June 1, 2016
By CASH Staff
State Budget May Revision
K-12 School Facility Emergency Repair Revolving Loan Program
As CASH has previously reported, the Governor’s 2016-17 May Revision includes the K-12 School Facility Emergency Repair Revolving Loan Program which would provide $100 million in one-time Proposition 98 funds for bridge loans to school districts to address imminent emergency health and safety facilities repairs. School districts that receive a loan through this program would have the option of paying the loan off in full without interest within one year or having the Superintendent of Public Instruction (SPI) structure a longer-term low interest loan. As loans are repaid, funds would be returned to the program and made available for emergency repairs at other sites.
In light of Budget Flexibility, the elimination of the Deferred Maintenance Program (DMP) under the LCAP, and conclusion of the Emergency Repair Program (ERP), state support for school maintenance has essentially been eliminated. Because health and safety are cornerstone priorities for our organization, CASH supported (with amendments to assist small rural school districts), the K-12 School Facility Emergency Repair Revolving Loan Program as a bridge to a more permanent solution to funding adequate school maintenance, though we do note that this loan program should be a floor, not a ceiling, with regard to support for school maintenance.
On May 17 and 18 the Senate Budget Subcommittee #1 on Education reviewed the proposed May Revision and voted to reject the proposal 2-1, arguing that changes to the facilities program should be made in the context of whether or not a statewide bond for school facilities passes in November, and that there are concerns about, “…the use of Proposition 98 for this purpose…” The Assembly Budget Subcommittee on Education also rejected this item. The Legislative Analysts’ Office (LAO) and the California Teachers Association (CTA) opposed the program. The Department of Finance (DOF), the California Department of Education (CDE), and CASH testified in support. It is not expected that this program will be included on the Budget Conference Committee agenda.
For the complete June 2016 Facility Planners Meeting Update, please click here.