Vol. XV, No. 6
February 15, 2002

$6.7 billion in local school bonds on march ballots

California voters will be deciding the fate of approximately $6.7 billion worth of local school bonds on March 5. With the voter approval requirement for specified bonds lowered from two-thirds to 55 percent, at least 85 school districts are seeking quick cash to build new schools and tackle years of deferred maintenance on others. This comes on top of $2.4 billion in school bonds approved last November, and more in the works for this November. On top of this, Governor Gray Davis is proposing $30 billion in state school bonds over the next three election cycles.

(Editor’s note: The $6.7 billion figure is a minimum number of what is to be on local ballots. Information is not available at this writing from most of the small counties on the extent of school bonds on their ballots.)

What is surprising about the magnitude of the bond issues is that they are being proposed at a time of near recession and carry a very substantial property tax increase pricetag. Additionally, over the next five years, the Legislative Analyst’s Office has projected a declining growth rate of K-12 students to almost a static figure by 2006-07 (the rates of growth: 2002-03: 1.0%; 2003-04: 0.8%; 2004-05: 0.7%; 2005-06: 0.6%, and 2006-07: 0.3%).

Viewing this development as desirable, Rick Simpson, policy director for Assembly Speaker Herb Wesson, told the Sacramento Bee, “This will be a big year for schools and kids. Having quality schools sends a powerful message to students about how much we care about them.”

Viewing the development with alarm, Jon Coupal, president of the Howard Jarvis Taxpayers Association, told the Bee, “Some of these are worthy measures, but there are a lot of these that are not needed. They are just going for the gold.”

The known K-12 bond issues are as follows:

(Editor’s note: All bond measures listed below are “Proposition 39 bonds” requiring only a 55% vote to pass, except for those indicated in blue or by an asterisk which require a two-thirds vote.)

While a number of these measures have little, if any organized opposition, several are being contested vigorously as follows:

• West Contra Costa. The Hercules City Council voted unanimously to oppose the $300 million measure. Council Member Terry Segerberg voiced the council’s sentiment, “I will happily support a measure to put money into Hercules schools. But I will not allow the school district to have my money to further frivol away and waste as they have so successfully with the last two measures.” District officials said the funds are for repairs and renovations to middle and high schools, including a phone system upgrade.

• Lodi. A non-profit committee – “K is not ok” – is mobilizing opposition to the district’s $109.4 million measure. James Shoemaker told the Stockton Record that cost is the biggest concern. He said the district has sufficient funds to improve schools. District officials plan to spend the funds for seven new schools and for renovations to 22 existing schools.

• Mt. Diablo. Prior to placing its $250 million bond issue on the ballot, the Mt. Diablo Unified school board paid $66,000 to a political consultant to build community awareness of the district’s facility needs. According to the Contra Costa Times, taxpayer advocates called this an improper use of public funds. District officials said the expenditures were research and planning. Kenneth Hambrick, chair of the Alliance for Contra Costa Taxpayers, said, “Those are thinly-veiled advertisements that are paid for by the taxpayers. Those are the kinds of things that they do that border on illegality, but it’s hard to do something about it.”

• Monterey Peninsula. The Committee Against the Out-Of-Control School Board” is opposing Monterey Peninsula Unified’s $158 million bond. District Superintendent Bob Infelise told the Monterey County Herald, “That’s what our needs are.” The “Committee” said there is no plan, schools to be closed might be included, and the list of repairs looks padded. They added the total cost, plus interest, would approach $500 million.

In addition to school bonds, there are a number of other proposals on the March 5 ballot that will increase taxes, and a few proposals that could trigger tax reductions, particularly utility user taxes. The measures in major counties with tax ramifications are as follows:

Alameda County:

• Bonds. Oakland is proposing a $59 million bond issue for its museums and zoo.

• Parcel Tax. The East Bay Regional Park District is proposing a parcel property tax of $12 per single family parcel and $8.28 per year per multi-family unit. The district serves Contra Costa County and the measure is also on the ballot there.

Contra Costa County:

• Parcel Tax. The Orinda School District is proposing a $385 parcel property tax, growing each year by $25.

• Business License Tax. Danville is asking voters to approve a business license tax ($100 plus $10 per employee) that was adopted in 1993 without voter approval.

• Parcel Tax. Hercules is proposing a $40 parcel property tax for libraries.

• Parcel Tax. Walnut Creek is proposing a $22 parcel property tax for libraries.

El Dorado County:

• Parcel Tax. A benefit zone encompassing El Dorado Hills is proposing a $25 parcel property tax for libraries.

Fresno County:

• Sales Tax. A 0.1 percent sales tax for zoo support is being proposed by Fresno County.

• Bonds. The Sierra Kings Hospital District is proposing a $6 million bond issue.

Kings County:

• Sales Tax. Kings County is proposing a 0.5 percent sales tax for jail construction.

Los Angeles County:

• Bonds. The city of Los Angeles is proposing a $600 million bond issue for public safety facilities. Measure Q is support by Mayor James Hahn and other city officials who contend the funds are needed to provide facilities for police and firefighters. Opposing the measure are the United Chambers of Commerce, the Howard Jarvis Taxpayers Association, the United Organization of Taxpayers, and various homeowners associations. Richard Close of the Sherman Oaks Homeowners Association argues that there are not enough police to staff existing buildings, so why increase taxes to build more?

Marin County:

• Parcel Tax. The Kentwood School District is proposing a $550 parcel property tax.

• Parcel Tax. The Novato Fire District is proposing to increase its special tax by 2 cents per residence.

Orange County:

• Utility User Tax. Huntington Beach is proposing to repeal the utility user tax exemption for natural gas used in electricity generation.

• Utility User Tax. La Habra is proposing to continue its non-voted utility user tax of 4.5 percent for electricity and 6 percent for all other utility services.

• Utility User Tax. La Palma is proposing to continue its non-voter approved utility user tax of 5 percent.

Placer County:

• Hotel Tax. North Lake Tahoe is proposing to increase its hotel tax from 8 percent to 10 percent.

Riverside County:

• Parcel Tax. La Quinta is proposing a parcel property tax for fire and paramedic services. The rates are $85 for residential, $610 per acre for commercial and industrial and $10 per acre for undeveloped land.

• Parcel Tax. The city of Riverside is proposing a $19 parcel property tax for libraries.

San Diego County:

• Voter Approval Requirements. Proposition E requires a two-thirds vote of the people to approve any city of San Diego general tax.

• Bonds. National City is proposing a $6 million bond for a new city library.

San Francisco County:

• Bonds. Proposition F creates an oversight committee to monitor how San Francisco spends bonds proceeds.

San Joaquin County:

• Utility User Tax. Measure I would reduce Stockton’s utility user tax from 8 percent to 6 percent, in 1 percent increments over the next two years.

• Parcel Tax. The Mokelumne Rural Fire District is proposing to impose a parcel property tax at various rates depending on type of property. The maximum rate for a residential dwelling is .03 per square foot.

• Hotel Tax. Tracy is asking voters to allow it to continue to impose a 10 percent hotel tax that was not voter-approved when originally levied.

• Bonds. The Stockton East Water District is proposing a $6 million bond for various water projects.

• Hotel Tax. Manteca is asking voters to allow the city to continue to levy its 4 percent hotel tax that was not voter-approved when originally levied.

San Mateo County:

• Parcel Tax. The Cabrillo Unified School District is asking voters to approve a $75 parcel property tax. According to the San Mateo County Times, the campaign for the tax has been quiet, partly because supporters don’t want to incite opposition from powerful slow-growth advocates in the district.

Santa Clara County:

• Utility User Tax. Cupertino is proposing a 15-year extension of its 2.4 percent utility user tax.

• Bond. San Jose is proposing a $159 million bond for adding and improving fire stations, training facilities and creating a “state of the art” 911 communications facility.

Santa Cruz County:

• Parcel Tax. The Santa Cruz High School District is proposing a $28 parcel property tax.

• Parcel Tax. The Santa Cruz Elementary School District is proposing a $70 property parcel tax.

• Utility User Tax. Measure L is an initiative to repeal Santa Cruz County’s 7 percent utility user tax.

Sonoma County:

• Parcel Tax. The Sonoma County Health Care District is asking voters to approve a $130 parcel property tax. The tax is expected to raise $2 million.

Ventura County:

• Parcel Tax. Fillmore is asking voters to approve a $15 parcel tax to fund swimming pool maintenance.

Yolo County:

• Sales Tax. Woodland is proposing to extend its current 0.5 percent sales tax by six years.

• Parcel Tax. Davis is asking voters to continue its $49 parcel property tax for city park maintenance.

• Special Tax. The Winters Branch Library Financing Authority is proposing a $66 parcel property tax to fund the cost of the Yolo County library in Winters.