Tag Archives: Department of Finance

SAB Takes Action on Upfront Agreement & Beyond Bond Authority Project List

On Monday, June 5, 2017, the State Allocation Board (SAB) took action on two key policy issues that are critical to the implementation of Proposition 51: a) Regulatory Amendments for Increased Program Accountability (template for Upfront Grant Agreement); and, b) School Facility Program (SFP) Applications Received Beyond Bond Authority List (how to proceed with projects on the Acknowledged List). These proposals were originally scheduled to be adopted at the SAB meeting on April 24, 2017, but the action was deferred to a later date due to concerns with the draft prepared by the Office of Public School Construction (OPSC).

Fourteen CASH members testified during the hearing including Chair Don Ulrich (Clovis USD), Vice Chair Julie Arthur (Palm Springs USD), Immediate Past Chair Jenny Hannah (Kern HSD), and board members Rob Pierce (Elk Grove USD) and Alan Reising (Long Beach USD). The following is a summary of the actions that the SAB took on these agenda items:

Upfront Grant Agreement
The SAB voted to approve the Upfront Grant Agreement and conforming regulatory amendments, approved the projects on Attachment #5 for placement on the Unfunded List (Lack of AB 55 Loans), and exempted these projects from the Grant Agreement requirement. CASH and the education community had advocated for changes to the Grant Agreement, which were incorporated in this approval. These changes include:

  • Changes to the eligible expenditures list to expand eligibility of freezers, refrigerators, and exercise equipment.
  • The option of project-specific guidance letters incorporated by reference into the Grant Agreement – allows districts to achieve certainty on unusual project expenditures, ensuring auditors will allow.
  • The Grant Agreement is required at fund release, not as a condition of apportionment.
  • Projects on the True Unfunded List are exempt; the grant agreement still applies to all projects on the Acknowledged List.

The Grant Agreement as adopted includes a significant policy change by making educational technology, including computers and printers, an ineligible expenditure.

Beyond Bond Authority List
After extensive discussion and testimony from CASH board members and members of the education community, the SAB voted to approve “Option 1” which requires new construction projects on the Acknowledged List to re-justify their eligibility for the enrollment year in which the application was processed by OPSC, without losing their place in line. The biggest policy debate of the evening was whether schools should be required to update eligibility, or if projects would be processed with eligibility at the time of submittal. Projects that would no longer be eligible under updated eligibility have the right to submit an appeal to the SAB.

CASH would like to thank our members for their dedication and commitment to qualifying, approving, and now working to implement Proposition 51.

~ CASH Staff

CASH Alert: Encouragement to Attend the June 5, 2017 SAB Meeting

May 26, 2017

On Monday, June 5, 2017, the State Allocation Board (SAB) will meet at 4:00 pm in Room 437 of the State Capitol to consider recommendations on the proposed Grant Agreement, True Unfunded List, and Acknowledged List. Click here to see the CASH letter addressing these proposals.

We encourage you to attend the SAB meeting and speak to your specific concerns about the proposals and how they will affect your school district or client district.

More information will be provided during the CASH Monthly Update Meeting also scheduled for Monday, June 5, 2017, at 11:00 am in the Lower Level Conference Room A at 1130 K Street, Sacramento, CA 95814.

We additionally would like to further encourage you to communicate your concerns directly to your State Senators and Assembly Members. The district draft letter found here, may be a resource in doing so.

~ Tom Duffy

CASH Urgent Action Alert: Letters Needed from School District Members

May 24, 2017

Dear CASH School District Member:

We are writing to request your help in communicating with your representatives in the State Senate and the State Assembly to ask for their direct action to assist us in:

  1. Focusing legislative pressure on the Department of Finance (DOF) to increase school bond sales for matching funds through Proposition 51 in years 2018 and in 2019; and
  2. Communicating to the State Allocation Board (SAB) concerns as to how the Office of Public School Construction (OPSC) and DOF are proposing to treat districts projects negatively that are on the “Acknowledged List.”

Unfortunately, in the May Revision the DOF did not change the state’s plan to sell only $600 million in Proposition 51 bonds between now and June 30, 2018. That rate of bond sales will not even cover the new applications being filed, much less the current $2.4 billion waiting list.

In communicating with your legislative representatives we ask that you cite specific information about your District’s projects waiting for state bond funding, including estimated state bond funding amounts. We request that you speak to the need to increase state bond sale amounts for purposes of funding your projects and the $2.4 billion in the pipeline waiting for funding.

It is important to note here that it has been proposed by OPSC that the SAB consider sending projects on the “Acknowledged List” back to the applicant school districts, thus denying funding to those projects.

To date, there are $2 billion on the “Acknowledged List.” This is a combination of new construction and modernization projects. If your District has projects on the “Acknowledged List” we advise that you specifically identify those projects to your representative and detail the negative impact that the proposed action to deny funding to the “Acknowledged List” will have on your District.

We suggest also that you communicate your concern regarding the proposed OPSC/DOF “grant agreement” that is intended to be applied retroactively to all projects waiting for funding, notwithstanding the fact that contracts have been signed or that projects have been completed and occupied.

The Legislature needs to hear directly from you about the specific harm that the proposed OPSC and DOF actions will have on your district.

Again those proposed actions are:

  1. Limit bond sales;
  2. Reject projects waiting for funding on the “Acknowledged List;” and
  3. Require that a grant agreement is signed for each project retroactively.

Please review the draft letter that you may use to write your own request that the state sells more bonds faster.

Please send your letter to your State Assembly Member and State Senator.

Thank you in advance for your assistance on this matter of importance.

~ Tom Duffy

May CASH Day & SAB Meeting Rescheduled to June 5

May 15, 2017

The May 24 State Allocation Board meeting has been canceled. The next State Allocation Board meeting is scheduled for Monday, June 5 at 4:00 pm at the State Capitol, Room 437.

The CASH Monthly Update and Annual Conference Planning Committee meetings will also be rescheduled for Monday, June 5.

~ CASH Staff

OPSC Holds Second Stakeholder Meeting on the Front-End Grant Agreement

May 8, 2017

Today, the Office of Public School Construction (OPSC) hosted a stakeholder input session to receive additional feedback on the proposed front-end grant agreement for School Facility Program projects. The grant agreement was initially presented to the State Allocation Board (SAB) for discussion on April 24, 2017. At that time, the SAB did not have enough votes to pass the grant agreement as drafted, and they deferred action until the May SAB meeting.

OPSC staff began today’s stakeholder meeting by stating that concerns related to the audit trailer bill language should be brought to Department of Finance. OPSC staff then outlined items that they have identified for possible amendment prior to the next SAB meeting. Topics included, but were not limited to:

  • Which documents applicants are required to attach
  • Inclusion of a “site description”
  • Whether the definitions section should be limited to items that are unique to the grant agreement
  • Timing of when grant agreements should be executed
  • Laws and regulations with which applicants must comply
  • Impacts to the Priority Funding process
  • Expenditure report due dates and substantial progress
  • Hold harmless/indemnity provision
  • Eligible and ineligible expenditures

The issue of outlining a list of eligible and ineligible expenditures generated the most stakeholder feedback and discussion. Numerous stakeholders were concerned that expenditures on items not explicitly listed on the eligible expenditures list would not be accepted by local auditors. There were concerns that the proposed agreement would reduce the flexibility that districts have under the current grant program structure. There were also concerns voiced on behalf of Financial Hardship districts and county offices of education, which would have difficulty identifying local dollars to fund “ineligible” items such as computers.

OPSC’s goal is to bring an amended agreement to the next SAB meeting on May 24, 2017. They anticipate that the updated draft grant agreement will be available approximately one week prior to the hearing date and that the SAB agenda item will identify stakeholder feedback similar to the April agenda. OPSC anticipates that a larger regulations package will need to be brought to the SAB after the Legislature approves, and the Governor signs, the audit trailer bill language.

If you have feedback that you would like to provide, OPSC is still accepting comments on the grant agreement and requested that comments be submitted within the next few days. The current version of the grant agreement under discussion may be found here.

~ Rebekah Cearley

Office of Public School Construction Stakeholder Meetings – Grant Agreements

February 15, 2017

The Office of Public School Construction (OPSC) stakeholder meeting scheduled for Wednesday, Feb. 22, 2017, at the Hyatt Regency in downtown Sacramento, has been canceled. The meeting has been rescheduled to Monday, March 6, 2017, for purposes of discussing and receiving feedback on the draft grant agreements for the School Facility Program. The NOTICE (PDF) has been posted to the OPSC website under Meeting Information and on the State Allocation Board web page. This meeting will also be webcast.

~ CASH Staff

Office of Public School Construction Stakeholder Meeting on Grant Agreements

February 10, 2017

The Office of Public School Construction (OPSC) has scheduled a stakeholder’s meeting to discuss and receive feedback on the draft grant agreements for the School Facility Program.  The notice( has been posted to the OPSC website under Meeting Information and on the State Allocation Board webpage. This meeting will also be webcast.

~ CASH Staff

SAB Senate Member Appointments & February 22 Meeting Canceled

February 3, 2017

The February 22, 2017, State Allocation Board meeting has been canceled.  The next State Allocation Board meeting is scheduled for Wednesday, March 22, 2017, at 4:00 p.m.  Location will be determined.

The following three Senate members have been appointed to the State Allocation Board:

  • Senator Benjamin Allen
  • Senator Janet Nguyen, and
  • Senator Richard Pan

These three appointments make a full complement of the State Allocation Board.

~ CASH Staff

Assembly Education Committee Schedules Hearing on School Facility Program

January 31, 2017

The Assembly Education Committee has scheduled an informational hearing on the School Facility Program.  The hearing is set for Wednesday, February 8 at 1:30 p.m. in State Capitol Room 4202.  Specifically, the topic of the hearing is: “School Facilities: Streamlining the School Siting and School Funding Processes.”

CASH is pleased to have the opportunity to engage with key policymakers, including Assembly Education Committee Chair Patrick O’Donnell, on this important issue.

~ CASH Staff

State Allocation Board Meeting Notes – January 2017

January 25, 2017

Minutes

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.

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