SECTIONS 42840-42843 - California Statutes

EDUCATION CODE

SECTION 42840-42843

42840. The governing board of a school district may provide for the
accumulation over a period of school years of funds for capital
outlay purposes and salaries of school district employees whose work
is directly related to projects financed by those funds, derived from
the receipt of taxes levied for the district and from other sources
including balances, and not required to be used for other than
capital outlay purposes.
The governing board of a school district may also provide for the
accumulation over a period of school years of funds for other than
capital outlay purposes, derived from the receipt of taxes levied for
the district and from other sources including balances, and not
required to be used for capital outlay purposes.

42841. Upon the filing of identical copies of a resolution of the
governing board with the superintendent of schools, auditor, and
treasurer of the county specifying the purpose or purposes of a
special reserve fund, the fund shall be established for such purpose
or purposes. From time to time thereafter, the governing board may
file identical copies of resolutions specifying additional purposes
of the fund or withdrawing any purpose previously designated. The
auditor and treasurer shall transfer from the general fund to the
special reserve fund of the district such amounts as may be specified
by the governing board during the fiscal year.

42842. (a) The governing board may expend the money in the special
reserve fund for capital outlay for the purpose or purposes specified
in any resolution filed pursuant to Section 42841 unless the purpose
has been withdrawn pursuant to that section. In addition, unless
actually encumbered for ongoing expenses, the governing board may
expend the money in the fund for the general operating purposes of
the district.
(b) The governing board of a school district may expend the money
in the special reserve fund that is maintained for purposes other
than capital outlay in accordance with this section. Any moneys to be
expended from this special reserve fund first shall be transferred
into the general fund of the district.

42843. Any moneys remaining in the special reserve fund of the
district shall be transferred to the general fund of the district by
the auditor and treasurer upon written request to the superintendent
of schools, auditor, and treasurer of the county by the governing
board of the district, and the auditor and treasurer shall
discontinue the special reserve fund.