California has two public education systems--one made up of approximately 1,000 local school districts, providing education in grades K through 12 to over 6.3 million students; and another that includes the California Community Colleges, the University of California (UC), and the California State University (CSU). The latter provides about 2.1 million students with post secondary education.

State General Obligation Bonds. Most K-12 school districts rely on state general obligation (G.O.) bonds to finance local school facilities. As noted by the LAO, voters have approved a total of $28.1 billion in state G.O. bonds for K-12 facilities over the past decade. Approximately $3 billion of these funds remain available for new construction projects. Voters have also approved $6.5 billion in state general obligation bonds for specific capital improvements at public higher education campuses (community colleges, California State University, and the University of California).

Local General Obligation Bonds. School districts have generally placed general obligation bonds on their local ballots to fund their facilities needs, as well as to qualify for the matching requirements of state bond measures. Unlike state bond measures, which can be passed with a simple majority of those voting, a 55 percent vote in the district is needed to pass the local bonds. According to the LAO, more than $41 billion in local K-12 facilities bonds have received voter approval over the past ten years. During that same period, community college districts have received voter approval to issue more than $15 billion in local facility bonds.

K-12 Facilities. K-12 school districts apply for funding to buy land, construct new buildings, and modernize (renovate) existing buildings through the School Facility Program (SFP). With a few exceptions, local schools must provide 50 percent matching funds for new construction, and 40 percent for modernization. Proposition 1D would add new elements to the SFP for severely overcrowded schools, career technical facilities, and environment-friendly or "green construction" projects.

Although bond measures approved by the voters during the last ten years have resulted in significant improvements in K-12 school facilities statewide, they could not meet the demand created by years of postponed maintenance and repair following the passage of Proposition 13 and by the growth in student population. The Office of Public School Construction (OPSC) estimates that California will need to authorize more than $6 billion in state matching funds over the next five years to build the 18,000 new classrooms that will be needed to house California's students. The OPSC also estimates that another $5.3 billion in modernization funds will be needed to upgrade more than 61,000 classrooms that are 25 years old and older.

Proposition 1D, the Kindergarten-University Public Education Facilities Bond Act of 2006, allows the state to sell $10.4 billion in general obligation bonds--$7.3 billion for K-12 school facilities and $3.1 billion for higher education facilities--and specifies how the funds will be spent. It is part of a bipartisan package of bond measures placed on the ballot by the Legislature. The funds are to be allocated as follows.

$7.329 billion for kindergarten through grade 12 (K-12) facilities:

• New construction projects: $1.9 billion
  10.5 percent of this shall be available for hardship funding for earthquake-related retrofitting.
• Modernization projects: $3.3 billion
  For modernization of existing facilities.
• Severely overcrowded schools: $1 billion
  Relief grants for districts with schools that are at 175 percent or more of the state's recommended school-site pupil density. Funds are to be used to remove temporary, portable classrooms from overcrowded school sites and replace them with permanent facilities (new construction). Proposition 1D changes the criteria for eligibility (see additional notes below). According to the Legislative Analyst, roughly 1,800 schools (or 20 percent of all schools) would be eligible for funding under the revised eligibility criteria.
• Career technical facilities: $500 million
  A new Career Technical Facilities Program for new or reconfigured (modernized) facilities and equipment. The program's purpose is to enhance and expand opportunities for students who may not be college bound but who are interested in technical/vocational careers. This program is an outgrowth of the increasing emphasis on preparing students for the more sophisticated (demanding) requirements of the 21st century job markets. Grants would be available for high schools and local agencies that have career technical programs. The funds could be used for either new construction or modernization. School districts, county offices of education, and direct-funded charter schools are eligible. A 50 percent match is required, and can be paid over time. According to the LAO, approximately 500 school districts (out of about 1,000) would be eligible for new construction and modernization grants, and approximately 25 local agencies would also be eligible for modernization grants.
• Incentive grants to promote green construction: $100 million
  When districts apply for grants under the provisions of 1D, they must consider designs and materials that promote the use of green building design materials in new construction and modernization projects. That is, they must consider designs that make efficient use of energy and water and that make maximum use of natural lighting and indoor air quality, good acoustics, recycled materials, and materials that emit a minimum of toxic substances. As an additional incentive, Proposition 1D provides grant funding for districts to implement environmentally friendly construction. A 50 percent match for new construction and 40 percent match for modernization are required.
• Charter school facilities: $500 million
  For new construction and modernization; eases criteria to obtain funding for facilities in a way that relieves pressure on school districts, which are required to provide charter schools with facilities that are equal to other district facilities. (See comments below.) To be eligible, charter school operators will have to show that they have a track record operating fiscally sound schools. A local match is also required, but now can be paid over time.
• Joint-use projects: $29 million
  Available for new facilities construction and reconfiguring existing facilities for such joint-use programs as gymnasiums, libraries, child care facilities, and teacher preparation facilities located at a school but also used for joint school/community or K-12/higher education purposes.

$3.087 billion for higher education facilities:

To construct new buildings and related infrastructure, reconfigure existing facilities and purchase equipment. The Governor and the Legislature would select the specific projects to be funded. Note that in previous bond measures, the funding was in three equal allotments. The 2006 bond allocates half to the Community Colleges in recognition of their much larger student population.

• Community colleges facilities: $1.507 billion
• University of California (UC) system: $890 million
  $200 million of this amount to support medical education programs, with an emphasis on telemedicine.
• California State University (CSU): $690 million

ADDITIONAL COMMENTS

Small high schools. A total of up to $200 million of incentive funding will be made available from the new school construction and modernization allocations to support efforts to keep students in high school by creating environments that are more personalized. The funds can also be used for "schools within a school."

Severely overcrowded schools. Associated with this bond measure is a significant shift in policy regarding criteria for new construction to replace relocatables (portable classrooms) on severely overcrowded school sites with permanent facilities. Currently, eligibility for new construction funds requires districts to demonstrate projected enrollment growth. These rules have favored suburban districts with overall projected increases over urban districts. The Department of Education's estimate of overcrowding does not take into account children who attend schools that have implemented stopgap measures such as portable classrooms. What was originally considered a temporary strategy to relieve overcrowding has become "permanent," and therefore the students they house are not included in the calculation to determine site density, at least in terms of qualifying for new construction funds. These sites are predominantly in urban, poor, heavily minority neighborhoods. Two primary problems specifically identified with portables on overcrowded campuses are:

• Reduction in playground space. (These schools are often in neighborhoods with few parks, thus severely limiting opportunities for physical activities--a health problem.)
• Exorbitant levels of overcrowding. (Portables add seats for children, but don't add additional or expanded lunchrooms, playgrounds, bathrooms, hallways, etc.)

Career technical education. This is the first time in state history that funding for Career Technical Education is included in a state bond. This is an area that has essentially been a stepchild in the K-12 system as emphasis has shifted to college preparation for all. Current thinking better understands the value of preparation for the world of work and incorporating strong skills and knowledge across the curriculum to prepare students for post secondary education or post secondary entry into the world of work, or both.

Charter schools. Proposition 1D provides the largest state bond funding for charter school facilities in California history. It modifies a provision of current law that reduces a district's eligibility for new school construction funding when a charter school is built; with the passage of this bond, eligibility will be reduced only by the number of students housed by the charter school. It also deletes the requirement that new charter schools can only be built in a district with new construction eligibility, and it requires school districts to consider existing surplus facilities.

According to the LAO analysis, "The costs of these bonds would depend on interest rates in effect at the time they are sold and the time period over which they are repaid. The state would likely make principal and interest payments from the state's General Fund over a period of about 30 years. If the bonds were sold at an average interest rate of 5 percent, the cost would be about $20.3 billion to pay off both principal ($10.4 billion) and interest ($9.9 billion). The average payment would be about $680 million per year."

SUPPORTERS Signing ballot arguments for	OPPONENTS Signing ballot arguments against:
Barbara E. Kerr, President California Teachers Association	William Saracino, Member, Editorial Board, California Political Review
George T. Caplan, President California Community College Board of Governors
Pamela T. Johnson, Chair Coalition for Adequate School Housing

The rebuttal to the opponents' argument was signed by Brenda Davis, President, California State PTA; Larry McCarthy, President, California Taxpayers' Association; and William Hauck, President, California Business Roundtable.

Barbara Inatsugu, LWVC Program Director for Education (PK-12), education_pk12@lwvc.org

Helene Lecar, LWVC Program Director for Community College System, commcolleges@lwvc.org

Julie Rajan, LWVC Social Policy Director, social_policy@lwvc.org

Jack Sullivan, LWVC Legislation Director, legislation@lwvc.org

Trudy Schafer, LWVC Program Director/Advocate, 801 12th Street, Suite 220, Sacramento 95814, 914-442-9210, Fax 916-442-7362, advocacy@lwvc.org

EdSource Voter Guide, Proposition 1D: Kindergarten-University Public Education Facilities Bond Act of 2006, September 2006, www.edsource.org/pdf/prop1d_906.pdf. Also available in Spanish at www.edsource.org/spa_pub.cfm.

Yes on Prop 1D, 916-443-7817, www.yeson1d.com

YES on Proposition 1D
Building Better Schools

Proposition 1D is an investment in our schools, our children, and California's future.

• Providing a quality education for our kids is the most important thing we can do to invest in their future. The best way to grow our economy and create well-paying jobs is to create world-class public schools that provide our students with the skills they need to succeed in the workforce.
• Many students who don't plan on going to college need career education and vocational training, but our schools don't have facilities to accommodate them. Prop 1D updates our schools with new technology and builds vocational education facilities so all students can develop the skills they need to get a well-paying job and succeed in life.
• To prepare for the jobs of the future, our children need to learn with the latest technology. Prop 1D will help pay for wiring new classrooms and providing 21st century technology for our students.
• California community colleges provide instruction to over two million students every year, and California's universities are expected to grow to accommodate over 650,000 students. We need to provide funding to modernize and upgrade teaching and research facilities to remain competitive with other states.
• This measure is so important for California's future that both candidates for Governor, Phil Angelides and Arnold Schwarzenegger, as well as a bipartisan majority of the Legislature, all agree: Yes on 1D.

Proposition 1D will make schools safer and relieve overcrowding.

• The California State Architect says that more than 7,000 schools aren't earthquake-safe. The safety of our students should be our top priority. Prop 1D will allocate funds to retrofit and upgrade our schools and colleges to ensure they can withstand the impact of natural disasters like earthquakes.
• California classrooms are overcrowded. Students are trying to learn in schools that house 75 percent more students than they were built to accommodate. By building more classrooms, Prop 1D will relieve overcrowding, help reduce class sizes and give students a real opportunity to learn. If we don't plan for the future, the overcrowding will only get worse.
• This measure includes funding directed at protecting our kids' safety, including school security, playground safety, removal of asbestos and replacing leaky and dangerous roofs.
• With restrooms leaking and buildings in disrepair, we send our students the wrong message. Our words say education is important, but when schools are left in disrepair, our actions tell them it is not. A clean, well-maintained and safe school sends the right message: education is important.

Proposition 1D provides for strict accountability to ensure that the money is spent properly.

• Prop. 1D contains strong accountability provisions to guarantee that every single dollar goes to improving schools for students in California. The California Taxpayers' Association says Prop 1D is a fiscally responsible way to finance school repair and construction.
• Funds from 1D will be subjected to independent audits, and misusing them is a crime, punishable by time in jail. This information will be made available to the public so taxpayers can ensure their money is spent properly and will NOT go to waste.

Note: Please adapt this letter to your own community and check your local paper's word limit for published letters.

Editor:

Proposition 1D on the November 7 ballot authorizes a bond issue to provide the funds to make a critical investment in our schools, our children and California's future. Providing a quality education for our children is the best way to grow our economy by creating an educational system that prepares students to succeed in the modern workforce.

Proposition1D will make more schools earthquake-safe and will build more classrooms to relieve overcrowding. It will provide funds for repairs such as fixing leaky roofs and unsafe playgrounds, as well as for wiring classrooms for technology that is essential for modern education.

Proposition 1D contains strict accountability provisions to insure that every dollar goes to improve schools. The California Taxpayers Association says Proposition 1D is a fiscally responsible way to finance school repair and construction.

Join both candidates for Governor, Arnold Schwarzenegger and Phil Angelides in voting YES on Proposition 1D.

Sincerely,

(your name)