AB 51: Education finance: emergency apportionments: zero-percent interest rate.

Existing law authorizes the governing board of a school district that determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations to request an emergency apportionment through the Superintendent of Public Instruction, subject to specified requirements. Existing law authorizes emergency apportionments to be provided through an interim loan from the General Fund and lease financing made available by the California Infrastructure and Economic Development Bank, which is authorized to issue bonds for purposes of the emergency apportionments and related costs, or as an alternative to lease financing, as an emergency apportionment from the General Fund. Existing law prescribes the financing conditions on emergency apportionments, including the calculation of the interest rate. Existing law also includes specific requirements, including the calculation of the interest rate, for outstanding emergency apportionments made to Inglewood Unified School District and Oakland Unified School District.

This bill would require, commencing January 1, 2026, the interest rate to be 0% for an interim loan from the General Fund and lease financing entered into by a school district and for an emergency apportionment from the General Fund received by a school district. The bill would exclude a community college district from the definition of a school district for these purposes.

This bill would require, commencing January 1, 2026, the interest rate to be 0% for the outstanding emergency apportionments to Inglewood Unified School District and Oakland Unified School District.