BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 111|
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THIRD READING
Bill No: SB 111
Author: Fuller (R), et al.
Amended: 6/2/15
Vote: 21
SENATE EDUCATION COMMITTEE: 6-0, 3/11/15
AYES: Huff, Block, Leyva, Mendoza, Pan, Vidak
NO VOTE RECORDED: Liu, Hancock
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: School facilities: military installations
SOURCE: Author
DIGEST: This bill declares the Legislature's intent to meet the
matching share requirements of a specified federal school
construction grant program in 2015-16 and directs the Department
of Finance (DOF) to explore options for this purpose, including
low interest loans, as specified.
ANALYSIS:
Existing law:
1)Establishes the California Infrastructure and Economic
Development Bank (IBank) within the Governor's Office of
Business and Economic Development to finance public
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infrastructure and private development that promote a healthy
climate for jobs, contribute to a strong economy and improve
the quality of life in California communities. The IBank is
governed by a five-member Board of Directors which includes:
a) The Director of DOF or his or her designee.
b) The Treasurer or his or her designee.
c) The Director of the Governor's Office of Business and
Economic Development or his or her designee, who shall
serve as chair of the board.
d) An appointee of the Governor.
e) The Secretary of Transportation or his or her designee.
2)Provides that the IBank has broad authority to issue
tax-exempt and taxable revenue bonds, provide financing to
public agencies, provide credit enhancements, acquire or lease
facilities, and leverage State and Federal funds. (Government
Code Sections § 63000 et. seq.)
3)Establishes the School Facility Program under which the state
provides general obligation bond funding for various school
construction projects. AB 127 (Nunez and Perata), the
Kindergarten-University Public Education Facilities Bond Act
of 2006, authorized Proposition 1D a statewide general
obligation bond proposal for $10.4 billion. Proposition 1D,
approved, by the voters in November 2006, provided $7.3
billion for K-12 education facilities and allocated specified
amounts from the sale of these bonds for modernization, new
construction, charter schools, Career Technical Education
Facilities, joint use projects, new construction on severely
overcrowded school sites, and high performance incentive
grants to promote energy efficient design and materials. In
addition, portions of the amounts allocated for new
construction and modernization were authorized for purposes of
funding smaller learning communities and small high schools
and for seismic retrofit projects. (Education Code §
17078.70-17078.72)
This bill:
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1)Declares the Legislature's intent to meet the matching share
requirements of the United States Department of Defense (DOD),
Office of Economic Adjustment school construction grant
program in 2015-16 in order to meet the construction needs of
public school facilities located on military installations.
2)Directs the DOF to explore options for this purpose, including
low interest loans through the IBank.
Comments
1)Need for the bill. According to the author, California has 11
schools in six districts that are on a priority list for funds
from the federal government to address the "serious condition
or capacity deficiencies" of public schools on military
installations. These schools are eligible to receive funds for
this purpose through the Public Schools on Military
Installations (PSMI ) Program. The program requires a 20
percent non-federal match in order to receive federal funding.
According to the author, about $61 million is necessary to
cover the 20 percent match for the 11 California schools on
the list. The 20 percent match would leverage approximately
$240 million in federal funds for the renovation, repair, or
reconstruction of these schools.
2)PSMI Program. According to the Office of Economic Adjustment
(OEA), in 2010 the DOD evaluated and reviewed the physical
condition of the 160 public schools on military installations
in the United States. Based on the findings of this
assessment, the DOD developed a "Priority List" of public
schools on military installations with the most serious
condition and/or capacity deficiencies. The OEA was tasked
with administering the PSMI program to provide funds to these
schools to address these deficiencies.
Between 2011 and 2015, Congress has provided $945 million to
the OEA for the purposes of the PSMI. The last increase in
funding for the PSMI ($175 million) was provided in 2015 by
House Resolution 83 (H.R. 83 Section 8017). In addition to
the funding increase, H.R. 83 established the 20 percent match
as a congressionally mandated requirement and stipulated that
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the non-federal match was the responsibility of the local
education authority (LEA) and the State. The DOD has
interpreted the new language to mean that the matching share
must be provided by the LEA and or the State in which the
school is located and that the OEA may skip eligible school
projects on the Priority List if the match is not provided.
According to the OEA, once a project on the list has been
skipped it will no longer be considered for funding.
According to the OEA, there is approximately $464 million
remaining in the PSMI. The OEA estimates that as many as 33
schools on the list could be assisted.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal:No
According to the Senate Appropriations Committee, there may be
unknown cost pressure to implement the option identified by the
DOF. Staff estimates that costs for the DOF to explore options
are minor and absorbable.
SUPPORT: (Verified 3/11/15) (reflects prior version of
bill--unable to reverify)
Antelope Valley Board of Trade
Brigadier General, Marine Corps Base Camp Pendleton
Central Union School District
Muroc Joint Unified School District
Sierra Sands Unified School District
Travis Unified School District
Numerous individual letters
OPPOSITION: (Verified 3/11/15) (reflects prior version of
bill--unable to reverify)
None received
Prepared by:Kathleen Chavira / ED. / (916) 651-4105
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6/2/15 21:53:10
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