• Legislative Cycle at Midpoint
• Updates on Key Bills
• FY 2026-27 State Budget: Governor Releases May Revision & CASH Budget Request
• OPSC Announces Meeting to Develop Prop. 2 Lead in Water Testing and Remediation Program
• CSFRI Study Shows Educational Impact of Facilities Projects
• Upcoming CASH Events

Click here to view and download.

~CASH Staff

AB 2067 (Patel) – Lease-Leaseback Sunset Extension
This CASH-sponsored bill, which would extend the authorization for school districts to use the competitive selection process of Lease-Leaseback procurement, has been approved by the Assembly. It is set for hearing by the Senate Committee on Education on June 3. 

SB 1014 (Grayson) – Development Improvement List
This bill would require school districts and other public agencies to provide developers with a list of on and offsite improvements required in connection with residential development projects within 30 days of the preliminary development application. Due to CASH advocacy, the author of the bill has agreed to remove schools from the bill. We expect this amendment to be made in a policy committee in the second house.

~CASH Staff

To participate in this meeting in person or virtually, see information below or refer to OPSC’s webpage under “Meetings.”  

Department of General Services, Ziggurat 
707 3rd Street, Third Floor, Room 3-300 
West Sacramento, CA 95605 

Join from PC, Mac, Linux, iOS or Android: https://us06web.zoom.us/j/84782324735?pwd=njw4Vh3uCA2GUuxqYWKsm1bv7niAj1.1 
Password: 400500 Or Telephone: Dial: USA 213 787 0529 USA 888 808 6929 (US Toll Free) Conference code: 991990

The bill has been set for hearing by the Senate Committee on Education on Wednesday, June 3rd. To ensure your support is reflected in the official analysis of the bill, please submit letters of support by 12:00 pm on Friday, May 29th. 

We need your help asking Senators to support this bill and educating them about the impact this authorization has made in your community or would have on future projects.

For your convenience, we have provided a template and instructions on how to submit an official letter of support.

Step 1: Write your letter

Customize the template provided or write your own letter describing projects your district was able to deliver using the LLB competitive selection process, or plans to deliver future projects. Include any benefits experienced, such as expert guidance during the preconstruction phase, expedited construction, or reduced change orders.

Step 2: Use the Legislative Portal to submit your official letter of support

The Legislature uses an online system for the submission of bill position letters. If you don’t already have a login, you’ll need to create one. You can create a login, view an FAQ, or submit your letter through the California Legislature Position Letter Portal. Additional instructions for using the Portal are available here.

Step 3: Email it to your representatives

Send your letter directly to your own Senator. If they are not a member of the Senate Education Committee, ask them to advocate to the committee and vote for the bill on the Senate Floor. 

This online tool can help you identify your representatives. However, since school district boundaries do not mirror legislative districts, you may have more than one representative in each house.

If you need assistance using the Position Letter Portal, please contact Aileen. We would also appreciate a courtesy copy of your letter sent to Aileen Dalen at adalen@m-w-h.com.

~CASH Staff

Executive Officer Statement

SAB Executive Officer Rebecca Kirk provided the following update:

Priority Funding Filing Round is Now Open—

• The current Priority Funding Filing Round opened on May 13, 2026, and closes at the end of the day on June 11, 2026. Applicants are encouraged to submit Priority Funding requests electronically through the Office of Public School Construction’s (OPSC) Online system. All requests must be received by OPSC no later than 11:59 p.m. on June 11, 2026. These requests will be valid from July 1, 2026, through December 31, 2026.
• Applicants submitting a request in this Priority Funding Filing Round may have their unfunded approval converted to an apportionment following an anticipated Fall 2026 statewide general obligation bond sale. Applications that receive an unfunded approval at today’s meeting are eligible to participate in this Priority Funding Filing Round. OPSC recently sent an email blast to remind all stakeholders of this process. Information on the Priority Funding Process can be found on OPSC’s website here.

California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program Funding Round Closed—

• The California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program funding round, authorized by the State Allocation Board (Board) in January 2026, recently concluded, with applications accepted from April 1, 2026, through April 30, 2026. OPSC received 56 applications from 50 school districts requesting a total of approximately $210.4 million in state funding, which includes approximately $28.4 million in requested Financial Hardship assistance. A list of the applications received during the filing round is included as part of the Information Items in today’s Agenda. Staff are currently processing received applications and will present successful applications to the Board later this year.

Regulatory Amendments to the School Facility Program/Proposition 2 Implementation—

• The Board approved emergency regulatory amendments at the January 28, 2026, Board meeting to implement provisions of Proposition 2, related to the Five-Year School Facilities Master Plan (Master Plan).
• The emergency regulatory amendments were approved by the Office of Administrative Law and became effective on May 4, 2026. Timelines for submittal of the Master Plan are based on the specific School Facility Program application type. In particular, districts are advised that beginning May 5, 2027, a complete and valid Master Plan will be required at the time of application submittal for New Construction and/or Modernization funding requests. More information can be found on OPSC’s website here.

Appeals

Greenfield Union School District (Kern County)—

• The Board approved the district’s request for a retroactive Reduction to Costs Incurred of the School Facility Program New Construction funding application number 50/63503-00-014 at Crescent Elementary School, and are permitting the district to submit a new standalone application with the original submittal date of July 29, 2022, to fund the project with one Non-Severe Special Day Class pupil grant and all eligible augmentations.

School Facility Program Workload and Approvals

The Unfunded List dated April 29, 2026, contains projects worth $493,500,698.

The Consent Calendar contains a list of Unfunded Approvals containing projects worth $158,091,965.

The SFP Workload list dated April 30, 2026, contains projects worth the following:

The Acknowledged List dated April 30, 2026, contains projects worth the following:

Next Meeting:

The next SAB meeting is scheduled for Wednesday, June 24, 2026. The time and location of the meeting will be determined and announced at a later date.

~Nancy Chaires Espinoza, Legislative Advocate

Today, Governor Gavin Newsom released the May Revision to his proposed 2026–27 State Budget. In his final Budget presentation, the Governor emphasized California’s strong economic position, stronger-than-expected tax collections, and a balanced budget through July 2027.

Overall Budget

The May Revision reflects General Fund revenues that are $16.5 billion higher than projected in January and proposes General Fund spending of $246.6 billion for 2026–27, approximately $1.8 billion lower than in the Governor’s January budget proposal. The budget maintains positive year-end balances and substantial reserves while avoiding significant new ongoing expenditures.

TK-12 Education Budget

The May Revision provides $151.6 billion for TK-12 education, including $91.3 billion in General Fund support and $60.3 billion from other funds. This represents a significant increase over the January proposal due to higher Proposition 98 revenues.

Proposition 98—

The Proposition 98 guarantee is revised upward to $124.9 billion in 2024–25, $125.1 billion in 2025–26, and $127.1 billion in 2026–27. Compared with the Governor’s January budget, the guarantee increases by $6.4 billion over the three-year budget window. Relative to the 2025 Budget Act, Proposition 98 funding is up by approximately $28 billion over the same period.

Because a substantial share of the increase is constitutionally required to be deposited into the Proposition 98 Rainy Day Fund, not all of the additional funding will be immediately available for new TK-12 and community college spending.

Local Control Funding Formula (LCFF)—

The May Revision increases the statutory LCFF cost-of-living adjustment from 2.41% in January to 2.87%. Combined with enrollment adjustments, this provides approximately $1.3 billion in additional discretionary funding for local educational agencies compared with the 2025 Budget Act.

The Governor also proposes an additional $906.7 million in discretionary funding beyond the statutory Cost of Living Adjustment (COLA). This “super COLA” brings the total LCFF adjustment to 4.31%, significantly above the January proposal and roughly 1.5 times the statutory COLA.

These funds are intended to help school districts address rising costs, mitigate declining enrollment impacts, and implement new requirements such as paid pregnancy disability leave.

Student Support and Professional Development Discretionary Block Grant—

The May Revision increases this one-time Proposition 98 block grant from $2.8 billion in January to $5 billion, an increase of $2.2 billion. Suggested uses for these funds include teacher professional development, recruitment and retention, literacy and mathematics initiatives, and career pathways and dual enrollment expansion. That said, school districts are permitted to allocate discretionary grants for any purpose, including school facilities and maintenance.

Community Schools—

The Governor maintains the $1 billion in ongoing Proposition 98 funding proposed in January to expand community schools. The May Revision also repurposes $485 million, previously set aside for extension grants within the California Community Schools Partnership Program.

School Facilities Budget

CASH submitted a budget request for $2.5 billion one-time to fund the Proposition 2 backlog ($1 billion more than proposed in the FY 2026-27) and $420 million one-time for the Deferred Maintenance Program. The Budget Detail shows the proposed allocation from Proposition 2 for the School Facility Program remains unchanged from the Governor's January Budget.

The May Revision Summary does not include detailed information on several issues of significant interest to school facilities professionals, including:

• Kitchen Infrastructure and Training Program
• Proposition 4 Climate Bond investments

CASH staff will continue to analyze the Budget Details, but it’s possible that information on these programs and on the policy proposal mentioned by the Governor to limit impact fees for state-funded projects may not be available until the Administration publishes trailer bill language. The latter was referenced in the context of housing projects, so at this time the scope of the proposal is unknown. 

Next Steps

The Legislative Budget committees and subcommittees will now review the Governor’s proposals. The Senate and Assembly may jointly, or separately, develop their own budget packages ahead of negotiations with the Governor. Negotiations between the President Pro-Tem of the Senate, the Speaker of the Assembly, and the Governor will culminate in the adoption of a main Budget bill by the constitutional deadline of June 15. Additional substantive decisions are likely to be finalized later through budget trailer bills.

CASH will continue to monitor these developments and provide updates as more information becomes available.

~CASH Staff

The bill has not been set for hearing, but it could be heard in the Senate Committee on Education as early as June 3rd. To ensure your support is reflected in the official analysis of the bill, please submit letters of support by 12:00 pm on Friday, May 29th. 

We need your help asking Senators to support this bill and in educating them about the impact this authorization has made in your community or would have in the future projects.

For your convenience, we have provided a template and instructions on how to submit an official letter of support.

Step 1: Write your letter

Customize the template provided, or write your own letter, describing projects your district was able to deliver using the LLB competitive selection process or plans to deliver future projects. Include any benefits experienced, such as: expert guidance during the preconstruction phase, expedited construction, or reduced change orders.

Step 2: Use the Legislative Portal to submit your official letter of support

The Legislature uses an online system for submission of bill position letters. If you don’t already have a login, you’ll need to create one. You can create a login, view an FAQ or submit your letter in the California Legislature Position Letter Portal. Additional instructions for using the Portal are available here.

Step 3: Email it to your representatives

Send your letter directly to your own Senator. If they’re not members of the Senate Education Committee, ask them to advocate to the committee and vote for the bill on the Floor. 

This online tool can help you identify your representatives, but since school district boundaries do not mirror legislative districts, you may have more than one representative in each house.

If you need assistance using the Position Letter Portal, please contact Aileen Dalen (adalen@m-w-h.com). We would appreciate a courtesy copy of your letter via Aileen.

~CASH Staff

Proposition 2 requires school districts to submit a Five-Year School Facilities Master Plan as a condition of participating in the SFP for applications submitted on or after October 31, 2024.  The statute and regulations specify nine minimum elements that must be included in the Master Plan, including an inventory of existing facilities, sites, and property.  Click here for a prior CASH update on the Master Plan requirement.

The regulations establish timelines for submission of the Master Plan based on program and application type.  For standard New Construction and Modernization projects (including projects with prior Board approval for Separate Design/Site), the following Master Plan submittal timelines apply:

• For applications submitted on October 31, 2024 through May 4, 2027 – submit Master Plan within 90 days of notification of application processing
• For applications submitted on or after May 5, 2027 – submit Master Plan concurrently with the Form SAB 50-04, when the full grant funding application is submitted to OPSC. 

A Comprehensive Maintenance Plan (CMP), supported by facility assessments and asset inventories, was identified as a critical tool, along with aligning funding sources such as LCAP and bond programs. A district case study demonstrated measurable reductions in work orders, labor hours, and repair costs through proactive maintenance. The session also addressed ongoing challenges, including budget alignment, project handoffs, and navigating multiple funding sources, as well as current priorities around compliance, inspections, and evolving state requirements.

Up Next: CASH Spring Forum
May 19, 2026 | Long Beach, CA
Focus: State fiscal and political impacts on school facility funding and construction
Click here to register by May 8!

During the CASH 47th Annual Conference on School Facilities in late February in Sacramento, it was announced that Denver Stairs of Clovis Unified School District will conclude his service on the Board as he transitions into a new role as Director of Human Resources within his district.

The Board of Directors has appointed Shawn Tennenbaum, Ed.D., Superintendent of the San Benito High School District, to fill the remainder of Denver’s term through February 2027.

Dr. Tennenbaum brings a wealth of experience as an educator, coach, and highly respected superintendent, having served students, parents, and his community for the past 29 years.

We look forward to his contributions and leadership on the Board.
We also extend our sincere appreciation to Denver for his dedicated service and meaningful contributions to CASH.

~CASH Staff

We encourage you to review the report and research brief, and to share this information with school facilities practitioners. This information may be especially useful in developing support for facilities investments among decision-makers and community members. Please take advantage of this resource to strengthen advocacy with stakeholders for sustained state and local investment in school facilities as a proven strategy to accelerate student achievement.

About CSFRI

The California School Facilities Research Institute (CSFRI) is a 501(c)(3) which was established in 2016 to conduct and publish validated research to raise Californians’ awareness of the positive impact quality school facilities have on student academic achievement and community success.

An educated populous is the foundation of a well‐functioning society. A well‐educated workforce, well‐trained workers, and a citizenry that supports education create opportunity and enhance living standards in California. More educated citizens have more opportunities, and more opportunities create more educated citizens. Improving education enhances and sustains our communities.

~CASH Staff

• Deferred Maintenance: Provide $420 million (one-time Proposition 98) in FY 2026-27 to fund the State Deferred Maintenance Program. K-12 schools have not received specific funding for maintenance since FY 2007-08, but the need for state support persists.
• Proposition 2 Bond Funds: $1 billion in additional Proposition 2 bond funds in FY 2026-27, for a total of $2.5 billion available for the School Facility Program (SFP). CASH is educating policymakers that the pace of apportionments is a policy choice, and we are sharing that demand for SFP funds extends well beyond the planned $1.5 billion.

• Legislature's Review of Bills Intensifies
• FY 2026-27 State Budget: May Revision Coming soon & CASH Budget Request
• AB 2241 (Boerner) - Inclusive Playgrounds
• Coalition Requests that CalSHAPE Funds Continue to be Available for K-12 Schools
• CASH Networking Mixers
• Upcoming CASH Events

Click here to view and download.

1. To evaluate the risk of litigation based on potential Board action to rescind an apportionment and discuss further actions by the Board and OPSC; and
2. Regarding pending litigation in the case entitled Miliani Rodriguez, et al. v. State of California, et al., Alameda County Superior Court, Case No. 25CV150626. 

At the conclusion of the closed session, the Chair indicated the Board did not have anything to report.

Executive Officer Statement

SAB Executive Officer Rebecca Kirk provided the following update:

Priority Funding Apportionments from Priority Funding Round 30—

• Today’s Agenda includes an action item requesting State Allocation Board (Board) approval of $745.6 million in Priority Funding Apportionments for 189 unique projects. Subject to Board approval in today’s meeting, districts that receive Priority Funding Apportionments must submit a complete and valid Fund Release Authorization (Form SAB 50-05) for these projects to the Office of Public School Construction (OPSC) no later than 11:59 p.m. on July 28, 2026. If a complete and valid Form SAB 50-05 is not submitted timely, the consequences for non-participation will apply.

Upcoming Priority Funding Round 31—

• The next Priority Funding Filing Round opens on May 13, 2026, and closes at the end of the day on June 11, 2026. Applicants are encouraged to submit Priority Funding requests electronically through OPSC Online. All requests must be received by OPSC no later than 11:59 p.m. on June 11, 2026. These requests will be valid from July 1, 2026 through December 31, 2026. Applicants submitting a request in this Priority Funding Filing Round may have their unfunded approval converted to an apportionment following an anticipated Fall 2026 statewide general obligation bond sale. OPSC will send out an email blast in May to remind all stakeholders of this process. Information on the Priority Funding Process can be found on OPSC’s website here.

OPSC Online Workshops—

• On April 3 and 17, OPSC held the first two of seven virtual open forum events regarding the OPSC Online Application (OPSC Online). Each of these events was attended by roughly 30 unique stakeholders. At its December 2025 meeting, the Board approved regulations to require use of OPSC Online for all application submittals beginning on January 1, 2027. 
• To assist school districts in preparing for this change, OPSC staff is conducting a series of open forum events to walk through various workflows and functionality in OPSC Online. School district personnel and interested parties are encouraged to attend. Meeting details are on OPSC’s Meetings webpage: https://www.dgs.ca.gov/OPSC/Meetings. Details of additional workshops will be announced in email blasts.

State Agency Joint Small School District Workshops—

• In March and April 2026, OPSC and the California Department of Education (CDE) held a series of 11 in-person joint workshops for new programs related to small school districts in locations throughout California. This month’s workshops were held in Kern, Fresno, Orange, Riverside, San Diego, and Monterey Counties, following March workshops held in Yolo, Humboldt, Shasta, Butte, and Sonoma Counties. A total of 93 stakeholders attended these workshops. An additional virtual workshop will be held in the near future. The meeting details, including the date of the event, will be announced in an email blast and will be available on OPSC’s Meetings webpage: https://www.dgs.ca.gov/OPSC/Meetings. 
• Additionally, OPSC and CDE intend to make a recorded version of the workshop content available on their respective websites in the near future. These workshops aim to equip potential applicants to the new Small School District Program to navigate the funding process effectively and ensure they understand all aspects of this program and additional programs available to help them meet their facility needs.

Career Technical Education Facilities Program Funding Cycle—

• The seventh Career Technical Education Facilities Program funding cycle is currently underway. Last month, CDE sent Grant Application scores for applicants who submitted Grant Applications by the December 1, 2025, deadline. Those applicants with a passing score from CDE for the seventh funding cycle can now submit the Application for Career Technical Education Facilities Funding (Form SAB 50-10) to OPSC by 11:59 p.m. on June 30, 2026. OPSC will present seventh funding cycle applications to the Board for funding consideration by December 2026.

California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program Funding Round—

• The California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program filing round opened on April 1, 2026, and applications will be accepted until the round closes on April 30, 2026, at 11:59 p.m. Applications must be submitted through the OPSC Online Application.

Appeals

Selma Unified School District (Fresno County)—

• The Board approved the district’s request to reinstate Board-approved California Preschool, Transitional Kindergarten and Full-Day Kindergarten Facilities Grant Program funding application 70/62430-00-015 at Andrew Jackson Elementary School, and to immediately release funding.

Action Items

Priority Funding School Construction Apportionments—

• The Board approved priority School Facility Program Funding Apportionments totaling approximately $745.6 million for the projects that submitted a valid priority funding certification to 89 school districts and qualifying applicants for 189 projects
• This represents 92.65 percent of the projects on the Unfunded List (Lack of AB 55 Loans) that could have submitted requests.

Proposed Regulatory Amendments for the School Facility Program—

• The Board approved clarifying language changes to the Grant Agreement [Proposition 2] regarding common eligible and ineligible uses of the Project Construction and Management Grant for the Small School District Program.

School Facility Program Workload and Approvals

The Unfunded List dated March 25, 2026, contains projects worth $1,142,821,136.

The Consent Calendar contains a list of Unfunded Approvals containing projects worth $96,273,969.

The SFP Workload list dated March 31, 2026, contains projects worth the following:

The Acknowledged List dated March 31, 2026, contains projects worth the following:

Next Meeting:

The next SAB meeting is scheduled for Wednesday, May 20, 2026. The time and location of the meeting will be determined and announced at a later date.

~Nancy Chaires Espinoza,  Legislative Advocate

SB 1014 (Grayson)
This bill requires school districts to provide housing development applicants “a list of any onsite or offsite improvements that may be required in connection with the housing development project… within 30 business days” following submission of a preliminary development application. At this early stage, school districts may not have the information needed to determine which, if any, improvements are needed to mitigate new residential development. For example, a developer may not have provided the district needing to build a new school the data to determine stormwater capacity requirements. State agency review may generate the need for enhanced utility capacity, or other improvements well beyond the 30-day window.

CASH has adopted an ‘Oppose Unless Amended’ position. The specific amendment requested is to delete the reference to school districts in Section 65941.3(b)(3) of the bill, thereby exempting local educational agencies from its requirements. We are pleased to report that our advocacy has secured a commitment from the author to adopt this amendment.

AB 2241 (Boerner) – Inclusive Playgrounds
This bill establishes the Inclusive Playground Advisory Committee, with members of specified backgrounds to be appointed by the Governor, the Senate Rules Committee, and the Assembly Speaker. The Committee must coordinate with the California Department of Education to develop and publish model guidelines for inclusive school playgrounds, which should reflect universal design principles and address equipment selection, surfacing, sensory, features, safety, and maintenance.  CASH engaged with the author’s office and the Assembly Education Committee to share concerns with the original version of the bill, which required the Committee to review proposed inclusive school playground designs for schools that were seeking state funding, and prioritized state grant funding for projects that met inclusive design standards.  CASH raised concerns about disruption to date order processing in the School Facility Program.  We also educated policymakers about funding constraints that limit the ability of school districts to appropriately update their playgrounds to meet the needs of their students and communities.  When the bill was heard in the Assembly Education Committee, the author agreed to accept amendments that should address CASH’s concerns and allow us to remain neutral on this bill.  CASH wants to thank our members and leadership who provided meaningful and nuanced feedback on this important issue.

~CASH Staff

Having earned bipartisan support in the policy committee, the bill is on the Consent Calendar on the Assembly Floor, where it may be eligible for a vote from the full Assembly later this week. Many thanks to all who submitted letters of support and helped us to educate legislators about this important bill. Following approval by the first house, the bill would repeat the same process in the Senate.

~CASH Staff

In July 2024, CalSHAPE applications were abruptly frozen due to efforts to sweep program funds, and the program was never reopened. As a result, many schools invested significant time and resources documenting known HVAC deficiencies but were unable to apply for, let alone receive, funding to address the problems. Although more than 4,500 schools received initial awards to inspect and identify deficiencies, very few have been able to move forward with repairs. Without approval of the proposed language, the $194 million promised to schools for HVAC system upgrades will be returned to investor-owned utilities.

For your reference, click here to view the letter from the CalSHAPE Coalition requesting that CalSHAPE funding remain dedicated to K–12 schools to support improvements in indoor air quality and energy efficiency. If you would like to support this effort, please use the Sign-On Form to register your support for this important program.

~CASH Staff

• Legislature Dives into Bill Review
• Legislative Update
• Upcoming CASH Events

Click here to view and download.

Legislature Dives into Bill Review
The Legislature has been holding policy committee hearings for two weeks. They will pause during the first week of April for the “Legislative Spring Break,” and reconvene on April 6. What follows will be three intense weeks as the policy committees advance towards the deadline to hear and report fiscal bills. There is an extra week to hear nonfiscal bills, but most bills are deemed to have a fiscal impact.

The Budget subcommittees also continue to meet to examine the Governor’s proposed Budget and to develop their own proposals. This phase of budget work will continue until the Governor presents his May Revision. You may recall that this year, the Administration presented a workload Budget and largely delayed making new proposals until the May Revision.

CASH Priority Bills
Following is an update on our CASH-sponsored bill and key bills we are monitoring:

AB 2067 (Patel) Lease-Leaseback Sunset Extension
This bill is co-sponsored by CASH and the Associated General Contractors. It would extend the authorization for school districts to use the lease-leaseback competitive selection process from July 1, 2027, to July 1, 2032. To date, the bill enjoys bipartisan support and no opposition. It was approved by the Assembly Committee on Education on March 25, and is now pending approval on the Assembly Floor.

School Safety Plan Bills
Multiple bills have been introduced this year that are focused on the School Safety Plan (SSP), but take different approaches to improving school safety. AB 1721 (Muratsuchi) proposes to convene a statewide working group to review the existing SSP to see if improvements should be made by July 1, 2027, with a report to be submitted to the Department of Finance and policy and fiscal legislative committees by July 1, 2028. SB 1140 (Ashby) would add language to the existing SSP requirements that would, “…exclude unauthorized individuals from school property by limiting access points during construction, facilities maintenance, and repair.” CASH is monitoring both bills, but prefers the policy approach taken by AB 1721 which gives key stakeholders, including school facilities and maintenance departments, a voice in the process, versus the more prescriptive approach taken by SB 1140, which could cause challenges at the local school site level. 

~CASH Staff

As we move further into the year, I want to take a moment to reflect on the significant activity we are seeing across the school facilities landscape and what it means for our work moving forward. In recent weeks, we have seen important developments at the State Allocation Board, continued implementation of Proposition 2, and ongoing conversations around protecting and maximizing local bond investments. Taken together, these are not isolated updates; they represent a pivotal moment for school facilities in California.

The State Allocation Board continues to take action on key programs and policies that directly impact our ability to deliver projects. At the same time, the implementation of Proposition 2 is beginning to take shape, including the rollout of the Small School District Program. These efforts will help define how funding is accessed and deployed in the years ahead, particularly for districts with the greatest needs.

At the same time, we must expand our focus beyond building. Maintaining and maximizing the assets we have already delivered is just as critical as delivering new projects. Across California, districts are facing aging facilities, increasing operational demands, and constrained resources. Stewardship of our existing infrastructure must become a central part of the conversation. As an organization, CASH has an opportunity and a responsibility to elevate maintenance, lifecycle planning, and long-term asset management as core components of our advocacy and educational efforts.

All of this is happening in a broader environment of uncertainty. Declining enrollment, shifting population patterns, rising construction costs, and an evolving political landscape, including the upcoming gubernatorial race, are creating constant change. In moments like this, priorities can blur, and direction can shift. CASH must remain the constant.

Our role is to provide clarity, leadership, and a unified voice for school facilities professionals across the state. That means advocating for smart policy, supporting our members with timely and relevant information, and ensuring that both new construction and long-term stewardship are part of the statewide conversation.

These issues will be front and center at our upcoming Spring Forum in Long Beach on May 19. This event will bring together leaders from across the state to discuss the fiscal outlook, legislative developments, and the future of school facilities funding. I strongly encourage you to attend and be part of that conversation.

As Chair, my focus remains on ensuring that CASH continues to lead through advocacy, education, and engagement. That includes strengthening our committees, where much of this important work takes shape, and ensuring that our members are informed, involved, and heard.

Thank you for your continued leadership and commitment to this work. I look forward to seeing many of you at the Spring Forum and continuing our work together in the months ahead.

~Thomas Pace, CASH Chair

AB 2067 (Patel) – Lease-Leaseback Sunset Extension
This CASH-sponsored bill would extend the July 1, 2027 sunset on the Lease-Leaseback (LLB) competitive selection process for an additional five years to July 1, 2032. This includes protections for all parties and preserves the ability of the school district to incorporate pre-construction services into LLB contracts. This bill is jointly sponsored by the Associated General Contractors. It enjoys bipartisan support and no opposition to date. It was approved by the Assembly Committee on Education on March 25th and now heads to the Assembly Floor.

AB 1642 (Harabedian) – Wildfires/Contamination Standards 
This bill requires the Department of Toxic Substances Control (DTSC) to create emergency regulations by July 1, 2027 that establish standards for investigation, environmental testing, and removal of contaminants inside and outside homes, schools, and workplaces in residential areas after a wildfire. In addition, it requires DTSC and the Office of Environmental Health Hazards Assessment (OEHHA) to develop standards for hazardous chemicals by July 1, 2028. This bill has significant support from numerous local groups and organizations related to the Eaton fire in Southern California. It is opposed by the insurance industry. AB 1642 was approved by the Assembly Environmental Safety and Toxics Materials (ESTM) Committee on a 5-0 vote and is pending in the Assembly Appropriations Committee. CASH adopted a “Watch” position on the bill with a concern about how new standards might be different or overlap with existing local standards. 

AB 1754 (Pacheco) – State General Obligation Bond Requirements
This bill creates new accountability requirements for state general obligation bonds approved by voters after January 1, 2027. It requires future state bonds to include specific goals, purposes, and objectives that the bond expenditure is intended to achieve, and to specify detailed performance indicators and data collection requirements. Additionally, the head of the agency administering the bond would be required to provide a notification on its website with accountability information about bond-funded projects, and to provide a written report to the Administration and Legislature evaluating the efficiency and outcomes of the bond. This bill is sponsored by Elevate California. AB 1754 was passed by Assembly Governmental Organization Committee and is pending in Assembly Appropriations Committee. CASH adopted a “Watch” position on this bill and plans to provide information to policymakers about the existing accountability practices for school construction projects and the School Facility Program. 

AB 1809 (Fong) – Job Order Contracting
Currently, K-12 school districts and community colleges have the authority to utilize job order contracting (JOC), and this authority is set to sunset on January 1, 2027. AB 1809 would remove the sunset and make the authority permanent. It would also make several modifications to the JOC authority, including removing the requirement for a school district to prepare an execution plan for all modernization projects that may be eligible for JOC, and allowing an individual job order to remain valid and enforceable despite expiration of the main job order contract. JOC is an alternative procurement method to deliver smaller projects, allowing for award of contracts to the lowest responsible bidder based on prices for specific construction tasks rather than bids for specific projects. Contractors are prequalified and bid an adjustment factor to the preset unit prices. School districts must have a Project Labor Agreement that will apply to all public works awarded through JOC, and to all other public works of the district regardless of delivery method that exceed a monetary threshold set by the district.  AB 1809 is sponsored by Los Angeles Unified School District.  CASH adopted a “Watch” position on this bill, which was passed by the Assembly Education Committee and is pending in the Assembly Higher Education Committee.

SB 1107 (Stern) – Shade Structures/Path of Travel/Playgrounds
This bill, expanding on existing law that limits the cost of complying with path of travel requirements for installation of free-standing, open-sided shade structures to 20%, adds to this limit “installation of shade structures integrated with playground equipment.” The bill is sponsored by the Los Angeles Unified School District, and is scheduled to be heard by the Senate Education Committee on April 8, 2026. CASH adopted a “Watch” position on this narrowly-crafted bill intended to incentivize more shade structures at K-12 schools. 

SB 1126 (Choi) – Annual Audit Reports
This bill requires the governing board of a school district or county superintendent of schools to post their annual audit report on their internet website. The audit must be posted within thirty days of being received by the governing board or filed with the county superintendent, and it must be kept posted for three years. SB 1126 authorizes the Superintendent of Public Instruction to assess a civil penalty of up to $1,000 for each audit report not posted within the time described. The author indicated that this will save time when schools respond to Public Record Act requests. CASH adopted a “Watch” position on this bill, which is pending in Assembly Local Government Committee and Assembly Education Committee.

~CASH Staff

The first set of presenters explained why districts use debt financing—primarily for land acquisition, construction, and facility improvements—and outlines key financing tools such as general obligation bonds, bond anticipation notes, and community facilities districts. They also emphasized the importance of assembling a strong financing team, understanding disclosure requirements, and strategically timing bond sales to align with program needs and tax rate constraints.

The second panel of presenters highlighted major challenges in construction planning and budget development, particularly in today’s volatile market. Rising costs, labor shortages, regulatory requirements, and long material lead times all impact project delivery. Presenters stress the need for clearly defined project scope, realistic budgeting (including contingencies), and aligned schedules across all stakeholders. Best practices include early contractor involvement, thorough bid processes, and careful management during construction to avoid delays, cost overruns, and scope changes.

Finally, the presentation concluded with districts’ critical role of communicating with school boards and the community. Transparent, consistent messaging helps build trust, especially when addressing cost escalation, timeline changes, and project trade-offs. The panel members discussed how to translate complex information into clear narratives, proactively share updates, and highlight progress and outcomes. Strong communication not only supports current project success but also builds credibility and voter confidence for future bond measures.

Up next, the CASH Spring Forum! We will convene our Spring Forum in Long Beach, CA on Tuesday, May 19, 2026. This one-day conference will bring together school facility professionals, financial experts, and policy leaders to examine the State’s fiscal and political landscape and its impact on school facility funding and construction programs. Registration will open early April, stay tuned for information on CASH’s website: https://cashnet.org/