Revisions to the California High-Cost Fund - cpuc ca 2025

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High Cost Funds (HCF) help offset the financial impact on Local Educational Agencies (LEAs) that provide educational services to high need children with disabilities. High need children with disabilities receive educational services which exceed three times the states average per pupil expenditure (APPE).
High Cost distributes funding to telecom carriers to deliver service in rural areas where the market alone cannot support the substantial cost of deploying network infrastructure and providing connectivity.
If a regions median home value exceeds 115% of the baseline mortgage loan limit, that area is designated as a high-cost area, and its local loan limits are adjusted upwards proportionally.
A good expense ratio, from an investors viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high.
The cost of funds is important for banks as it directly affects their income. Low costs mean banks can offer better loan rates and attract more deposits, boosting their earnings. High costs, however, can reduce profits and limit how much they can lend to their customers.
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A high funding rate means that long positions need to pay a significant amount of funding fees to short positions. This indicates a high demand for long positions relative to short positions, which can result in the price of perpetual futures contracts being higher than the underlying asset price.

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