01.21.09: Potential Federal Funding for School Emergency Repair and Renovation
By David Walrath
As part of the economic stimulus proposal in the House of Representatives, the federal government would provide schools funds for repair and renovation of school facilities. The funds would be allocated to states and then to school districts on the percentage of Title 1 Part A funds received by the school district proportional to all the funds received in the state and the state proportional to all the funds received in the nation. Over a two-year period, the funding would be approximately $1.5 billion or $750,000,000 per year for California. While SSDA is disappointed that the House of Representatives chose to use a flawed Title 1 Part A allocation system as the basis for allocating these funds, the significant amount of money that is proposed for the stimulus will ensure that almost all school districts will receive funding under the allocation if they receive Title 1 Part A support. The proposal includes a small school district minimum of $5,000, which is for a two-year period for emergency repair and renovation. The federal stimulus package is not completed; it is still subject to amendments and subject to Senate action which could be significantly different than House action. If the Senate acts differently than the House, there will be a conference committee required prior to the final proposal going to the President.
The language tries to expedite the funds, the intent is that after enactment the House language would require the funds to be allocated to the states within 30 days and from the states to school districts within a comparable 30 days and the school districts would have the funds under contract by the end of 12 months from the date of enactment which is essentially dependent upon how quickly people can actually flow money out, somewhere around 12 months from the date or 10 months from date of notification of a board from the state Department of Education.
The House provision does have strings regarding the use of United States manufactured iron and steel, using green technology, energy efficiency and other provisions. It is unknown at this time whether the Senate will adopt the same or similar provisions. For now, school districts and small school districts should be aware that there is potential funding that will come for school district modernization and repair.
While this is good news, there also is the Catch-22 provision that these funds must be used to supplement but not supplant other required state and local contributions for renovation and repair. Finally, one provision is that funds may not be used for maintenance but does not provide a definition of maintenance. California’s Education Code does not have a clear definition of maintenance and deferred maintenance that specifically dictate any particular action. SSDA does believe that maintenance is projects such as replacing broken windows, tiles, light bulbs, repairing damaged grass, sprinkler heads and similar types of activities. We believe renovation and repair is less frequent projects that are more significant in their costs and their time to complete, such as roof, septic systems, wells, playground, repairs and other major projects.
SSDA will continue to monitor these provisions.
