News

The State Allocation Board (SAB) held a meeting to conduct routine approvals and hear two appeals. The Board apportioned $183,132,062 in State General Fund dollars for School Facility Program projects. Michele Perrault announced that as the new permanent designee to the SAB for the Department of Finance, she would act as chair. The Board also thanked Gayle Miller for her service in that position. 

Executive Officer Statement

SAB Executive Officer Rebecca Kirk provided the following update:

Upcoming Priority Funding Round—

• The State Treasurer’s Office opened a bond sale on March 26. The Office of Public School Construction (OPSC) anticipates receiving proceeds of the bond sale. As such, OPSC anticipates presenting projects on the Unfunded List (Lack of AB 55 Loans) at the May State Allocation Board (Board) meeting for Priority Funding apportionments. OPSC will notice the apportionments prior to the May meeting after the State Treasurer’s Office provides confirmation to OPSC of the amounts to be received.

Construction Cost Indices Update—

• At the January 24, 2024 Board meeting, the Board directed staff to research alternative construction cost indices that could be used for the annual adjustment to School Facility Program (SFP) grants and directed staff to provide updates on these efforts as well as updates related to a potential statewide school facilities bond. 

• In response to the Board’s direction for staff to research alternative construction cost indices, staff has continued to meet with stakeholders and research is still underway to evaluate and compare several indices. An item presenting the results of staff’s research will be presented at a future Board meeting. 

State School Facilities Bond Updates—

Proposed Legislation 

• The Governor has stated that this spring, the Administration expects to enter into negotiations with the Legislature on their education facilities bond proposals to reach agreement on a bond proposal to be considered in the November 2024 election. 

• Currently, there are two education facilities bond bills pending in the Legislature. Staff is monitoring these bills and will provide further updates over the coming months. 

o   Assembly Bill 247 – Education finance: school facilities: Transitional Kindergarten Through Community College Public Education Facilities Bond Act of 2024 (Muratsuchi, Fong, Wilson, et al.)

o   Senate Bill 28 – Education finance: school facilities: Public Preschool, K-12, and College Health and Safety Bond Act of 2024 (Glazer)

Appeals

Lassen View Union Elementary (Tehama County)—

•     The Board approved the district’s request for Financial Hardship status for the design phase of a New Construction project and a Modernization project based upon “other evidence of reasonable effort as approved by the State Allocation Board.” The Board’s action requires that the district attempt to pass another local bond prior to submitting a similar appeal for the construction phase of these projects. 

Pioneer Union Elementary (Butte County)—

•     The Board approved the district’s request for accelerated processing and funding of a School Facility Program application for New Construction funding based on an alternative eligibility methodology. The entire district’s facilities located at Berry Creek Elementary were destroyed by the North Complex West Zone Fire in 2020. The Board’s action provided $4,134,297 in additional state funding to the District.

•      The Board also had a robust discussion expressing their desire to explore possible changes in statute or regulation necessary to better support schools affected by wildfires.

School Facility Program Approvals and Workload

The Consent agenda includes a list of SFP apportionments for projects worth $183,132,062. The source of funding is a one-time, state General Fund appropriation made by the State Budget Act of 2022.

The list of Unfunded Approvals dated February 28, 2024 contains projects worth $101,162,150.

The SFP Workload list, dated February 29, 2024, contains projects worth the following:

The Acknowledged List, dated February 29, 2024, contains projects worth the following:

There will be no meeting on April 24, 2024. The next meeting will take place on Wednesday, May 22, 2024. The time and location of the meeting will be determined and announced at a later date. 

~ Nancy Chaires Espinoza, Legislative Advocate