Proposition 13 Summary: 

Public Preschool, K-12, and College Health and Safety Bond Act of 2020

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The School Facilities Bond Bill will put a $15 billion bond on the March 2020 election.

• $9 billion for PK-12

• $2 billion for community colleges

• $2 billion for CSU system

• $2 billion for UC system

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The $9 billion for PK-12 would provide funding for the following programs:

• $2.8 billion for new construction

• $5.2 billion for modernization

  • Up to $150 million to remediate lead in water

• $500 million for charter schools

• $500 million for CTE facilities (career tech. ed.)

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Allows funds to be spent on preschool classrooms, kitchens, and facility space for nurses and counselors.

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The local bonding capacity of school districts would be increased by 60% to provide more access to local funds.

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The State funding ratio for new construction can increase from 50% to up to 55% for lower wealth school districts based on points from a sliding scale which looks at the bonding capacity per student and the percentage of students that are low income, foster care or English learners.

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The State funding ratio for modernization can increase from 60% to up to 65% for lower wealth school districts based on points from a sliding scale which looks at the bonding capacity per student and the percentage of students that are low income, foster care or English learners.

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All Districts participating in the School Facility Funding Program will be required to prepare, approve and submit to OPSC a five-year school facilities master plan that must include the following:

• Eligibility for State funding

• Inventory of existing facilities and sites

• Existing classroom capacity

• Projected enrollment for 5 years

• Capital Planning budget for proposed projects

• Funding sources and financing plan

• District’s assessed value and bonding capacity

• Deferred maintenance plan

• Master plan is consistent with goals in LCAP

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Eligibility for new construction baseline capacity will be updated based on current classroom inventory with each new funding application.

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Financial hardship program is available to districts with a bonding capacity of less than $15 million which will be adjusted annually for inflation.

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Modernization of buildings over 50 years old can qualify for new construction grant amounts if replacement is justified.

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Small school districts (<=2,500 students) still have three year lock on enrollment projections used for new construction eligibility.

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Additional assistance for small school districts

• Can request a preliminary apportionment

• Similar to the design apportionment for financial hardship projects

• Reserves State bond funds for entire project

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An increase of up to 10% in the grants to remediate lead in water used for drinking or food service

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New priority funding/processing system with quarterly project approvals

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Modernization Processing Priorities

• Facility Hardship is first priority

• Financial Hardship is second priority

• Projects with Lead in water is third priority

• Projects not yet processed in past 6 months is fourth priority

• ORG (overcrowding relief grant) projects is fifth priority

• The sixth priority is all other projects rank by points

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New Construction Processing Priorities

• Facility Hardship is first priority

• Financial Hardship is second priority

• Projects not yet processed in past 6 months is third priority

• ORG (overcrowding relief grant) projects is fourth priority

• The fifth priority is all other projects ranked by points

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Each quarter, new construction approvals will represent 35% of funding requests and modernization approvals will represent 65% of funding requests.

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Developer fees

• Level 3 fees are suspended until Jan 1, 2028

• Multi-family units within ½ mile of major transit stop are exempt from school impact fees until Jan 1, 2026

• All other multi-family units get a 20% reduction in the school impact fees (Level 1 and Level 2) until Jan 1, 2026

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Status of AB 48 (Will be Proposition 13 on March Ballot)

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10/07/19 Chaptered by Secretary of State - Chapter 530, Statutes of 2019.

10/07/19 Approved by the Governor.

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Next Step

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Proposition 13 on March 3, 2020 Ballot

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