State Allocation Board Increases Grant Amounts and Impact Fees
On January 22, the State Allocation Board (SAB) met to approve an adjustment to School Facility Program (SFP) grants, and to Level I development impact fees.
Executive Officer Statement
In her Executive Officer statement, Lisa Silverman provided the following updates:
- Priority Funding Apportionments – At the September 25, 2019 meeting, the Board approved $771.7 million in priority funding apportionments for 193 projects representing 106 school districts. Applicants required to submit a Fund Release Authorization (Form SAB 50-05) had to do so by the close of business on Tuesday, December 24, 2019.
- Career Technical Education Facilities Program (CTEFP) – For CTEFP projects that were approved as a reservation of funds, the school districts have 12 months from the Apportionment date to submit the required California Department of Education and/or Division of the State Architect approvals to OPSC, which is September 24, 2020.
- Recent Priority Funding Round – The current priority funding filing period opened on November 13, 2019 and closed on December 12, 2019. OPSC received 130 requests for 274 unique projects totaling $829.7 million. These requests are valid from January 1, 2020 through June 30, 2020.
- Sixth Career Technical Education Facilities Program (CTEFP) Filing Round is Open –The Sixth CTEFP Filing Round is open until April 6, 2020. CTE Grant Applications were due to the California Department of Education (CDE) by December 2, 2019. The Application for Career Technical Education Funding (Form SAB 50-10) is due to OPSC on or before April 6, 2020.
- CDE is providing scores on a flow basis. OPSC encourages all applicants with projects with a score of 105, or higher, to submit the Form SAB 50-10 immediately upon receipt of the CDE’s score letter for the project.
- Facility Hardship Program Regulation Amendments – OPSC conducted a stakeholder meeting on January 10, 2020 to discuss potential amendments to the Facility Hardship Program regulations, and will be holding a second meeting on January 31st at State Capitol Room 4204 from 9 am to 11 am. The second meeting will continue the discussion of amendments to the existing program, such as improving the application process, clarifying existing regulations, and other issues. An item will then be presented to the Board at the February 2020 meeting.
- AB 48/Proposition 13 – The measure would provide $9 billion in resources to construct and modernize K-12 education facilities. OPSC staff is working on an implementation plan should the measure be approved, and will be monitoring the election results on Proposition 13 at the March 3, 2020 statewide primary election.
Assembly Member Patrick O’Donnell requested and Chair Gayle Miller affirmed that the following items would be placed on the agenda for the February 26th meeting:
- Election of a Vice Chair. SAB bylaws require the election of a Vice Chair at the beginning of each legislative session, but the position has been vacant since 2014.
- Appointment of an Assistant Executive Officer (AEO). Statute authorizes the SAB to appoint and AEO to be paid for with bond funds. The position has been vacant since 2015.
- Creation of an Implementation Committee, should Proposition 13 be approved by the voters. The SAB used an Implementation Committee composed of practitioners and technical experts to inform development of regulations for the SB 50 School Facility Program.
The Board heard an appeal from Washington Unified (Fresno) to present the District’s request to retain design funding in the amount of $234,178 that was inadvertently provided twice for new construction. The Board approved the appeal.
Previously-noticed appeals from Lompoc Unified (Santa Barbara) and San Bernardino City Unified School District were withdrawn prior to the meeting.
- Annual Adjustment to School Facility Program Grants —
- The Board adopted an increase of 2.08 percent for the 2020 SFP grants based on the RS Means Construction Cost Index. The new rate will apply to all projects approved in 2020.
- Index Adjustment to the Assessment for Development (Development Impact Fee) —
- The Board increased the 2020 maximum Level I development impact fee by 7.64 percent using the RS Means Index, effective immediately.
- This brings the per-square foot assessment to $4.08 for residential and 66 cents for commercial/industrial development.
School Facility Program Approvals and Workload List
The Unfunded Approvals List (Lack of AB 55 Loans) dated December 31, 2019 contains projects worth $852,805,367. [Note that the title of the document erroneously identified it as the December 9th list.]
The Workload List dated December 31, 2019 contains projects worth the following:
|New Construction & Charter||$1,611,563,175|
The Acknowledged List dated December 31, 2019 contains projects worth the following:
The next meeting is scheduled for Wednesday, February 26, 2020 at 4:00 pm.
~ Nancy Chaires Espinoza, Legislative Advocate