BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 346
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 346 (Torlakson) - As Amended:  April 14, 2009 

          Policy Committee:                              Education  
          Vote:11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill modifies the Joint-Use Facilities program by  
          authorizing state school facilities funds to be used for  
          schoolsites that offer instruction in grades K-12 or for  
          property that is adjacent to the schoolsite and owned by a  
          government agency, as specified.  This measure further prohibits  
          these modifications from becoming operative until voters approve  
          a statewide general obligation bond act for the purposes of  
          constructing and modernizing education facilities at a statewide  
          election on or after January 1, 2010.  Specifically, this bill: 

          1)Requires a joint-use agreement to construct facilities on land  
            owned by a government agency to provide that the land will be  
            leased to the school district for a time period that reflects  
            the useful life of the facility constructed.  

          2)Expands the use of state new construction and modernization  
            funding for a joint-use project to include the construction of  
            a child health and wellness clinic; career technical building  
            or shop; science and technology laboratory; science or  
            historical/cultural center with exhibits or educational  
            programs that meet the current state content standards;  
            performing arts center, physical education and outdoor  
            recreation site development, and a parking facility.  

          3)Authorizes a school district to include the value of land or  
            real property upon which the joint-use project is be to built,  
            as part of the current 50% local match, if either of the  
            following conditions exists: (a) the district owns the land or  
            real property and did not pay for or acquire the land or real  
            property with state funds and (b) the district does not own  








                                                                  AB 346
                                                                  Page  2

            the land or real property, but will be given the land free of  
            charge.  

          4)Authorizes a portion of the joint-use partner, up to and not  
            exceeding 10% of eligible project costs, to include equipment  
            with an average useful life expectancy of at least 10 years if  
            the contribution is included as part of a career technical  
            education (CTE) joint-use project application.  

           FISCAL EFFECT  

          1)State school facilities bond cost pressure, likely in the tens  
            of millions, to expand the use of joint-facility program  
            funds. Actual costs depend on the number of projects that meet  
            specified criteria. 

          2)AB 127 (Nunez), Chapter 35, Statutes of 2006, authorized  
            Proposition 1D: the Kindergarten-University Public Education  
            Facilities Bond Act of 2006 for $10.416 billion. The voters  
            passed Proposition 1D on November 7, 2006. Of the $10.416  
            billion, $7.329 billion is allocated for K-12 education  
            facilities.  According to the Office of Public School  
            Construction, as of February 2009, there is $3.5 million  
            available for the joint-use program under Proposition 1D.    

           SUMMARY CONTINUED  : 

          5)Requires the joint-use agreement to ensure that the school  
            district maintains priority for use of the facilities  
            construction and provides that the facility will be public  
            with access guaranteed for public use.  

          6)Establishes the following maximum grant amounts for the  
            joint-use program: (a) $125,000 per project per elementary  
            schoolsite; (b) $1.875 million per project per elementary  
            schoolsite; and (c) $2.5 million per project per high  
            schoolsite.  This bill further requires these grant amounts to  
            be adjusted annually in the same manner as new construction  
            grants.  
           
          COMMENTS  

           1)Purpose  .  Many argue that the narrow list of projects eligible  
            for joint-use funding is not adequate and unnecessarily  
            restricts opportunities to alleviate the conditions  








                                                                  AB 346
                                                                  Page  3

            experienced in communities with a limited availability of  
            land. Often, these are the same communities that suffer  
            deficiencies in public services and facilities, such as parks,  
            recreational centers, cultural arts centers, technology  
            centers, health clinics and outdoor recreation centers. 

            According to the author, "The traditional education model in  
            California is evolving where the core instructional spaces and  
            traditional facilities may no longer be adequate or  
            appropriate to meet the educational needs of a given  
            community. Allowing for joint enterprises to build the  
            aforementioned facilities, in partnership with the State,  
            seeks to maximize the use of limited local and state  
            resources." 

           2)The Joint-Use Facilities program  allows a school district to  
            utilize funds from a joint-use partner to build a joint-use  
            project the district would not otherwise be able to build due  
            to lack of financial resources. The program provides funding  
            for the new construction or the reconfiguration of existing  
            school facilities beyond what is necessary for school purposes  
            and may include funding for multipurpose rooms, gymnasiums,  
            libraries, child care facilities, or teacher education  
            facilities to be located on K-12 school sites. 

            Since 2002, the state has provided via voter approved school  
            facilities bonds $150 million for the joint-use facilities  
            program, including Proposition 1D that was passed by voters in  
            November 2006 ($29 million in new bond funds and $21 million  
            from inactive programs).  Likewise, in July 2008, the State  
            Allocation Board (SAB) authorized another transfer of $7.6  
            million in prior bond funds for this program.       

           3)Should joint-use grant amounts have an annual automatic  
            increase  ?  Existing law requires the SAB to adjust annual  
            per-pupil new construction grants to reflect construction cost  
            changes, as established in the statewide cost index for class  
            B construction.  This bill requires joint-use grant amounts to  
            be adjusted in the same manner.  However, under the current  
            CTE Facilities program, grant amounts are  not  required to be  
            adjusted annually.  The committee may wish to consider whether  
            or not it is appropriate to require an annual grant increase  
            for the joint-use program when it is not required for all  
            state school facility programs.  









                                                                  AB 346
                                                                  Page  4

           4)Previous legislation  .  SB 35 (Torlakson), which is similar to  
            this measure, was vetoed in October 2007, with the following  
            message: 

            "I am supportive of the joint-use facilities projects when  
            they actually encourage creative mutually beneficial  
            relationships between school districts and community partners.  
            However, I am concerned that this bill would expand the  
            Joint-Use Facilities Program (Program) without ensuring that  
            any additional funding will be available for its purposes. 

            " Furthermore, the Program's intent to fund joint-use ventures  
            with equal local and State contributions could be undermined  
            if joint-use partners were able to contribute something other  
            than fiscal resources, such as equipment with a 10-year useful  
            life, where as the State share of the project is being funded  
            with 30-year General Obligation Bonds. 
            Finally, any changes to the Program should be debated within  
            the context of a future bond measure, to assure that these  
            projects are not funded at the expense of other educational  
            facility priorities."

            This bill limits the local contribution of equipment to CTE  
            facilities only, not the other additional facilities.    


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081