BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 128
                                                                  Page  1

          Date of Hearing:   July 6, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 128 (Lowenthal) - As Amended:  March 22, 2011 

          Policy Committee:                              Education 
          Vote:7-3

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

           SUMMARY  

          This bill authorizes modernization grant funding provided under 
          the State School Facility Program (SSFP) to be used for high 
          performance school projects and authorizes a project funded 
          under the Career Technical Education (CTE) facilities program to 
          be eligible for High Performance Incentive (HPI) grant funding.  


           FISCAL EFFECT  

          1)State school facilities bond cost pressure, likely in the low 
            millions to tens of millions, to authorize modernization grant 
            funding to be used for high performance school projects.  
            Likewise, there would be additional state school facilities 
            bond cost pressure to increase funding for both the CTE 
            facilities program and the HPI program because school 
            districts, under this bill, are eligible to receive grant 
            funding from both programs, as specified.  

          2)According to Office of Public School Construction (OPSC), 
            there is approximately $73 million (of $100 million) available 
            for the HPI program.  To date, 145 school districts have 
            received funding for approved HPI projects.  

          3)According to OPSC, there is approximately $745 million (of 
            $3.3 billion) available in modernization funding.  

          4)According to OPSC, there is approximately $33 million (of $500 
            million) available for the CTE facilities program.  To date, 
            428 projects have been funded from this program.       









                                                                  SB 128
                                                                  Page  2

           COMMENTS  


           1)Background  .  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 was allocated for K-12 
            education facilities, including $3.3 billion for modernization 
            projects, $100 million for HPI grants, and $500 for the CTE 
            facilities program.     



            The SSFP, administered by the SAB, provides funding primarily 
            to local education agencies (LEAs) to construct or modernize 
            education facilities.  The SSFP receives funding from a 
            variety of sources, including the state GF and proceeds from 
            the sale of general obligation (G.O.) bonds.  Programs under 
            the SSFP include new construction, modernization, the HPI, CTE 
            facilities, and charter school facilities.    


           2)Purpose  .  The HPI provides incentive funding to augment new 
            construction and modernization projects for the use of designs 
            and materials that promote energy and water efficiency, 
            natural lighting and indoor air quality, the use of recycled 
            materials and materials that emit a minimal amount of toxic 
            substances, the use of acoustics conducive to teaching and 
            learning, and other characteristics of high performance 
            schools.  The HPI program is based on the rating criteria 
            point system of the Collaborative for High Performance Schools 
            (CHPS), as determined by the Division of State Architect.

            According to the author, "Current law does not allow new high 
            performance systems to be funded under the modernization 
            program.  While new school facilities must meet rigorous 
            environmental standards, our older classrooms remain 
            ineligible for funding for some green building systems, 
            creating inequities in our K-12 learning environments.  We 
            know that school districts can save operational dollars 
            through the addition of energy efficiency and energy 
            generation systems, yet some of these building systems are not 
            available to districts through the state modernization 
            program."  








                                                                  SB 128
                                                                  Page  3


            This bill authorizes modernization grant funding to be used 
            for high performance school costs and authorizes CTE facility 
            projects to be eligible for HPI funding, as specified.  


           3)Previous legislation  .  SB 1193 (Lowenthal), 2010, increased 
            the modernization and new construction grants under the SSFP 
            by $250,000 per schoolsite (modernization) and $150,000 per 
            schoolsite (new construction), if a school district 
            incorporates the use of high performance design and materials 
            specified in current law.  This bill was placed on the 
            inactive file in the Assembly in August 2010.  




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