BILL ANALYSIS
SB 1380
Page A
Date of Hearing: June 30, 2010
ASSEMBLY COMMITTEE ON EDUCATION
Julia Brownley, Chair
SB 1380 (Hancock) - As Amended: June 22, 2010
SENATE VOTE : 35-0
SUBJECT : School facilities: career technical education
facilities
SUMMARY : Requires school facilities constructed or modernized
using Career Technical Education Facilities program (CTEFP)
funds to be used for career technical education (CTE) purposes
for a minimum of 10 years. Specifically, this bill :
1)Requires the governing board of an applicant school district
to submit a resolution adopted by the governing board stating
the intent to use the facilities built or modernized with
Proposition 1D funds set aside for the CTEFP for career
technical education purposes and provide certification that
the facility is being used for CTE purposes during the first
year of occupation of the school facility.
2)Authorizes the governing board of a school district to seek a
waiver of the CTE use requirement from the SAB if the facility
or educational program of the school district changes during
the initial 10 years of use.
3)Encourages a school district applying for a CTE grant to
include teachers of CTE and members of the local CTE advisory
committee in the design and planning process leading to the
submission of an application that is a request for full
funding or a reservation of funds.
4)Requires qualifying equipment purchased with CTEFP funds to
have a life expectancy of at least 10 years, except that up to
25% of the funds may be used for the purchase of items or
equipment with a life expectancy of at least five years.
EXISTING LAW :
1)Establishes the CTEFP to provide funding to eligible local
educational agencies (LEAs) to construct or reconfigure
existing facilities, and to purchase equipment with an average
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useful life expectancy of at least 10 years.
2)Provides that grants shall be allocated on a per-square-foot
basis and shall not exceed $3 million per project per
schoolsite for a new construction project and $1.5 million per
project per schoolsite for a modernization project.
3)Provides that new construction grants shall only be allocated
to comprehensive high schools that have an active Career
Technical Advisory Committee and a clear and comprehensive
Career Technical Education plan. Modernization grants may be
awarded to comprehensive high schools or joint power
authorities operating career technical education programs that
have an active Career Technical Advisory Committee.
4)Requires a school district to contribute a 50% local match
that can be provided by private industry groups, the school
district, or a joint powers authority. Provides that the SAB
shall not waive the local contribution for any basis,
including financial hardship.
5)Authorizes the SAB to allow a repayment schedule for the local
match consistent with the loan program established under the
Charter Schools Facilities Program.
6)Establishes various CTE programs for public schools including
but not limited to regional occupational centers and programs
(ROC/Ps), partnership academies, adult education programs, and
CTE programs in high schools and community colleges.
7)Requires the governing board of each school district
participating in a CTE program to appoint a career technical
education advisory committee to develop recommendations on the
program and to provide liaison between the district and
potential employers.
FISCAL EFFECT : The Senate Appropriations Committee notes on the
prior version of this bill that while the bill's provision to
allow the purchaser of a limited amount of equipment with a life
expectancy of 5 years would increase the number of eligible
items, the bill's limitation on district discretion for 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.
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COMMENTS : Current law establishes the School Facility Program
(SFP) under which the state provides general obligation bond
funding for various school construction projects, including new
construction, modernization, joint-use facilities, and programs
to specifically address the construction needs of overcrowded
schools, charter schools, and CTE facilities. Proposition 1D,
authorized by AB 127 (Nunez and Perata), Chapter 35, Statutes of
2006, and approved by the voters in November 2006, provided $7.3
billion for kindergarten through grade 12 school facilities, and
established the CTEFP within the SFP, providing $500 million to
construct or modernize facilities and to purchase equipment with
an average useful life expectancy of at least 10 years for CTE
programs at existing comprehensive high schools.
The CTEFP authorizes a grant of $3 million per project per
schoolsite for new construction projects and $1.5 million per
project per schoolsite for modernization projects. The CTEFP
also requires a school district to contribute from local
resources a dollar amount equal to the amount of the state grant
provided and authorizes the contribution to come from private
industry groups, the school district, or a joint powers
authority. The SAB is prohibited from waiving the local
contribution on any basis, including for hardship assistance.
However, the SAB may authorize a repayment schedule and a loan
similar to that provided under the Charter School Facilities
Program.
There are two funding options for CTEFP funds. A LEA may
request full funding for a project that has already received
approval from the California Department of Education (CDE) and
the Division of State Architect (DSA)<1>, considered
"construction ready" projects. Otherwise, it may request a
reservation of funds and have up to 12 months to obtain the CDE
and DSA approvals.
Current status of the CTEFP . According to the Office of Public
School Construction (OPSC), approximately $409 million of the
$500 million has been apportioned to fund approximately 455
---------------------------
<1> The SFP requires approval from CDE, to ensure that the
selected site and school specifications are safe and meet the
school's education plan, and the DSA, to ensure that the
architectural design plans meet fire, life and safety
requirements, Field Act requirements, and access requirements
under the Americans with Disability Act specified in law and in
state regulations.
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CTEFP projects in the first and second cycles of funding. A
total of $91 million remains in the program. The deadline for
applications for the third cycle was March 31, 2010, with
applications totaling $231 million submitted. OPSC anticipates
SAB approval at the end of the year.
According to the author, "Several issues have surfaced in the
past 2 and a half years which will benefit from legislative
review. The Career Technical Education grant program is in need
of modification - more assurance that the classrooms built or
modernized with the funds are truly used for CTE in the future?"
The author further states that the equipment shelf life
requirement needs to be revised.
This bill specifies that facilities constructed or modernized
using CTEFP funds must be used for CTE program purposes for at
least 10 years. None of the other programs (e.g., charter
schools, joint use) have similar requirements. Presumably, the
purpose of this requirement is to ensure that districts are not
applying for these funds with the real intention of using them
for regular classrooms and to ensure the longevity of CTE
programs. It is not known if any district has converted CTE
facilities funded by the CTEFP into regular classroom use.
Supporters would argue that the CTEFP was established to
encourage and enable the establishment of CTE programs, and as
such, districts should not be allowed to drop the programs
housed in facilities constructed with bond funds dedicated for
CTE programs for other facilities uses. Research has shown that
CTE opportunities for pupils may provide relevance to the high
school curriculum and engage pupils who may be at risk of
dropping out. Existing law establishes various CTE programs for
public schools including but not limited to ROC/Ps, partnership
academies, adult education programs, agricultural programs,
tech-prep programs, and CTE courses that may be offered in
secondary schools and community colleges.
The bill requires a local governing board interested in applying
for CTEFP funds to adopt a resolution stating its intent to use
the facilities for CTE purposes and if funded, requires the
governing board to certify its use during the first year of
occupation of the facility. An argument can be made that the
value of CTE programs notwithstanding, the use of facilities
should not dictate the long-term educational program of a
school. There could be unforeseeable factors in the future that
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may cause a district to discontinue a CTE program or course,
including increase or decrease enrollment, inability to secure
qualified CTE teachers, changes in the labor market and the
demand for certain types of training, or funding challenges.
To address that concern, the bill authorizes a governing board
to seek a waiver from the SAB of the requirement to use the
facility for CTE purposes for 10 years if the facility or
educational program of the school district changes during that
time. However, it is unclear what criteria will be used to
grant or reject a waiver. Is a waiver granted simply upon
request by a governing board? Will the SAB need to develop
regulations? Is the SAB the most appropriate body to determine
whether a district must keep a facility and therefore the
educational program for CTE? The CDE may be a more appropriate
entity to evaluate enrollment and programmatic needs. Staff
recommends requiring the CDE to review the waiver request and
provide a recommendation to the SAB for final determination.
Staff also recommends establishing the following criteria for
consideration of a waiver:
1)Enrollment changes;
2)Enrollment changes in the CTE program;
3)Changes in labor market demand;
4)Inability to hire teaching staff with proper credentials;
5)The district's fiscal conditions; and,
6)Other factors presented by the LEA and deemed significant by
the SAB.
The CTEFP authorizes funds to be used for equipment with a
10-year lifecycle. This requirement has been a source of
complaint since the inception of the program. Districts argue
that equipment for some CTE programs, such as broadcasting and
digital editing equipment or even specialized systems for
automotive repair programs, may not have a 10-year lifecycle,
but are necessary for the programs. This bill authorizes
districts to use up to 25% of the funds for equipment purchases
to be used for equipment with a lifespan of at least five years.
Equipment for CTE programs may have extensive electronic
components and require high energy use. Staff recommends
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encouraging LEAs to purchase energy efficient and/or
environmentally preferable equipments, to the extent they are
available.
Another issue that has arisen is the appropriate entity to
evaluate the equipment. Districts have expressed frustration
that equipment approved as part of the CDE approval process has
been rejected by the OPSC. Equipment may be an integral part of
CTE programs. Should evaluation of equipment, including whether
it meets the five or ten-year lifecycle requirement, be
conducted by the CDE rather than OPSC?
The bill's requirements apply to all CTEFP projects funded under
Proposition 1D, the Kindergarten-University Public Education
Facilities Bond Act of 2006. Staff recommends deleting the
reference to Proposition 1D. This bill's provisions should
apply to all CTEFP projects, regardless of the bond source.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Leaders of Career Preparation
California Association of Regional Occupational Centers and
Programs
Small School Districts' Association
Opposition
None on file
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087