Unlocking Proposition 2 Funding

Proposition 2: The Good News

Proposition 2 (also known as Assembly Bill 247)—officially titled the Kindergarten Through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair, and Safety Bond Act of 2024—was approved by California voters on November 5, 2024.

The measure authorizes the state to issue $10 billion in general obligation bonds to improve public education facilities. Of this amount:

• $8.5 billion is designated for K–12 schools, and

• $1.5 billion is set aside for community colleges.

The funding will go toward building new classrooms, modernizing existing facilities, and improving safety and infrastructure across the state.

What's the Catch?

Prop 2 introduces a significant shift in how school districts qualify for state funding for new construction and modernization projects.

As of November 5, 2024, California's school districts must submit a governing board–approved, five-year Facilities Master Plan (FMP) to be eligible for state support. This move ensures long-term planning, transparency, and alignment with educational goals.

Creating Your 5-Year Master Plan

Your district’s FMP must include the following to meet the new requirements. (Don't panic ... ABS can handle this for your school.)

1. Inventory of Existing Facilities

   • Construction dates

   • Square footage

   • Modernization history

   • Existing amenities such as cafeterias, libraries, and multipurpose rooms

2. Classroom Capacity

   • Assessments of current classroom capacity using state-defined formulas and guidelines

3. Projected Enrollment

   • Enrollment forecasts for the next five years are needed to ensure the plan matches future student needs.

4. Capital Planning Budget

   • A detailed outline of upcoming construction or renovation projects, including estimated costs

5. Funding Sources

   • Identification of state and local funding mechanisms, such as bonds, developer fees, or other financing tools

6. Assessed Value Verification

   • Confirmation of your district’s current assessed property value, which impacts eligibility and local funding capacity

7. Deferred Maintenance Plan

   • A certified plan addressing how your district will maintain facilities to avoid premature deterioration

8. LCAP Alignment

   • A narrative showing how the FMP supports the district’s Local Control and Accountability Plan (LCAP), ensuring your facilities planning is tied to academic and equity goals

But wait! There's More! To maintain eligibility, the FMP must be updated regularly to reflect changes in enrollment, facility condition, capacity, or funding availability. A stagnant or outdated plan could jeopardize access to future state funds.

Why Your FMP Matters

For districts aiming to improve safety, expand capacity, or modernize outdated infrastructure, failure to prepare a compliant FMP by the deadline could mean missing out on critical funding opportunities. But beyond compliance, the FMP process encourages more strategic long-term thinking—ensuring that facilities planning is deeply tied to student success and community needs.

ABS can help.

Alco is one of California’s most trusted energy service companies. We are currently a full-service partner to 50+ school districts across the state, providing the turn-key—and stress-free—energy system upgrades schools require. We have helped California schools develop the infrastructure and strategic plans needed to qualify for—and capitalize on—state and federal funding. To date, we have secured more than $8 million in grants for our district partners.

With regards to Prop 2, we can help:

• Develop or update a board-approved Facilities Master Plan.

• Identify high-impact projects that align with Prop 2 priorities.

• Create a roadmap from planning through to construction.

  
  

Proposition 2 is reshaping how school infrastructure funding works. The new requirements, though complex, aim to bring clarity, accountability, and future-readiness to school construction planning.

Districts that act early and plan thoroughly will be better positioned to access state funding and serve their students with healthy, productive, and more resilient learning environments.

If you'd like to find out more about unlocking Prop 2 funding for your school, just get in touch. We're here to help!

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