January 25, 2023

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, 2023, through June 5, 2023. $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.

Consent Agenda

The consent agenda was approved unanimously. Items included, but were not limited to, the following:

Annual Adjustment to School Facility Program Grants
The Board adopted an increase of 4.42 percent for the 2017 School Facility Program (SFP) grants based on the RS Means Construction Cost Index (CCI).  In February 2016, the Board adopted the RS Means CCI for 2016 and future years.

Emergency Repair Program Funding
The Board apportioned $2,920,016.10 in Emergency Repair Program (ERP) funds for nine applications.  The OPSC received savings from previously funded projects.

Emergency Repair Program Grant Adjustments – Savings
The Board adopted an item to reduce grant apportionments by the savings and interest earned for 132 ERP applications. For these projects, $7,205,001.81 has been returned to the state, and an additional $2,233,670.46 will be returned to the state.

Facility Hardship / Rehabilitation Program
The Board approved one Facility Hardship Rehabilitation project for placement on the Unfunded List (Lack of AB 55 Loans).

Financial Reports

The following reflects remaining bond authority as of January 25, 2023, including Unfunded Approvals:

SFP Program	Prop. 51	Prop. 1D	Prop. 55	Prop. 47
New Construction	$3.0 billion	$3.3 million	$6.1 million	$0.9 million
Seismic Repair	—	$58.9 million	—	—
Overcrowding Relief	—	$14.0 million	—	—
Modernization	$3.0 billion	$5.5 million	$0.1 million	$0.1 million
Career Technical	$500 million	$0.9 million	—	—
High Performance	—	$0.0	—	—
Charter School	$500 million	$28.6 million	$1.7 million	$0.8 million

Reports

2016 Office of State Audits and Evaluations Report and Greater Program Accountability
OPSC Executive Officer Lisa Silverman provided information to the State Allocation Board about the recent report completed by the Office of State Audits and Evaluations (OSAE), and actions that may be taken to enhance accountability in the School Facility Program (SFP).  The passage of Proposition 51 and the accountability measures proposed in the Governor’s 2017-18 Budget prompted staff to explore possible regulation and policy changes for the SFP. Lisa Silverman presented consideration of a “grant agreement” between the Board and applicant districts on a per-project basis, which would address some of the OSAE recommendations. She indicated that, with a grant agreement in place, OPSC staff could more efficiently monitor bond funds and confirm that each district met its required project milestones. Grant agreements would also provide greater transparency and clearly define expectations and responsibilities under the program for the state and the school district receiving SFP funding. Staff plans to present a regulation change proposal along with a detailed outline or example of a proposed grant agreement, as well as other possible changes to the SFP, in the near future.

Assembly Member Patrick O’Donnell indicated that the voters have spoken in passing Proposition 51, and the Board needs to do all it can to get funding out to districts. CASH Chair Jenny Hannah addressed the Board in public comment, stating that CASH supports transparency and consistency for districts. She urged an expeditious process and offered that CASH can help provide input to align the state and local processes.

The Board accepted the report and requested that OPSC staff proceed with development of a grant agreement and companion regulation for Board action at a future meeting. SAB Chair Eraina Ortega expressed intent to bring the item back at the March Board meeting.

Overview of Informational Lists
OPSC Deputy Executive Officer Barbara Kampmeinert provided the Board with an overview of the Unfunded List and Applications Received Beyond Bond Authority list. She indicated that project circumstances may have changed since submission, and the lists will require future Board action. The Board acknowledged the report.

2016 Annual Legislative Update
Barbara Kampmeinert provided the Board with an update on the passage of legislation in 2016 that may impact programs administered by the Board. She indicated that no Board action is required as a result of these bills. The Board acknowledged the report.

The next State Allocation Board meeting is scheduled for Wednesday, February 22, 2023.

~ Rebekah Cearley