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Over $1.6 Billion in Modernization Funds and $80 Million in

December 2009

In 2006, California voters approved Proposition 1D, a $10.4 billion bond measure designed to provide much needed funding to public education facilities for repairing older schools, constructing new buildings, and promoting environmentally-friendly facilities.  A total of $7.3 billion was allocated to K-12 in several categories.  While much of the K-12 funding has been approved or disbursed, a surprising amount of facilities funding is still available for modernization projects and “green” incentive grants.  

Modernization Funds

According to a recent estimate by the Office of Public School Construction (“OPSC”), $1.6 billion of the original $3.3 billion allocated for K-12 school modernization projects is still available to help districts revitalize and repair existing school buildings.  To be eligible for these modernization grants, districts must have a permanent building which is at least 25 years old or a portable classroom which is at least 20 years old.  Under Proposition 1D, the state will cover 60% of modernization costs for most school districts, and up to 100% of the costs if a school district qualifies for “hardship funding.”  

High Performance Incentive (“Green”) Grants

Additionally, OPSC reports that approximately $80 million of the original $100 million still remains in Proposition 1D’s high performance incentive fund (“HPI”), a fund designed to promote projects which include “green” components.  HPI funding is available for new construction or modernization projects that include some or all of the following: efficient use of energy and water; maximum use of natural lighting and indoor air quality; use of recycled materials; and enhanced indoor lighting, air quality, and acoustics.  OPSC awards each eligible school district a share of the HPI funding based on “green” building criteria outlined in the School Facility Program (SFP) regulations, which are found at http://www.documents.dgs.ca.gov/opsc/Regulations/SFP_Regs.pdf.  The regulations are based on criteria established by the Collaborative for High Performing Schools or Leadership in Energy and Environmental Design.

OPSC is working hard to make school districts more aware of HPI grants.  Rob Cook, Executive Officer of OPSC, and Dave Thorma, State Architect, recently spoke at the Green California Schools Summit to increase awareness and OPSC is soliciting ideas on how to improve the way HPI grants are obtained.  More information can be found at http://www.opsc.dgs.ca.gov/default.htm.

Submit Your Applications Now

To take advantage of remaining Proposition 1D funding, school districts must submit an application to OPSC for approval.  OPSC will award the remaining Proposition 1D funds on a first-come, first-served basis until the funding runs out.  We encourage school districts to take advantage of this great opportunity and obtain Proposition 1D funds for their green construction before it is too late.  Through Proposition 1D funding, your district can jump into the “green” schools movement while preserving natural resources, cutting down on district costs, and enhancing the learning environment for your students.

If you have any questions about Proposition 1D funds, including ways your district may benefit from funding for modernization or “green” construction projects, please contact one of our four offices.

F3 NewsFlash prepared by Kathy McKee and Kelley Owens.
Kathy McKee is a partner in the F3 San Marcos office.
Kelley Owens is an associate in the F3 San Marcos office.

This F3 NewsFlash is a summary only and not legal advice.  We recommend that you consult with legal counsel to determine how this matter may apply to your specific facts and circumstances.  Information on a free NewsFlash subscription can be found at www.fagenfriedman.com.

As part of the E-ducation™ Professional Development Series hosted by ACSA and F3, we offer webinars on various topics.  You can find the information on the ACSA website at http://www.acsa.org/MainMenuCategories/ProfessionalLearning/E-ducation-Series.aspx.

© 2009 Fagen Friedman & Fulfrost, LLP

All rights reserved, except that the Managing Partner of Fagen Friedman & Fulfrost, LLP hereby grants permission to any client of Fagen Friedman & Fulfrost, LLP to use, reproduce and distribute this NewsFlash intact and solely for the internal, noncommercial purposes of such client.