BILL ANALYSIS Ó
AB 148
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
148 (Holden) - As Amended May 6, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill enacts the Kindergarten-University Public Education
Facilities Bond Act of 2016, to be operative only if approved by
voters on the November 2016 general election. Makes changes to
the School Facility Program (SFP). Specifically, this bill:
AB 148
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1)Authorizes an unspecified amount of general obligation (GO)
school facility bond to be placed on 2016 statewide general
election ballot, for kindergarten through grade 12 (K-12) and
Community Colleges (CCC) new construction and modernization
projects, including replacement of structures. Makes up to 5%
of the unspecified amount available for charter facilities.
2)Establishes the 2016 State School Facilities Fund and
authorizes the State Allocation Board (SAB) to apportion funds
to school districts from funds transferred to the 2016 State
School Facilities Fund from any source for the purposes
specified in the SFP.
3)Makes changes to the SFP relative to new construction and
modernization, including seismic mitigation authorization and
increased flexibility in design and construction of
facilities. Also requires each school district that elects to
participate in a new construction or modernization program to
reestablish eligibility, as specified, and to conduct an
inventory of existing facilities for purposes of maintaining a
statewide school facilities inventory.
4)Requires the State Department of Education, the Division of
the State Architect, the Office of Public School Construction,
and the Department of Toxic Substances Control to convene for
purposes of developing an interagency plan to streamline the
school facilities construction application, review, and audit
processes in order to reduce the time and improve the
efficiency of the school facilities construction process.
Requires this interagency plan be submitted to the Legislature
on or before July 1, 2017
FISCAL EFFECT:
1)Bond debt is unknown as the bill does not specify the amount
of the GO bond. The state pays principal and interest during
AB 148
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the repayment period. Cost will depend on factors such as the
actual interest rate paid, the timing of the bond sales (bonds
are often sold over a number of years), and the time period
over which the bonds are repaid. For illustration, assuming a
5% interest rate with a 30-year repayment period, the state
would pay about $65 million annually in principal and interest
costs for each $1 billion borrowed.
2)One-time General Fund printing costs of at least $220,000 for
the Secretary of State to include the analysis, arguments for
and against, and the text of the measure in the state voter
information guide.
COMMENTS:
1)Purpose. This bill places a bond on an unspecified statewide
election in 2016 to fund K-12 and California Community
Colleges facilities. The amount of the bond is unspecified.
According to the author, the amounts will be determined
pending further examinations of need and discussions with the
Administration and other parties.
The last education bond on the statewide ballot was
Proposition 1D, which was passed by voters on the November
2006 ballot. Proposition 1D provided $10.416 billion for K-12
and higher education facilities and established new K-12 grant
programs. This funding has been nearly exhausted. According to
the Office of Public School Construction (OPSC), as of April
15, 2015, approximately $195.4 million remains in bond
authority from the 2002, 2004, and 2006 bonds.
2)Related legislation.
a) AB 1088 (O'Donnell), pending in this committee, places a
Kindergarten-University Public Education Facilities Bond
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Act on an unspecified statewide general election, to be
operative only if approved by voters at the unspecified
statewide general election. The author has indicated this
will be a two-year bill.
b) AB 1433 (Gray), pending in this committee, places the
Recommitment to Higher Education Bond Act of 2016 with
unspecified amounts for higher education facilities on the
November 8, 2016 statewide general election.
c) SB 114 (Liu), pending in the Senate Appropriations
Committee, would place the Kindergarten Through Grade 12
Public Education Facilities Bond Act of 2016 with
unspecified dollar amounts on the November 8, 2016 ballot.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081