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Potential Private-Sector Opportunities in COVID, School Funding

Gov. Gavin Newsom’s $6.6 billion COVID-19 relief and school reopening bill will send funding to classrooms – and, possibly, yield work for IT companies at the state and local levels.

Procurements and purchases may not be instantaneous, but Gov. Gavin Newsom’s $6.6 billion COVID-19 relief and school reopening bill could present some unique opportunities for private-sector technology, IT and innovation companies.

Newsom signed Assembly Bill 86 into law Friday, and as a bill “providing for appropriations related to the budget bill,” it took effect immediately. AB 86 appropriates more than $6.5 billion from the state’s general fund to the state superintendent of public instruction, with about $4.5 billion for school districts, county offices of education, charter schools and state special schools — and needing to be spent by Aug. 31, 2022. The remaining $2 billion would go to the same educational institutions, if they “provide optional in-person instructions.”

Joe Morris, vice president of research with the Center for Digital Government*, called the bill “fairly far-reaching in that the funds have to be used to support in-person instruction.” He noted that its language explicitly calls for funds to be used “for any purpose consistent with providing in-person instruction, including COVID-19 testing, cleaning, personal protective equipment, facility needs, staffing costs, and social and mental health supports provided in conjunction with in-person instruction.” Here’s more on what this could mean for IT vendors:

  • This isn’t a bill laden with obvious references to IT but it could spell particularly good news for vendors connected to the provision of state-level broadband. A portion of the $4.5 billion — how much isn’t specified — appears specifically destined to close the digital divide and ensure students have access to the Internet. That’s because AB 86 calls for “community learning hubs that provide pupils with access to technology, high-speed Internet and other academic supports.” And, as Morris said, the “basic tech” that educational institutions need to do “hybrid learning,” including connectivity, laptops, desktops and even ruggedized tablets, will likely be a part of any spend.

    In an email to Techwire, Rodney Okamoto, chief information officer at the California Department of Education, pointed out that “local public school districts make independent decisions on their IT needs,” but he indicated a “small group” at CDE is working to close the digital divide. Techwire has contacted that group; this article may be updated.
  • The somewhat larger significance of the legislation is that in addition to COVID-19 relief and school openings, the bill’s title references “reporting and public health requirements.” Considerable opportunity could exist for vendors there around the reporting. The legislation requires school officials to report any positive COVID-19 tests to the “local health officer” within 24 hours; requires schools to notify the California Department of Public Health twice a month of “in-person activities” and requires CDPH to do “safety reviews of certain school sites.” (Disclosure to local public health departments would be prohibited “except as provided.”) Schools and offices of education are also required to maintain data reports on their websites, “updated every two weeks with new educational entity-level and statewide aggregate data received by the State Department of Public Health”; and report “all data related to this section on a monthly basis to the appropriate fiscal and policy committees of the Legislature” — centered on pupils in classrooms and educational plans. And the $2 billion comes with “certain reporting requirements regarding the use of apportioned funds,” penalties for noncompliance and the collection of unspent funds.
    “The transparency and accountability requirements (in addition to the COVID-19 infection reporting) may require some administrative and reporting modernization,” Morris said.
  • Technology companies should also consider the potential for work inside classrooms, Morris said, indicating that “software solutions such as occupancy management can play an important role in keeping students and staff safe.” These could include people counters, thermal scanning to determine occupancy and Internet of Things devices.

    “These solutions take advantage of existing investments in video cameras to help track the flow of people, provide automated alerts to facilities staff about capacity and social distancing concerns,” Morris said.
*The Center for Digital Government is part of e.Republic, parent company of Techwire.

Theo Douglas is Assistant Managing Editor of Industry Insider — California.