State School Bond Bill and Affordable Student Housing

Last Thursday, September 14, was the deadline to pass bills out of the Legislature in 2023. The Legislature adjourned for interim recess and will reconvene in Sacramento on January 3, 2024. See below for updates on two major areas of interest for CCFC.

State School Bond: AB 247 Becomes a “Two-Year Bill”

State school bond efforts are now focused on a November 2024 election date, rather than March 2024. AB 247 (Muratsuchi), the 2024 $14 billion K-14 state school bond bill, was made into a “two-year bill” by the Senate Appropriations Committee on September 1. This maneuver “parks” the bill, allowing time for negotiations between the Assembly, Senate, and Administration on final details of the bond. Senate Appropriations Committee published a list of approximately 30 bills, including AB 247, that received the “two-year bill” designation and will have the opportunity to continue moving forward in 2024. CCFC supports AB 247 and a November 2024 ballot date.

In keeping with this action, Assembly Appropriations Committee also designated SB 28 (Glazer), the $15.5 billion K-University state school bond bill, a “two-year bill.” SB 28 currently specifies a March 2024 election date, but the opportunity to pass a bill in time for that election has passed. Senator Glazer prioritizes the inclusion of UC and CSU in a school bond, and SB 28 intends to ensure they are represented in school bond negotiations. CCFC is neutral on SB 28.

One bond is on track for the March 2024 election. The Legislature passed AB 531 (Irwin), which would place a $6.38 billion behavioral health infrastructure bond on the March ballot to provide supportive housing for veterans and individuals experiencing or at risk of homelessness. Governor Newsom strongly supports this measure.

CCFC thanks Assembly Members Muratsuchi, Fong, and Wilson for their leadership in authoring AB 247, and we look forward to ongoing discussions with the Administration and Legislature to finalize a successful state school bond.

Student Housing Fix SB 142 Signed Into Law

Last Wednesday, September 13, the Governor signed SB 142, the end-of-session higher education budget trailer bill that includes a solution for the Higher Education Student Housing Grant Program (HESHGP). The bill went into effect immediately upon signature.

The 2023 Budget Act shifted the funding mechanism for HESHGP projects from General Fund grants to lease revenue bonds issued by community colleges. SB 142 includes intent language to develop a state-issued lease revenue bond or other statewide financing approach to support the previously-authorized projects from both Round 1 (2022) and Round 2 (2023). This will be developed no later than the enactment of the 2024 Budget Act, which will likely occur in June 2024. Additionally, three intersegmental projects will be funded by local lease revenue bonds issued by the University of California.

SB 142 specifies that a community college project that has already received its cash (i.e. Round 1 projects) shall not revert the cash until June 29, 2024, or the enactment of the 2024 Budget Act, whichever is later.

When the Senate and Assembly heard this proposal in their respective Budget Committees, members of the Legislature pressed the Administration to move quickly to develop the state financing mechanism. CCFC provided public testimony in support of SB 142, and we will remain actively engaged with the Department of Finance and policymakers as the details are crafted.

Please click here for more information on the details of SB 142.

Join us at the CCFC 30^th Annual Conference November 6-8, 2023 at the Sacramento Convention Center to learn more about these and other important policy issues affecting community college facilities.

Rebekah Kalleen
CCFC Executive Director