Transfer Site Sale Proceeds to School District General Fund
Under certain circumstances, a school district must request authorization to transfer surplus site sale proceeds into its general fund account under this service.
About this Service
Education Code Section 17462 provides guidance for school districts to transfer surplus site sale proceeds into their general fund account. School districts that utilize the authority authorized by Education Code Section 17462 are prohibited from participating in any State Allocation Board (SAB) administered programs for five years, as outlined in Education Code Section 17462(d). 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:
- A letter to the Executive Officer of OPSC requesting authorization, pursuant to Education Code Section 17462, from the SAB to transfer site sale proceeds into the district’s general fund account for a one-time general fund purpose.
- A school board resolution stating the following:
- 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.
- 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.
- The property sold was purchased entirely with local funds.
- The proceeds of the sale will be used for a one-time general fund purpose.
- The school district acknowledges that it will be ineligible for any SAB-administered program funding for at least five years after the transfer of funds into its general fund.
- 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.
- A copy of the original site purpose agreement that delineates the original purchase price, the number of acres on the site, and the sources of funds used to purchase the site.
- Documentation of the number of acres being sole from the site.
The school districts’ request must be presented to the SAB for approval prior to the funds being transferred by the school district.
Department of General Services
Office of Public School Construction
West Sacramento, CA 95605
Phone: (916) 376-1753