$500 Million California School Construction Funding Program for Career Technical Education – 5 1/2 Years Later, Is the Program a Success?

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I think California taxpayers deserve to hear and know a lot more about the status and results of the significant investment of taxpayer funding on the construction and improvement of California school district facilities designated for career technical education (vocational education).

For example, has statewide demand for building these school facilities faded since the big mid-2000s push for career technical education led by Governor Arnold Schwarzenegger? How many students have been using these facilities, and is the rate of use increasing?

Why have some school districts not claimed the funds approved by the State Allocation Board for their career technical education facility funding?

Have there been cases in which school districts used career technical education funds to build facilities that were not used for that purpose in the end? Which school districts are guilty?

Has anyone investigated or audited some of these new or renovated facilities to determine they are actually being used for their intended purposes?

Which of the 15 sectors of career technical education have been most popular in terms of requests for state funding? Here’s the list:

  1. Agriculture and Natural Resources
  2. Arts, Media, and Entertainment
  3. Building Trades and Construction
  4. Education, Child Development, and Family Services
  5. Energy and Utilities
  6. Engineering and Design
  7. Fashion and Interior Design
  8. Finance and Business
  9. Health Science and Medical Technology
  10.  Hospitality, Tourism, and Recreation
  11.  Information Technology
  12.  Manufacturing and Product Development
  13.  Marketing, Sales, and Service
  14.  Public Services
  15.  Transportation

I’ll open this issue by presenting some of the background on funding and grants.

Voters Approved $500 Million in State Matching Grants in 2006

Go back in your memory to the halycon days of the fall of 2006: the economy was booming, house prices were sky-high, construction was happening everywhere, people were paying for luxury goods and services, and taxpayers were feeling generous. And the Schwarzenegger Administration was focused on encouraging “career technical education” to train the future workforce of California for all of the anticipated new construction jobs and other jobs requiring craft skills (see list of 15 sectors, above).

So, it was a ripe time to ask California voters to approve a $10.4 billion bond called the Kindergarten–University Public Education Facilities Bond Act of 2006. It was placed on the ballot through Assembly Bill 127, supported by most Democrat legislators, opposed by many Republican legislators, and signed by Governor Schwarzenegger. The ballot measure included $500 million for the construction of facilities related to career technical education programs – see California Education Code Section 101012 (a)(4).

The 2006 ballot argument in support of Proposition 1D claimed that “Many students need vocational training instead of college, but our schools do not have up-to-date facilities to provide it. 1D will enable schools to provide the career and technical training many students need to get jobs.” The 2006 ballot argument against Proposition 1D claimed the program was “untested.” (See ballot arguments here.)

Well, more the five years later, the Career Technical Education Facilities Program (CTEFP) has been “tested.” How is it doing? Have the difficult economic circumstances of the past five years cooled the enthusaism for career technical education in California schools?

Some School Districts Aren’t Asking for Their Approved Funding. Why?

The State Allocation Board allocates or apportions school construction matching grants administered by the Office of Public School Construction in the California Department of General Services.

I was inspired by an article posted on the web today (Dormant School Construction Projects Face Closer Scrutiny – June 5, 2012 – SI&A’s Cabinet Report) to examine the list provided by the Office of Public School Construction of construction projects approved for state matching grants but not funded to date. There is a large cluster of career technical education projects on the list. See the list – arranged by school district – at the end of this article. No reasons are given on the chart as to why the school districts have not requested the funds.

Funding Approval Has Declined, and Money Is Unexpectedly Still Not Allocated

The State Allocation Board reports that it made $33,031,490 in unfunded approvals available to fund applications submitted for a third funding cycle – a cycle not required in law but made possible when the $500 million was not used up in the first two rounds. It reported awarding $199 million in the first round. Despite a claim from the California Department of Education that “it is anticipated that all of the funds will be exhausted,” the second round resulted in apportionment of another $220 million for a total of about $420 million. (It is hard to pin down the exact numbers, for example, this legislative committee analysis for Senate Bill 1380, dated June 30, 2010, claimed that a total of $409 million had been apportioned in the first two cycles, while this analysis for SB 1380 dated April 15, 2010 reported that a total of $417.2 million had been apportioned in the first two cycles.)

According to a “Report of the Executive Officer” for the April 25, 2012 State Allocation Board meeting, “74 Career Technical Education Facilities Program applications totaling approximately $103.6 million in State funds have been received by the Office of Public School Construction as part of the third funding cycle, but have not been approved by the Board due to insufficient bond authority…An additional 73 Career Technical Education Facilities Program Board-approved projects totaling $94.4 million in State funds are currently on the Unfunded List (Lack of AB 55 Loans).”

The California Department of Education has a web site summarizing the program. For some reason, the Department of Education has not posted statutorily required status reports about the program since 2010. The State Allocation Board also has a web site about the program.

As a layperson looking at this program, I find it frustrating and difficult to figure out what’s going on. There should be a single site that informs taxpayers of what has been allocated to specific Career Technical Education Facilities Program projects, which applications for funding are up for approval, which projects are approved, and which projects have been approved but not funded and the reason why they are not funded. Perhaps I am naive to expect that kind of information?

In addition, there is a lot of terminology thrown about, such as “approved,” “allocated,” “apportioned,” “disbursed,” “awarded,” and “available.” It’s hard to untangle.

Proposed Legislation Suggests Either Fraud or Changing Needs in School Districts

Senate Bill 1380 (introduced in 2010) would have changed the Career Technical Education Facilities Program (authorized by the Leroy F. Greene School Facilities Act of 1998) to require school boards to pass a resolution indicating that school facilities constructed or modernized with specified bond funds set aside for career technical education purposes would be used for career technical education purposes for a minimum of five years. SB 1380 also allowed a school board to seek a waiver of the career technical education use requirement from the State Allocation Board if school district enrollment changed, if enrollment in career technical programs changed, if the district was unable to hire qualified instructors, or if “labor market demands” changed.

In support of this bill, Senator Loni Hancock (D-Oakland), a member of the State Allocation Board, cited “several implementation problems with the CTEFP program, including LEAs constructing or modernizing CTE facilities and then using them for non-CTE programs.”

Despite passing through the legislature without any votes against it, Senate Bill 1380 was vetoed by Governor Schwarzenegger with this message:

For years many career technical education (CTE) programs and facilities have been ignored or eliminated altogether. However, during my time in office the state has made substantial investment in CTE. This bill stands to threaten the recent investments in this area, as well as the significant momentum we have achieved. By allowing CTE bond funds to be used for CTE investments with just a five year minimum lifespan, and for non-CTE related purposes, this bill seriously risks jeopardizing the quality and scope of investments we make in these facilities.

Note that this bill originally proposed transfering $200 million from the Overcrowded Relief Grants Program to the Career Technical and Education Facilities Program (CTEFP), because it was anticipated that the $500 million would be exhausted in the third round of funding. According to this legislative committee report for SB 1380, applications totaling $231 million were submitted for the third round. (Once again, figures are inconsistent from source to source.)

More Suggestions of Fraud or Changing Priorities for School Districts?

When Senator Mark Wyland (R-Carlsbad/San Juan Capistrano) was appointed to the State Allocation Board in January 2012, he issued a press release entitled “Shaking Things Up at the State Allocation Board” with these remarks:

In addition to exploring in-depth how funds are allocated, this position also creates an opportunity to further promote career technical education (CTE). CTE courses engage and stimulate students with hands-on training in a wide array of fields, leading to greater student success following graduation.

Under a law I authored in 2007, applicants for bond money are required to detail how schools would use funds to house CTE programs. Unfortunately, it appears that many applicants fail to meet this requirement. With this new position I intend to bring attention to CTE and ensure that California’s schools are offering students the opportunities and resources that they deserve.

School Districts with Unfunded Approvals for Career Technical Education Construction Facility Matching Grants from the State Allocation Board under Proposition 1D

ALAMEDA COUNTY – DUBLIN UNIFIED 59/75093-00-001 Career Tech Rehabilitation 3/11/2010  $533,605

ALAMEDA COUNTY – NEW HAVEN UNIFIED 59/61242-00-001 Career Tech Rehabilitation 3/23/2010  $394,342

BUTTE COUNTY – CHICO UNIFIED 55/61424-00-002 Career Tech New Construction 6/6/2008  $3,000,000

CONTRA COSTA COUNTY – PITTSBURG UNIFIED 59/61788-00-001 Career Tech Rehabilitation 2/26/2010  $1,409,655

CONTRA COSTA COUNTY – SAN RAMON VALLEY UNIFIED 55/61804-00-005 Career Tech New Construction 3/25/2010   $817,130

CONTRA COSTA COUNTY – SAN RAMON VALLEY UNIFIED 55/61804-00-006 Career Tech New Construction 3/25/2010   $412,085

EL DORADO COUNTY – EL DORADO UNION HIGH 59/61853-00-001 Career Tech Rehabilitation 3/26/2010  $821,617

FRESNO COUNTY – KINGS CANYON JOINT UNIFIED 55/62265-00-002 Career Tech New Construction 4/1/2010  $3,000,000

KERN COUNTY – KERN COUNTY OFFICE OF EDUCATION 55/10157-98-001 Career Tech New Construction 3/29/2010  $723,600

KERN COUNTY – KERN HIGH 59/63529-00-017 Career Tech Rehabilitation 3/24/2010  $434,224

KERN COUNTY – KERN HIGH 59/63529-00-019 Career Tech Rehabilitation 3/24/2010  $79,997

KERN COUNTY – KERN HIGH 59/63529-00-020 Career Tech Rehabilitation 3/24/2010  $826,720

KERN COUNTY – KERN HIGH 59/63529-00-021 Career Tech Rehabilitation 3/24/2010  $838,925

KERN COUNTY – KERN HIGH 59/63529-00-022 Career Tech Rehabilitation 3/24/2010  $192,803

KERN COUNTY – KERN HIGH 59/63529-00-027 Career Tech Rehabilitation 3/24/2010  $596,824

KERN COUNTY – KERN HIGH 59/63529-00-029 Career Tech Rehabilitation 3/24/2010  $723,188

KERN COUNTY – KERN HIGH 59/63529-00-030 Career Tech Rehabilitation 3/24/2010  $152,203

LOS ANGELES COUNTY – ARCADIA UNIFIED 55/64261-00-002 Career Tech New Construction 4/1/2010  $2,316,200

LOS ANGELES COUNTY – ARCADIA UNIFIED 59/64261-00-001 Career Tech Rehabilitation 4/1/2010  $470,962

LOS ANGELES COUNTY – LONG BEACH UNIFIED 59/64725-00-003 Career Tech Rehabilitation 3/11/2010  $1,500,000

LOS ANGELES COUNTY – LONG BEACH UNIFIED 59/64725-00-004 Career Tech Rehabilitation 3/11/2010  $1,500,000

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-007 Career Tech New Construction 4/1/2010  $1,963,579

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-008 Career Tech New Construction 4/1/2010  $3,000,000

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-009 Career Tech New Construction 4/1/2010  $1,225,266

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-009 Career Tech New Construction 4/1/2010  $1,774,734

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-011 Career Tech New Construction 4/1/2010  $2,413,880

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 55/64733-00-013 Career Tech New Construction 4/1/2010  $1,533,959

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 59/64733-00-027 Career Tech Rehabilitation 4/1/2010  $50,000

LOS ANGELES COUNTY – LOS ANGELES UNIFIED 59/64733-00-028 Career Tech Rehabilitation 4/1/2010  $1,401,783

MADERA COUNTY – CHAWANAKEE UNIFIED 55/75606-00-001 Career Tech New Construction 3/16/2010   $2,086,640

MONTEREY COUNTY – MONTEREY COUNTY OFFICE OF EDUCATION 59/10272-00-001 Career Tech Rehabilitation 3/30/2010  $660,837

NAPA COUNTY – NAPA VALLEY UNIFIED 55/66266-00-002 Career Tech New Construction 4/1/2010   $465,127

ORANGE COUNTY – TUSTIN UNIFIED 59/73643-00-003 Career Tech Rehabilitation 3/24/2010   $73,732

RIVERSIDE COUNTY – BEAUMONT UNIFIED 59/66993-00-001 Career Tech Rehabilitation 3/30/2010   $1,335,796

RIVERSIDE COUNTY – DESERT SANDS UNIFIED 55/67058-00-003 Career Tech New Construction 3/10/2010   $2,130,036

RIVERSIDE COUNTY – DESERT SANDS UNIFIED 55/67058-00-005 Career Tech New Construction 3/10/2010   $1,040,611

RIVERSIDE COUNTY – DESERT SANDS UNIFIED 55/67058-00-006 Career Tech New Construction 3/10/2010   $2,666,732

RIVERSIDE COUNTY – RIVERSIDE UNIFIED 59/67215-00-001 Career Tech Rehabilitation 3/24/2010   $579,687

SAN BERNARDINO COUNTY – COLTON-REDLANDS-YUCAIPA ROP 59/74138-00-015 Career Tech Rehabilitation 3/30/2010   $2,050

SAN BERNARDINO COUNTY – RIALTO UNIFIED 55/67850-00-001 Career Tech New Construction 3/3/2010   $1,926,384

SAN BERNARDINO COUNTY – RIALTO UNIFIED 59/67850-00-001 Career Tech Rehabilitation 3/3/2010   $1,114,449

SAN BERNARDINO COUNTY – SWLINE JOINT UNIFIED 55/73957-00-001 Career Tech New Construction 3/3/2010   $1,093,051

SAN BERNARDINO COUNTY – SWLINE JOINT UNIFIED 55/73957-00-002 Career Tech New Construction 3/3/2010   $1,031,968

SAN DIEGO COUNTY – CORONADO UNIFIED 59/68031-00-001 Career Tech Rehabilitation 3/22/2010   $1,360,199

SAN DIEGO COUNTY – GROSSMONT UNION HIGH 55/68130-13-001 Career Tech New Construction 3/30/2010   $3,000,000

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 55/68338-00-001 Career Tech New Construction 3/22/2010   $2,918,735

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 55/68338-00-002 Career Tech New Construction 3/22/2010   $986,812

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 55/68338-00-004 Career Tech New Construction 3/22/2010   $1,470,162

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-001 Career Tech Rehabilitation 3/22/2010   $1,427,767

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-002 Career Tech Rehabilitation 3/22/2010   $473,045

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-004 Career Tech Rehabilitation 3/22/2010   $1,380,824

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-006 Career Tech Rehabilitation 3/22/2010   $473,110

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-007 Career Tech Rehabilitation 3/22/2010   $1,022,484

SAN DIEGO COUNTY – SAN DIEGO UNIFIED 59/68338-00-008 Career Tech Rehabilitation 3/22/2010   $1,500,000

SAN JOAQUIN COUNTY – MANTECA UNIFIED 55/68593-00-004 Career Tech New Construction 3/22/2010   $2,253,216

SAN JOAQUIN COUNTY – STOCKTON UNIFIED 55/68676-00-002 Career Tech New Construction 3/29/2010   $3,000,000

SAN JOAQUIN COUNTY – STOCKTON UNIFIED 59/68676-00-001 Career Tech Rehabilitation 3/29/2010   $1,499,715

SAN JOAQUIN COUNTY – TRACY JOINT UNIFIED 59/75499-00-007 Career Tech Rehabilitation 4/1/2010   $514,087

SAN MATEO COUNTY – SEQUOIA UNION HIGH 55/69062-00-004 Career Tech New Construction 3/30/2010   $2,073,405

SAN MATEO COUNTY – SEQUOIA UNION HIGH 55/69062-00-006 Career Tech New Construction 3/30/2010   $3,000,000

SAN MATEO COUNTY – SEQUOIA UNION HIGH 55/69062-00-007 Career Tech New Construction 3/30/2010   $3,000,000

SANTA CLARA COUNTY – CAMPBELL UNION HIGH 55/69401-00-007 Career Tech New Construction 3/8/2010   $625,964

SANTA CLARA COUNTY – CAMPBELL UNION HIGH 59/69401-00-001 Career Tech Rehabilitation 3/8/2010   $1,003,238

SANTA CLARA COUNTY – CAMPBELL UNION HIGH 59/69401-00-002 Career Tech Rehabilitation 3/8/2010   $610,353

SANTA CLARA COUNTY – GILROY UNIFIED 59/69484-00-001 Career Tech Rehabilitation 4/1/2010   $1,191,901

SANTA CLARA COUNTY – PALO ALTO UNIFIED 55/69641-00-001 Career Tech New Construction 3/30/2010   $3,000,000

SIERRA COUNTY – SIERRA-PLUMAS JOINT UNIFIED 55/70177-00-001 Career Tech New Construction 4/1/2010   $174,412

SISKIYOU COUNTY – SISKIYOU UNION HIGH 55/70466-00-002 Career Tech New Construction 4/1/2010   $296,772

SISKIYOU COUNTY – SISKIYOU UNION HIGH 59/70466-00-001 Career Tech Rehabilitation 4/1/2010   $143,380

SONOMA COUNTY – SANTA ROSA HIGH 55/70920-00-002 Career Tech New Construction 3/26/2010  $1,332,711

STANISLAUS COUNTY – CERES UNIFIED 59/71043-00-003 Career Tech Rehabilitation 3/25/2010   $1,201,300

STANISLAUS COUNTY – MODESTO CITY HIGH 59/71175-00-001 Career Tech Rehabilitation 4/1/2010   $337,760

SUTTER COUNTY – YUBA CITY UNIFIED 59/71464-00-001 Career Tech Rehabilitation 3/30/2010   $839,622

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