Chapter 9 Fiscal Support Subchapter 4 Budgets and Reports Appropriation for Emergency Apportionment; Repayment Schedule
(a) If the procedures pursuant to Sections 58310, 58312 and 58314 fail to stabilize the financial condition of the district before an emergency apportionment is necessary, the Chancellor may seek an appropriation for an emergency apportionment in an amount necessary to maintain the educational programs of the district as specified in the educational plan pursuant to Sections 58310 and 58312 and to preclude a negative ending balance.
(b) For each of three fiscal years, the Controller shall deduct from apportionments paid to a district pursuant to law, an amount not less than one-third of the amount actually allocated to the district pursuant to this section, together with amounts representing interest at a rate based on the most current investment rate of the Pooled Money Investment Account as of the date of the disbursement of funds to the district.
For each of three fiscal years, the amount deducted by the Controller pursuant to this subdivision shall be reapportioned to the source of the funds allocated to the district pursuant to this section. Amounts so reapportioned to Section B of the State School Fund shall be apportioned by the Chancellor to districts to alleviate any deficits in state funding in the year in which the loan is made or during the period of repayment. Unless otherwise determined pursuant to subdivision (c), the three-year repayment period shall consist of three consecutive fiscal years commencing with the fiscal year following the year in which the emergency apportionment is made.
(c) Any district which has received an emergency apportionment pursuant to this section may request a revision of the repayment schedule. The request shall be submitted to the Chancellor, the Joint Legislative Audit Committee, the Joint Legislative Budget Committee, and the Director of Finance. The request shall be accompanied by appropriate justification for any deferral of repayment, including a revision to the plans adopted by the district's governing board as specified in this section, together with specified identification of the reasons that the actions were taken by the district to correct the financial problems.
The Chancellor shall consult with representatives of the Joint Legislative Audit Committee, the Joint Legislative Budget Committee, the Director of Finance, and representatives which the Chancellor may select from the chief executive officers and presidents of the other community colleges and districts throughout the state. After consulting with these representatives, the Chancellor may revise the repayment schedule, may forgive the interest payments otherwise compounded as a result of any deferral of payment, and may specify any conditions that he or she determines are necessary to assure the repayment of the emergency apportionment. The Chancellor shall report his or her actions to the Board of Governors, the Director of Finance, the Controller, and Joint Legislative Budget Committee. The Controller shall deduct amounts from the apportionment schedule in accordance with the revised repayment plan.
Education Code 66700
Education Code 70901
Education Code 84040
Education Code 70901
(Amended by Register 2004, No. 39)