Facilities Update – New Bond Sale, New Board Members

The State Allocation Board (SAB) met briefly this afternoon to review a consent-only agenda and hear updates concerning a forthcoming bond sale.

The board was joined by its two newest members, Senators Connie M. Leyva (D–Chino), the chair of the Senate Education Committee, and Richard Roth (D–Riverside), the chair of the Senate Budget Subcommittee on Education.

Treasurer’s bond sale will fund previously approved projects.

The State Treasurer’s office is preparing to initiate a bond sale expected to raise funding for school facilities projects, among other state priorities. A couple hundred million dollars of the $2.2 billion projected to be raised will go towards K-12 facilities during the sale period of April 10–18, according the Office of Public School Construction’s Executive Officer.

School districts awaiting funding should keep an eye on the status of their project(s). The OPSC will soon prepare priority funding apportionments, commensurate with the funds received from the bond sale, which will be presented to the SAB on April 24, 2019.

This bond sale is unaffected by the Governor’s call to sell $1.5 billion in Proposition 51 (2016) bonds during the upcoming 2019–20 fiscal year.

An update on applications received “beyond bond authority.”

In the month since the OPSC announced that new applications are not likely to be funded under Proposition 51’s $3 billion set-asides for new construction and modernization projects, the number of applications has steadily grown.

As of March 15, the state is over-subscribed by $261 million for new construction grants and $48 million for modernization grants, according to the OPSC’s executive officer.

These new applications will be sorted by date received on the list for “Applications Received Beyond Bond Authority,” also referred to as the “Acknowledged List.” OPSC will periodically update the Acknowledged List to reflect additional applications.

May 1, 2019, and close May 30, 2019.

Next board meeting scheduled for April.

The board is scheduled to meet again on April 24, 2019, at 4:00 p.m.