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State Budget Act Provisions Impacting the Deferred Maintenance Program

February 2009 Budget Act Changes

Chapter 12, Statutes of 2009 (SBX3 4 – Ducheny) impacts the Deferred Maintenance Program (DMP) as follows:

  • Establishes a funding baseline for the DMP through 2012/2013 using the 2008/2009 funding amounts
  • Provides a flexibility clause allowing districts to use the funding for "...any educational purpose" through 2013
    • The law, as amended, does not obligate the State to refund or repay a school district that decides to use the flexibility provision and disburse DMP funds for other educational purposes
  • Considers a Local Educational Agency (LEA) to be in compliance with all program and funding requirements for five years
  • Reduces the amounts appropriated to the DMP from the annual Budget Act for fiscal years 2008/2009 and 2009/2010
  • Eliminates the reporting requirement for five years when LEA's do not meet their match (report to Legislature not required)

July 2009 Budget Act Changes

 Chapter 2, Statutes of 2009 (ABX4 2 – Evans) impacts the DMP as follows:

  • Suspends funding for new Deferred Maintenance extreme hardship projects until July 1, 2013;
  • Suspends the district matching share requirement for Deferred Maintenance from fiscal years 2008/09 through 2012/13.
    • County offices of education are not required to certify to the Office of Public School Construction that the school districts within their county and the county office of education, have deposited funds to their District Deferred Maintenance Fund. The Certification of Deposits (Form SAB 40-21), is not required for 2007/08 through 2011/12.

Emergency Repair Program

It is important to note that school districts with schools eligible to participate in the Emergency Repair Program are no longer required to deposit an amount equal to the maximum basic grant to be eligible to receive funding from that program.