BILL ANALYSIS Ó
SB 128
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SENATE THIRD READING
SB 128 (Alan Lowenthal)
As Amended March 22, 2011
Majority vote
SENATE VOTE :27-12
EDUCATION 7-3 APPROPRIATIONS 12-5
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|Ayes:|Brownley, Ammiano, |Ayes:|Fuentes, Blumenfield, |
| |Buchanan, | |Bradford, Charles |
| |Butler, Carter, Eng, | |Calderon, Campos, Davis, |
| |Williams | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Norby, Beth Gaines, |Nays:|Harkey, Donnelly, |
| |Morrell | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Expands the authorized uses of state education bond
funds for modernization projects to include the costs associated
with high-performance schools and authorizes a career technical
education (CTE) project to be eligible for a High Performance
Incentive (HPI) grant. Specifically, this bill :
1)Specifies that a modernization apportionment may also be used
for the cost of designs and materials that promote the
efficient use of energy and water, the maximum use of natural
lighting and indoor air quality, the use of recycled materials
and materials that emit a minimum of toxic substances, the use
of acoustics conducive to teaching and learning, and other
characteristics of high-performance schools.
2)Specifies that a project funded by the Career Technical
Education Facilities Program (CTEFP) is also eligible for a
HPI grant.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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
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cost pressure to increase funding for both the CTEFP and the HPI
program because school districts, under this bill, are eligible
to receive grant funding from both programs, as specified.
COMMENTS : SB 50 (L. Greene), Chapter 407, Statutes of 1998,
established the School Facility Program (SFP) which governs the
allocation of state education bond funds and the construction
and modernization of kindergarten through grade 12 school
facilities. In November, 2006, voters approved Proposition 1D,
the Kindergarten-University Public Education Facilities Bond Act
of 2006, which provided $10.416 billion for the construction and
rehabilitation of kindergarten through grade 12 and higher
education school facilities. Among others, Proposition 1D set
aside $3.3 billion for modernization projects, $500 million for
CTEFP projects and for the first time, $100 million for HPI
grants.
High performance projects : This bill has two components; both
of which are attempts to promote high performance projects,
defined as projects that include the use of designs and
materials that promote energy and water efficiency, maximize the
use of natural lighting, improve indoor air quality, utilize
recycled materials and materials that emit a minimum of toxic
substances, and employ acoustics conducive to teaching and
learning.
Modernization funds : The first provision authorizes
modernization funds to be used for the cost of designs and
materials that promote characteristics of high-performance
schools. Eligibility for modernization funds is based on the
age of buildings (25 years old for permanent building and 20
years old for portable buildings) and pupil enrollment at a
schoolsite. Existing law authorizes modernization funds to be
used for projects to extend the useful life or enhance the
physical environment of a school. Existing law is specific on
eligible costs and prohibits modernization funds to be used for
routine maintenance and repair. According to the Office of
Public School Construction, modernization funds can only be used
for "like for like" projects and can only be used to replace
existing systems. For example, modernization funds cannot be
used to add solar panels if a roof does not already have solar
panels.
This section of law was developed with the enactment of the SFP
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in 1998. With the economic, health, environmental, and academic
benefits of constructing and rehabilitating buildings that have
high performance components, it is time to update the authorized
uses of modernization funds. This bill does not provide
increased modernization funds for this purpose; it simply
authorizes school districts to incorporate such components into
their projects and count the costs as authorized modernization
program expenditures. As of August 24, 2011, $640 million
remains in the modernization program.
CTEFP : As noted previously, Proposition 1D authorized $500
million for CTEFP. The CTEFP promotes the development of CTE
programs through the construction or modernization of CTE
facilities, including the purchase of equipment with an average
useful life expectancy of at least 10 years, at existing
comprehensive high schools.
The CTEFP authorizes a maximum grant of $3 million per project
per schoolsite for new construction projects and $1.5 million
per project per schoolsite for modernization projects. The
CTEFP also requires a school district to contribute from local
resources a dollar amount equal to the amount of the state grant
provided and authorizes the contribution to come from private
industry groups, the school district, or a joint powers
authority. As of May 2011, 428 projects have received CTEFP
funding. Currently, $32.8 million remains in the program.
HPI grant program : Proposition 1D authorized the State
Allocation Board (SAB), the ten-member board responsible for
overseeing state education bond funds, to develop regulations to
establish HPI grants. The SAB established a program that models
the rating scale used by the Collaborative for High Performance
Schools (CHPS) to identify high performance schools. CHPS is a
nonprofit organization that promotes the design of high
performance schools, focusing on elements that will provide
learning environments that are energy efficient, healthy,
comfortable, and well lit. CHPS certifies buildings considered
high performance. Modeling the CHPS model for certifying high
performance schools, under the HPI grant program, a district
must meet specified prerequisites and earn points in the areas
of sustainable sites, water, energy, materials and indoor
environmental quality that result in an increase in the base SFP
grant of between two to just over 11 percent. In May 2010, the
SAB, concerned about the low level of interest in the program,
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adopted regulations that resulted in higher levels of grant
funds, including a base grant of $150,000 for new construction
projects and $250,000 for modernization projects. Thus far, 161
projects have been awarded HPI grants for new construction,
modernization, critically overcrowded schools, charter schools
and overcrowding relief programs; the majority are new
construction projects. Currently, $69.9 million remains in the
HPI grant program.
This bill authorizes a CTEFP-funded project to also apply for
HPI grants. CTEFP projects range from being one or several
rooms in an existing school building to stand alone buildings.
It is unclear whether CTEFP projects will be able to garner the
required prerequisites and minimum points to be eligible for a
HPI grant. Since CTEFP projects are smaller scaled projects,
should these projects receive the same base HPI grant ($150,000
for new construction and $250,000 for modernization) as a new
schoolsite with multiple buildings? CTEFP projects receive a
maximum of $3 million for new construction and $1.5 million for
modernization. It is unclear whether the percentage increase
achieved through the high performance features will be
sufficient or insufficient when applied to lower cost projects.
Should an alternate HPI funding model be devised for CTEFP
projects? These are issues the SAB can consider through the
adoption of regulations if this bill is passed by the
Legislature and signed into law.
The author states, "The current program may be unintentionally
creating an inequity between new school facilities and existing
school facilities. Current law does not allow new high
performance systems to be funded under the Modernization
program. All students, whether in new, old or career technical
education classrooms should have the opportunity to receive
instruction in facilities that meet environmental and health
standards on par with those newly built facilities."
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087
FN: 0002175
SB 128
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