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File #: 22-165    Version: 1 Name:
Type: Resolution Status: Passed
File created: 1/18/2022 Departments: CONTROLLER
On agenda: 3/8/2022 Final action: 3/8/2022
Title: 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 2022-23.
Attachments: 1. 20220308_r_Temporary transfer of funds.pdf
Board Meeting Date: March 08, 2022
Special Notice / Hearing: None__
Vote Required: Majority

To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Sandie Arnott, Treasurer-Tax Collector
Nancy Magee, County Superintendent of Schools
Subject: Temporary Transfer of Available Funds

RECOMMENDATION:
title
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 2022-23.

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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 10 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. 078098) addressing these issues expires by its own terms on April 25, 2022. The new Resolution is identical in content to Resolution No. 078098 except for date references, which now address FY 2022-23.

DISCUSSION:
While Education Code section 426...

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