A guide to California’s $10 billion education bond to build and repair schools

A guide to California’s $10 billion education bond to build and repair schools

A bond measure that would allow California to borrow $10 billion to build and repair thousands of aging K-12 public schools, community colleges and career-and-technical education campuses will appear on the November ballot in a contest that appears to have voters closely split.

The statewide measure, the first of its kind in four years, comes as schools across the Bay Area face scrutiny, and legal action, over poor infrastructure and health and safety concerns. In July, a group of parents, staff and educators sued West Contra Costa Unified School District over what they described as dangerous building conditions and environmental hazards. And just last month, Oakland Unified School District horrified community members after the district revealed it had found dangerous levels of lead in the drinking water at 22 schools.

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Such concerns are not limited to the Bay Area. The California Department of Education estimates that about 30% of the state’s K-12 classrooms are at least 50 years old and 10% are at least 70 years old. And a Public Policy Institute of California report found that across the state, 38% of students attend schools that do not meet minimum facility standards — lacking adequate lighting, plumbing and damage-free structures, among other issues.

Some other states, including Idaho, Colorado and New Mexico, provide funding to districts for construction costs and do not require repayment. But funding for school facilities is not in California’s education budget. Instead, schools must get buy-in from voters to raise construction and repair funds, usually through local bonds that collect money through local property taxes.

The measure has picked up support from state education officials, but faces pushback from anti-tax conservatives.

While hundreds of school districts across the state, including San Jose Unified, have school bonds on the November ballot, which would fund everything from new buildings and upgraded classrooms to affordable housing for teachers, proponents of Prop 2 say the statewide measure is necessary for urgent health and safety upgrades at schools across the state.

Supporters of the bond have raised over $3 million to try to secure its passage. The measure’s supporters include State Superintendent of Public Instruction Tony Thurmond, the Association of California School Administrators, the California School Boards Association and the California Teachers Association.

The last time voters approved a statewide bond was in 2016 for $9 billion in facilities construction and renovations for K-12 public schools, charters and community colleges. That bond is not expected to be paid off for more than 20 years.

Voters rejected the last statewide measure in March 2020, a $15 billion proposal that also would have funded facility projects. The measure was the largest school bond proposal in state history and the first to fail in more than two decades, falling just short of the required 50% voting threshold with roughly 47% of the vote.

If approved by voters, Prop 2 would provide $8.5 billion to public schools and $1.5 billion to community colleges to renovate schools or construct new facilities. Some of the public school funding would also be set aside for reducing lead in school water, building or updating career-and-technical education facilities and creating transitional kindergarten classrooms – a move intended to alleviate the $550 million transitional kindergarten facilities grant that Gov. Gavin Newsom cut from his May budget revision.

Bond funds would be distributed to schools through matching grants, on a first-come, first-served basis. To receive state funding, schools and community college districts must raise their own funds, which the state will then match on a sliding scale — up to 65% for renovations and 55% for new construction. The formula aims to provide a higher match to districts with lower assessed property values and a higher share of low-income students and English learners. The bond measure also allows school districts that are unable to raise more than $15 million from local bonds to apply for additional state funding — up to a 100% match.

Prop 2 opponents, such as Carl DeMaio, a Republican running for the state Assembly and leader of the conservative Reform California political action committee, contend it asks taxpayers to bear the financial burden for education financing that should have been included in this year’s $288 billion budget package. And the Howard Jarvis Taxpayers Association, a conservative taxpayer advocacy group, points out that bonds are borrowed money that must be paid back, with interest, saddling future generations with even more state debt.

“Prop 2 maxes out the state’s credit card by borrowing $10 billion at high interest rates – at a time when school enrollment in California is rapidly declining,” Reform California argues on their website.

California has about $80 billion outstanding bond debt, plus $35 billion in bonds not yet sold, according to the Legislative Analyst’s Office. The state is currently paying about $6 billion each year from the general fund to repay bonds. If Prop 2 passes, that would increase by an estimated $500 million each year for 35 years.

But new polling by the Public Policy Institute of California indicates voters may be more inclined to pass a statewide education facilities bond this time around. The recent poll found that 54% of likely voters said they would vote yes on the school facilities bond.

To pass, Prop 2 requires a majority vote. Local school bond measures typically require at least 55% of the vote.

Prop 2 supporters — including the “Yes on Prop. 2,” a coalition comprised of more than 100 local school districts, offices of education, community colleges and stakeholder organizations — say the measure puts local voters in control of how the funds are spent and includes strict taxpayer accountability to ensure funds are spent on dire school repairs.

“California’s schools and community colleges need major upgrades to ensure that students are learning in adequate conditions,” said the California Teachers Association, which represents more than 300,000 educators and supports the measure. “With previous school bond funds nearly depleted, our schools and community colleges are in need of a new school facilities bond.”