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    Home»Bonds»Your guide to Proposition 2, California’s $10 billion school bond measure
    Bonds

    Your guide to Proposition 2, California’s $10 billion school bond measure

    August 28, 2024


    Proposition 2 is among the 10 statewide ballot measures that California voters will get to weigh in on this fall. Here’s what you need to know about it.

    What would it do?

    Prop. 2 would see the state borrow $10 billion in order to provide $8.5 billion for TK-12 school facilities and $1.5 billion for community college facilities. The measure needs a simple majority to pass.

    State bonds generally do not directly raise taxes. Rather, the state typically sells bonds and pays them back with interest out of its general budget over the course of decades.

    It would cost the state about $500 million each year over a 35-year period to repay this bond, which represents less than one half of 1 percent of the state’s general budget, according to the Legislative Analyst’s Office.

    Why is this on the ballot?

    The state’s current pool of school facilities bond money is running out. Prop. 2 would help reduce an outstanding state bond waiting list of more than 870 school projects totaling $3.4 billion in funding requests — including more than $225 million from San Diego County districts.

    Voters have not passed a state school facilities bond since 2016, when they voted to provide $9 billion for K-12 schools and community colleges. The most recent proposed state bond, for $15 billion, failed four years ago, when 53 percent of voters chose to reject it.

    Who supports it, and why?

    School districts, community colleges, teachers unions and the building industry support Prop. 2, which stands to benefit schools and teachers with more funding and the building industry with more construction projects.

    California education leaders say many schools desperately need replacing. More than a third of students attended public K-12 schools that did not meet minimum facility standards as of 2020, according to a report by Public Policy Institute of California, and there are more than $100 billion in facility needs over the next decade.

    Many school buildings were erected decades ago and are now outdated, deteriorating, out of compliance and even unsafe or unhealthy, educators say.

    Who opposes it, and why?

    Some critics of Prop. 2, including conservative group Reform California, oppose the measure because it would increase state debt and spending on interest. The group argues it would primarily benefit “bureaucrats, special interests and politically-connected contractors.”

    Other critics say they support Prop. 2 and the idea of raising school bond funding, but still find fault with the measure because it would do little to resolve what they say are existing inequities baked into the way the state doles out school facilities funds.

    How much districts get is based on how much they can raise on their own through local bond measures — so the system sends more money per student to wealthier school districts with more assessed property value and less to poorer ones. Critics say it’s especially unfair to rural districts, which tend to have less property value and more trouble passing their own bonds.

    Originally Published: August 28, 2024 at 5:28 a.m.



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