Pursuant to Education Code Sections 17150(a) and 17150.1(a), all school districts must submit public disclosures of non-voter-approved debt to the county superintendent of schools and the county auditor no later than 30 days prior to the date on which the governing board will take action on the proposed debt issuance.
The types of debt covered under these provisions include Certificates of Participation (COPs), Revenue Bonds, lease purchases secured by real property, Bond Anticipation Notes (BANs), Qualified Zone Academy Bonds (QZABs), Qualified School Construction Bonds (QSCBs), or any other debt instrument secured by real property and not subject to voter approval.
Districts with a qualified or negative budget certification in the current or prior fiscal year must obtain approval from the county superintendent of schools prior to issuing non-voter approved debt (Education Code Section 42133(a)). Otherwise, for districts with a positive budget certification, the county superintendent of schools and the county auditor may comment publicly to the governing board of a school district, within 15 days of the receipt of the information, regarding a district’s ability to repay that debt obligation. If the district does not comply with debt disclosure requirements, it could affect our ability to approve a district’s budget or concur with a positive certification.