After months of negotiations with school districts throughout California and an intensive lobbying campaign aimed at the State Allocation Board (the entity responsible for allocating state funds for the new construction and modernization of local public school facilities), the CBIA Governmental Affairs division is pleased to announce that a major agreement has been struck that will make significant additional dollars available to finance the construction of new school projects. The deal, just approved unanimously by the Allocation Board, will likely provide builders with a cushion against triggering “level 3” (100% builder financing) through the coming year.
Under the specifics of the plan, $233 million in remaining bonding authority heretofore reserved for urban districts, minus a 15% reserve, will be transferred into the state’s new school construction account. The official action took place this afternoon during the final meeting of the year of the Board. The $211 million transfer, coupled with roughly $300 million in remaining funds tagged for new construction, raises the new construction fund balance to well over $500 million.
The deal reflects the culmination of months of negotiations and countless hours of lobbying by the CBIA team of Jason Bryant, Gary Gibbs and Richard Lyon. CBIA thanks all of the Allocation Board members, including the Chair, Cynthia Bryant, and the legislative leadership, particularly Assemblywoman Joan Buchanan (D – Danville), and Senators Jean Fuller (R – Bakersfield) and Bob Huff (R – Diamond Bar). Over the course of the coming year CBIA will continue to monitor the burn rate and the status of funds as it gears up for a collaborative effort to place a comprehensive school bond on the 2012 statewide ballot.