. Chapter 2, Statutes of 2009 (Assembly Bill X4 2- Evans) added Section 17463.7 to the EC to permit school districts to transfer surplus site sale proceeds to their general fund account, under certain circumstances. EC 17463.7 allowed the transfer without the program participation prohibitions outlined in EC 17463(c). This statute sunset on January 1, 2016.

Prior to transferring site sale proceeds into their general fund account, school districts had to 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 have been presented to the SAB for approval prior to the funds being transferred by the district.

Contacts

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