BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1193 (Lowenthal)
Hearing Date: 05/03/2010 Amended: 04/20/2010
Consultant: Dan Troy Policy Vote: ED 5-2
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BILL SUMMARY: SB 1193, an urgency measure, would increase
modernization grants by $250,000 per schoolsite, without a
corresponding local match, if the project incorporates the use
of high performance design and materials, as specified.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Bond pressure Potentially millions,
depending on Bond*
increased participation
*Proposition 1D
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
In November of 2006, the voters approved Proposition 1D which
approved $10.4 billion in general obligation bonds for statewide
educational facilities, including both new construction and
modernization. Of this amount, $100 million was dedicated
toward "high performance" grants for K-12 modernization or new
construction projects that include the use of designs and
materials that promote energy and water efficiency, employ
natural lighting, improve indoor air quality, and utilize
recycled material, among other factors. Current regulations
adopted by the State Allocation Board (SAB) award points in
district applications for construction and modernization grants
that include "high performance" elements.
To date, slightly more than $25 million of the $100 million pot
has been distributed. It is speculated by some that districts
have been reluctant to apply for the high performance funding as
the dollars awarded do not match the costs of meeting the
requirements, particularly in the modernization program.
This program is intended to incentivize districts to apply for
the grants (and encourage districts to incorporate more
environmentally friendly elements into their projects) by simply
augmenting modernization grants by $250,000 if they meet
specified high performance criteria. The bill specifies that
this award would not be subject to a local match (generally, the
state contributes 60 percent for an approved modernization
project while the district must contribute 40 percent, with
certain provisions applied) and would not count against the
district's modernization eligibility. The SAB would be required
to adopt emergency regulations to implement the bill within 14
days of its operation.
Page 2
SB 1193 (Lowenthal)
Given the relative lack of interest in the program, the SAB has
directed the development of revised regulations to modify the
process. It is anticipated that these recommendations will be
considered at the SAB's meeting in May.
By increasing modernization awards by $250,000, as specified,
this bill would likely increase the burn rate for the program.
The provision of a flat award delinks the allocation from local
project costs. It is possible, for example, that the $250,000
high performance award could exceed the entire cost of the
modernization project. Providing the additional grant without a
local match also may have the effect of shifting more local
modernization costs to the state. On a policy note, the Office
of Public School Construction has expressed some concerns over
the provision that allows districts to meet program conditions
by meeting criteria developed by non-state entities (the
Collaborative for High Performance Schools and the Leadership in
Energy and Environmental Design for Schools).
Staff understands that an amendment intended to be taken in the
Senate Education Committee which would make clear that the
$250,000 grant increase is to be paid from the $100 million high
performance pot was not incorporated as the bill passed out of
that committee. The author may wish to amend the bill as
follows:
Page 3, line 22, insert "(g) Funding increases pursuant to this
section shall be provided pursuant to paragraph (8) of
subdivision (a) of Section 101012."