B.1.2 State-Level Facility Funding

THE SCHOOL FACILITY PROGRAM (SFP). Established in 1998 by the Leroy F. Greene School Facilities Act of 1998, the SFP marked a new policy direction for state financing assistance to districts for the construction of school facilities.164 The grant program, funded by voter approved state GO bonds, replaced the Lease-Purchase Program165 and was designed to simplify the overall structure of the state’s school facilities program and create a more transparent and equitable funding mechanism.166 State funding is provided under the SFP in the form of per pupil grants, with supplemental grants for site development, site acquisition, and other project specific costs; all grants are considered to be the full and final apportionment from the state.167 The SFP provides funding grants for school districts to acquire school sites, construct new school facilities, or modernize existing school facilities. Two major funding types are new construction projects funded on a 50/50 state/local matching basis and modernization projects funded on a 60/40 basis.168

Funding for the School Facility Program comes exclusively from state GO bonds approved by the voters. Since 1998, California voters have approved five statewide bond issues totaling $54.1 billion and providing $42.4 billion for the SFP Program:169

Proposition 1A (1998) authorized $9.2 billion, with $6.7 billion for K–12 public school facilities and $25 billion for higher education facilities.170
Proposition 47 (2002) authorized $13.2 billion, with $11.4 billion for K–12 public school facilities and $1.65 billion for higher education facilities.171
Proposition 55 (2004) authorized $12.3 billion, with $10 billion for K–12 public school facilities and $2.3 for higher education facilities.172
Proposition 1D (2006) authorized $10.416 billion, with $7.3 billion for K–12 public school facilities and $3.1 billion for higher education facilities.173
Proposition 51 (2016) authorized $9 billion, with $7 billion for K–12 public school facilities and $2 billion for higher education facilities.174

Each state education bond act approved by voters includes a breakdown of how the authorized funds are to be distributed. For example, the recent passage of Proposition 51 (2016) stipulated that the $9 billion in approved funds were to be distributed in the following manner:

$3 billion for construction of new facilities
$500 million for providing school facilities for charter schools
$3 billion for modernization of school facilities
$500 million for providing facilities for career technical education programs
$2 billion for acquiring, constructing, renovating, and equipping community college facilities

Bond funds for K–12 facilities are administered through the SFP, while funds for community colleges are administered by the California Community Colleges, Chancellor’s Office.175

Allocations of state bond proceeds under the SFP are awarded by the SAB. For more information on SAB, see B.1.1.1 School Facility Finance Before Proposition 13.

Grants allocated by the SAB under the SFP are administered by the Office of Public School Construction (OPSC). The OPSC, under the authority of the California Department of General Services, is responsible for carrying out and implementing the various programs of the SAB, including the SFP. The grants administered by OPSC and allocated by the SAB are funded exclusively from state GO bonds approved by the voters of California as discussed above.176 As staff to the SAB, the OPSC is responsible for allocating state funding for eligible new construction and modernization projects to provide safe and adequate facilities for California public school children. The OPSC is also responsible for the management of these funds and the expenditures made with them. Per Education Code Section 41024, a local agency that receives any funds pursuant to the Leroy F. Greene School Facilities Act of 1998 after April 1, 2017 will have their project audited as part of that local educational agency’s audit for the fiscal year in which the project is reported complete. It is the responsibility of the OPSC to prepare regulations, policies, and procedures for approval by the SAB that carry out the mandates of state law.177

Design and construction oversight for K–12 schools, community colleges, and various other state owned and leased facilities is provided by the DSA. As mentioned earlier, the Field Act mandated DSA to develop earthquake resistant design and construction for all public schools in the state. DSA also develops accessibility, structural safety, and historical building codes and standards for various public and private buildings throughout California.178 Pursuant to Education Code Section 17072.30, school districts are required to obtain DSA approval of project plans and specifications before submitting an application to the OPSC. The DSA approves project design by reviewing plans for structural integrity, fire/life safety, and accessibility.

To be considered for funding under the SFP, school districts are required to work with and receive approval from several state agencies. The California Department of Education, School Facilities Planning Division reviews and approves school district sites (site approval process for proximity to airports, freeways and power transmission lines) and construction plans.179 The School Facilities Planning Division reviews construction plans to determine the adequacy of the proposed facility and whether the needs of students and faculty will be met. The Department of Toxic Substances Control assists districts with an assessment of any possible contamination and if necessary with the development and implementation of a mitigation plan.180 In addition, before receiving SFP funds, a district must certify that a labor compliance program has been approved by the Department of Industrial Relations or the district has contracted with the Department of Industrial Relations for prevailing wage monitoring and enforcement.181

Although the program has gone through numerous changes since 1998, the basic structure of the SFP is still in place today. The SFP Handbook, available on the OPSC website, can guide potential applicants through the steps in the SFP application process.