California Public Education Facilities Bond Initiative (2016) Ryann Derington Linna Hunt Debra Lockwood Brooke Parbst Adeline Villicaña

Description & Background-What is the initiative? Type: CCIS. When groups collect enough signatures election officials place the measure on the ballot for a vote. Ballot name: Proposition 51. Subject: Education. Description: Authorizes the issuance and sale of $9 billion in bonds for education and schools. The California Public Education Facilities Bond Initiative will be the first education-related bond measure to appear on the ballot since 2006, and it is the first ever education-related bond measure that was citizen initiated. The initiative is officially titled: School Bonds. Funding for K-12 School and Community College Facilities. The ballot however will read: Proposition 51 Statewide Bond for School Facilities The initiative will be on the November 8, 2016 ballot. There will be 17 Propositions on the ballot along with a Presidential election...high voter turnout likely.

Overview The proceeds from the $9 billion in bonds proposed by this initiative would be stored in a 2016 State School Facilities Fund and a 2016 California Community College Capital Outlay Bond Fund. Proceeds would be allocated for the following purposes: $3 billion for the construction of new school facilities; $500 million for providing school facilities for charter schools; $3 billion for the modernization of school facilities; $500 million for providing facilities for career technical education programs; and $2 billion for acquiring, constructing, renovating, and equipping community college facilities.[1]

What a YES vote would accomplish... A “YES” vote would be a vote in favor of the state issuing $9 billion in bonds to fund improvement and construction of school facilities for K-12 schools and community colleges. What a NO vote would accomplish... A “NO” vote would be a vote against the state issuing $9 billion in new debt to fund the improvement and construction of education facilities.

Fiscal Impact of Prop 51 Total cost to taxpayers is approximately $17.6 billion Principal ($9 billion) Interest (approximately $8.6 billion) Bonds will be repaid over a 35-year period $500 million annually (assuming an average 5% interest rate)

Criteria for Evaluating Bonds The project will pay for land acquisition and capital costs, NOT for maintenance, operations, non-construction salaries or wages, ongoing costs, equipment, computers, or similar items that will not be useful for at least as long as the debt is outstanding. Non-bond financing is not a reasonable option It is appropriate for future taxpayers to share the cost, because the project will have a useful life at least as long as the term of the bonds, and future taxpayers will benefit from the project Projects are of state-level concern and importance not local projects Interest rates are not abnormally high and the overall state debt level will not be excessive

Additional Impacts of Prop 51 Local Tax Burden School district funding through local school bonds and increased property taxes Housing Affordability Developer costs and fees passed on to homeowners Schools According to the most recent Department of Finance data from 2014-15, over the next 10 years, California’s net K-12 student population will decline by 66,043 students, but 34 counties will see an increase in population of 117,080 students. Backlog in maintenance of school facilities

Proposition 51 Pros Proponents of Prop 51 have stated 6 positive advantages to the proposition passing: California was among the hardest hit of the states during the last recession and while employment gains are occurring, economists caution that the state economy has not yet fully recovered. Investments made through the Kindergarten Through Community College Public Education Facilities Bond Act of 2016 will provide for career technical education facilities to provide job training for many Californians and veterans who face challenges in completing their education and re-entering the workforce. Investments will be made in partnership with local school districts to upgrade aging facilities to meet current health and safety standards, including retrofitting for earthquake safety and the removal of lead paint, asbestos and other hazardous materials. Studies show that 13,000 jobs are created for each $1 billion of state infrastructure investment. These jobs include building and construction trades jobs throughout the state. The Kindergarten Through Community College Public Education Facilities Bond Act of 2016 provides for disadvantaged school districts and local control. Academic goals cannot be achieved without 21st Century school facilities designed to provide improved school technology and teaching facilities.

Proposition 51 Pros There are several different organizations, some of which are in the top 5 of financial supporters, and government officials that support Proposition 51. Supporters Organizations Coalition for Adequate School Housing*** California Building Industry Association** California Republican Party[9] California State Parent Teacher Association (PTA)[10] Northern California Carpenters Regional Council[11] California Association of School Business Officials[12] The California Democratic Party [13] Officials Senator Cathleen Galgiani[14] Assemblymember Young Kim[15] Assemblymember Evan Low[16]

Proposition 51 CONS Opponents: California Taxpayers and Educators Opposed to Sprawl and Developer Abuse Officials: Governor Jerry Brown “I am against the developers’ $9-billion bond. It’s a blunderbuss effort that promotes sprawl and squanders money that would be far better spent in low-income communities.”___ Gov. Jerry Brown (D) There is little to no information on the opposing side because people already think it is going to pass. Also, if this bond passes, developers save money from their pocket book because they don’t have to shell out as much money towards schools, when they come into a town, because the bond will pay pick up some of that expense. If the bond does not pass, every other state programs’ funds will be affected. Either way, it is going to cost tax paying citizens. “There is no free lunch.” (Dr. Fulmer) ballotpedia.org/California_Public_Education_Facilities_Bond_Initiative,_Proposition_51_(2016)

Voters Analysis Summary of California School Bond Measure Survey Results Conducted by Fairbank, Maslin, Maullin, Metz, & Associates (Public Opinion Research and Strategy) Survey was completed in January/February 2014 and December 2014 The results showed that most believe the state’s K-12 public schools and community colleges are underfunded. 3 in 4 democrats vote in favor Two thirds of No Party Preference vote in favor Majorities of Republicans ages 18-49 support the proposition Voters continue to prioritize investments in California’s schools and community colleges.

Voters Analysis Continued... Voters were polled in Jan./Feb 2014 and again in Dec. 2014 The surveys found that support for a statewide school bond measure has intensified in the following areas: Vote on statewide school bond measure (57% to 64% yes vote) 7 point increase Perceived level of funding need for public schools (68% to 75% great/some need) Voter agreement with statements about California public schools (51% to 73% agreed) 22 point increase

Works Cited “California Public Education Facilities Bond Initiative, Proposition 51 (2016).” Ballotpedia: The Encyclopedia of American Politics. Lucy Burns Institute, n.d. Web. 29 July 2016. CalTax. Proposition 51: Statewide Bond for School Facilities. N.p.: California Taxpayers Association, 2016. PDF. Legislative Analyst’s Office. Overview of School Facilities Bond Measure. California Legislative Analyst’s Office, 2016. PDF. Initiative No. 15-0005 - Education Bond Act. Sacramento, CA: Thomas W. Hiltachk, 12 Jan. 2015. PDF. Summary of California School Bond Measure Survey Results. Public Opinion Research and Strategy, 2014. PDF.