State Allocation Board Hears Routine Business
Today the State Allocation Board (Board) met to hear routine business items. The Board welcomed two new members: Senator Connie Leyva (Chair, Senate Education Committee) and Senator Richard Roth (Chair, Senate Budget and Fiscal Review Subcommittee No. 1 on Education). They replaced Senator Ben Allen and Senator Richard Pan.
Executive Officer Statement
In her Executive Officer Statement, Lisa Silverman provided the following updates:
- Upcoming Bond Sale – A state General Obligation bond sale is in progress; Office of Public School Construction (OPSC) staff anticipate receiving bond proceeds for the School Facility Program and will prepare Priority Funding Apportionments for the April 2019 meeting.
- Status of Applications Received Beyond Bond Authority – As of February 28, 2019, OPSC received requests for modernization funding that exceed available bond authority. As of March 1, applications for modernization are being placed on the Applications Received Beyond Bond Authority List, along with new construction applications. As of March 15, OPSC received the following for the Applications Received Beyond Bond Authority List:
- New Construction: 60 applications worth $261,262,063
- Modernization: 16 applications worth $48,772,369
- New Website Format and Dashboard Feature – OPSC’s website is redesigned to simplify viewing information and to be accessibility compliant. OPSC has created a Data Dashboard to facilitate the identification of the distribution of SFP funding.
The Farmersville Unified/Tulare and San Bernardino City Unified/San Bernardino appeals were withdrawn from consideration.
School Facility Program Approvals and Workload List
The Board approved Unfunded Approvals (Lack of AB 55 Loans) at the March 27, 2019 meeting worth the following:
- New Construction: $172,024,113
- Modernization: $14,141,585
- Total: $186,165,698
The Unfunded Approvals List (Lack of AB 55 Loans) dated February 27, 2019 contains projects worth $369,843,440.69.
The workload list dated February 28, 2019 contains projects worth the following:
- New Construction: $2,373,002,353
- Modernization: $2,548,668,361
- Total: $4,921,670,714
The Full-Day Kindergarten Facilities Grant Program workload list dated February 28, 2019 contains projects worth $258,248,616.
During public comment, Tom Duffy on behalf of CASH, asked the State Allocation Board (Board) to consider reinstating the use of AB 55 loans to provide more frequent apportionments to schools. He indicated that this tool would help combat increases in construction costs, and that the bond funds could pay interest costs on the loan mechanism. Chair Keely Bosler said that she was trying to understand the problem that the proposal would solve as many of the projects are reimbursements, and there is already a mechanism for Financial Hardship to provide greater flexibility for some districts. SAB Member Daniel Kim stated that the approach of paying for interest costs out of bond funds would reduce the total amount available for projects. Richard Lyons with the California Building Industry Association (CBIA) testified in support of the CASH proposal.
The next State Allocation Board meeting is scheduled for April 24, 2019 at 4:00 pm.
~ CASH Staff