July 24, 2013
We reported to you previously that, as part of the enacted 2013-14 Budget, Routine Restricted Maintenance contributions and the Deferred Maintenance Program matching requirement local set-aside were eliminated. However, upon further analysis of the LCFF and its implications, it has come to our attention that the minimum requirements for Routine Restricted Maintenance Account contributions still remain in the law.
Specifically, the legislation implementing LCFF did not make any change to the School Facility Program (SFP) requirements stipulated in Education Code Section 17070.75, et seq., regarding maintenance of facilities. School districts that receive funds under the SFP are required to annually deposit a minimum of 3% of total general fund expenditures into a Routine Restricted Maintenance Account. This requirement persists for 20 years after receipt of SFP funds.
Through prior budget flexibility provisions (Education Code Section 17070.766), the Routine Restricted Maintenance contribution requirement was reduced to 1% or waived if facilities are maintained in good repair, per Williams. This flexibility expires at the end of FY 2014-15, and the 3% Routine Restricted Maintenance contribution requirement returns in FY 2015-16.
C.A.S.H. is very pleased that, amidst the move toward local flexibility, the importance and challenges of committing funds to facilities maintenance has been recognized. During budget negotiations, C.A.S.H. worked hard to advocate that minimum maintenance contributions should continue, in order to ensure that school facilities are clean, safe, and functional. We’d like to thank School Services of California, Inc. for first reporting this information.
~ C.A.S.H. Staff