BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 334
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 334 (Ducheny) - As Amended:  July 15, 2009 

          Policy Committee:                             Education Vote:8-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires any increase made to per-pupil new  
          construction grants on or after January 1, 2010, to include an  
          increase in the per-pupil grant for special education pupils, as  
          specified.  
          Specifically, this bill:  

          Requires the Office of Public School Construction (OPSC) to  
          recommend to the State Allocation Board (SAB), within 60 days of  
          an increase made to new construction grants based on school type  
          (i.e., elementary, middle, or high school), a methodology for  
          adjusting the per-pupil grant by school type for special  
          education pupils.  

           FISCAL EFFECT  

          Beginning in 2010, annual state school construction bond costs,  
          of at least $3 million, to meet the requirements of this bill.  

           COMMENTS  

           1)Purpose  .  Proposition 1D: Kindergarten-University Education  
            Facilities Bond was passed by the voters in November 2006 and  
            authorized $10.416 billion in general obligations bonds. Of  
            this amount, $7.329 billion is earmarked for K-12 education,  
            including $1.9 billion for new construction. As of June 2009,  
            there is $499.3 million in new construction funding available.  
             Of this amount, $199.5 million is reserved for the seismic  
            repair of school facilities.   

            Proposition 1D also increased the per-pupil grants for K-12  
            new construction by 7% for elementary and middle schools and  








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            by 4% for high schools, effective July 1, 2006. 

            Chapter 35 also required the SAB to conduct an analysis of the  
            new construction grant levels in relation to the cost of  
            school construction. On or after January 1, 2008, the SAB,  
            based on this analysis, is required to decrease or increase  
            (by no more than 6% annually) the grant levels to more  
            accurately correspond to the costs of construction schools in  
            California.  In May 2008, it increased new construction grant  
            levels by 6%, which equals: $9,369 per pupil for elementary  
            school; $9,909 per pupil for middle school; and $12,607 per  
            pupil for high school.  Per pupil grants for special education  
            pupils were not increased.        

            The Office of Public School Construction has determined that  
            Chapter 35 only provided authority to increase non-special  
            education per pupil new construction grants.  This bill  
            requires any increase made to per-pupil new construction  
            grants on or after January 1, 2010, to include an increase in  
            the per-pupil grant for special education pupils, as  
            specified.


           2)Current law  provides the SAB with regulatory authority to  
            adjust the amount of per-pupil new construction grants for  
            students with the exception of grants for special education  
            pupils. 


            Likewise, Chapter 35 increased the new construction per-pupil  
            grant amounts based on grade level (i.e., middle, elementary,  
            and high school). For special education students new  
            construction grants are provided based upon the level of  
            disability (severe vs. non-severe), without regard to grade  
            level. These grant amounts are at a significantly higher level  
            than those for non-special education pupils.  The special  
            education new construction grants are higher to provide  
            enhanced electrical and plumbing fixtures, more accessible  
            doors and grab bars, extra sinks, restrooms, changing areas,  
            and other facilities for special education students. 

           
          3)Previous legislation  .  

             a)   AB 100 (Mullin) increased the per pupil grants for new  








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               construction and special pupils by specified amounts.  The  
               governor vetoed this bill in October 2008 with the  
               following message: 

               "Provisions in this bill would set an undesirable precedent  
               by providing a retroactive increase to school district  
               per-pupil construction grants.  This provision conflicts  
               with the full and final apportionment provision of the  
               School Facilities Program, which requires districts to  
               certify that the funding received is sufficient to complete  
               the project for which the grants are intended.   
               Furthermore, with California's current fiscal climate, it  
               is imprudent to increase construction grants at this time,  
               particularly considering it is uncertain when the next  
               school bond measure may be approved by the voters."

             b)   SB 704 (Ducheny), which was similar to the current  
               measure, was held on this committee's suspense file in  
               August 2007.     



           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081