BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 2116              
           ----------------------------------------------------------------- 
          |Author:    |Gallagher                                            |
          |-----------+-----------------------------------------------------|
          |Version:   |April 14, 2016                             Hearing   |
          |           |Date:   June 8, 2016                                 |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:   |No                     |Fiscal:    |No               |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant:|Kathleen Chavira                                     |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
          Subject:  School bonds:  projections of assessed property  
          valuations


            SUMMARY
          
          This bill requires a school district governing board to consider  
          the county assessor's projections for property valuations prior  
          to ordering an election to authorize bonds for school facilities  
          construction related purposes. 

            BACKGROUND
          
          Existing law authorizes the governing board of any school  
          district or community college district and requires a district,  
          upon a petition of the majority of the qualified electors  
          residing in the district, to order an election and submit to the  
          electors of the district the question whether the bonds of the  
          district shall be issued and sold for the purpose of raising  
          money for specified purposes, including the purchase of school  
          lots, the building or purchase of school buildings, and other  
          facilities and equipment related costs, as well as refunding of  
          facilities related debt, as specified.  (Education Code  15100)
            
          ANALYSIS
          
          This bill:

          1)   Requires a school district to consider the county  
               assessor's projections of assessed property valuations  







          AB 2116 (Gallagher)                                     Page 2  
          of ?
          
          
               prior to ordering an election to authorize bonds for school  
               facilities construction related purposes, as specified. 

          2)   Makes a number of technical and clarifying changes  
               applicable to both school and community college districts. 

          STAFF COMMENTS
          
          1)   Source of the bill.  In July 2015, the California Policy  
               Center, an educational nonprofit focused on how to improve  
               California's democracy and economy, issued a report, For  
               the Kids:  CA Voters Must Become Way of Borrowing Billions  
               More from Wealthy Investors for Educational Construction.  
               Among other things, the report highlighted the need for  
               adequate and effective oversight and accountability for  
               bond measures.  The report recommended that districts be  
               required to obtain reasonable and informed projections of  
               assessed property valuation from an independent source (not  
               from their bond advisors and consultants) before placing a  
               bond measure on the ballot.  According to the author, this  
               bill would improve school bond oversight, accountability,  
               and fiscal responsibility by requiring the school district  
               governing board to consider the county assessor's  
               projections prior to ordering an election to authorize  
               school facilities construction bonds. 

          2)   Applicability to all districts?  As currently drafted the  
               requirement that county assessor property valuations be  
               considered prior to ordering an election are applicable  
               only to school districts.  Staff recommends the bill be  
               amended on page 3, subdivision (c) to make the new  
               requirement applicable to community college districts as  
               well. 
            
          SUPPORT
          
          Howard Jarvis Taxpayers Association
          Salinas Taxpayers Association

            OPPOSITION
           
           None received. 

                                      -- END --








          AB 2116 (Gallagher)                                     Page 3  
          of ?