Annual Adjustment to SFP Grants and Developer Fee History

THE ANNUAL ADJUSTMENT TO THE SCHOOL FACILITY PROGRAM GRANTS

State funding under the School Facility Program (SFP) is provided in the form of pupil grants along with supplemental grants as determined by certain criteria. Education Code (EC) Section 17072.10(b) states that for new construction grants, the "[State Allocation Board] board shall adjust the per-unhoused-pupil apportionment to reflect construction cost changes, as set forth in the statewide cost index for class B construction as determined by the board" and, EC Section 17074.10(b) states that for modernization grants "the board shall annually adjust the factors . . . according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the board." The following is a table showing the historical yearly rate of change, starting in 1999, along with links to the reports approved by the State Allocation Board (SAB).

YEAR	PERCENTAGE INCREASE/ DECREASE	INDEX ADOPTED	DATA REPORT (From Agenda)
2024	-1.33%	RS Means	1/24/2024
2023	9.30%	RS Means	1/25/2023
2022	15.80%	RS Means	2/23/2022
2021	1.42%	RS Means	1/27/2021
2020	2.08%	RS Means	1/22/2020
2019	5.45%	RS Means	1/23/2019
2018	4.17%	RS Means	1/24/2018
2017	4.42%	RS Means	1/25/2017
2016	2.79%	RS Means	2/24/2016***
2016	2.79%	RS Means	1/27/2016**
2015	4.27%	RS Means	4/15/2015
2014	1.74%	Marshall & Swift 8 California Cities	1/22/2014
2013	3.13%	Marshall & Swift 8 California Cities	1/23/2013
2012	3.76%	Marshall & Swift 8 California Cities	1/25/2012
2011	4.28%	Marshall & Swift 8 California Cities	1/26/2011
2010	-6.74%	Marshall & Swift 8 California Cities	1/27/2010
2009	6.00%	Marshall & Swift 8 California Cities	2/25/2009
2008	3.19%	Marshall & Swift 10 Western States	1/30/2008
2007	6.62%	Marshall & Swift 8 California Cities	1/24/2007*
2006	4.62%	Marshall & Swift 8 California Cities	1/25/2006
2005	12.07%	Marshall & Swift 8 California Cities	3/30/2005
2005	12.07%	Marshall & Swift 8 California Cities	1/26/2005
2004	3.42%	Marshall & Swift 10 Western States	1/28/2004
2003	2.10%	Marshall & Swift 10 Western States	1/22/2003
2002	1.42%	Marshall & Swift 10 Western States	1/23/2002
2001	2.92%	Marshall & Swift 10 Western States	1/03/2001
2000	4.58%	Marshall & Swift 10 Western States	1/26/2000
1999	0.77%	Marshall & Swift 10 Western States	2/24/1999

***Initial source data from RS Means were incorrect. The 2016 annual SFP adjustments were revised to reflect the corrected increase of 2.79%.
**The SAB adopted the RS Means Construction Cost Index on a permanent basis for all future annual SFP grant adjustments.
*This adjustment included, as a result of Proposition 1D, Statutes of 2006 (Nunez and Perata), a 7% increase to the new construction base grant for elementary and middle school pupils and a 4% increase for high school pupils, retroactive to July 1, 2006.

Annual Adjustment for Tentative Map Extension

Per Government Code (GC) Section 66452.6(a)(2), the monetary threshold amount that triggers an extension to the expiration of approved or conditional approved tentative maps is adjusted annually. The threshold amount, originally stipulated in GC Section 66454.6(a)(2), commenced on January 1, 2012 at $236,790 and is increased annually by the rate of change from the same SAB approved Class B Construction Cost Index used to determine the annual adjustment to the per-unhoused pupil grants. The following is a table showing the historical yearly rate of change (effective March 1 of each year) along with links to the reports approved by the SAB.

YEAR	INCREASE AMOUNT	PERCENTAGE INCREASE/ DECREASE	DATA REPORT (From Agenda)
2022	$368,176	15.80%	2/23/2022
2018	$291,229	4.17%	1/24/2018
2017	$279,571	4.42%	1/25/2017
2016	$267,737	2.79%	2/24/2016**
2016	$267,737	2.79%	1/27/2016*
2015	$260,473	4.27%	4/15/2015
2014	$257,792	1.74%	1/22/2014
2013	$253,383	3.13%	1/23/2013
2012	$245,693	3.76%	1/25/2012

**Initial source data from RS Means were incorrect. The 2016 adjustment was revised to reflect the corrected increase of 2.79%. *The SAB adopted the RS Means Construction Cost Index on a permanent basis for all future adjustments to the threshold amount.

Biennial Adjustment to the Maximum Level 1 Developer Fee

EC Section 17620(a)(1) states that "The governing board of any school district is authorized to levy a fee, charge, dedication, or other requirement against any construction within the boundaries of the district, for the purpose of funding the construction or reconstruction of school facilities, subject to any limitations set forth in Chapter 4.9 (commencing with Section 65995) of Division 1 of Title 7 of the Government Code." Therefore, school districts are allowed to impose fees, commonly known as Level 1 Developer Fees, for development projects that are within their boundaries. The maximum allowable amount of developer fees is adjusted, per GC Section 65995(b)(3) every two years beginning in 2000 based on the change in the statewide cost index for class B construction. The following is a table showing the historical yearly rate of change, from the inception of the School Facility Program in 1998, along with links to the reports approved by the SAB.

YEAR	PERCENTAGE INCREASE	RESIDENTIAL FEE	COMMERCIAL/ INDUSTRIAL FEE	INDEX ADOPTED	DATA REPORT (From Agenda)
2024	7.84%	$5.17	$0.84	RS Means	1/24/2024
2022	17.45%	$4.79	$0.78	RS Means	2/23/2022
2020	7.64%	$4.08	$0.66	RS Means	1/22/2020
2018	8.78%	$3.79	$0.61	RS Means	1/24/2018
2016	3.59%	$3.48	$0.56	RS Means	2/24/2016***
2016	3.59%	$3.48	$0.56	RS Means	1/27/2016**
2014	4.93%	$3.36	$0.54	Marshall & Swift 8 California Cities	1/22/2014
2012	8.21%	$3.20	$0.51	Marshall & Swift 8 California Cities	1/25/2012
2010	0.00%	$2.97	$0.47	Marshall & Swift 8 California Cities	1/27/2010*
2008	12.79%	$2.97	$0.47	Marshall & Swift 10 Western States	1/30/2008
2006	17.24%	$2.63	$0.42	Marshall & Swift 8 California Cities	1/25/2006
2004	4.90%	$2.24	$0.36	Marshall & Swift 10 Western States	1/28/2004
2002	4.38%	$2.14	$0.34	Marshall & Swift 10 Western States	1/23/2002
2000	6.20%	$2.05	$0.33	Marshall & Swift 10 Western States	1/26/2000

***Initial source data from RS Means were incorrect. The 2016 biennial Level 1 adjustments were revised to reflect the corrected increase of 3.59%.
**The SAB adopted the RS Means Construction Cost Index on a permanent basis for all future Level 1 Developer Fee adjustments.
*The SAB made a decision that there would be no changes to the developer fee rate as the index had decreased. The residential fee remained the same at $2.97.