BILL ANALYSIS Ó
SB 111
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 111
(Fuller) - As Amended June 2, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill declares Legislative intent that assistance be
provided to school districts in the 2015-16 fiscal year to meet
the matching share requirement of a school construction grant
made by the Office of Economic Adjustment of the federal
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Department of Defense to construct, renovate, repair, or expand
elementary and secondary public schools located on military
installations. Further, this bill requires the Department of
Finance to explore options on how best to assist school
districts in meeting the matching share requirement of the
federal school construction grant and requires the options
include, but not necessarily be limited to, making low-interest
loans available to school districts through the California
Infrastructure and Economic Development Bank (I-Bank).
FISCAL EFFECT:
1)General Fund cost pressure of up to $60.5 million to provide
the full 20 percent state/local match for approximately $240
million in federal funds that would be available for
construction grants to 11 schools on military installations in
California.
2)Minor/absorbable costs to the Department of Finance to explore
options for matching funds.
COMMENTS:
1)Purpose. In 2010, the Department of Defense (DoD) conducted an
assessment of 160 schools on military installations across the
nation and established a priority list based on schools with
the greatest need. California has 11 schools eligible for a
total of $242.2 million in federal funds that can be used for
the construction, renovation, repair or expansion of public
schools on military installations.
In order to leverage these federal funds, the qualifying
schools are required to provide a 20% match. The match can
come from local funds or state funds. The amount of funds
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needed to meet the 20% match for the 11 schools is estimated
at $60.5 million. This bill states the intent of the
Legislature "that assistance be provided to school districts
in the 2015-16 fiscal year to meet the matching share
requirement". The bill does not specify whether "assistance"
will be in the form of local funds or state general funds.
The Department of Finance indicates they are currently working
with the school districts to see if there is interest in
participating in the I-Bank's Infrastructure State Revolving
Fund low-interest loan program to help fund the local match.
The I-Bank has provided local match funding for other federal
programs and these types of school construction and renovation
projects would be eligible. Legislation is not necessary for
districts to utilize this funding option.
2)Prior related legislation. SB 1421 (Fuller) of 2014 proposed
to authorize the State Allocation Board (SAB), if requested by
an applicant, to give priority on its "Unfunded Approval -
Lack of Authority" list, to schools located on military
installations that are eligible for United States Department
of Defense (DoD) Office of Economic Adjustment school
construction grants for which priority cannot be granted above
hardship applications. This bill was held on the Suspense
file in this committee.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081
SB 111
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