Category Archives: Finance

February Facility Planners Update 2018

February 12, 2018

The CASH Facility Planners Meeting Update for February 2018 is now available and includes information regarding:

  • CASH Annual Conference
  • Proposition 51 Update
  • 2018-2019 State Budget: Governor Proposes Minimum for School Facilities
  • Legislative update
  • Upcoming Networking Mixers

Click here to view the update.

~ CASH staff

SAB Approves “Option 1” New Construction Eligibility Regulations and Seismic Mitigation Program Amendments

January 25, 2018

Today the State Allocation Board (Board) met to take action on a number of items, including the annual adjustment to School Facility Program (SFP) grants, the index adjustment for Level I developer fees, approval of $243 million in Charter School Facilities Program Unfunded Preliminary Apportionments, and adoption of a package of various School Facility Program regulation changes.  The regulations package included an item to formalize changes to the new construction funding application process, which Coalition for Adequate School Housing (CASH) strongly opposes.

Seismic Mitigation Program and Other Technical Conforming Regulatory Amendments
The Board approved, on an emergency basis, a package of School Facility Program regulation amendments pertaining to the following issues:

  • How to proceed with applications for Seismic Mitigation Program (SMP) funding now that bond funds specifically reserved for that purpose have been exhausted.
  • Requiring new construction projects to submit eligibility updates for the enrollment year in which the Office of Public School Construction (OPSC) processes the application.
  • Allowing small school districts to request a three-year lock using enrollment figures from the year in which the eligibility application is submitted, if the district makes the request prior to OPSC’s notification that it will soon begin to process the funding application.

On June 5, 2017, the Board radically altered the School Facility Program by adopting the new construction eligibility justification policy (known as “Option 1”), which abandoned the use of eligibility in place at the time of application submittal in favor of requiring eligibility updates for the year in which OPSC processes the application.  CASH believes this policy is contrary to the Proposition 51 statute approved by voters and opposed the change when it was first approved by the Board.  CASH challenged the Board’s action by filing an underground regulation petition with the Office of Administrative Law (OAL), which declined to take up CASH’s petition but did not opine on the petition’s merits.

The regulation adopted today codifies the Board’s June 5, 2017, policy and applies to projects submitted to OPSC after that date.  OPSC has indicated they do not need a regulation to implement the new construction eligibility update requirements for projects that were submitted to OPSC on or before June 5, 2017.  The adopted regulation requires districts to submit an updated Enrollment Certification/Projection (Form SAB 50-01) within 90 days of OPSC notification that it will begin processing the district’s application for funding.

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Governor Proposes Minimum Funding for School Construction and Modernization Projects

January 10, 2018

The proposed State Budget for 2018-19 was released on January 10 at 10:00 a.m. The following is the statement that relates to school facilities in the proposed 2018-19 State Budget (Page 30):

Since 1998, voters have approved approximately $44 billion in statewide general obligation bonds to construct or renovate public school classrooms used by the state’s roughly six million K-12 students. Associated General Fund debt services costs are over $2 billion annually. In addition to general obligation bonds, school districts may use developer fees, local bonds, certificates of participation, and Mello Roos bonds to construct additional classrooms or renovate existing classrooms.

The recently approved Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51) authorizes $7 billion in state general obligation bonds for K-12 schools to be allocated through the current School Facilities Program in place as of January 1, 2015. To ensure appropriate usage of all School Facilities Program bond funds and effective program accountability and oversight, the Administration worked with the State Allocation Board and the Office of Public School Construction to revise policies and regulations to implement front-end grant agreements that defined basic terms, conditions, and accountability measures for participants that request funding through the School Facilities Program. To complement this front-end accountability, legislation requiring facility bond expenditures to be included in the annual K-12 Audit Guide was approved.

 The Budget proposes approximately $640 million in bond authority for 2018-19 to fund new construction, modernization, career technical education, and charter facility projects based upon the Office of Public School Construction’s processing of project applications and the State Allocation Board’s approval of these projects.”

The Governor is also proposing to spend $1 billion from SB 5 bonds, if they are approved in the June Primary.  SB 5 has $4 billion in bond authorization, so he is proposing to spend 25% of that bond.  If he spent 25% of Proposition 51 bond funds it would be $1.5 billion of the $6 billion New Construction and Modernization funds.  Even at 25%, that $1.5 billion would cover only half of the application backlog ALREADY submitted to the Office of Public School Construction. Because the $640 million dribbles out from the voter approved Proposition 51 bond over a decade long schedule, the backlog will grow every year while needed school projects remain unfunded.  The Governor’s priorities are clear.  Yet-to-be approved funds receive 25%, while already shovel ready bond projects receive 11%.  The numbers speak for themselves.

We did what the Governor wanted with the audit language and upfront agreement.  Even with these provisions, it appears the Governor does not want to honor the voters’ will because the voters did not follow his opposition to Proposition 51.

As we continue to review the Governor’s proposed State Budget, we will drill down in more depth on issues of interest to the school facilities community and report to the CASH membership.  Stay tuned.

~ Dave Walrath, Legislative Advocate

January Facility Planners Update 2018

January 3, 2018

The CASH Facility Planners Meeting Update for January 2018 is now available and includes information regarding:

  • Proposition 51 Update
  • Legislative Update
  • Newly Revised CASH Facility Inspection Tool (FIT) Guidebook Available
  • Upcoming Networking Mixers

Click here to view the update.

~ CASH staff

Sell State Bonds Resolution

December 14, 2017

The Bakersfield Californian recently posted an article from Senator Vidak in regards to releasing more Proposition 51 bond money.

Click here to view the full article.

CASH needs your help  to persuade the State to sell bonds faster and in much larger amounts. We can succeed if school districts tell their story about how delaying sales and delaying needed projects hurt their children and teachers.

We need all school districts and all county offices of education to submit resolutions to us (adalen@m-w-h.com) and to their Legislators by April 4, 2018,  so we can start pushing for the State to honor the voters’ will.

Click here to view a sample resolution.

Click here to find your State Representatives.

~ CASH Staff

December Facility Planners Update December 2017

December 1, 2017

The CASH Facility Planners Meeting Update for December 2017 is now available and includes information regarding:

  • Proposition 51 Update
  • Legislative Update
  • Newly Revised CASH Facility Inspection Tool (FIT) Guidebook Available
  • CASH 39th Annual Conference
  • CASH Maintenance Management Certification Program
  • School Facilities Leadership Academy

Click here to view the update.

~ CASH staff

Thank You 2017 Fall Conference Sponsors!

Thank you to the following sponsors for their support of the 2017 CASH Fall Conference.  The conference would not be as successful without the help of these generous sponsors.

3QC
American Modular Systems/Gen 7 Schools
Balfour Beatty Construction
Colbi Technologies
Cooperative Strategies, LLC
Culver-Newlin School and Office Furnishings
Dannis Woliver Kelley
Davy Architecture
DC Architects
DLR Group
Extron Electronics
ForeFront Power, LLC
Harris & Associates
HMC Architects
Kitchell CEM
Koppel & Gruber Public Finance
Lionakis
LMA
Lundgren Management Corp.
PBK
Pro-Craft Construction, Inc.
Sage Renewable Energy Consulting
School Facility Consultants
STIFEL
SVA Architects, Inc.
Swinerton
WLC Architects, Inc.

Mark your calendars for the 2018 CASH Fall Conference, October 15-17 at the Hyatt Regency Newport Beach.

Please note: This is a new location.

~ CASH staff

Opinion: State Must Fulfill Voter Mandate to Fund School Construction

As a follow up to our Sell Bonds Press Conference, please see an opinion piece written by former Assemblywoman Joan Buchanan and Lisa Gonzales, President of the Association for California School Administrators for the Bay Area News Group.

~ CASH Staff

Opinion: State Must Fulfill Voter Mandate to Fund School Construction


By JOAN BUCHANAN and LISA GONZALES |

Research shows that school facilities have a significant, positive impact on school culture, academic performance, student attendance, and teacher retention and job satisfaction.

Students need facilities that, for example, have working air-conditioning, upgraded security and electrical systems, and modern classroom infrastructure that supports technology.

For school districts to meet those needs, school districts partner with the state to fund major rehabilitation projects and build new schools where needed. But today there is more than a $2 billion backlog of school construction project applications that have been submitted to the state and are awaiting action.

To understand how the funding works: School districts collect developer fees, pass local school facilities bonds and then apply to the state for matching state grant funds. Periodically, voters choose to replenish the fund that provides the state matching grants through passage of a statewide school bond initiative.

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State Allocation Board Approves Career Technical Education Facilities Program & Bond Sale Information

Today the State Allocation Board met to hear and take action on a number of items, including three school district appeals and regulations to establish new funding cycles for the Career Technical Education Facilities Program (CTEFP).  An item proposing regulatory amendments to new construction application processing was originally agendized but subsequently pulled from consideration at today’s meeting.

Executive Officer Statement: Fall GO BondSale
During the Executive Officer statement, Lisa Silverman indicated that the fall General Obligation bond sale will take place on August 29, 2017.  The recent priority funding filing period closed on June 8, 2017, and the Office of Public School Construction (OPSC) received requests for 139 projects from 73 districts worth a total of $443.6 million.  Ms. Silverman reported that she anticipates receiving bond proceeds from the August 29 sale to cover the projects that submitted a certification in the recent filing period.  She stated that the SAB meeting originally scheduled for September 23 has been moved up to September 6, 2017 to take action on the projects that submitted a certification in the recent priority funding round.

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