BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2235| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2235 Author: Buchanan (D), et al. Amended: 8/18/14 in Senate Vote: 27 - Urgency SENATE EDUCATION COMMITTEE : 5-0, 6/18/14 AYES: Liu, Block, Correa, Hancock, Monning NO VOTE RECORDED: Wyland, Huff SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 6/25/14 AYES: Wolk, Knight, Beall, DeSaulnier, Liu, Walters NO VOTE RECORDED: Hernandez SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14 AYES: De León, Hill, Lara, Padilla, Steinberg NO VOTE RECORDED: Walters, Gaines ASSEMBLY FLOOR : 75-0, 5/28/14 - See last page for vote SUBJECT : Kindergarten-University Public Education Facilities Bond Act of 2014 SOURCE : Author DIGEST : This bill makes changes to the existing School Facility Program and authorizes the Kindergarten-University Public Education Facilities Bond Act of 2014 to provide for the issuance of $4.3 billion in general obligation (GO) bonds for construction and modernization of education facilities (to become effective only if approved by voters), and requires its CONTINUED AB 2235 Page 2 submission to voters at the November 4, 2014, statewide general election. ANALYSIS : The last statewide GO bond, Proposition 1D was approved by voters in November 2006. AB 127 (Núñez and Perata, Chapter 35, Statutes of 2006), the Kindergarten-University Public Education Facilities Bond Act of 2006, authorized the $10.4 billion bond proposal, which provided $7.3 billion of this amount for K-12 education facilities and $3.087 billion for higher education facilities. Of the $7.3 billion provided for K-12 education facilities specified amounts from the sale of these bonds were allocated for modernization, new construction, charter schools, career technical education facilities, joint use, projects for new construction on severely overcrowded schoolsites, and high performance incentive grants to promote energy efficient designs and materials. In addition, portions of the amounts allocated for new construction and modernization were authorized for purposes of funding smaller learning communities and high schools and for seismic retrofit projects. Of the amount provided for higher education facilities, $1.5 billion was provided for Community College facilities, $890 million was provided for the University of California (of which $200 million was provided for capital improvements for medical education programs, with an emphasis on telemedicine) and $690 million was provided for the California State University. This bill establishes the Kindergarten-University Public Education Facilities Bond Act of 2014 to provide for the issuance of $4.3 billion in GO bonds for construction and modernization of education facilities, to take effect only if approved by voters. More specifically it: 1.Requires submission of the Act to voters at the November 4, 2014, statewide general election. 2.Provides for issuance of $4.3 billion as follows: A. Provides $1.23 billion for new construction projects. B. Provides $2.47 billion for modernization school facility projects. CONTINUED AB 2235 Page 3 C. Provides $600 million for purposes of education facilities for California's public segments of higher education and of this amount: (1) Provides $200 million for California Community Colleges. (2) Provides $200 million for the California State University. (3) Provides $200 million for the University of California and the Hastings College of Law. 1.Authorizes the State Allocation Board (SAB) to require a school district that elects to participate in the new construction or modernization program funded by the proceeds of the bond established by the provisions of this bill to reestablish eligibility pursuant to SAB adopted regulations. These recommendations shall propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct instructional space approved by the Department of Education (CDE), as specified. 2.Requires SAB assign priority for funding under to applicant school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services by engaging in public and private partnerships with local public entities and other nonprofit or private community partners, as specified. 3.Requires the Office of Public School Construction, in consultation with CDE, to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities. 4.Requires the SAB to require a school district that elects to participate in the new construction program to conduct an inventory of existing facilities and submit this information to the SAB, as prescribed by the SAB for purposes of maintaining a statewide school facilities inventory. 5.Requires an applicant who receives a new construction grant CONTINUED AB 2235 Page 4 ensure that the project incorporates 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. 6.Makes various technical changes. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Bonds: $4.3 billion in state GO bond obligations. Substantial state costs, likely in the high hundreds of millions to low billions of dollars, in bond interest over 30 years (General Fund). Administration: Substantial new workload for CDE and the Department of General Services. The level of new work would differ in degree depending on whether the current acknowledged projects remain on the funding list or would have to be reviewed again, the size of the bond, and whether the bond administration program mirrors that of Proposition 1D. CDE estimates that it could need up to four additional personnel years. The Department of General Services estimates that its Office of Public School Construction will require 16 additional personnel years in 2014-15 and 87 personnel years in 2015-16, and its Division of the State Architect will need up to 10 personnel years. All of these positions will likely be bond-funded. Ballot costs: Likely $1.6 million - $2 million (General Fund) for a 16-page supplemental ballot. That cost may potentially be reduced if other measures are included in the supplemental ballot. SUPPORT : (Verified 8/21/14) Superintendent of Public Instruction Tom Torlakson BSK Associates Butte County Office of Education CONTINUED AB 2235 Page 5 Cabrillo Community College California Apartment Association California Association of School Business Officials California Association of Sheet Metal and Air Conditioning Contractors' National Association California Association of Suburban School Districts California Building Industry Association California Chamber of Commerce California Federation of Teachers California School Boards Association California School Employees Association California State Association of Electrical Workers California State Pipe Trades Council California State PTA California State University California Teachers Association California Workforce Association Central Valley Education Coalition Central Valley Higher Education Consortium Chaffey Community College District Chico Unified School District Citrus College City of Dublin Coalition for Adequate School Housing College of the Desert College of the Redwoods Community College Facility Coalition Community College League of California Contra Costa County Office of Education County School Facilities Consortium Dougherty + Dougherty Architects LLP El Dorado County Office of Education Elk Grove Unified School District Foothill-De Anza Community College District Fresno Unified School District Glendale Community College District Higgin + Cartozian Architects, Inc. Imperial County Office of Education John Swett Unified School District Kern Community College District Kern County Superintendent of Schools KNA Consulting Engineers Lake Tahoe Community College Long Beach Community College District CONTINUED AB 2235 Page 6 Los Angeles Community College District Los Angeles County Office of Education Los Angeles County Superintendent of Schools Los Angeles Unified School District Los Rios Community College District MAAS Companies, Inc. Madera County Office of Education Martinez Unified School District Merced Community College District Merced County Office of Education Monterey County Office of Education Monterey Peninsula Community College District Napa County Office of Education Orange County Business Council Palm Springs Unified School District Palos Verdes Peninsula Unified School District Paramount Unified School District Pasadena City College Peralta Community College District PlaceWorks PMSM Architects Public Advocates Rainforth Grau Architects Rancho Santiago Community College District Regional Asthma Management and Prevention RGM and Associates Rio Hondo Community College District Riverside Community College District Riverside County Superintendent of Schools San Benito County Office of Education San Bernardino Community College District San Bernardino County District Advocates for Better Schools San Diego County Superintendent of Schools Dr. Randy Ward San Diego Unified School District San Francisco Unified School District San Leandro Unified School District San Luis Obispo County Office of Education Santa Ana Unified School District Santa Barbara County Office of Education Santa Clara County Office of Education Santa Clarita Community College District Santa Cruz County Office of Education Saramark, Inc. School Air CONTINUED AB 2235 Page 7 School Employers Association of California School Energy Coalition Sierra College Siskiyou Joint Community College District Small School Districts' Association Solano Community College District Sonoma County Office of Education South Orange County Community College District St. Helena Unified School District State Building and Construction Trades Council, AFL-CIO State Center Community College District Stockton Unified School District Terraphase Engineering, Inc. Tracy Unified School District Twin Rivers Unified School District University of California Visalia Unified School District West Hills Community College District West Kern Community College District Western States Council of Sheet Metal Workers William S. Hart Union High School District Wiseburn School District Yosemite Community College District Yuba Community College District ARGUMENTS IN SUPPORT : According to the author, this bill is necessary because, despite declining enrollment in some districts, there is projected future pupil enrollment growth in many districts and we will need new schools to house those students. In addition, school districts are working to rehabilitate aging facilities to ensure they are safe and updated. Bond funds are not only critical and beneficial to schools; they are beneficial to the economy, as these infrastructure dollars will generate thousands of construction-related jobs. According to the author, while prior bond authorizations have proposed funding for a number of special grant programs, this bill, in an effort to keep the bonds at a low to moderate level, proposes to fund only the basic programs of new construction, modernization, and charter schools. ASSEMBLY FLOOR : 75-0, 5/28/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian CONTINUED AB 2235 Page 8 Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NO VOTE RECORDED: Dahle, Donnelly, Frazier, Mansoor, Vacancy PQ:e 8/21/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED