AB 51: Education finance: General Fund cashflow loans: Inglewood Unified School District: interest waivers.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law authorizes the governing board of a school district that determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations to request an emergency apportionment through the Superintendent of Public Instruction, subject to specified requirements. Existing law authorizes emergency apportionments to be provided through an interim loan from the General Fund and lease financing made available by the California Infrastructure and Economic Development Bank, which is authorized to issue bonds for purposes of the emergency apportionments and related costs, or as an alternative to lease financing, as an emergency apportionment from the General Fund. Existing law prescribes the financing conditions on emergency apportionments, including the calculation of the interest rate.

Existing law, notwithstanding any other law, authorizes the Inglewood Unified School District, through the State Department of Education, to request cashflow loans from the General Fund for a total of up to $55,000,000 for emergency operational purposes, as provided. Existing law requires the interest on these loans to be charged at the annual rate of return of the Pooled Money Investment Account, plus an additional 2%.

This bill, notwithstanding any other law, and once the Inglewood Unified School District has successfully repaid at least 10 years of a General Fund cashflow loan made pursuant to those provisions, would authorize the school district to seek, and would require the Department of Finance to grant, a waiver of interest on that loan for the next succeeding fiscal year if specified conditions are met, including, among other conditions, that the Los Angeles County Superintendent of Schools, in consultation with the County Office Fiscal Crisis and Management Assistance Team, determines that the school district is making substantial progress towards fiscal solvency and that a waiver of interest would help the school district to exit receivership, as provided. In each subsequent fiscal year, the bill would authorize the school district to seek, and would require the Department of Finance to grant, a subsequent waiver of interest for the applicable fiscal year if the school district again meets those same requirements. To the extent the bill would impose additional duties on the Los Angeles County Superintendent of Schools, the bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Inglewood Unified School District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Sponsors

Sponsors by party (alphabetical): Democratic 16

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 23, 2025In committee: Held under submission.
4. May 14, 2025In committee: Set, first hearing. Referred to suspense file.
5. May 6, 2025Re-referred to Com. on APPR.
6. May 5, 2025Read second time and amended.
7. May 1, 2025From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 2.) (April 30).
8. April 10, 2025Re-referred to Com. on ED.
9. April 9, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.
10. March 12, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
11. February 20, 2025Re-referred to Com. on ED.
12. February 19, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.