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LEAGUE OF WOMEN VOTERS OF CALIFORNIA EDUCATION FUND Nonpartisan In Depth Analysis of PROPOSITION 14 THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000
See An Overview of State Bond Debt	Legislative Bond Act

THE QUESTION

Should the state borrow $350 million through the sale of general obligation bonds to provide 65% of the costs of projects for constructing and renovating local public libraries?

PROVISIONS

• Authorizes the state to borrow $350 million through the sale of general obligation bonds to fund 65% of the cost of approved projects to construct and renovate public libraries, including equipment and furnishings.

• Requires project applicants to contribute 35% in matching funds from any other source. The remaining 65%, between $50,000 and $20 million per project, would be financed by the bond sales.

• Establishes the California Public Library Construction and Renovation fund for deposit of bond sale monies to be distributed to authorized projects from city, county, joint city and county, or special district applicants.

• Appoints the State Librarian to administer the program and serve on the six-member board. The board would also include the state Treasurer; the Director of Finance; a member appointed from each house, by the Assembly speaker and the Senate rules committee, respectively; and one named by the Governor. The board would establish policies, rules and regulations to implement the legislation and would review projects submitted for approval.

• The board must give priority to new construction projects that include library and school joint-use agreements and to renovating projects where libraries are in the attendance areas of schools that need improved access to educational technology.

• Several factors must be considered when setting priorities for approval of applications, including:
  • needs of urban and rural areas

  • population growth

  • adequacy of the existing library facilities and adequacy of proposed project to meet needs of the local community

  • financial capacity of local agency submitting application to open and maintain operation of proposed facility.

• Facilities funded under this measure must be dedicated to public library direct service use for at least 20 years after completion.

• All projects must forbid use of project funds for certain administrative services, financing costs, books or library materials, or ongoing operating costs after completion of project. This measure requires competitive bidding for all construction contracts and limits construction costs to those considered normal for the area.

BACKGROUND

Public libraries are generally built and operated by cities, counties, and special districts. Currently, state and federal funds provide about 10% of operating costs statewide (about $90 million total), according to the state legislative analyst's office (LAO).

More than eleven years ago, voters passed a similar measure, the California Library Construction and Renovation Bond Act of 1988, which provided $75 million. It has funded 24 projects and has distributed all but $3 million.

In many localities, funds have been used to keep the libraries open, limiting the amount of funds available for new and renovated facilities. A 1998 California State Library survey has identified 246 library projects needed statewide within 1-2 years at an estimated cost of $1.1 billion. The survey lists an additional 179 short-term projects (within 4-6 years) costing $836 million. The needs include technological upgrading, urgent seismic retrofitting and structural repairs, and expanded facilities to keep pace with population growth.

For new construction, Proposition 14 gives priority to what it terms "joint use" projects, those that include cooperative agreements between local libraries and school districts in their service areas. Examples of joint use projects include providing local schools with support facilities to access the internet and computer programs on literacy or building a reading and homework center in the local community library for student use after school.

FISCAL EFFECT

According to the Legislative Analyst (LAO), the total estimated state cost would be $600 million over 25 years ($350 million in principal and $250 million in interest). Payments would be about $24 million per year.

Local agencies would make cash expenditures covering 35% of the total grant received. The LAO estimates a one-time overall cost of library projects to local agencies statewide of about $190 million in matching funds.

The LAO says that local agencies could face increased annual operating costs (possibly ranging from several million dollars to more than $10 million statewide) after their projects are completed. The increase in operating costs would depend on the extent of the new or expanded facilities.

IMPACT OF YES OR NO VOTE

A YES vote means the state could sell $350 million in bonds to fund local projects for constructing new facilities and renovating existing public libraries to improve literacy and reading and to expand access to existing libraries for California residents.

A NO vote means $350 million in general obligation bonds could not be sold to fund construction and renovation of existing public library facilities.

SUPPORTERS SAY

• Proposition 14 will expand children's reading and homework centers, giving them a safe, quiet place to study after school.

• We need to invest in literacy and life-long learning. Illiteracy is often passed from generation to generation, and adult illiteracy hurts our economic competitiveness.

• Library visits have skyrocketed with California's population increases.

• Proposition 14 invests in our local communities wisely: it does not raise our taxes, the funds cannot be used for local administrative costs, and the 35% matching fund requirement maximizes the use of limited state funding.

• By strengthening the partnership between libraries and schools, Proposition 14 is a critical element in achieving California's literacy goals and strengthening our entire educational system.

OPPONENTS SAY

• We should use our taxes to ensure that the libraries stay open on more weekend and after-school hours to accommodate most students and working adults.
• The legislature could finance library construction and renovation with the current surplus tax money and avoid using bonds that more than double the funding costs when interest and other fees are added.
• We should find other methods of delivering library services such as the internet, private bookstores and virtual schools.
• The internet will make these new libraries obsolete in five years, but your taxes will be higher for 30 years--even if the economy collapses.
• Local governments that cannot raise 35% in matching funds cannot participate, but the local taxpayers will still pay for projects in other communities through their state taxes.

SUPPORTERS AND OPPONENTS

The official ballot arguments in support are signed by State Senator Richard K. Rainey, Chair, Senate Local Government Committee; State Senator Deirdre W. Alpert, Chair, Senate Education Committee; Gail Dryden, President, League of Women Voters of California; Linda Crowe, President, California Library Association; Don Brown, President, California Organization of Police and Sheriffs; and Lois Wellington, President, Congress of California Seniors.

Other supporters mentioned in the ballot arguments include the California Teachers Association, and Lt. Governor Cruz Bustamante.

The official ballot arguments in opposition are signed by Senator Ray Haynes; Lewis K. Uhler, President, The National Tax-Limitation Committee; and Carl McGill, Chairman, Black Chamber of Commerce of Los Angeles County.

For more information:

Supporters: Susan Cusack, Californians for Literary and Community Libraries, 916-737-9331, email yeson14@pacbell.net

Opponents: Senator Ray Haynes, 916-445-9781, email bonds@rayhaynes.org, www.rayhaynes.org/bonds.html

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Last updated: January 24, 2000
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