The California Building Industry Association (“CBIA”) recently announced that, after months of negotiation with the State Allocation Board (“SAB”), over $200 million in bonding authority has been made available to California school construction projects. The SAB, which is responsible for allocating state funds for the new construction and modernization of local public school facilities, unanimously approved a deal whereby $211 million in remaining bond authority will be transferred into the state’s new school construction account. These funds had been previously reserved for urban districts.
This deal comes in the wake of the SAB’s recent adoption of accelerated funding rules, which prioritize shovel-ready school construction projects for state funding. The new funding rules, adopted by the SAB in May 2010, give funding priority to school projects that are able to start construction within 90 days. Two rounds of funding allocations have taken place under the new rules – $408 million allocated in August 2010, and $1.4 billion allocated in December 2010. According to the SAB, the rules are intended to give a boost to the economy by creating much-needed construction jobs across the state.