Coalition for Adequate School Housing

The Coalition for Adequate School Housing (CASH) was formed in 1978 to promote, develop, and support state and local funding for K-12 construction.

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State Allocation Board Update

Posted on June 28, 2017 by CASH

June 28, 2017

On Wednesday, June 28, the State Allocation Board (SAB) met to hear issues related to actions taken at their meeting on June 5, 2017 (approval of “Option 1”).  Specifically, under Action Items, the agenda included “Regulatory Amendments for Increased Program Accountability” and “Regulatory Amendments for the Financial Hardship Program.” Under Informational Items, the agenda included “School Facility Program Application Processing.”  The following is a summary of each agenda item.

Regulatory Amendments for Increased Program Accountability

At its June 5th meeting, the SAB approved a grant agreement template and conforming regulatory amendments. Office of Public School Construction (OPSC) staff indicated that necessary changes would need to be presented to the SAB if the budget trailer bill was enacted (AB 99 was subsequently signed by the Governor). This item seeks SAB approval for the revised template grant agreement. The item was APPROVED with no discussion.

Regulatory Amendments for the Financial Hardship Program

These proposed regulatory amendments would allow districts seeking Financial Hardship assistance to submit a request for funding without a pre-approved Financial Hardship status. This would allow a Financial Hardship approval process by accepting the Form SAB 50-04 when districts are ready to submit, and conducting a Financial Hardship review at the time the application is processed, prior to placement on the Unfunded List. CASH has advocated for this improvement to the Financial Hardship Program for many years and fully supports this proposal. This item was APPROVED with no discussion.

School Facility Program Application Processing

At their June 5th meeting, the SAB directed OPSC staff to begin processing the Applications Received Beyond Bond Authority List, as well as newly submitted applications. In this item, OPSC staff presented information to the SAB on how they will process the projects previously on this list, as well as Approved Applications for new construction and modernization projects received on or after April 1, 2017, that are now on the OPSC workload list. Included in the approval of “Option 1” was the requirement that districts must recalculate their enrollment and SFP eligibility. CASH strongly objects to this action. CASH Vice Chair Julie Arthur (Palm Springs USD) testified that CASH believes that the provisions of “Option 1” are inconsistent with statute, and asked the SAB to revisit the issue. No request to revisit “Option 1” or action was taken on this item because it was not an Action item.

The next SAB meeting is scheduled for Wednesday, August 23, 2017.

~ CASH Staff

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Posted in Construction, Energy, Finance, General, Legal, Legislation, Maintenance & Operations, Planning & Architecture, Proposition 51, State Agency, Uncategorized, Water 2016 School Facilities Bond Initiative, 2016 State School Bond Initiative, Californians for Quality Schools, Charter School Facilities Program, Coalition for Adequate School Housing, CQS, Department of Finance, DIR, Division of the State Architect, DSA, Kindergarten Through Community College Public Education Facilities Bond Act of 2016, November 2016 ballot, November 2016 General Election, November 2016 State School Bond Initiative, office of public school construction, OPSC, Prop 51, Proposition 51, SAB, School Facility Program, school finance, SFP, state allocation board, State School Bond, State School Bond Initiative, statewide school bond, Yes on 51, Yes on Proposition 51

Governor Signs Budget

Posted on June 27, 2017 by CASH

June 27, 2017

Today the Governor Signed AB 97, the budget bill for FY 2017-18, as well as the related trailer bills to enact policy changes in the budget. Below is an update on a number of key school facility policy issues that are addressed in budget trailer bills.

SB 96: Department of Industrial Relations

Makes changes to the Department of Industrial Relations (DIR) prevailing wage monitoring program, including:

  • Raises the threshold for the program’s applicability from $1,000 to $25,000 for construction projects and $15,000 for maintenance projects.
  • Increases penalties for contractors and subcontractors who fail to register correctly.
  • Creates new penalties for awarding bodies, including school districts, who would be subject to a fine of $100 per day, up to $10,000.
  • An awarding body determined to be a “willful violator” with two program violations within 12 months could lose state facility funding for one year.
  • Increases the annual contractor registration fee from $300 to $400 and permits a contractor to register for multiple years at a time.

The budget also includes $805,000 in 2017-18 and $759,000 in 2018-19 for positions to educate awarding bodies about their requirements under the law.

AB 111: DSA Filing Fee

Increases Division of the State Architect (DSA) project filing fees for construction or alteration of school buildings. The fee will increase from 0.7% to 1.25% for the first $1 million in construction costs, and from 0.6% to 1.0% for costs in excess of $1 million. If the balance in the Public School Planning, Design, and Construction Review Revolving Fund exceeds six months of expenditures, the fee will automatically decrease.

AB 99: School Facility Program Audits

Includes the School Facility Program (SFP) audit changes, adding state-funded school facility project scope to the local annual K-12 audit. CASH successfully lobbied for amendments to the bill to provide school districts with the flexibility to use capital funds or operational dollars to repay any expenditures deemed ineligible. The original proposal from the Administration would have required automatic payback of audit exceptions using a withholding from the next Proposition 98 apportionment. The new audit provisions apply to SFP projects funded on and after April 1, 2017.

AB 99 & AB 125: Proposition 39 – Encumbrance Date and Program Extension

Includes provisions related to the Proposition 39 energy efficiency program. The bill extends the encumbrance date for projects by 12 months to June 30, 2019. The Legislature is now considering an additional trailer bill that includes the provisions of SB 518 (De Leon) to extend the Proposition 39 program indefinitely. Identical language is reflected in both AB 125 and SB 110, and either bill could move forward. These bills extend the sunset on the Proposition 39 program indefinitely, though future funding is subject to an appropriation in the annual budget process. The bills would establish a new competitive grant framework for allocation of the dollars. The bills would also sweep remaining unallocated funds from the first five years of the program for projects that have not submitted an Energy Expenditure Plan (EEP) by March 1, 2018. These funds would be dispersed as follows:

  • $75 million for a school bus retrofit and replacement program to be administered by the California Energy Commission.
  • $100 million for low- and no-interest Energy Conservation Assistance Act (ECAA) loans.
  • The remainder would be used for competitive grants for K-12 schools in designated tiers.

Passage of AB 125 or SB 110 would make SB 518 obsolete. Budget trailer bills are urgency statutes that are effective immediately upon signature and require only a majority vote to pass, in contrast to a typical urgency bill, which requires a two-thirds vote. Trailer bills are not subject to the June 15 budget bill deadline. Senate President Pro Tem Kevin De Leon, the author of SB 518, appears very interested in moving this issue through the legislative process via trailer bill.

~ CASH Staff

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Posted in General, Legal, Legislation, Maintenance & Operations, State Agency, Uncategorized Coalition for Adequate School Housing, DSA, office of public school construction, OPSC, Proposition 39, SAB, School Facility Program, school finance, SFP

CASH Budget Update: Legislature Approves State Budget & Trailer Bills

Posted on June 15, 2017 by CASH

June 15, 2017

Today, the Legislature passed AB 97, the budget bill for FY 2017-18, meeting the constitutional deadline to pass an on-time budget by June 15, 2017. The Legislature also passed a number of accompanying trailer bills to implement policy changes in the budget. The budget includes $125.1 billion in General Fund spending, including $9.9 billion in total reserves. This is the largest budget reserve in California’s history and is consistent with the Governor’s priority of preparing for the next economic downturn. The budget will now go to the Governor for his signature, or line item veto, if any.

School Finance Budget Trailer Bill – AB 99

School Facility Audit Language – This bill includes new school facility audit language (commencing with changes to Education Code Section 41024) that requires local auditors to include state funded facility projects in the annual school district audit. The audit language includes references to the new fund release grant agreement adopted at the June 5, 2017 State Allocation Board (SAB) meeting. The audit language also includes language on the use of project savings and the process for repaying state funds audit exceptions.

One-Time Discretionary Funding – This bill includes $876.6 million (one-time Proposition 98) for any purpose, including deferred maintenance and capital outlay. This is approximately $145 per average daily attendance.

Emergency Repair Program – This bill includes language that any unencumbered funds in the School Facilities Emergency Repair Account revert to the Proposition 98 Reversion Account. AB 99 extends this encumbrance.

Budget Trailer Bills AB 111 and SB 96 (Anticipate Approval at the Time of Posting)

Proposition 39 – The date for local encumbrance of these funds increases from June 30, 2018 to June 30, 2019.

DSA Filing Fee – The Legislature passed budget trailer bill AB 111, which increases Division of the State Architect (DSA) project filing fees for construction or alteration of school buildings. The fee will increase from 0.7% to 1.25% for the first $1 million in construction costs, and from 0.6% to 1.0% for costs in excess of $1 million. If the balance in the Public School Planning, Design, and Construction Review Revolving Fund exceeds six months of expenditures, the fee will automatically decrease.

Department of Industrial Relations – The Legislature passed budget trailer bill SB 96, which makes changes to the Department of Industrial Relations (DIR) prevailing wage monitoring program, including:

Raises the threshold for the program’s applicability from $1,000 to $25,000 for construction projects and $15,000 for maintenance projects.

  • Increases penalties for contractors and subcontractors who fail to register correctly.
  • Creates new penalties for awarding bodies, including school districts, which would be subject to a fine of up to $100 per day, up to $10,000.
  • An awarding body determined to be a “willful violator” with two program violations within 12 months could lose state facility funding for one year.
  • Increases the annual contractor registration fee from $300 to $400 and permits a contractor to register for multiple years at a time.

The budget also includes $805,000 in 2017-18 and $759,000 in 2018-19 for positions to educate awarding bodies about their requirements under the law.

Additional OPSC Staffing and Bond Sales – We thank Senator Bates for her comments on lack of Proposition 51 progress; however, the budget agreement does not include any additional staff for the Office of Public School Construction (OPSC) nor any proposed increase in the January budget proposal for Proposition 51 state school bond sales.

~ CASH Staff

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Posted in Finance, Legislation, Maintenance & Operations, Planning & Architecture, Proposition 51, Uncategorized Coalition for Adequate School Housing, Division of the State Architect, DSA, office of public school construction, OPSC, Prop 51, Proposition 51, School Facility Program, school finance

SAB Takes Action on Upfront Agreement & Beyond Bond Authority Project List

Posted on June 5, 2017 by CASH

On Monday, June 5, 2017, the State Allocation Board (SAB) took action on two key policy issues that are critical to the implementation of Proposition 51: a) Regulatory Amendments for Increased Program Accountability (template for Upfront Grant Agreement); and, b) School Facility Program (SFP) Applications Received Beyond Bond Authority List (how to proceed with projects on the Acknowledged List). These proposals were originally scheduled to be adopted at the SAB meeting on April 24, 2017, but the action was deferred to a later date due to concerns with the draft prepared by the Office of Public School Construction (OPSC).

Fourteen CASH members testified during the hearing including Chair Don Ulrich (Clovis USD), Vice Chair Julie Arthur (Palm Springs USD), Immediate Past Chair Jenny Hannah (Kern HSD), and board members Rob Pierce (Elk Grove USD) and Alan Reising (Long Beach USD). The following is a summary of the actions that the SAB took on these agenda items:

Upfront Grant Agreement
The SAB voted to approve the Upfront Grant Agreement and conforming regulatory amendments, approved the projects on Attachment #5 for placement on the Unfunded List (Lack of AB 55 Loans), and exempted these projects from the Grant Agreement requirement. CASH and the education community had advocated for changes to the Grant Agreement, which were incorporated in this approval. These changes include:

  • Changes to the eligible expenditures list to expand eligibility of freezers, refrigerators, and exercise equipment.
  • The option of project-specific guidance letters incorporated by reference into the Grant Agreement – allows districts to achieve certainty on unusual project expenditures, ensuring auditors will allow.
  • The Grant Agreement is required at fund release, not as a condition of apportionment.
  • Projects on the True Unfunded List are exempt; the grant agreement still applies to all projects on the Acknowledged List.

The Grant Agreement as adopted includes a significant policy change by making educational technology, including computers and printers, an ineligible expenditure.

Beyond Bond Authority List
After extensive discussion and testimony from CASH board members and members of the education community, the SAB voted to approve “Option 1” which requires new construction projects on the Acknowledged List to re-justify their eligibility for the enrollment year in which the application was processed by OPSC, without losing their place in line. The biggest policy debate of the evening was whether schools should be required to update eligibility, or if projects would be processed with eligibility at the time of submittal. Projects that would no longer be eligible under updated eligibility have the right to submit an appeal to the SAB.

CASH would like to thank our members for their dedication and commitment to qualifying, approving, and now working to implement Proposition 51.

~ CASH Staff

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Posted in Construction, Finance, General, Legal, Legislation, Maintenance & Operations, Planning & Architecture, Proposition 51, State Agency, Uncategorized 2016 School Facilities Bond Initiative, 2016 State School Bond Initiative, Californians for Quality Schools, Coalition for Adequate School Housing, CQS, Department of Finance, Division of the State Architect, DSA, Kindergarten Through Community College Public Education Facilities Bond Act of 2016, November 2016 ballot, office of public school construction, OPSC, Prop 51, Proposition 51, SAB, School Facility Program, school finance, SFP, state allocation board, State School Bond, State School Bond Initiative, statewide school bond

CASH Alert: Please Attend the June 5, 2017 SAB Meeting

Posted on May 26, 2017 by CASH

May 26, 2017

On Monday, June 5, 2017, the State Allocation Board (SAB) will meet at 4:00 pm in Room 437 of the State Capitol to consider recommendations on the proposed Grant Agreement, True Unfunded List, and Acknowledged List. Click here to see the CASH letter addressing these proposals.

We encourage you to attend the SAB meeting and speak to your specific concerns about the proposals and how they will affect your school district or client district.

More information will be provided during the CASH Monthly Update Meeting also scheduled for Monday, June 5, 2017, at 11:00 am in the Lower Level Conference Room A at 1130 K Street, Sacramento, CA 95814.

We additionally would like to further encourage you to communicate your concerns directly to your State Senators and Assembly Members. The district draft letter found here, may be a resource in doing so.

~ Tom Duffy

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Posted in Finance, General, Legal, Legislation, Planning & Architecture, Proposition 51, State Agency, Uncategorized 2016 School Facilities Bond Initiative, 2016 State School Bond Initiative, Californians for Quality Schools, Charter School Facilities Program, Coalition for Adequate School Housing, CQS, Department of Finance, Division of the State Architect, DSA, Kindergarten Through Community College Public Education Facilities Bond Act of 2016, office of public school construction, OPSC, Proposition 51, SAB, School Facility Program, school finance, SFP, state allocation board, State School Bond, State School Bond Initiative, statewide school bond

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