Bill > AB224

This bill requires the State Board of Finance to issue $100 million in general obligation bonds (government-issued debt) to be credited to the Fund to Assist School Districts in Financing Capital Improvements. The bonds' proceeds will be specifically used by the Director of the Office of Finance to provide grants to school districts located in counties with populations less than 15,000, which are likely rural areas with limited local tax revenue. Under existing law, school districts seeking grants from this fund must prove their county has reached its maximum property tax rate and that they have significant facility challenges, such as condemned buildings, unsuitable facilities, or renovation costs exceeding 40% of new construction. The bill aims to provide financial support for capital improvements in smaller, potentially under-resourced school districts. The legislation is set to take effect on July 1, 2025, and defines "proceeds" as the money received from bond sales and any accrued interest.