School Bond Elections Dominate Ballot
Despite the lack of a statewide bond measure for K-14 school facilities, local school districts and community colleges are proposing school facility bonds in record numbers. Since statewide measures can only appear on the ballot in even-numbered years, the only source of matching funds immediately available is the remaining balance from past statewide school facility bond elections.
On Tuesday, November 4, 2008, voters across the state will see record numbers of local school bond measures before them. A total of 86 general obligation bonds totaling almost $22 billion are on the ballot. All but one of these measures require a 55% majority to pass—the remaining bond is a two-thirds measure. Additionally, there are ten School Facility Improvement District measures totaling $552 million.
Given the sad state of our financial markets, it might seem like a difficult time to deal with local bonds. But bonds are not about the short term, they are about the long term.
Most of the measures, if passed, would allow districts to issue the bonds over a period of years as funds are required to complete long lists of projects. Over the long term, the financial markets have embraced local school facilities bonds as a very secure investment. So, while the demand for capital is huge this year, over the life of the bonds, the demand should normalize and be less of a factor.
Another consideration is the willingness of voters to pass bonds during hard times. We have long held the opinion that, from the district viewpoint, while bonds are about money for capital improvements, voters have different motivations. Voters have shown time and again that “yes” votes are far more dependent on confidence in the local school district than they are on economics. The typical local bond adds only a very small dollar value to the tax bill of individual homeowners, but the aggregation of these small amounts can do wonders for the local district over time. As a result, local school facility bonds, particularly 55% measures, have done well during good times and bad.
In addition to capital improvement bonds, 21 districts have placed parcel tax measures on the ballot. Parcel taxes are much more flexible in usage than facility bonds and are primarily used to support the operating budget. They are very difficult to pass because they require a two-thirds majority. These measures are truly a barometer of the willingness of a community to support and enhance the local schools.
We applaud all of the districts that are reaching out to their communities for support as they try to maintain and improve public education during this difficult time. We wish all you of the best of success on election day.
—Carmen Thompson and Ron Bennett