HomeMy WebLinkAboutMINUTES - 06021992 - 1.59 1059
TO: BOARD OF SUPERVISORS 6 Contra
L
FROM:
Phil. Batchelor, County Administrator _ Costa
County
DATE:
May 27, 1992
SUBJECT:
STATEWIDE BALLOT MEASURE FOR THE JUNE 2,. 1992 PRIMARY:
PROPOSITION 152
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Adopt a position in SUPPORT of Proposition 152 on the June 2, 1992
ballot, which would authorize the sale of $1 .9 billion in bonds to
provide capital outlay for construction or improvement of public
schools .
BACKGROUND:
As of December, 1991, applications had been submitted by school
districts for state funding of land and new school buildings
totaling approximately $5. 6 billion. In addition, applications had
been submitted for state funding to reconstruct or modernize
existing school buildings totaling approximately $1.2 billion.
There are currently no state funds available to fill these
requests .
Proposition 152 was placed on the June 2, 1992 primary election
ballot by the Legislature (AB 880) in an effort to fund some of
these unmet school facility needs . The measure authorizes the
state to sell $1 . 9 billion in general obligation bonds to pay for
the construction, reconstruction, or modernization of elementary
and secondary school buildings under the State School Building
Lease-Purchase Program. The money raised from the bond sale would
be distributed to school districts by the State Allocation Board.
The measure would require the State Allocation Board to use the
bond proceeds as follows :
* At least $1 . 33 billion must be used to buy land.and construct
new schools .
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(SI:
ACTION OF BOARD ON June 2 1992 APPROVED AS RECOMMENDED x OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. b 9
CC: ATTESTED
PHIL BATC LOR,CLERK OF THE BOARD OF
County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88) BY— 'DEPUTY
-2-
No more than $570 million could be used the following
purposes:
1 . School construction projects in small school districts
that may not otherwise receive funding under the state
building program because of their small size.
2 . Abatement of hazardous asbestos in school facilities .
3 . Purchase of portable classrooms .
4 . Reconstruction or modernization of existing classrooms .
5 . Purchase and installation of air conditioning equipment
and insulation materials for eligible school districts
with year-round school programs .
If all of the bonds authorized by this measure are sold at an
interest rate of 7% for 20 years, the annual cost to retire the
bonds, including interest, would be about $165 million, for a total
cost of $3 . 3 billion.
State General Fund costs for payments on the State's General Fund
bond debt are expected to be about $1 .4 billion during the current
1991-92 fiscal year. This equals 3 .2% of estimated General Fund
revenues . This percentage has been increasing in recent years, but
remains below that average of other states .
Supervisor Torlakson has asked that Proposition 152 be placed
before the Board so that the Board of Supervisors could take a
support position on the measure, in an effort to cooperate with
schools . Passage of Proposition 152 should also assist in taking
some of the pressure off of counties and cities to further increase
fees to meet school facility needs as development continues to
occur.