BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
252 (Denham)
Hearing Date: 05/28/2009 Amended: As Introduced
Consultant: Dan Troy Policy Vote: ED 8-0
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BILL SUMMARY: SB 252 would expand the uses of K-12 deferred
maintenance funding. Specifically, the bill would define
"electrical" for the purposes of allowable uses for DM funding
to:
Include internal connections for education technology
wiring.
Include components necessary to transmit specified
information to school buildings.
Exclude services that extend beyond the school campus or
library branch.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Deferred Maintenance Unknown, potentially millions
General*
*Counts toward meeting the Proposition 98 minimum funding
guarantee
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STAFF COMMENTS: SUSPENSE FILE.
Under current law, the governing board of a school district is
authorized to establish a restricted deferred maintenance fund,
and provides for the deposit of prescribed local funds, and for
the deposit of matching state funds. Current law requires the
State Allocation Board (SAB) to apportion state matching funds
for deferred maintenance to school districts.
Current law also establishes the School Facility Program (SFP),
administered by the SAB. Under the SFP, districts are eligible
for per-pupil grants from bond funds for the construction or
modernization of school facilities. Applications for
modernizations are submitted on a site by site basis. To be
eligible for modernization funding, a building must be at least
25 years old (a relocatable building must be at least 20 years
old). Projects eligible for modernization funding include
education technology.
By extending the use of electrical to include education
technology projects, as specified, this bill would result in
increased pressure on the General Fund to fund those projects
through the Deferred Maintenance program. The Department of
General Services notes that the cost of installing a new
computer network for 80 computers with internet access would be
approximately $56,000, including the costs for fiber optic
cable, data connections, and data switches (this estimate does
not include the costs of computers or any software). The extent
of the pressure would depend on the number of sites
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SB 252 (Denham)
needing desiring technology upgrades. Given that the state has
over 9,000 schools, staff assumes the pressure would be in the
millions of dollars, annually.
Staff notes that many sites may be able to fund education
technology projects through SFP modernization grants, if the
buildings meet the age requirement. Also, staff further notes
that the broad flexibility provided to local education agencies
through SBX3 4 (Ducheny, Chapter 12, Statutes of 2009) extends
to the deferred maintenance program. Districts may effectively
use deferred maintenance funds for any purpose over the next
five years.