School facilities: Charter School Facilities Program: undue financial burden.

Plain English Breakdown

The exact date for the bill to take effect is not specified in the official source material.

Helping Charter Schools with Facility Costs

This law allows charter schools facing financial difficulties to request a reduction in their local matching share for facilities funding, enabling the State Allocation Board to increase grant amounts accordingly.

What This Bill Does

• Allows charter schools to request a reduction in their required local matching share if paying this share would cause financial problems.
• Requires the California School Finance Authority and the State Allocation Board to work together to create rules about how to decide when a school is facing an undue financial burden.
• Enables the State Allocation Board to increase grant amounts for charter schools that need help with their local matching share or lease payments.

Who It Names or Affects

• Charter schools applying for facilities funding under the Charter Schools Facilities Program
• The California School Finance Authority and the State Allocation Board

Terms To Know

Local matching share

A portion of the cost that charter schools must pay themselves when getting state funds to build or modernize school facilities.

Undue financial burden

When paying a certain amount for something would cause serious money problems for a charter school.

Limits and Unknowns

• The bill does not specify how the State Allocation Board will determine what is considered an 'undue financial burden'.

Official Summary Text

AB 2316, as amended, Hoover.
School facilities: Charter School Facilities Program: undue financial burden.
The Leroy F. Greene School Facilities Act of 1998 provides for the adoption of rules, regulations, and procedures, under the administration of the Director of General Services, for the allocation of state funds by the State Allocation Board for the construction and modernization of public school facilities. Existing law establishes the Charter Schools Facilities Program within the Leroy F. Greene School Facilities Act of 1998 to provide funding to qualifying entities for the purpose of establishing school facilities for charter school pupils. Existing law requires that a 50% matching share be provided by charter schools applying for facilities funding under the program. Existing law requires California School Finance Authority, in consultation with the board, to adopt regulations for the program, including, among other regulations, the process for determining the manner in which the
applicant will pay its local matching share, including the method for determining lease payments to be made in lieu of the local matching share.
This bill would, commencing January 1,
2027,
2028,
if the 50% local share matching obligation or lease payments would result in the applicant charter school suffering an undue financial burden,
as provided,
require the authority to notify the board and authorize the board to reduce the 50% local share matching obligation or lease payments, and correspondingly increase the grant amount, as necessary for the school to reach a reasonable level of debt service. The bill would require the authority, in consultation with the board, to
adopt regulations for that
purpose.
purpose and would require the authority and the board to adopt the method for determining whether the 50% local share matching obligation or lease payments would result in the charter school suffering an undue financial burden, in consultation with the department and the County Office Fiscal Crisis and Management Assistance Team.

Current Bill Text

Download Bill PDF