Small School District Modernization Grant Program. In 2020, the Legislature passed 2SSB 5572, establishing the Small School District Modernization Grant Program (grant program) for school districts and state-tribal compact schools with 1000 or fewer enrolled students. Applicants may seek planning grants or construction grants to update school facilities that have significant system deficiencies but do not require full replacement. To be eligible, small districts must have such low property value that replacing or modernizing the school facility through the School Construction Assistance Program would present an extraordinary tax burden on property owners or exceed allowable debt.
The grant program is administered by the Office of the Superintendent of Public Instruction (OSPI) and an appointed advisory committee that evaluates applications and develops a prioritized list of grant recipients. When prioritizing applications, the advisory committee must seek to achieve the greatest improvement of school facilities in small districts and state-tribal compact schools with the most limited financial capacity for projects that are likely to improve student health, safety, and academic performance for the largest number of students. District and state-tribal education compact school resources may be considered in prioritizing grants, but local funding assistance percentage and replacement value percentage requirements applicable under the School Construction Assistance Program do not apply.
The final prioritized list must describe the project, the proposed state funding level, and the estimated total project cost including other funding and in-kind resources. The list must also indicate student achievement measures that will be used to evaluate the benefits of the project. The Governor and OSPI may determine the level of funding for small district modernization grants in their capital budget requests, but must follow the prioritized list developed by the advisory committee.
During the 2021-23 biennial budget, $1.1 million in planning grants, $33.795 million in construction grants, and $4.218 million for state-tribal compact schools were awarded. An additional $7.612 million in construction grants were awarded in the 2022 supplemental capital budget. Planning grants have been awarded to 29 school districts and construction grants have been awarded to 15 school districts and five state-tribal compact schools.
Common School Construction Fund. The Common School Construction Fund may be used exclusively for financing construction of facilities for common schools. The revenue sources for the fund include:
The Common School Construction Fund must finance the prioritized project list of the Small School District Modernization Grant Program before appropriating or spending funds on other capital projects. This requirement only applies if moneys in the Common School Construction Fund exceed the costs of the grants on the prioritized project list.