AB 696

This bill authorizes a school board that has approved a long-term capital

improvement plan that is for a minimum of 10 years to establish a trust fund for the

purpose of financing the capital improvements included in the long-term plan. The

bill prohibits a school board from spending any money deposited in the trust fund for

a period of five years from the date the trust fund is created. After the initial

five-year period, a school board may spend money in the trust fund only for the

purposes described in the school board's long-term plan. Additionally, a school board

is expressly prohibited from transferring money in the trust fund to any other school

district fund. Finally, the bill specifies that, for purposes of calculating equalization

aid, money deposited in a long-term capital improvement trust fund is counted as

a shared cost at the time the money is deposited in the trust fund and is not a shared

cost at the time the money is expended from the trust fund.