Education finance: cash out refinancing.

Existing law establishes the system of public elementary and secondary schools and public institutions of higher education in this state. Under existing law, part of the funding for the public institutions of elementary, secondary, and postsecondary institutions in this state is derived from the sale of bonds whose issuance is approved by voters either statewide or within the jurisdiction of a local educational agency. This bill would authorize a portion of the proceeds of the sale of refunding bonds to be set aside and applied solely to the purposes for which the bonds to be refunded were authorized to be issued by the voters and limits that amount to the net present value if the amount by which the total debt service to maturity on the bonds to be refunded exceeds the total debt service to maturity on the refunding bonds. Existing law authorizes the issuance of school district bonds if the tax rate would not exceed $30 per $100,000, or $60 per $100,000 in the case of a unified school district, of taxable property when the assessed valuation is projected to increase in accordance with specified constitutional provisions. This bill would authorize those bonds at those rates when the assessed valuation of the taxable property is projected to increase, instead, at an annual rate no greater than the average annual rate of growth in assessed value in the issuing district over a 20-year period preceding the issuance.