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School Services of California, Inc.
Community College Update
February 7, 1997
Copyright© 1997 by School Services of California, Inc.
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Bid Limit Restrictions Are Entitled to COLA Adjustment

In 1995, legislation was co-sponsored by the Association of California Community College Administrators (ACCCA) and the Association of California School Administrators (ACSA) that would increase monetary requirements for contracts to be competitively bid to $50,000 for the purchase of equipment, materials, or supplies to be furnished, sold or leased to the district, or for services or repairs. The legislation, Senate Bill 429 (Chapter 897/Statutes of 1995) by Senator Richard Polanco (D-Los Angeles), contained a provision which requires this amount to be adjusted annually, commencing January 1, 1997.

The provisions of the bill specifically require the Board of Governors of the California Community Colleges (BOG) and the Superintendent of Public Instruction (SPI) to annually adjust the dollar amount ($50,000) specified in the bill "to reflect the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the prior fiscal year." The annual adjustments shall be rounded to the nearest one hundred dollars ($100).

The adjustment should reflect an increase of approximately 3%, thereby increasing the current $50,000 limit to $51,500. While these increases are not huge, it is an increase which will be adjusted on an annual basis, thereby providing community colleges and K-12 school districts with more flexibility regarding the purchase of goods and services.

Local districts should be officially notified of these adjustments by the BOG and SPI, in the near future.

-- Arnold Bray
[Posted 2/7/97]