Bill > SB631

This bill modifies the Charter School Revolving Loan Fund by increasing the maximum loan amount from $250,000 to $500,000 for charter schools, revising loan repayment terms, and adjusting loan prioritization criteria. The bill changes how interest rates are calculated for loans, setting them at either the Pooled Money Investment Account rate or 50% of the state general obligation bond interest rate, whichever is less, but not lower than 3%. It removes the provision that made charter schools solely liable for loan repayment in case of default and requires an expanded annual reporting process. Starting in 2029, the annual report must include a detailed analysis of how charter schools have spent loan funds, covering areas like facilities, employee costs, startup expenses, equipment, pupil services, and administration. The California School Finance Authority will oversee these loans and prioritize new charter schools and those impacted by state emergencies. The bill aims to provide more financial flexibility and support for charter schools by increasing loan accessibility and clarifying loan terms, while also improving transparency about how loan funds are utilized.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB631