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School Facility Program (SFP)

Provides an overview of the SFP, which offers state matching funds through pupil grants and supplemental funding for eligible costs. Covers project requirements, funding and approval processes, and the agencies involved.

The SFP was implemented in late 1998 and provides State funding on a matching basis in the form of pupil grants, with supplemental grants for site development, site acquisition, and other project-specific costs when necessary. Requirements vary by project type, funding source, and site conditions. The SFP is a structured, multi-agency process that ensures California’s public schools are safe, functional, and built to support student learning. It requires careful planning, design, regulatory approval, and oversight from concept through project completion. This page provides an overview of the SFP, funding and approval processes, and agencies involved.

Overview

Use this tab if you want to understand:

  • What the School Facility Program is
  • Why local matching funds are usually required
  • How state funding supports school facility projects
  • Why planning, approvals, and agency coordination matter

Quick Facts

The SFP is typically funded via voter-approved bonds and is the main California state funding programs for public school construction and modernization. It helps school districts and charter schools build new facilities, improve existing facilities, and support safe, functional learning environments.

SFP funding is a state and local partnership. The State provides matching funds, and the district provides a local share, often through local bonds or other local funding sources.

This page explains how the program works, who is involved, and what districts should understand before beginning a project.

What is the School Facility Program?

The SFP provides funding in the form of per-pupil grants, with supplemental grants for site development, site acquisition, and other project-specific costs.

Funding for projects approved under the SFP generally comes from statewide general obligation bonds approved by California voters.

The SFP is a grant funding program that helps local school districts build and modernize public school facilities.

It is a state–local partnership, where:

  • The State provides matching funds
  • The local school district provides a local share (often through bonds or other funding)

The program supports construction projects that promote efforts to provide school facilities that are:

  • Safe
  • Code-compliant
  • Designed to support educational programs
  • Adequate for projected student enrollment

Process

Use this tab if you want to understand:

  • The major steps in a school facility project
  • When planning should begin
  • What happens before construction starts
  • Why closeout and audits are important

Quick Facts

School facility projects move through several key phases:

This image illustrates the major steps in the School Facility Program process. The process begins with planning and design, followed by plan review and funding approval. The project then proceeds through the bidding, construction, and closeout phases.

This process often takes several years, so districts should begin early—especially if site approval, state funding, or local bonds are required.

The process is not strictly linear. Steps may overlap, and districts often work with multiple state agencies at the same time.

How the SFP Process Works (Big Picture)

Planning

  • Develop inventory of existing buildings and their capacity
  • Identify enrollment needs and facility gaps
  • Develop a Facilities Master Plan to address needs, priorities, and funding plans
  • Select and evaluate potential school sites
  • Determine available funding sources

Design

  • Translate educational needs into building plans
  • Develop:
    • Schematic designs
    • Detailed architectural drawings
  • Refine scope, cost, and layout

Plan Review & Approval

Plans are reviewed by multiple State agencies to ensure:

  • Safety
  • Accessibility
  • Educational adequacy
  • Code compliance

Funding Approval

  • District submits eligibility and funding applications
  • State reviews request
  • State Allocation Board (SAB) approves funding
  • Funds are apportioned to the project

Bidding & Construction

  • Project is publicly bid
  • Contractor is selected
  • Construction begins with oversight and inspections
  • Progress is tracked and reported

Close-Out & Audit

  • Final inspections and certifications
  • Financial audit of project costs
  • State verifies compliance with program requirements

Key Milestones in a Project

Typical milestones include:

  • Five-Year Facilities Master Plan External link opens in new window or tab. completed
  • Site approved (if applicable)
  • Plans approved by the California Department of Education (CDE) and the Division of the State Architect (DSA)
  • Funding approved by the State Allocation Board (SAB)*
  • Construction begins*
  • Project certified and audited

*Milestones are not always linear, as shown, because each project is unique.

Important Things to Know

  • Planning can begin years before construction starts
  • Projects require coordination across multiple agencies
  • State funding is competitive and regulated
  • Compliance with safety, environmental, and educational standards is required at every step
Here is a more detailed flow chart External link opens in new window or tab. (PDF) of the public school construction process provided by the Office of Public School Construction (OPSC).

Agencies

Use this tab if you want to understand:

  • Which agency does what
  • When the California Department of Education (CDE), Office of Public School Construction (OPSC), State Allocation Board (SAB), Division of the State Architect (DSA), and Department of Toxic Substances Control (DTSC) may be involved
  • Why districts should contact the right agency early
  • What the local district remains responsible for

Quick Facts

School facility projects involve several agencies. Each agency has a different role, and districts may need approvals from more than one agency before receiving state funding.

The OPSC manages the SFP application process and prepares funding recommendations for the SAB. The CDE reviews school sites and plans for educational appropriateness. The DSA reviews plans for structural safety, accessibility, and fire and life safety. The DTSC reviews environmental safety for certain school sites.

The local school district still leads the project. The district is responsible for planning, local funding, hiring professionals, and managing the project day to day.

Agency Roles and Responsibilities

Office of Public School Construction (OPSC) – See Modernization/New Construction/Hardship tabs for more information

  • Manages the SFP application process
  • Implements and administers the SFP and other programs of the SAB.
  • Reviews eligibility and funding requests.
  • Verifies that applicant districts meet criteria based on the requested funding type.
  • Prepares recommendations for SAB review and approval.
  • Tracks project progress and expenditures.

State Allocation Board (SAB)

  • Approves funding for school projects.
  • Allocates State bond funds to districts.
  • Administers the SFP as the policy-level body for programs administered by OPSC.
  • Meetings are posted on their web site at Meetings External link opens in new window or tab., and meeting archives and a link to the OPSC YouTube Channel are posted on State Allocation Board Agendas External link opens in new window or tab. website.

California Department of Education (CDE)

  • Reviews projects for:
    • Educational appropriateness
    • Site suitability
  • Ensures facilities meet student and program needs
  • Reviews and approves plans and proposed sites before final apportionment application to the OPSC.

A school district must obtain approval from the CDE for its plans and proposed sites before submitting the final apportionment application to the OPSC for state funding. The CDE reviews and approves new construction and modernization plans for compliance with Title 5 of the California Code of Regulations (5 CCR) Section 14030. An overview of the plan review process is available on the CDE website at Plan Submittal Process.

If a school district is experiencing rising enrollment, demographic changes, expanded programmatic needs, or overcrowding—and is seeking state funding for site acquisition—the CDE’s review and approval are required. The CDE reviews proposed sites for compliance with 5 CCR, sections 14001–14012. More information on the site review process is available at Site Review Process website.

The CDE has six Field Representatives assigned to counties throughout the state. It is best to contact your assigned Field Representative early in the design process to ensure compliance with regulations delineated in 5 CCR. County assignments can be found on the CDE website at School Facilities Staff.

Division of the State Architect (DSA)

  • Reviews plans for:
    • Structural safety
    • Accessibility compliance
    • Fire and life safety
  • Oversees construction inspections

A school district must also obtain approval from the DSA for its construction plans before submitting the final apportionment application to the OPSC for state funding. The DSA—part of the Department of General Services—serves as California’s primary authority for design and construction oversight of kindergarten through grade twelve (K-12) public schools, community colleges, and certain state-owned or state‑funded facilities. Its work ensures that school buildings are safe, accessible, and resilient, particularly in the face of seismic risk. Their key roles include structural safety and enforcement of the Field Act; accessibility compliance (California Building Code 24); fire and life safety; and plan review and construction oversight. The Field Act establishes rigorous structural safety requirements for K–12 public schools to ensure buildings can withstand earthquakes and other hazards. Depending on the project, a geotechnical report approved by the California Geotechnical Survey may be required.

Each project requires a DSA project number and completion of DSA’s plan review and approval process prior to construction. The counties served by each DSA Regional Office are found on the DSA web site at Contact Us External link opens in new window or tab..

Environmental Compliance

Department of Toxic Substances Control (DTSC)

  • Evaluates environmental safety of school sites
  • Ensures sites are safe from hazardous materials

For projects subject to DTSC oversight, the DTSC plays a central role in ensuring that school sites are environmentally safe before they are acquired, constructed, or redeveloped. DTSC’s oversight focuses on protecting students, staff, and surrounding communities from exposure to hazardous materials. The DTSC ensures that proposed school sites undergo rigorous environmental review; contaminated properties are remediated to protect students and staff; hazardous materials are properly evaluated and managed; and school districts receive consistent regulatory guidance and oversight. Through its assessments, cleanup oversight, technical guidance, and community engagement, the DTSC helps guarantee that school environments across the state are safe and healthy for the children who learn there.

School districts must determine if their capital projects require an environmental assessment prior to submitting final approval application to the DSA, CDE and OPSC. New construction project sites are subject to the DTSC review procedures if the project: (1) will be state funded under the SFP or is locally funded and the local educational agency (LEA) requests a CDE plan approval; and (2) the project is not a minor addition to a school eligible for a statutory or categorical exemption from the California Environmental Quality Act (CEQA).

LEAs should consult their own legal counsel and appropriate CEQA professionals when questions arise regarding CEQA compliance or requirements. CDE does not provide CEQA legal advice or determine whether an LEA has legally complied with CEQA.

California Environmental Quality Act (CEQA)

CEQA applies to most projects undertaken, funded, or approved by public agencies that may cause a physical change to the environment, requiring agencies to evaluate and disclose potential environmental impacts before proceeding. Some projects are exempt, either because they are statutorily exempt (e.g., certain school projects) or qualify for categorical exemptions where impacts are deemed minimal. If a project is not exempt, the lead agency prepares an Initial Study to determine whether impacts are significant; if not, it issues a Negative Declaration (ND) or a Mitigated Negative Declaration (MND) when revisions reduce impacts to a less-than-significant level. If significant impacts may remain, the agency must prepare a full Environmental Impact Report (EIR), which analyzes environmental effects, identifies mitigation measures, and evaluates project alternatives before decisions are made. CEQA requirements vary by project and should be evaluated on a project-specific basis in consultation with legal counsel.

Local School District Role

  • Leads and manages the project
  • Provides local funding match (See Hardship tab for option if no local funding is available)
  • Coordinates:
    • Architects
    • Engineers
    • Contractors
  • Oversees day-to-day project development

Prop 2

Use this tab if you want to understand:

  • How Proposition 2 funds are divided
  • What changed after Proposition 2
  • How Proposition 2 may affect small districts and financial hardship

Quick Facts

Proposition 2 is the 2024 statewide school facilities bond approved by California voters. It provides new bond funding for school construction and modernization.

For Transitional Kindergarten through grade 12 (TK-12) school facilities, Proposition 2 provides funding for new construction, modernization, charter school facilities, and career technical education facilities.

Proposition 2 also changes several SFP requirements. These changes include a five-year Facilities Master Plan requirement, new methods for calculating the local contribution, updated building capacity reporting, small district set-asides, and changes related to financial hardship assistance.

Funding Allocations and Program Changes

Proposition 2 provides $8.5 billion in proceeds from the sale of bonds for the construction and modernization of TK-12 school facilities. Proposition 2 specifies that the $8.5 billion is allocated to the SFP as follows:

  •  New Construction - $3.3 billion
    • Up to 10 percent ($330 million) shall be available to small school districts 
  • Modernization - $4.0 billion
    • Up to 10 percent ($400 million) shall be available to small school districts
    • Up to $115 million shall be available to address the remediation of lead in water
  • Charter School Facilities Program (CSFP) - $600 million
  • Career Technical Education Facilities Program (CTEFP) - $600 million

Proposition 2 Program Changes:

  • Requires submittal of a five-year school Facilities Master Plan as a condition of participating in the SFP;
  • Establishes a new point-based methodology for calculating adjustments to the local contribution a school district is required to make to be eligible to receive state funding, including new state shares up to 55 percent for new construction and up to 65 percent for modernization;
  • Authorizes additional state funding for the replacement of school buildings that are at least 75 years old;
  • Establishes several new supplemental grants and authorizes the State Allocation Board (SAB) to provide interim housing assistance or other assistance following specified natural disasters;
  • Provides specified assistance to school districts with a school facility on a military installation, small school districts, and for the testing and remediation of specified lead levels in water fountains and faucets used for drinking or preparing food on school sites; and
  • Increases the maximum level of total bonding capacity allowable for a school district to be eligible for financial hardship assistance.

The Proposition 2 changes are applicable to all SFP applications received by the OPSC on or after October 31, 2024. The OPSC conducted a series of stakeholder meetings on behalf of the SAB to propose regulatory amendments to implement Proposition 2. The OPSC presented the recommended regulatory amendments to the SAB for consideration and approval. For more information, see the OPSC web page at Laws, Regulations for School Construction Projects External link opens in new window or tab..

Modernization Finding

Modernization funding helps school districts improve older school facilities by supporting major upgrades that extend building life and enhance the learning environment.

To qualify, permanent buildings generally must be at least 25 years old and portable buildings at least 20 years old. Districts must also show that students will continue using the facilities being improved.

Funding is shared between the state and the district, with the state typically covering 60–65 percent of eligible project costs. Funds can be used for upgrades such as safety improvements, accessibility enhancements, system replacements, heating, ventilation, and air conditioning (HVAC) and electrical upgrades, seismic work, and other major facility improvements.

More information about the modernization application process, including checklists, can be found on the Office of Public School Construction (OPSC) website at Access Modernization Funding for Schools External link opens in new window or tab..

Small School District Program - Modernization

The Small School District Program is part of the SFP created by Proposition 2 (2024) to provide dedicated modernization funding of $400 million reserved for eligible small school districts or county offices of education with 2,500 pupils or fewer at the time of application.  Preliminary apportionment applications open on November 2, 2026. More information about this program can be found on the OPSC website at Access Small School District Program Funding External link opens in new window or tab..

New Construction Funding

New construction funding helps school districts build new facilities when existing schools do not have enough space to accommodate current and future students.

Districts must demonstrate that projected enrollment exceeds available facility capacity to establish eligibility. Once eligibility is approved, districts may apply for state grant funding to support the planning, design, and construction of new school facilities.

Funding costs are shared between the state and the local district, and grants can be used for a variety of project expenses, including site acquisition, construction, infrastructure, equipment, and furnishings.

Overall, the program supports district growth by providing funding to create additional student capacity and ensure adequate learning spaces for future enrollment needs.

More information about the new construction application process, including checklists, can be found on the Office of Public School Construction (OPSC) website at Access New Construction Funding for Schools External link opens in new window or tab..

Small School District Program – New Construction

The Small School District Program is part of the California SFP created by Proposition 2 (2024) to provide dedicated new construction funding of $330 million reserved for eligible small school districts or county offices of education with 2,500 pupils or fewer at the time of application.  Preliminary apportionment applications open on January 15, 2027. More information about this program can be found on the OPSC website at Access Small School District Program Funding External link opens in new window or tab..

Hardship Funding

Hardship funding provides additional state assistance to school districts facing either financial challenges or urgent facility health and safety issues.

  • Financial Hardship helps districts that cannot afford their required local funding share for eligible school construction or modernization projects, even after making reasonable efforts to raise local funds. For more information, including frequently asked questions (FAQs), examples, forms and checklists, visit the Office of Public School Construction (OPSC) web page at Access Financial Hardship Assistance for School Construction External link opens in new window or tab..

  • Facility Hardship helps districts address serious facility conditions that pose an immediate threat to the health and safety of students or staff. More information about the Facility Hardship Program, including FAQs, examples, forms and checklists, can be found on the OPSC web site at Access Facility Hardship Funding for School Construction External link opens in new window or tab..

Financial hardship assistance can increase the state's funding contribution when a district demonstrates financial need. Facility hardship funding can support the rehabilitation or replacement of facilities with significant safety concerns, such as structural deficiencies, hazardous site conditions, or disaster-related damage.

Overall, hardship programs are designed to ensure that critical school facility projects can move forward when districts face either financial limitations or urgent facility-related health and safety risks.

Questions:   School Facilities & Transportation Services Division | sftsd@cde.ca.gov | 916-322-2470
Last Reviewed: Tuesday, October 6, 2026
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