Rebuilding boom: School bonds seek to nail in gains

Across California, higher per-student funding, a perking-along economy, Common Core falling into stride and a revolutionary shift into technology have started a rolling snowball of expected improvement. A makeover for school buildings seems like the inevitable next roll.

This election bears that out, with school bond measures back in big numbers. On Nov. 8 California voters will give a thumbs up or down to $25.3 billion worth of school bonds in 183 local measures, and decide whether or not to restart the state’s matching funds program with $9 billion in bonds under Proposition 51.

The passage rate on school bonds is consistently above 70 percent, according to School Services of California Inc., which tallied this year’s statewide totals.

The state bond likely will pass as well, but it gets no love from Gov. Jerry Brown. Brown wanted to revamp the state school building program to serve districts based on need rather than continue the first-come, first-served system he sees as benefiting larger districts.

The Legislative Analyst’s Office agreed in its 2015-16 budget quoted by a Los Angeles Times editorial. The LAO said the state system in effect subsidizes sprawling development and perpetuates a system that treats facilities as a one-time purchase, rather than the ongoing expense that campuses really are. With bonds able to stretch financing up to 40 years, most schools require upgrades or even wholesale makeovers long before the debt to build them has been retired.

Money from separate pots in recent years has gone to beef up school internet bandwidth and increase energy efficiency, both falling short of covering the full need. The federal E-rate program spent millions of dollars at area schools to upgrade technology infrastructure, basing the subsidy on the number of low-income children they served. The California Clean Energy Jobs Act aimed to improve energy efficiency; however, much of the money has gone to simply switching schools to high-efficiency lights.

In this area, Stanislaus County residents in four school districts and Merced County voters in two districts will decide bonds on their ballots. No school bonds are proposed in Tuolumne or Calaveras counties, or in the southern portion of San Joaquin County.

All of the bond measures in this area need a 55 percent yes vote to pass. They add to property taxes, limited by law to $60 per $100,000 valuation each, and require citizen oversight committees. The money must be used for facilities. It cannot be used to boost salaries or add administrators. The amount authorized refers to the money to be borrowed, not the total cost with interest charges.

DELHI UNIFIED: Measure W would grant Delhi schools $12 million to build a center for career and technical courses, replace heating-air conditioning systems throughout the district and, if money allows, upgrade broadband width, according to the board resolution authorizing the bond. The text of the measure, however, expands that list to include security upgrades, new roofs, walls, windows, wiring, flooring, parking, playgrounds and wheelchair accessibility.

Existing debt: The district is still paying off bonds from 1994, with $8.3 million remaining to be paid through 2042, according to financial documents filed with the Municipal Securities Rulemaking Board. The 2012-13 charge to property owners was listed at $94.90 per $100,000 assessed value.

WATERFORD UNIFIED: Measure K would allocate $10.7 million for improvements at all schools. Specific projects include sewer fixes and improved kitchen/cafeteria/multipurpose room at Moon Primary School; multipurpose room/gym and career/science course labs at Waterford Junior High; new preschool playground; shade structures at Whitehead Intermediate School; and at Waterford High, new career course and industrial shops, gym and food service improvements, and an all-weather track. It is estimated to cost homeowners $60 per $100,000 of assessed value each year.

Existing debt: The district’s last bond was in 1997, with six years remaining to pay $3.9 million still owed, according to financial documents filed with the Municipal Securities Rulemaking Board.

TURLOCK UNIFIED: Measures N and O are both for Turlock schools. Measure N seeks $40.8 million from voters in the area served by Turlock elementary schools. Measure O asks $48 million for high school improvements from voters in Turlock, Keyes and Chatom school districts.

Measure N would pay first for safety measures, such as better lighting and fencing at open campuses, and improved student drop-off and pick-up flow. It aims to add science labs, career-technology classrooms and ag facilities. It is estimated to cost property owners $29.90 per $100,000 assessed value each year.

Measure O would also go first to safety, including fencing, lighting and high-tech security systems. It would add air conditioning to Pitman High classrooms and build a science wing at Turlock High. Both high schools would get library improvements and career technical facilities. Replacing old portable classrooms and improving wheelchair access on campuses are on both lists. Measure O is estimated to cost property owners $29 per $100,000 assessed value each year.

Existing debt: Turlock refinanced prior bonds without extending their time in 2015. Property owners within the district owe $25.4 million through 2032, according to financial documents filed with the Municipal Securities Rulemaking Board, paying $72.42 per $100,000 in assessed value each year.

NEWMAN-CROWS LANDING UNIFIED: Measure P would authorize $11.1 million in construction funding. The measure reauthorizes money remaining on a 2008 measure, made necessary because of a decline in property values, the bond analysis says, suggesting it has reached its taxing limit. According to a listing of typical tax rates submitted in bond refinance documents, property owners in the district now pay $139.79 per $100,000 assessed value each year for past school building projects.

Specific projects include replacing portable classrooms with permanent buildings, adding classrooms as needed, and upgrading/adding athletic facilities at Orestimba High. The measure estimates property owners will add up to $60 per $100,000 of assessed value to their property tax bill at the highest point, with an average of $44.25 per $100,000 over the life of the new bonds.

Existing debt: The district recently refinanced its bond debt. Property owners owe $43.7 million through 2049 under the revised schedule, according to financial documents filed with the Municipal Securities Rulemaking Board.

HUGHSON UNIFIED: Measures Q and R are both for Hughson schools. Measure Q seeks $3.2 million for improvements at Hughson Elementary School and Ross Middle School from the area served by Hughson elementary schools. Measure R asks $2.2 million for Hughson High upgrades from voters in Hughson, as well as Gratton, Hickman and Robert’s Ferry school districts, the Hughson High feeder districts.

The high school bond R projects list new air conditioning and a new roof for the gym, an all-weather track and a security camera system, as well as a long list of possible projects should funding allow. It is estimated to cost homeowners $8.50 per $100,000 of assessed value each year.

The younger schools bond Q would pay for new restrooms at Ross Middle School, a new roof, windows and field irrigation at Hughson Elementary, and air conditioning and security cameras at both campuses. It is estimated to cost homeowners $19 per $100,000 of assessed value each year.

Existing debt: Hughson recently refinanced its outstanding bond debt. Landowners have $22.8 million still to pay through 2037, according to financial documents filed with the Municipal Securities Rulemaking Board, paying $45.58 per $100,000 in assessed value each year.

This story was originally published October 15, 2016 at 3:50 PM with the headline "Rebuilding boom: School bonds seek to nail in gains."