Local school bonds safe from state budget cuts
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Updated: Wednesday, January 23, 2008 9:20 AM PST |
With three local school districts proposing multi-million dollar bond measures on the Feb. 5 ballot, many residents are wondering if the state will even have the millions of matching funds promised in Measures B, C and D.
Fortunately for school districts, California's budget will not have any affect on funds for school construction.
For the most part, funding for the construction and repair of school facilities is separate from funding for operations. The bulk of capital costs are paid for through public bonds at the state and local level while operating costs are paid through the state's general fund.
According to the California Department of Education, California has a statewide school building program - the School Facilities Grant Program - supported by statewide bond measures, such as Proporistion 1D, a statewide bond measure passed by voters in November 2006 that provided $7.3 billion in general obligation bonds for K-12 school facilities.
From 1998 through 2006, voters approved four statewide bond measures K-12 schools: $6.7 billion in 1998, $11.4 billion in 2002, $10 billion in 2004, and most recently $7.3 billion in November 2006. The measures totaled $35.4 billion.
From 1998 through November 2006, local bond elections generated $36.1 billion for school facilities statewide. In 1998, 73% of Woodlake votes passed Measure J, a $3.6 million bond measure for the Woodlake Union High School District. The district was able to use the money to leverage another $2.6 million in state modernization and joint use funding. In 2002, 69% of Lindsay voters approved Measure C, a $7.2 million bond for the Lindsay Unified School District, which was matched by $9 million in state funds. In 2001, 69% of Exeter voters approved a $4.25 million bond measure for the Exeter Union High School District, which was matched by $5 million in state funds. In 2006, 63% of Exeter voters approved a second bond measure for EUHSD of $5.1 million, which was matched by $3.7 million in state funds.
On Feb. 5, local voters will look at three new bond measures in Exeter, Lindsay and Woodlake. LUSD's Measure B is seeking a $20.7 million bond to essentially build a new high school and elementary school.
WUHSD's Measure C proposes a $4.41 million bond to build new classrooms and restrooms, upgrade sports facilities and renovate the performing arts building at the high school.
Exeter Union (Elementary) School District's Measure D proposes a $6.4 million bond measure to construct classrooms, restrooms, a gymnasium, administrative offices and repair, construct and upgrade school facilities primarily at Wilson Middle School.
All are eligible for state matching funds protected from the state's $10-$15 billion deficit.
In addition to bonds, school districts also have the authority to levy developer fees on new residential and commercial construction or reconstruction, however, these fees usually generate significantly less money than bonds, according to the Department of Education. Developer fees can only be used for school facilities, including portable classrooms. These fees are charged both to developers of new properties and to property owners who remodel. They are based on the concept that new construction will lead to additional students. Individual school districts decide whether to levy the fees and at what rate up to the allowed maximum. In 2006 and 2007, the maximum was set at 42 cents per square foot on commercial construction and $2.63 per square foot on residential construction.
Correction
In a Jan. 9 article titled, “Know Your B-C-Ds,” on the front page of the Sun-Gazette, it was reported that school bond measures receiving a two-thirds majority receive 80% in matching funds instead of the normal 60% or 50% for measures passed under the 55% majority rule. Despite stricter accountability requirements, the primary difference between a 66.66% or 55% bond measure is only a provision that puts a cap on the tax rate levied on property value. Under a 55% vote, the tax rate can be no more than $60 per $100,000 of taxable property value for a unified school district and $30 for a school district. Under a two-thirds vote, there is no maximum limit.
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