Tag Archives: Prop 51

CASH Budget Update: Legislature Approves State Budget & Trailer Bills

June 15, 2017

Today, the Legislature passed AB 97, the budget bill for FY 2017-18, meeting the constitutional deadline to pass an on-time budget by June 15, 2017. The Legislature also passed a number of accompanying trailer bills to implement policy changes in the budget. The budget includes $125.1 billion in General Fund spending, including $9.9 billion in total reserves. This is the largest budget reserve in California’s history and is consistent with the Governor’s priority of preparing for the next economic downturn. The budget will now go to the Governor for his signature, or line item veto, if any.

School Finance Budget Trailer Bill – AB 99

School Facility Audit Language – This bill includes new school facility audit language (commencing with changes to Education Code Section 41024) that requires local auditors to include state funded facility projects in the annual school district audit. The audit language includes references to the new fund release grant agreement adopted at the June 5, 2017 State Allocation Board (SAB) meeting. The audit language also includes language on the use of project savings and the process for repaying state funds audit exceptions.

One-Time Discretionary Funding – This bill includes $876.6 million (one-time Proposition 98) for any purpose, including deferred maintenance and capital outlay. This is approximately $145 per average daily attendance.

Emergency Repair Program – This bill includes language that any unencumbered funds in the School Facilities Emergency Repair Account revert to the Proposition 98 Reversion Account. AB 99 extends this encumbrance.

Budget Trailer Bills AB 111 and SB 96 (Anticipate Approval at the Time of Posting)

Proposition 39 – The date for local encumbrance of these funds increases from June 30, 2018 to June 30, 2019.

DSA Filing Fee – The Legislature passed budget trailer bill AB 111, which increases Division of the State Architect (DSA) project filing fees for construction or alteration of school buildings. The fee will increase from 0.7% to 1.25% for the first $1 million in construction costs, and from 0.6% to 1.0% for costs in excess of $1 million. If the balance in the Public School Planning, Design, and Construction Review Revolving Fund exceeds six months of expenditures, the fee will automatically decrease.

Department of Industrial Relations – The Legislature passed budget trailer bill SB 96, which makes changes to the Department of Industrial Relations (DIR) prevailing wage monitoring program, including:

Raises the threshold for the program’s applicability from $1,000 to $25,000 for construction projects and $15,000 for maintenance projects.

  • Increases penalties for contractors and subcontractors who fail to register correctly.
  • Creates new penalties for awarding bodies, including school districts, which would be subject to a fine of up to $100 per day, up to $10,000.
  • An awarding body determined to be a “willful violator” with two program violations within 12 months could lose state facility funding for one year.
  • Increases the annual contractor registration fee from $300 to $400 and permits a contractor to register for multiple years at a time.

The budget also includes $805,000 in 2017-18 and $759,000 in 2018-19 for positions to educate awarding bodies about their requirements under the law.

Additional OPSC Staffing and Bond Sales – We thank Senator Bates for her comments on lack of Proposition 51 progress; however, the budget agreement does not include any additional staff for the Office of Public School Construction (OPSC) nor any proposed increase in the January budget proposal for Proposition 51 state school bond sales.

~ CASH Staff

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

May Facility Planners Update

May 1, 2017

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

  • State Allocation Board Defers Action on School Facility Program Upfront Grant Agreement
  • Legislative Update
  • CASH Welcomes New Members
  • Upcoming Networking Mixers

Click here to download the Update.

~ 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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State Budget 2017-18 Update: Governor Addresses Proposition 51 Implementation

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.

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Now that Proposition 51 Passed, When Will the School Construction Dollars Start to Flow?

December 12, 2016

Over the weekend, the East Bay Times published an article about the implementation of Proposition 51. Read the full article below.

Now that Proposition 51 Passed, When Will the School Construction Dollars Start to Flow?

~ CASH Staff

State Allocation Board Meeting Notes – December 2016

December 5, 2016

The State Allocation Board (SAB) met today and approved the consent only agenda. The consent agenda included Facility Hardship projects and close out items.

There was no discussion of the passage of Proposition 51. We expect some discussion of Proposition 51 implementation at the January SAB meeting.

CASH will be discussing implementation issues at the Proposition 51 Post-Election Debriefing workshop which will be held at the Sheraton Grand Sacramento on December 12, 2016.

To register for the workshop, please use the following link: https://www.cashnet.org/meetings/2016_Workshops/SpecialDecember2016Workshop.htm.

~ CASH Staff

Yes On 51 and Mayor Villaraigosa on Univision.com!

October 27, 2016

Thank you for your continued support of Prop 51 and safe schools for our students. With your help, the Proposition 51 campaign has gained broad and diverse support throughout the state of California.

In addition to our TV spots featuring a teacher and a school nurse, our “Sí a la Prop 51” video with former Los Angeles Mayor Antonio Villaraigosa has been running on Univision.com to engage our Spanish speaking audience.

You can watch and share Mayor Villaraigosa’s Spanish-language video on YouTube here: https://youtu.be/DX0pis6T360

From now until Election Day the videos will be running on Univision.com. Take a look at today’s ads on the Los Angeles homepage!

http://www.univision.com/los-angeles/kmex

Let’s continue to urge our contacts to vote Yes on 51 to repair and upgrade older schools, keeping the promise of a quality education in California. Please continue to show your support by sharing a link to Mayor Villaraigosa’s video and using our hashtag, #YesOn51.

Orange County Register – Yes on Proposition 51

ICYMI: Yes on Proposition 51
By Teresa Casazza  |  October 20, 2016

“In November, California taxpayers will have a number of initiatives to consider, including one – Proposition 51 – that will make an important investment in California’s aging school facilities.

California’s schools are showing their age. Approximately 30 percent are more than 50 years old, and many need major renovations to meet basic health and safety standards. Also, many counties are growing, and need new schools that are well-equipped to prepare students to enter the workforce or the higher education system.

Proposition 51, a state school facilities bond, will help school districts fix and repair outdated schools and build new schools where needed. The measure will replenish the School Facility Program Fund so that districts can access matching state funds and protect local taxpayers from higher taxes…

If Proposition 51 isn’t approved, how will school districts meet their needs? Through local tax increases on property owners – taxes that hurt communities, harm small businesses and increase housing costs for working families, renters, and homeowners…

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ICYMI: Prop 51 invests in tomorrow’s students

By Modesto Bee Editorial Board  |  October 13, 2016

“…The bond issue would make $3 billion available in state matching grants for new school construction. More important to communities that have seen declines in student populations, it would provide $3 billion for districts to renovate, update and modernize older schools. There’s money for charter schools, community colleges, and technical education programs.

Don’t doubt the need is dire. A Modesto City Schools study put the district’s capital facilities needs at $1 billion. That’s probably vastly overstated, but the need is clear. So is the need for modernization on most campuses.

Too many Valley districts are forced into choosing between making repairs keep students safe and investing in the updates and innovations that will prepare students for 21st-century jobs. By necessity, those choices veer toward safety and away from a better future.

If Proposition 51 passes, 24 school districts in Stanislaus, south San Joaquin, and Tuolumne counties will be eligible to benefit. In Merced and Mariposa counties, another eight districts will be eligible. Combined, it could mean $149 million in new facilities for the Northern San Joaquin Valley.

In Stanislaus County, there are six school bond measures on the ballot this November; all will make a good case for matching funds if Proposition 51 passes.

…Both the California Democratic and Republican parties endorse Proposition 51 along with the California Chamber of Commerce, California Labor Federation, and Lt. Gov. Gavin Newsom.

We can never be certain our legislature will ever get around to helping us prepare for the students we are certain will be arriving. Vote yes on Proposition 51; California’s 6.2 million students are depending on it.”

Read the full article here at The Modesto Bee website.