The Governor’s Office of Planning & Research (OPR) may be reaching out to you if you have not yet submitted an energy expenditure plans (EEP) under the Proposition 39 program. As you know the final deadline for submitting an EEP under the five-year program is August 1, 2017. The Governor’s Office wants to encourage and assist schools that have not yet submitted their plans for funding approval. This outreach to CASH and School Energy Coalition (SEC) members are the result of SEC meetings with the Governor’s Office to assist LEAs – especially smaller schools and charters – that may be having difficulty moving forward to access funding and we appreciate their interest and outreach. find out more about SEC’s advocacy efforts at our upcoming meeting during the CASH Annual Conference at 2:15 p.m. on Monday, February 20, 2017, in Room 315 of the Sacramento Convention Center. You do not have to be a SEC member to attend. See you there!
The minutes from the December 5, 2016, meeting were approved unanimously.
Executive Officer Statement
Lisa Silverman provided updates on the following:
Charter Round Opening: A new Charter School Facilities Program (CSFP) round will open and applications will be accepted from February 6, 2017, through June 5, 2017. $500 million is now available with the passage of Proposition 51. Office of Public School Construction (OPSC) staff will be providing a webinar and workshops on the CSFP application process.
August 2016 Priority Funding Apportionments: On August 17, 2016, $78.7 million was approved for 20 projects from 14 school districts. 19 projects were required to submit Form SAB 50-05 by November 15, 2016; two projects worth $932,070.50 did not. They were returned to the Unfunded List (Lack of AB 55 Loans) and given a new Unfunded Approval date of November 15, 2016.
State Budget 2017-18 Update: Governor Addresses Proposition 51 Implementation
The Governor’s Budget proposal contains good news for school facilities, as well as some challenges. With regard to the implementation of Proposition 51, the Governor stated his willingness to work to have Proposition 51 funds flow to school projects. The challenges will be implementing the audit provisions that Governor Brown wants before allowing Proposition 51 funds to flow. Concerning Proposition 39 energy efficiency funding, the Governor proposes $422.9 million for K-12 school districts and charter schools, which is a significant investment.
CASH has always supported accountability for spending taxpayer funds. We have a stated policy that every public funded school project should be audited. If there are changes needed, we look forward to making those changes as soon as possible. We believe the audit guide concern can be addressed immediately without legislation because the guide is developed by the State Controller, Superintendent of Public Instruction and the Director of the Department of Finance. If legislation is needed to have a long-term statutory authority, CASH believes that can be done through a budget trailer bill. We will have more updates in the coming days as more details become available. Below is a summary of the proposed State Budget relating to school facilities.
CASH signed on to a coalition letter regarding DPR regulations with the Association of California School Administrators, California School Boards Association, and the Small School Districts’ Association.
The Office of Public School Construction (OPSC) is pleased to announce that Assembly Member Patrick O’Donnell has been appointed to the State Allocation Board. OPSC welcomes the Assembly Member to the State Allocation Board and looks forward to working with him on school facilities issues.
The Legislature completed the 2015-16 Legislative Session on August 31 and adjourned for final recess at that time. The Governor had until September 30 to sign or veto bills passed in the last weeks of the Session. The legislature returns briefly on December 5 to convene the new 2017-18 Legislative Session, then will immediately adjourn for recess until January, at which time they will begin to introduce new bill proposals for consideration.
The CASH legislative advocacy team had a successful year, highlighted by CASH’s engagement in and support of two significant bills. AB 2316 (O’Donnell) creates a competitive selection process for Lease-Leaseback based on the best value methodology. SB 693 (Hueso) addresses implementation challenges for various skilled workforce bills, including AB 566 (2015). The CASH legislative team monitored and took positions on many bills, including some involving school siting, seismic safety, local debt policy, storm water, energy and other critical issues for the school facilities community.
On Friday, October 28, the Third Court of Appeals denied California Building Industry Association’s (CBIA) appeal against the State Allocation Board’s action on May 25, 2016.
On Tuesday, November 1, 2016, the State Allocation Board issued a letter pertaining to its action on May 25, 2016 determining that state funds are no longer available for school facility construction. This determination is required in order for school districts to charge Level III developer fees. Per the requirements of Government Code Section 65995.7(a), the letter was sent to the Secretary of the Senate and the Chief Clerk of the Assembly, and it indicates that funds are no longer available effective May 25, 2016.
For more information, see the Board’s letters and the May 25 agenda item here: