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CONSI~,AINTS ~ OPPORTdNITIES State School Construction Fundir~ Since the Proposition 13 tax code changes want into effect in 1978, the public schools in California rely on the State for operating and construction £unding. Becuse this element £ocuses Oh planning £or the physical expansion and new construction of schools within the City, £inancial constraints and opportunities which a££ect school construction are bein~ considered here. The State authorizes site acquisition and construction £unds through an allocation system based on demonstrated need. Each year only a certain emount of money is pledged to new school construction and rehabilitation of older scheols. ~ach school district in the State ~ust co~pete £or this limited a~ount o£ £unds each year. Santa Ana's four Unified School .Districts mUst apply to the State Allocation Board for fundin~ for each school built or expanded. Eased on current formulas and the extreme overcrowdio/ in scheols, the SAIISD is the only district elilible £or new school construction at this time. The remaining Districts in Santa Aha are experiencing declining enrollments and are not eligible for £unding for new construction. Because of recent legislation and voter approval of bonds, the Sta~e will fund the land purchases and construction for 11 new elementary schools in the SAUSD. These funds have only become available this year.. Due to past £unding formulas that severely restricted any District's abili.ty to successfully compete for State allocations under the Leroy Greene Act, SAUSD was unable to keep up with demand for new classroom space. This has left the SAUSD in a catch-up position even though it is now eligible for at least 11 new schools. The · constraints are even treater in the Garden Grove District where parts of the district ate expm£ienclng ~evete overcrowding yet, based upon financing formulas, are still ineligible for new school construction funding. Developer Fees A major opportunity £or local school construction funding was adopted by the State Assembly effective January 1, 1987. This legislation regulates the impact £ees bein~ imposed on new development in local jurisdictions on a statewide basis. It authorizes school districts to impose fees on new residential, co~nercial and industrial projects ii the district finds that the construction is having a signi£icant impact on demand £or additional classroom space. Previously, each city or county jurisdiction would have to adopt impact fees and pass them throu/h to the school district. The new law allews districts to impose the fees independemtly of local governments and directly assess the developer. These £ees are used as the District's required local match £or State £unding on new scheol construction. Thus, these £ees are heio/ passed through the District to the State. Adoption o£ the developer fee legislation resulted in each o£ the £our Uni£ied Districts in Santa Aha enacting resolutions to begin collecting £ees on new developments to serve as the required local amtch for State allocations for new school construction. The i~pact o£ the developer £ee program on the availahility o£ £unds for new construction will not he determined until they have been in e££ect £or a period o£ at least one year. There are concerns regarding this program and its application to districts with declinin~ enrollments and those that do not have plans £or new construction. As these issues are resolved and the pro/ram survives its £irst year of implementations we will more clearly be able to detemine its bene£its to Santa Aha.