Proposition 1D November 7, 2006 General Election Kindergarten-University Public Education Facilities Bond Act of 2006

Introduction Proposition 1D California State University Board of Trustees endorsed Proposition 1D CSULB would be a beneficiary

Agenda Summary of Proposition 1D CSULB Projects to be funded Nonpartisan education campaign

Summary of Proposition 1D If approved by the voters, Proposition 1D will authorize the sale of a statewide general obligation bond The measure will be on the November 7, 2006, ballot specifying that ten billion four hundred sixteen million dollars ($10,416,000,000) will provide funding for K- University facilities over a two-year period

Summary of Proposition 1D K-12 would received $7,329 Billion Higher Education would received $3,087 Billion Community Colleges$1,507 Billion University of California$ 809 Million California State University$ 690 Million

CSULB Proposed Projects - $88,757,000 Peterson Hall 3 Replacement /07 $82,696,000 Minor Capital Outlay & Capital Renewal /07 $3,587,000 Nursing Building Addition – 2007/08 $2,000,000 Library Addition and Renovation /08 $478,000

Bond Helps Meets CSULB Needs Campus five-year capital need (2006/07 to 2010/11) is $347,471,000 Percent of five-year program funded through a new Infrastructure bond: 27.0 percent FTE accommodated through new buildings from Propositions 47 and 55: 233 FTE FTE accommodated through a new Infrastructure bond: 1,177 FTE

Overall CSULB Capital Facilities Need Quality facilities needed to educate today’s workforce FTE enrollment will grow by 2.5 percent per year 2005/06 Targeted27, /07 Projected28, percent 2011/12 Projected31, percent

Overall CSULB Capital Facilities Need Capital program based on long term projections 67 percent of campus facilities at least 30 years old 78 percent at least 20 years old

CSULB Age of Facilities Includes Permanent & Temporary Facilities, Excludes non-state.

CSULB projects funded with 2002 Proposition 47 $1,721,000 – Funds were used to renovate and modernize academic facilities and to correct accessibility and safety issues $3,780,000 – Equipment to occupy the newly completed Molecular and Life Sciences Center Building

CSULB projects funded with 2002 Proposition 47 $1.4 Million – Design documents for Library Addition and Renovation. This project provides an automated book retrieval system which frees up space within the Library for large and small student group study areas, an Information Commons with a capacity to support more than 200 computer workstations for students; new classrooms

CSULB Projects funded with 2004 Proposition 55 $1,729,000 - Funds were used to renovate and modernize academic facilities and to correct accessibility and safety issues $1,361,000 – Preliminary design documents were prepared for a science replacement building, which will provide instructional space to house 1,177 FTE for new university- wide lecture space and laboratory space for multiple academic programs in the College of Sciences and Mathematics.

CSULB Projects funded with 2004 Proposition 55 $31,326,000 – These funds completed construction documents for the Library Addition and Renovation project. This project is under construction; completed is planned for November 2007

CSULB projects funded with 2004 Proposition 55 $1,253,000 – This project provided design and construction funds to seismically retrofit Liberal Arts 2, 3 and 4 buildings. Construction is planned for the summer 2007 $1,300,000 – Heating, ventilation and air conditioning were provided in selected rooms of the Fine Arts 4 building to improve classroom environment. This project was completed during the summer 2006

Summary of CSULB Proposed Projects Peterson Hall 3 Replacement 2006/07 Provides construction funds and demolition funds New science building replaces an obsolete and antiquated facility constructed nearly a half century ago

Summary of CSULB Proposed Projects Peterson Hall 3 Replacement 2006/07 The new building provides contemporary teaching environment designed to more easily and cost effectively adapt to future changes in technology, education programs, and student demand Completes construction of the science building complex, which was started nearly 20 years ago

Summary of CSULB Proposed Projects Minor Capital Outlay and Capital Renewal Renovates and modernizes antiquated teaching facilities to accommodate academic programs Corrects accessibility and safety issues around the campus Replaces obsolete building systems that have exceeded their useful life

Summary of CSULB Proposed Projects Nursing Building Addition Provides additional instructional spaces to meet the critical shortage of trained nurses throughout the State of California

Summary of CSULB Proposed Projects Library Addition and Renovation – 2007/08 Provides equipment in the renovated Library which is under construction. Planned completion date of November 2007

Nonpartisan Education Campaign The nature of bonds and debt service Who is against Proposition 1D? Why? Who endorses Proposition 1D? Why?

Nature of Bonds Bonds are the only option available to the CSU to fund State funded capital improvements Bonds are used because only a small percentage of the State General Fund is discretionary Until 1996 separate measures were proposed for higher education and K-12; since then bond measures have combined Debt is paid from the State General Fund

Debt Service LAO states that there is no accepted “rule” for how much debt is “too much” or how many bonds the state can “afford” 5 percent is considered prudent; 6 percent not a cause for alarm State Treasurer describes California debt as consistent with those of other large states The state’s current ratio of 5 percent is well short of the 7 percent level that would start to be of concern according to some bond raters

Debt Service Debt service to the State General Fund depends on the prevailing interest rate when bonds are sold Depending on interest rates, the fiscal impact of $20.3 billion to pay off the principal ($10.4 B) and interest ($9.9 B) will require annual payments of $680 million for 30 years

Debt Service The California Chamber of Commerce supports the propositions and has not taken a position of the debt service ratio

Proposition 1D will not increase property taxes The debt on state bonds is paid from the State General Fund Only local bond measures are paid by raising property taxes

Simple Majority It will take a 50 percent plus one vote in favor to pass Proposition 1D

Who is against Proposition 1D? Why? William Saracino, Member, Editorial Board, California Political Review Libertarian Party Tom McClintock Thomas N. Hudson, California Tax Payers Protection Committee

Who is against Proposition 1D? Why? Proposition 1D is too big – we need to drop the fluff and stick to the essentials Proposition 1D is short-sighted – we need a 10 year plan Proposition 1D is more borrowing – why can’t we pay as we go? Proposition 1D is too costly – we need to keep debt down. We can’t afford the interest payments.

Who endorses Proposition 1D? Why? California Taxpayers’ Association California Business Roundtable California Chamber of Commerce California Farm Bureau Federation League of California Cities Press Telegram California State PTA League of Women Voters California Federation of Teachers See Yes on Proposition 1D for extended list

Who endorses Proposition 1D? Why? An investment in our children is an investment in California’s future Makes our school buildings earthquake safe Reduces overcrowding for our students Updates our schools with new technology Builds vocational education facilities Funds our rapidly growing community college system

Who endorses Proposition 1D? Why? 1D will help state economy grow – for every $1 spent to get students into and through college, the state receives $3 net return on its investment It provides planning for the future and does not bite off more than we can afford It builds in accountability Both candidates for Governor and a bipartisan majority of the Legislature agree

Where to get more information? Secretary of State 6/general_06/pdf/proposition_1d/enti re_prop1d.pdf 6/general_06/pdf/proposition_1d/enti re_prop1d.pdf

Nonpartisan Education Campaign Individuals are free to endorse or oppose Proposition 1D on own personal time and with own personal resources State employees can not endorse or support Proposition 1D on work time or use state resources Balanced educational presentations can be made on work time utilizing work resources

How can I participate in the campaign? Register to vote The deadline to register to vote in the November 7, 2006 election is October 23, 2006 Educate voters Public opinion pieces Presentations Classrooms Organizations

Proposition 1D Thank you Dr. Elena Macías