Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Sandie Arnott, Treasurer
Subject: Temporary Transfer of Available Funds
RECOMMENDATION:
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Adopt a resolution authorizing the Controller to temporarily transfer available funds from County Operating Funds to the Superintendent of Schools, the County Board of Education, and school districts during Fiscal Year 2023-24.
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BACKGROUND:
Each year after July 1, certain funds experience a cash-flow problem pending the receipt of property taxes. Education Code Section 42620 provides that the County shall temporarily loan to school districts such amounts as are necessary to meet the cash flow needs of school districts in anticipation of receipt of property taxes and other monies by the districts. The lending limit is 85 percent of the amounts expected to accrue to the school districts for the fiscal year, and the temporary loans are to be made out of County funds not immediately needed by the County to meet its own obligations. Annually, a Resolution is adopted by the Board which allows each school fund to reach a negative cash balance and pay interest expense with the assumption that the fund would have a non-negative cash balance at the end of the fiscal year. School districts in the County have not requested loans under this framework in the past 11 years, but the availability of such loans continues to serve as a safety net for the schools.
A resolution is needed to satisfy the County's obligations under Education Code section 42620 because the prior Resolution (No. 078751) addressing these issues expires by its own terms on April 24, 2023. The new Resolution is identical in content to Resolution No. 078751 except for date references, which now address FY 2023-24.
DISCUSSION:
While Education Code section 42620 obligates the County to loan funds to school districts under certain circumstances, the Resolution conta...
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