About the California School Finance Authority (CSFA)

➧1985

California School Finance Authority Act AB 964 (Farr [D-San Francisco]), Ch. 28 is signed into law and created the Authority to aid school districts and community colleges in the sale of revenue bonds to build or remodel school facilities and provide working capital.

➧1992

California Charter School Act SB 1448 (Hart [D-Santa Barbara]), Ch. 781/1992 is signed into law to “provide opportunities to teachers, parents, pupils, and community members to establish and maintain schools that operate independently from the existing school district structure, as a method to” improve pupil learning, increase learning opportunities for all pupils, create new professional opportunities for teachers, provide parents and pupils with expanded choices in the types of educational opportunities available within the public school system, hold the schools established accountable for meeting measurable pupil outcomes, and provide vigorous competition within the public school system.

➧1993

The first charter school in the state, San Carlos Charter Learning Center, San Mateo County, opens as AB 19 (Quackenbush [R-Santa Clara]), Ch. 160/1993 and AB 1114 (Alpert [D-San Diego]), Ch. 161/1993 are enacted. AB 19 establishes a voluntary system of inter-district (between school districts) school choice. AB 1114 requires school districts, as a condition of receiving state apportionment funding, to establish a system of intra-districts (among schools within a school district).

➧2000

Proposition 39, School Facilities Local Vote Act of 2000 (initiated constitutional amendment), sponsored by Governors Wilson and Davis, is approved, including provisions requiring school districts to share their facilities with charter schools so that charter school students have access to facilities “reasonably equivalent” to those available to other public school students. AB 1908, (Lempert [D-San Mateo]), Ch. 44/2000 was the legislation that outlines the process, authorization, and issuance of bonds by a 55% vote of the electorate, at a primary or general election.

➧2002

AB 14 (Goldberg [D-Los Angeles]), Ch. 935/2001 passes, establishing the Charter Schools Facilities Program to provide funding to qualifying entities for the purpose of establishing school facilities for charter school pupils.

Proposition 47, Kindergarten-University Public Education Facilities Bond Act of 2002, AB 16 (Alpert [D-San Diego]), Ch. 33/2002, passes issuing $13.05 billion in GO bonds for K-12 school construction; and $100 million allocated to the Charter Schools Facilities Program, a pilot program modeled after the state’s School Facilities Program for charter school facilities.

➧2004

The State Charter Schools Facilities Incentive Grants Program is created with $49.25 million in grant awards from the U.S. Department of Education (CFDA #84.282D). The program is designed to assist high-performing charter schools with rent, lease, debt service, and Proposition 39 pro-rata payments or costs related to the purchase, acquisition, design, new construction, or renovation of school facilities.

➧2004

Proposition 55, Kindergarten-University Public Education Facilities Bond Act of 2004 a legislative bond act AB 16 (Alpert [D-San Diego County]) Ch.33/2002, is approved, allocating $7.05 billion for new construction and modernization projects with a focus on Critically Overcrowded Schools. $300 million is allocated to the Charter School Facilities Program.

➧2006

Proposition 1D, Kindergarten-University Public Education Facilities Bond Act of 2006 a legislative bond act Nunez [D - Los Angeles] AB 127, Ch. 35 is approved; $500 million is allocated to the Charter School Facilities Program.

➧2006

California School Finance Authority Act (AB 2717 Walters [R – Dana Point]), Ch. 325/2006, provides that charter schools are eligible for assistance by providing financing for working capital, as defined, and capital improvements under the amendment to this Act.

➧2009

The State Charter Schools Facilities Incentive Grants Program receives an additional $48.5 million in funds to continue assisting high-performing charter schools with facilities costs as CSFA is awarded a second grant from the U.S. Department of Education (CFDA #84.282D).

➧2009

CSFA receives a second award of $8.3 million from the U.S. Department of Education. This grant was issued to create the Charter School Facilities Credit Enhancement Grant Program.

➧2013

AB 86 The Education Finance: (Education Omnibus Trailer Bill Committee on Budget) Ch. 48/2013 passes and transfers administration of the Charter School Facility Grant Program (SB740) (SB 740 O’Connell [D – Santa Barbara]) Ch. 892/2001 and Charter School Revolving Loan Fund from the California Department of Education to the California School Finance Authority. These programs provide annual assistance with facilities rent and lease expenditures to charter schools meeting certain eligibility criteria.

➧2014

CSFA receives its third $50 million award under the U.S. Department of Education’s State Charter Schools Facilities Incentive Grants Program (CFDA #84.282D) to assist high-performing charter schools with facilities costs.

➧2016

Proposition 51, the Kindergarten Through Community College Public Education Facilities Bond Act of 2016 an initiative state statute is approved, issuing $9 billion to fund improvement and construction of school facilities for K-12 schools and community colleges. $500 million in GO Bond funding is allocated to the Charter School Facilities Program.

➧2017

CSFA is awarded $8 million from the U.S. Department of Education Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities (CFDA #84.354) grant and creates the Project Acceleration Notes and Credit Enhancement Alternatives Overview (PANACEA) Program. The program supports short-term interim financing to charter schools that have received a reservation of funds through the Charter School Facilities Program or are awaiting the issuance of long-term debt through CSFA’s Conduit Bond and Note Financing Program.

➧2019

CSFA is awarded a $20 million credit enhancement grant (CFDA #84.354A) by the U.S. Department of Education to enhance bank loan financing for charter school facilities and creates the Charter Access Bank Loan Enhancement Program (Charter ABLE).

➧2020

CSFA’s Board approved the first student housing revenue bond sale for Santa Rosa Junior College (SRJC), a community devastated by wildfire. The $68 million financing marks the inaugural issuance of community college student housing bonds by CSFA. The 352-bed housing project on the Santa Rosa campus will be SRJC’s first on-campus student housing, and it will provide safe, affordable, and accessible housing to the culturally and economically diverse SRJC student population.

➧2021

The federally-funded Charter Finance Enhancement (Charter FinE) Program was created from a $10 million grant awarded through the federal “Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities” (CFDA #84.354A). This program enhances financings to charter schools to lower costs associated for permanent charter school facilities.

➧2022

AB 1602 establishes the California Student Housing Revolving Loan Fund (CaSHRLF) program for the purpose of providing 0% interest loans to qualifying University and College applicants for the purpose of constructing affordable housing facilities for students and faculty. The program will be jointly administered by CSFA and CEFA, with CSFA focusing specifically on improving access to affordable housing for Community Colleges.

➧2023

The newly awarded credit enhancement is a $20 million grant, $10 million of it for debt service supplementing credit enhancement grants, the other $10 million for loan-enhancements for leased facilities for smaller charters. This program will be active in late spring/early summer 2024. The CaSHRLF program received an initial appropriation of $200 million for the 2023-24 fiscal year, $50 million of which is to be used specifically to fund projects that will increase availability of affordable housing for Community College students and faculty.

➧2024

CSFA receives its fifth award under the U.S. Department of Education’s State Charter Schools Facilities Incentive Grants Program (CFDA #84.282D) for $30 million to assist high-performing charter schools with facilities costs.

With passage of Proposition 2, CSFA, in conjunction with the Office of Public School Construction (OPSC) will co-administer $600 million in public funding as part of the Charter School Facilities Program. The program funds 50 percent of project costs as a grant (paid by the State), while the charter school, in the form of a long-term lease or a lump sum payment, repays the other 50 percent.

CSFA passes a milestone by closing its 150th conduit financing. By the end of 2024, CSFA had 158 financings with over $3.7 billion issued.