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a. Consider recommendations from the Legislative Committee to support AB 1858 (Alejo) and SB 1240 (Cannella) School finance: emergency loans: South Monterey County Joint Union High School District; and
b. Receive the action minutes from the January 23, 2012 meeting of the Legislative Committee.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Consider recommendations from the Legislative Committee to support AB 1858 (Alejo) and SB 1240 (Cannella) School finance: emergency loans: South Monterey County Joint Union High School District; and
b. Receive the action minutes from the January 23, 2012 meeting of the Legislative Committee.
SUMMARY
The Legislative Committee met on April 11, 2012 and recommended that the Board of Supervisors take a support positions on AB 1858 (Alejo) and SB 1240 (Cannella), two bills which would allow the South Monterey County Joint Union High School District to refinance their loan with the California Infrastructure and Economic Development Bank (I-Bank). The Committee also recommended that the Board receive the action minutes from the January 23, 2012 Legislative Committee meeting.
DISCUSSION:
AB 1858 (Alejo) and SB 1240 (Cannella) are identical bills that aim to provide much needed financial relief to the South Monterey County Joint Union High School District. The District has a loan from the California Infrastructure and Economic Development Bank (I-Bank) which was authorized in June 2009 by SB 130. The loan currently bears an interest rate of 5.44%, which amounts to debt service payments of approximately $1.2 million annually, or $23.6 million over the life of the loan. By changing the interest rate to 1% as authorized in AB 1858/SB 1240, the District would be able to realize approximately $445,000 annually in debt service savings, or $8 million over the life of the loan. This savings would provide a significant boost to the District.
Additionally, the Legislative Committee met on January 23, 201...
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