BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 2116
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|Author: |Gallagher |
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|Version: |April 14, 2016 Hearing |
| |Date: June 8, 2016 |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Kathleen Chavira |
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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
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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.
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