Tag Archives: Proposition 39

Governor Signs Budget

June 27, 2017

Today the Governor Signed AB 97, the budget bill for FY 2017-18, as well as the related trailer bills to enact policy changes in the budget. Below is an update on a number of key school facility policy issues that are addressed in budget trailer bills.

SB 96: Department of Industrial Relations

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, who would be subject to a fine of $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.

AB 111: DSA Filing Fee

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.

AB 99: School Facility Program Audits

Includes the School Facility Program (SFP) audit changes, adding state-funded school facility project scope to the local annual K-12 audit. CASH successfully lobbied for amendments to the bill to provide school districts with the flexibility to use capital funds or operational dollars to repay any expenditures deemed ineligible. The original proposal from the Administration would have required automatic payback of audit exceptions using a withholding from the next Proposition 98 apportionment. The new audit provisions apply to SFP projects funded on and after April 1, 2017.

AB 99 & AB 125: Proposition 39 – Encumbrance Date and Program Extension

Includes provisions related to the Proposition 39 energy efficiency program. The bill extends the encumbrance date for projects by 12 months to June 30, 2019. The Legislature is now considering an additional trailer bill that includes the provisions of SB 518 (De Leon) to extend the Proposition 39 program indefinitely. Identical language is reflected in both AB 125 and SB 110, and either bill could move forward. These bills extend the sunset on the Proposition 39 program indefinitely, though future funding is subject to an appropriation in the annual budget process. The bills would establish a new competitive grant framework for allocation of the dollars. The bills would also sweep remaining unallocated funds from the first five years of the program for projects that have not submitted an Energy Expenditure Plan (EEP) by March 1, 2018. These funds would be dispersed as follows:

  • $75 million for a school bus retrofit and replacement program to be administered by the California Energy Commission.
  • $100 million for low- and no-interest Energy Conservation Assistance Act (ECAA) loans.
  • The remainder would be used for competitive grants for K-12 schools in designated tiers.

Passage of AB 125 or SB 110 would make SB 518 obsolete. Budget trailer bills are urgency statutes that are effective immediately upon signature and require only a majority vote to pass, in contrast to a typical urgency bill, which requires a two-thirds vote. Trailer bills are not subject to the June 15 budget bill deadline. Senate President Pro Tem Kevin De Leon, the author of SB 518, appears very interested in moving this issue through the legislative process via trailer bill.

~ CASH Staff

Proposition 39 Update

June 9, 2017

I am pleased to provide this update to CASH members on state legislative actions with regard to the Proposition 39 program.  We are active on two pathways – legislative and through the budget process – for an extension of the program’s encumbrance deadline date so that local education agencies (LEAs) may fully use their allocations knowing what the fifth year of allocation will be. There is also state action on a program extension beyond the five years that California’s voters approved in November 2012.

Legislation – SB 518 (de Leon)

The Leader of the Senate, President Pro Tem Kevin De Leon is the author of legislation to extend the Proposition 39 program and directs any funding remaining in the fund by a date certain to be used for clean energy buses in needy communities with bad air quality as determined by the Air Resources Board.

After the bus allocation of $75 million, another $100 million is to be added for low and no-interest loans to schools under the Energy Conservation and Assistance Act (ECAA).  Funds remaining after the two uses above will be available to K-12 school districts, charters, county offices of education and charter schools by application within four tier levels based on average daily attendance (ADA) data.

The bill also:

  • Sets encumbrance date for the Proposition 39 Program’s five years of funding at 3/31/19 and sweeps unused funding on 3/1/18 for the purposes outlined above.
  • Removes the Proposition 39 Program’s sunset going forward – to be allocated in the annual budget process.

We have held productive conversations about the timelines in SB 518, as we have concerns that the “sweeping” date would leave schools with no additional time beyond the current August 1, 2017 CEC deadline for submission of final energy expenditure plans (EEP).

If they are planning to use their fifth-year allocations, LEAs should be moving forward to submit plans to the CEC by that date (see more info on the EEP deadline below). 

Senate Pro Tem de Leon’s Proposition 39 legislation is progressing and has moved off Suspense and was approved on the floor of the Senate.  SB 518 is now moving to Assembly for assignment to a policy committee.

State Budget and Proposition 39 Program

We testified at and communicated with State Budget Subcommittee hearings in both the Assembly and the Senate on Proposition 39 and both Houses have included a Prop 39 extension in their Budget proposals that are now being discussed in Budget Conference Committee.

The Assembly has recommended an extension to June 30, 2019 – a full year extension – if this were to occur, we believe that the CEC will set their EEP final deadline date more in line with what LEAs originally anticipated for the full years – at or around June 30, 2018.

The Senate’s budget proposal aligns with the SB 518, the Senate Pro Tem’s legislation, and includes the March 1, 2018 sweeping date for use by K-12 schools, clean buses, loans and the extension of the program indefinitely – and the March 31, 2019 encumbrance date.

A CASH letter has been sent to the members of the Legislative Budget Conference Committee asking for the Assembly deadline date and the extension of the program as proposed in Senate.  Stay Tuned.

CEC Advice for Schools

At School Energy Coalition (SEC) Forums held last month, the CEC shared some advice with us about those final EEPs – LEAs should include all school sites that may be potentially considered for projects in your plan – even if you are unsure of the funding that may be available – because the system the agency uses won’t allow amendments to add sites later.

They also shared that there are about one million dollars remaining in CEC’s Bright Schools and technical assistance; low and no-interest loans for energy efficiency projects funded under the ECAA.

CASH/SEC Zero-Net Energy Workshop: June 27 and 29

SEC is pleased to be co-sponsoring the June Workshop with CASH on moving schools to zero-net energy.  The Workshops will be held on June 27th in Sacramento and June 29th in Ontario.  Click here to register online.

We will be sharing information on how to get to ZNE on a school site or district – from the planning and decision-making process, ZNE and CHPS, financing and case studies from schools that are making the move now to generate savings and provide healthy classrooms for teachers and students that improve academic performance, teacher retention along with utility bill savings.

Please contact me with comments or questions on energy, water, or Prop 39!  aferrera@m-w-h.com

~ Anna Ferrera

Assistance from the Governor’s Office for CASH Members Who Have Not Yet Submitted Their EEPs

January 30, 2017

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!

~ CASH Staff

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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CASH and SEC Presenting at the Green California Schools & Community Colleges Summit and Exposition

October 11, 2016

Since its inception, CASH has partnered with the Green California Schools & Community Colleges Summit and Exposition to help provide workshops on pertinent green school facility funding issues. This year, we are pleased to announce our partnership with the School Energy Coalition (SEC) to provide two excellent workshops with panels of green school facility experts.

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Facility Planners Meeting Update – August 2016

August 1, 2016

The CASH Facility Planners Meeting Update for August 2016 is now available and includes information regarding:

  • Proposition 51 – State School Bond
  • Office of Public School Construction Stakeholder Meeting on Definition of Historical Buildings
  • California Energy Commission New Proposition 39 Guidelines
  • Legislative Update
  • New Members
  • Networking Mixer Scheduled for August 25, 2016, in Sacramento

Click here to download the Update.

To download the list of Prop. 51 school board resolutions received, as referenced in the Update, click here.

~CASH Staff

State Allocation Board Meeting Minutes (May 2016)

May 31, 2016

By Rebekah Cearley

CASH_Logo_Web_Proof3The next State Allocation Board (SAB) meeting is scheduled for Wednesday, June 22, 2016. For a PDF copy of the May 2016 SAB meeting minutes, please click here. 

Governor Releases 2016-17 May Revision

May 13, 2016

By Ian Padilla

CASH_Logo_Web_Proof3On Friday, May 13, 2016, the Governor released his  2016-17 May Revision.  We are currently reviewing the details concerning school facilities.  In the press conference, the Governor was asked if he opposed the State School Bond, Governor Brown stated that he did not support or oppose the measure, and could deal with its costs if it was approved.  This is consistent with his January 2016 statements concerning his position on the State School Bond.

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Facility Planners Meeting Update – February 2016

February 2, 2016

Kindergarten through Community College Public Education Facilities Bond Act of
2016
In response to the lack of state funding for school facilities, the Coalition for Adequate
School Housing (C.A.S.H.) has qualified a State School Bond for the November 2016
statewide General Election ballot. C.A.S.H. will proceed with its State School Bond on the
General Election ballot in November 2016. Continue reading

State Budget 2016-17: No School Bond or New School Facilities Proposal

January 7, 2015

State Budget 2016-17: No School Bond or New School Facilities Proposal

Today, the Governor released his 2016-17 State Budget, which does not include a proposal for a school bond, and which restates his previous proposals on K-12 school facilities that were included in his last three State Budgets. The Governor also references the Californians for Quality Schools (CQS) initiative, objecting to the fact that it does not make changes to the existing School Facility Program (SFP), and that it would add an additional $500 million in General Fund debt service; however, when asked directly if he supported the CQS initiative in his press conference, he stopped short of opposing it. Continue reading