Prop. 13 would generate $15B for schools, colleges
LODI — Along with voting on candidates to run for various seats in November, Lodi residents next Tuesday will be deciding the fate of a ballot measure aimed at providing more funds to public schools, community colleges and four-year universities.
The measure, identified as Proposition 13, has nothing to do with the Prop. 13 of 1978 that capped property tax increases in California.
Rather, the 2020 Proposition 13 would authorize $15 billion in state general obligation bonds for schools and colleges if approved on March 13.
According to the proposition language, $9 billion of that would be allocated to local K-12 school districts. Universities would receive $4 billion and community colleges would receive $2 billion.
Of the $9 billion for local public school districts, $2.8 billion would be earmarked for the construction of new facilities, while $5.2 billion would be used for modernization of existing sites.
Another $500 million would be designated for providing facilities to charter schools, and the remaining $500 million would be allocated to facilities for career technical education programs.
Leonard Kahn, chief business officer for the Lodi Unified School District, said any funding received from Prop. 13 — particularly dollars for modernization — would be an additional help.
“If you take a look at the proposition’s language, the modernization funding match is 60 percent,” he said. “That’s a lot of money. We have several projects queued up in line that could really benefit from that kind of aid.”
If approved, Prop. 13 would require the state government to cover between 50 and 55% of new construction costs for districts, and between 60 and 65% of modernization costs.
On Feb. 18, Kahn presented LUSD’s Board of Education with a status update of eight Measure U Phase III modernization projects.
Only one of those projects — the Houston School modernization — has met Division of the State Architect standards, Kahn said. If the district can get board approval to move forward by
April, Kahn said the project could be eligible to receive Prop. 13 funds within a year.
Estimated cost for the Houston School modernization is nearly $2.7 million.
The $2 billion designated for community colleges can only be used for capital outlay financing needs for schools, according to the proposition.
With 114 community colleges in California, each campus could potentially receive more than $17.5 million from Prop. 13 funds.
“It’s unclear exactly how much funding Delta College might receive should Proposition 13 pass, but the College does have proposed projects that could be eligible for state funding,” Delta superintendent Dr. Omid Pourzanjani in an email statement.
“Any state dollars we can get would be helpful as we look to improve facilities for our students,” he added. “However, there is much more work to be done.”
Of the $4 billion earmarked for universities, half will be allocated for capital outlay financing needs in the California State University system, and the other half will be distributed to the University of California system, as well as the Hastings College of Law.
Costs to repay the bonds are estimated at about $740 million a year over the next 35 years.
The bond is supported by 64 elected and appointed officials throughout the state, including Gov. Gavin Newsom and Secretary of State Alex Padilla.
Sen. Cathleen Galgiani, DStockton, Assemblywoman Susan Talamantes Eggman, DStockton, and Assemblyman Jim Cooper, D-Elk Grove, all support the bond as well.
In addition, 85 organizations support the bond, including the California Democratic Party, the League of Women Voters of
California and the California Chamber of Commerce.
Sen. Brian Jones, R-Escondido, is the lone elected official opposed to Prop. 13, and is joined by just four organizations, including the Peace and Freedom Party and the Howard Jarvis Taxpayers Association.
All of them argue that voters already approved $9 billion in bond measure funds in 2016 through Proposition 51. In addition, they stated that Prop. 13 would allow school districts to borrow more money, which would increase taxes for all California property owners.
“Currently, there are strict limits on how much bond debt local school districts are allowed to carry,” Howard Jarvis president Jon Coupal said in an official argument. “But a hidden provision of Prop. 13 nearly doubles the limits school districts can borrow. This means huge increases in property taxes are a near certainty. Who pays property taxes? We all do, either directly in property tax bills or through higher rents and other costs. Unlike the Prop. 13 from 1978, this Prop. 13 puts all taxpayers at risk of higher taxes.”
California voters have approved five bond measures for schools since 1998. That year, Proposition 1A provided $9.2 billion in construction bond funds. In 2002, Proposition 47 allocated $13.05 billion, and Proposition 55 designated $12.3 billion.
In 2006, voters approved Proposition 1D, which allocated $10.4 billion in bonds.
Lodi voters have also approved a handful of local bonds to benefit schools over the years. More recently, voters approved LUSD’s Measure U in 2016, which provided $281 million to upgrade and repair school sites.
Voters also approved Delta’s Measure L in 2004, which allowed for $250 million to renovate, upgrade and expand its buildings.