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Current Facilities Funding
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California voters have approved a number of statewide and local bond measures to help build and maintain school facilities. However, the state’s Office of Public School Construction (OPSC) projects a continuing need for more funds.

State Bond Proceeds
Statewide measures require a simple majority for approval. From 1998 through 2006, voters approved four statewide bond measures for new construction and modernization of K–12 schools: $6.7 billion in 1998, $11.4 billion in 2002, $10 billion in 2004, and most recently $7.3 billion in November 2006. The measures totaled $35.4 billion.

Local G.O. Bond Results
From 1998 through November 2006, local bond elections generated $36.1 billion for school facilities. School districts can seek approval for local general obligation bonds for school construction or renovation, to be repaid through property taxes. They have two options for passing a bond:
  • hold a two-thirds election at whatever time they choose and with few oversight requirements, or
  • pursue a 55% approval if they put the bond measure on a regularly scheduled ballot, limit the size of the bond, and agree to abide by several administrative requirements.
Of the 931 elections under the two-thirds requirement from 1986 through 2006, 55% succeeded. Of the 393 elections relying on 55% approval between 2001 and 2006, 83% succeeded.


Local bond election 55% bonds
Local bond election two-thirds bonds

Facility District Bonds That Have Passed
Since 1983 districts have been allowed to tax a portion of their districts by establishing a Mello-Roos Community Facility District, which requires a two-thirds vote. From 1983 through 2006, 62 Mello-Roos elections were held and 30 (48%) succeeded.

Beginning in 1998, districts were able to establish a School Facility Improvement District (SFID), which also taxes just a portion of the district and initially required a two-thirds vote. Since July 2001, SFIDs could also be approved by 55% of voters (with added restrictions). From 1998 through 2006, 29 SFID elections were held. Of the 15 under the two-thirds requirement, three (20%) passed. Of the 14 under the 55% approval threshold, 13 (93%) passed.


California Spent More Than Average on Construction and Purchase of Land and Schools
California's overall capital expenditures are higher than the U.S. average and the other most populous states, primarily because of what it has spent on on construction and the purchase of land and existing structures, according to 2003-04 capital expenditures data from SchoolMatters (see chart below). These figures likely reflect in part the high cost of land and construction in this state.

On the other hand, California has spent considerably less of its capital funding on equipment. California districts often rely on operating funds to buy new equipment in part because state bond programs have historically prohibited the use of that money for equipment. (However, Proposition 1D, which passed in November 2006, specified that funds can be used for career-technical education equipment.)


Projected Need for Facilities Funding
In August 2006, the OPSC estimated that from 2006–07 through 2011–12 California school districts would need more than $6 billion in state matching funds to build 18,000 new classrooms. Another $5.3 billion will be needed to modernize more than 61,000 classrooms that are 25 years or older. Together the new and remodeled classrooms would serve almost 2.1 million K–12 students. The OPSC revises its estimates regularly and also maintains a wealth of information about needs and bond fund allocations on its website.
Last updated July 2007
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