March 2020 Primary - Prop 13 Overview

Title: Facility repair, construction and modernization at public Preschools, K-12 schools, Community Colleges, Universities

  • This is NOT nor will this affect Proposition 13 of 1978.  
  • This is a *NEW* SCHOOL BOND for $15 Billion 
    • $9B for K-12 Public Schools
    • $6B for Community College, CSU, UC
  • $11B in interest (75% of borrowed value!)
  • Taxpayers pay back:
    • $26B = $15B principle + $11B interest (Taxpayers will pay back $740M each year for 35 yrs) 
    • Our children and grandchildren will be paying this debt!
  • Hidden provision in this bill.  
    • Allows school districts to double the amount of money they can borrow.  
    • When schools apply for this bond money, they must also provide matching funds
      • Schools typically raise their local share by Issuing Local Bonds
      • Schools also raise local funds from Developer Fees
    • When schools issue bonds, the debt is repaid exclusively by PROPERTY TAXES.  
    • Property taxes are not paid only by property owners but also by renters and all taxpayers.
  • Past “Voter approved Bonds”:  
    • From 1998 - 2016, voters approved 5 education facility bond measures.
      • A total of $53 Billion in state bond funding 
      • In 2016, voters approved $9 Billion. Where is that money? 
  • The State has $21B in reserves
    • Let’s focus on long term, well–thought out solutions to help our children and grandchildren succeed!