Be sure to turn in your newest CBEDS/CALPADS enrollment counts so we can determine if you are eligible for new construction funds.  Also, for our demographics clients, we need your student information so we can analyze the data to generate your updated enrollment projections.  We should be able to see if any new trends have developed as we are recovering from the recession.  

SchoolWorks assists many districts by preparing a demographics study which researches the historic student enrollment patterns along with the data on births and new development patterns to generate enrollment projections for the next 6 to 10 years.  When combined with schools capacities based on various loading standards we are able to show the utilization factors for each school in the district.  This often highlights upcoming issues that need to be addressed.  One common issue is if additional space is needed to accommodate the 24:1 loading requirement for grades K-3.  For assistance with a demographics study for your district please contact us. 

The State Allocation Board held a brief meeting on October 16th.  

The biggest item at this meeting was the second half of funding for ERP (Emergency Repair Program) projects this year.  $95 million was funded at this meeting.  This leaves a balance of $273 million in order for the State to meet its $800 million obligation for the ERP program.  If you need assistance completing the reporting requirements for these projects or have any questions, please call my office.

There were two appeals items scheduled for this meeting both they were both withdrawn.  

There are $393.1 million in processed projects that exceed bond authority.  There are also $669.5 million in projects that have been received but not processed by OPSC. This results in a total of $1.06 billion in projects that exceed the current bond authority. This creates the beginning of the demand for a State bond in 2016. It is likely the amount of projects in line by 2016 will reach around $3 billion.  Due to this potential volume, it becomes critical to get your projects in line so you can be funded earlier once a bond or other source of funds become available.

The next SAB meeting is scheduled for December 10th and will be the last meeting this calendar year.

Many of our clients have eligibility for modernization and/or new construction funds and many of those districts have even turned projects into OPSC or are about to do so.  There have been many conversations about interim financing.  Basically the question is whether or not the district should borrow funds from the bank or the reserves to be able to fund the project now in advance of State funding.  The issues revolve around the need for the project (either due to classrooms needed or aging facilities) and the potential delays in funding.  For those considering borrowing, the interest rates are still very low which makes it attractive.  Also, if the projects are started now instead of a year or two later, there will be cost savings due to inflation.  Another pressure point is the fact that plans must be used within a reasonable timeline or they will need to be updated to the latest codes. 

In regards to these issues, we have stated it is reasonable to assume that State funding should be available in the next two or three years.  If the district has the ability to fund projects now and they are needed now or additional costs will be incurred (for repairs or leasing temporary classrooms), then we feel it is a good choice to use interim financing methods to begin the project.  As always we need to make sure all the appropriate steps are taken to make sure the project will qualify for State funding such as making sure the project meets all the DIR labor compliance requirements.  For more specific issues please contact me for assistance.

We did hear some new information today about the possibility of Jerry Brown including a line item in his budget to fund the SAB for State school building projects.  This is in line with what we were projecting.  The article was a little negative as it thought bonds were a better funding source but I disagree.  An annual funding allotment is capable of providing an adequate amounts of funds for the program.  We will hear much more in January.