May 8, 2019

New pressure on LEAs to exceed bond debt limits

Despite generally favorable real estate conditions, three local educational agencies are seeking state relief from debt limits that otherwise would prevent them from issuing recently-approved bonds for needed campus improvements.

Natomas Unified, Perris Union and Sanger Unified have each petitioned the CA State Board of Education in hopes of receiving a waiver from state laws that restrict how much bonded indebtedness a school district can carry.

High school districts cannot exceed 1.25 percent of the taxable assessed valuation of real estate within the district’s boundaries; for unified school districts, the limit is 2.5 percent.

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