NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
SPONSOR: |
Nava |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
Public School Debt Guarantee, CA |
SJR |
9 |
||||
|
ANALYST: |
Neel |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
NFI |
See
Narrative |
|
|
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
LFC Files
Responses
Received From
SUMMARY
Synopsis
of Bill
Senate Joint Resolution 9 proposes amending
Article 12 of the state constitution to guarantee debt issued by public school
districts with the corpus of the Permanent School Fund (PSF). SJR 9 requires school districts’ debt be
necessary and used for capital outlay.
Additionally, SJR 9 requires that the guarantee by the PSF not endanger
the corpus of the fund.
SJR 9 also requires the consent of the
Significant
Issues
According to SIC, provisions in SJR 9 would not
adversely impact the PSF.
FISCAL
IMPLICATIONS
According to SIC,
there will be no significant impact to its operations. However, by using the PSF as a guarantee
school districts will be able to receive advantageous interest rates. According
to SIC, higher triple AAA bond ratings for school districts would allow lower
interest rates, saving the state approximately $10.0 million over a ten year
period or $7.0 million in present value.
SN/njw