Sacramento county is issuing bonds to fund a new high school project. what kind of bonds are these?

Rapid Guide: What California voters have to recognize around proposed $15 billion institution building and construction bond

School Finance

January 31, 2020John Fensterwald134 Comments
Credit: Henry & Co. on Unsplash
Credit: Henry & Co. on Unsplash
John FensterwaldJanuary 31, 2020134 Comments

The March 3 California ballot includes a $15 billion state bond concern to assist colleges, neighborhood colleges and colleges with building costs for their facilities. Last fall, the Legislature and also Gov. Gavin Newsom put the meacertain on the ballot by giving Assembly Bill 48. It will certainly show up on the ballot as Proposition 13.

You watching: Sacramento county is issuing bonds to fund a new high school project. what kind of bonds are these?

Does it have anypoint to perform with the Prop. 13 property tax initiative that voters passed in 1978?

No. They simply occur to have the exact same number. Eextremely 10 years, the state repeats the cycle for numbering procedures on the state ballot in the order they come in. Passing the institution bond will not alter the previous Prop. 13.

Why is it needed?

The state has traditionally shared the expense of construction with college districts, community colleges and universities. Due to the fact that 2002, voters have actually apshowed 4 bond measures totaling $45 billion, with 80 percent allocated to K-12. The last bond, in 2016, was for $7 billion strictly for K-12. All the money from that bond has been alsituated or committed to districts that have actually applied.

School districts and neighborhood colleges additionally pass bonds for school building and construction and repairs not spanned by state help. Local bonds need 55 percent of voter approval to pass. State bonds prefer Prop. 13 require a simple majority of voters statewide.

How will the money be spent?

$6 billion for greater education, with $2 billion each for neighborhood colleges, The golden state State College and the University of California.$9 billion for K-12:$5.2 billion for renovations, through $150 million earnoted for experimentation and also reducing lead in school water.$2.8 billion for brand-new building and construction.$500 million for charter school framework.$500 million for career technological program framework. has updated, through information on the proposed institution construction bond on the March 3 ballot, a video clip we produced last autumn on Fresno Unified’s battles to money school renovations. The video highlights the require for some of the recreates that are included in the bond meacertain prior to voters.

What will certainly be the total cost?

The Legislative Analyst’s Office estimates the complete repayment to be $26 billion over 35 years, passist out of the General Fund of the state budacquire. This consists of the $15 billion major plus $11 billion in estimated interest based on offering bonds over 5 years at a 4 percent interemainder rate. The annual repayment of $740 million would certainly equal 0.5 percent of the General Fund.


How will certainly the K-12 percentage be dispersed to districts?

Due to the fact that of Newsom’s insistence, Prop. 13 will distribute money based on brand-new priorities, with additional assist for districts struggling to raise money. Schools through the best health and also security requirements, institutions needing to rerelocate lead in school water and those districts with tiny taxation bases will certainly obtain height priority. Ten percent of state money will certainly be booked for districts with 2,500 or fewer students. And low-income, low-wealth districts will certainly gain as much as 5 percent more of state matching money.

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Small districts through as well tiny a tax base to fund college tasks, and districts with predominately low-earnings families linked through inadequate taxable building have said they’ve been disadvantaged under the existing first-come, first-offered mechanism of distributing state funding. That mechanism didn’t consider districts’ capability to fund construction. A study from the 2018 Getting Dvery own to Facts research study task, led by Stanford College and also the nonprofit PACE, files these difficulties.

How would passage of the state infrastructure bond affect my property taxes?

In three methods for districts that choose to renovate or build new facilities:

Districts that apply and also understood eligible could get matching state funding on a sliding scale for individual college projects: between 50 and 55 percent of the expense for new construction and also in between 60 and also 65 percent for the expense of renovation. As an outcome, passage of the state bond can reduced the expense of a regional college project and also alleviate the rise in property taxes for a potential future local school bond. State regulation limits just how much school and also community college districts might problem in neighborhood bonds, based upon the total assessed value of property in the district. The present ceiling of 1.25 percent of assessed value for elementary and high college districts would rise to 2 percent if Prop. 13 passes. The ceiling of 2.5 percent of assessed worth for linked and also community college districts would climb to 4 percent. Districts bumping up against the ceiling currently have actually the capability to watch a waiver from the State Board of Education to raise go above it. The brand-new limits would certainly especially help areas in the state, like the Central Valley and also the Inland Realm, eastern of Los Angeles, where residential or commercial property values still have not respanned from the Great Recession.School districts can charge fees to residential developers to defray the cost of new students the development would certainly carry. Prop. 13 would minimize the fees on multi-residential advances by 20 percent for the following five years. It likewise would eliminate developer fees for apartment complexes and also various other multifamily residential advances developed within a half-mile of a significant transit soptimal. A reduction in developer fees of this magnitude might raise taxes, to a tiny degree, of homeowners who would need to consist of the distinction in districts with brand-new multi-residential buildings. Negotiators for Gov. Gavin Newsom insisted on the cut in fees in order to encourage more high-thickness housing; it was not part of the original bond regulation that the Legislature thought about.

How will certainly the higher-ed percent work?

The UC and CSU units provide their own building and construction tasks. The CSU trustees and also the UC regents would need to adopt 5-year plans to expand also affordable housing on campus and give height priority to buildings through the many pressing safety pertains to to qualify for state bond revenue.

Who are crucial supporters and financial contributors?

Support is coming from Newsom, dozens of legislators, the The golden state Teachers Association and the California Federation of Teachers, the The golden state Charter Schools Association, many institution groups, including the California State PTA, associations representing institution boards, administrators and also organization policemans, the UC regents, UC trustees, and also the community colleges’ board of governors. It also has actually vital company backers: the The golden state Building Industry Association, The golden state Company Roundtable and also The golden state Chamber of Commerce.

The biggest donors, as of Feb. 14, incorporate the California Coalition for Public Higher Education Issues Committee, $1,750,000; Californians for Quality Schools, sponsored by the The golden state Building Industry Association, $1,250,000; Coalition for Adequate School Houtilizing, an industry-based lobby, $1,050,000; CTA, $500,000; California Charter Schools Association, $400,000; and United Brotherhood of Carpenters and also Joiners of America, $334,000. The “yes for Prop. 13” coalition had elevated $9 million.

Who are the vital adversaries of Prop. 13?

No money has actually yet been elevated to oppose the measure. The just enemies listed on the nonpartisan, renowned election website Ballotpedia are the Howard Jarvis Taxpayers Association and Sen. Brian Jones, R-Santee.

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