California Public
Education Facilities
Bond Initiative (2016)
Ryann Derington
Linna Hunt
Debra Lockwood
Brooke Parbst
Adeline Villicaña
Description & Background-What is the initiative?
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Type: CCIS. When groups collect enough signatures election officials place the measure on the ballot for a vote.
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Ballot name: Proposition 51.
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Subject: Education.
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Description: Authorizes the issuance and sale of $9 billion in bonds for education and schools.
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The California Public Education Facilities Bond Initiative will be the first education-related bond measure to appear on
the ballot since 2006, and it is the first ever education-related bond measure that was citizen initiated.
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The initiative is officially titled: School Bonds. Funding for K-12 School and Community College Facilities. The ballot
however will read: Proposition 51 Statewide Bond for School Facilities
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The initiative will be on the November 8, 2016 ballot.
Overview
The proceeds from the $9 billion in bonds proposed by this initiative would be stored in a 2016
State School Facilities Fund and a 2016 California Community College Capital Outlay Bond
Fund. Proceeds would be allocated for the following purposes:

$3 billion for the construction of new school facilities;

$500 million for providing school facilities for charter schools;

$3 billion for the modernization of school facilities;

$500 million for providing facilities for career technical education programs; and

$2 billion for acquiring, constructing, renovating, and equipping community college
facilities.[1]
What a YES vote would accomplish...
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A “YES” vote would be a vote in favor of the state issuing $9 billion in bonds to fund improvement
and construction of school facilities for K-12 schools and community colleges.
What a NO vote would accomplish...
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A “NO” vote would be a vote against the state issuing $9 billion in new debt to fund the
improvement and construction of education facilities.
Fiscal Impact of Prop 51
★ Total cost to taxpayers is approximately $17.6 billion
○ Principal ($9 billion)
○ Interest (approximately $8.6 billion)
★ Bonds will be repaid over a 35-year period
○ $500 million annually (assuming an average 5% interest rate)
Criteria for Evaluating Bonds
The project will pay for land acquisition and capital costs, NOT for maintenance,
operations, non-construction salaries or wages, ongoing costs, equipment, computers, or
similar items that will not be useful for at least as long as the debt is outstanding.
Non-bond financing is not a reasonable option
It is appropriate for future taxpayers to share the cost, because the project will have a
useful life at least as long as the term of the bonds, and future taxpayers will benefit from the
project
Projects are of state-level concern and importance not local projects
Interest rates are not abnormally high and the overall state debt level will not be
excessive
Additional Impacts of Prop 51
1. Local Tax Burden
School district funding through local school bonds and increased property taxes
2. Housing Affordability
Developer costs and fees passed on to homeowners
3. Schools
According to the most recent Department of Finance data from 2014-15, over the next 10
years, California’s net K-12 student population will decline by 66,043 students, but 34
counties will see an increase in population of 117,080 students.
Proposition 51 Pros
Proponents of Prop 51 have stated 6 positive advantages to the proposition passing:
1.
California was among the hardest hit of the states during the last recession and while employment gains are occurring,
economists caution that the state economy has not yet fully recovered.
2.
Investments made through the Kindergarten Through Community College Public Education Facilities Bond Act of 2016 will
provide for career technical education facilities to provide job training for many Californians and veterans who face
challenges in completing their education and re-entering the workforce.
3.
Investments will be made in partnership with local school districts to upgrade aging facilities to meet current health and
safety standards, including retrofitting for earthquake safety and the removal of lead paint, asbestos and other hazardous
materials.
4.
Studies show that 13,000 jobs are created for each $1 billion of state infrastructure investment. These jobs include building
and construction trades jobs throughout the state.
5.
The Kindergarten Through Community College Public Education Facilities Bond Act of 2016 provides for
disadvantaged school districts and local control.
6.
Academic goals cannot be achieved without 21st Century school facilities designed to provide improved school technology
Proposition 51 Pros
There are several different organizations, some of which are in the top 5 of financial
supporters, and government officials that support Proposition 51.
Supporters
Organizations
● Coalition for Adequate School Housing***
● California Building Industry Association**
● California Republican Party[9]
● California State Parent Teacher Association (PTA)[10]
● Northern California Carpenters Regional Council[11]
● California Association of School Business Officials[12]
● The California Democratic Party [13]
Officials
● Senator Cathleen Galgiani[14]
● Assemblymember Young Kim[15]
● Assemblymember Evan Low[16]
Proposition 51 CONS
Opponents: California Taxpayers and Educators Opposed to Sprawl and Developer Abuse
Officials:
Governor Jerry Brown
“I am against the developers’ $9-billion bond. It’s a blunderbuss effort that promotes sprawl and squanders money
that would be far better spent in low-income communities.”___ Gov. Jerry Brown (D)
There is little to no information on the opposing side because people already think it is going to pass. Also,
if this bond passes, developers save money from their pocket book because they don’t have to shell out
as much money towards schools, when they come into a town, because the bond will pay pick up some of
that expense.
If the bond does not pass, every other state programs’ funds will be affected. Either way, it is going to cost
tax paying citizens.
“There is no free lunch.” (Dr. Fulmer)
ballotpedia.org/California_Public_Education_Facilities_Bond_Initiative,_Proposition_51_(2016)
Voters Analysis
❖ Summary of California School Bond Measure Survey Results
❖ Conducted by Fairbank, Maslin, Maullin, Metz, & Associates (Public Opinion
Research and Strategy)
❖ Survey was completed in January/February 2014 and December 2014
❖ The results showed that most believe the state’s K-12 public schools and
community colleges are underfunded.
➢ 3 in 4 democrats vote in favor
➢ Two thirds of No Party Preference vote in favor
Voters Analysis Continued...
❖ Voters were polled in Jan./Feb 2014 and again in Dec. 2014
❖ The surveys found that support for a statewide school bond measure has
intensified in the following areas:
➢ Vote on statewide school bond measure (57% to 64% yes vote)
■ 7 point increase
➢ Perceived level of funding need for public schools (68% to 75%
great/some need)
■ 7 point increase
Works Cited
“California Public Education Facilities Bond Initiative, Proposition 51 (2016).” Ballotpedia: The Encyclopedia of
American Politics. Lucy Burns Institute, n.d. Web. 29 July 2016.
CalTax. Proposition 51: Statewide Bond for School Facilities. N.p.: California Taxpayers Association, 2016. PDF.
Legislative Analyst’s Office. Overview of School Facilities Bond Measure. California Legislative Analyst’s Office,
2016. PDF.
Initiative No. 15-0005 - Education Bond Act. Sacramento, CA: Thomas W. Hiltachk, 12 Jan. 2015. PDF.
Summary of California School Bond Measure Survey Results. Public Opinion Research and Strategy, 2014. PDF.