BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1380 (Hancock)
Hearing Date: 05/17/2010 Amended: 04/28/2010
Consultant: Dan Troy Policy Vote: ED 7-0
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BILL SUMMARY: SB 1380 would make the following changes to the
Career Technical Education Facilities Program (CTEFP):
Require school facilities constructed or modernized
with funds from the CTEFP to be used for career technical
education (CTE) purposes for a minimum of 25 years.
Require CTE teachers and members of the local CTE
advisory committee to be included in the design and
planning process of a CTEFP grant application.
Require qualifying equipment purchased with CTEFP funds
to have a life expectancy of up to 10 years, except that up
to 10 percent of the funds could be used for items with a
life expectancy of 5 years.
Require the Department of Education to report on the
rate of project completion and to make recommendations to
facilitate the timely use of state bonds.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
25-year minimum use Reduction in bond pressure Bond*
Reporting $50 to $75, one-time Bond*
*Proposition 1D
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STAFF COMMENTS:
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 that amount, $500 million was dedicated
toward career technical education facilities and equipment
purchases. Approximately $91 million of this amount is still
available. The deadline for applications was March 31, 2010,
and the Office of Public School Instruction anticipates that all
of these funds will be exhausted in this funding cycle. Grants
are capped at $3 million for new construction and $1.5 million
for modernization projects. Under current law, equipment
purchases are limited to items with a 10-year lifespan. The
primary intent of the bill is to ensure that facilities that
benefit from CTEFP funding are utilized for CTE purposes for an
extended period of time.
Page 2
SB 1380 (Hancock)
The Department of Education estimates new workload costs of
between $50,000 and $75,000 to complete the required report.
These costs would be within the bond's 5 percent allowance for
state administration costs. While the bill's provision to allow
the purchase of a limited amount of equipment with a life
expectancy of 5 years would increase the number of eligible
items (e.g., computer equipment), the bill's limitation on
district discretion for the use of facilities for a minimum of
25 years may serve to discourage district participation in the
program, and actually serve to reduce pressure on the bonds.