United States Procurement News Notice - 5214


Procurement News Notice

PNN 5214
Work Detail State money for school construction and repairs ran out four years ago, and education officials up and down California are hoping voters will refill the pot.

A $9 billion bond measure on the November ballot, Proposition 51, represents only a down payment on what K-12 and community college districts need to build new facilities and fix old ones, supporters say. There’s a $2 billion backlog in requests for state money and an expected $20 billion in need over the next decade.

While school districts and state education officials support the statewide bond, it’s the building trades industry — which would reap the financial windfall — that is spearheading the measure. Contractors, window installers, tile companies, plumbers, mortgage brokers and others have poured more than $6 million into the campaign.

The measure has no organized opposition, but Gov. Jerry Brown has said the state can’t afford the additional debt. And the California Taxpayers Action Network submitted ballot arguments against Prop. 51, saying it is a costly, self-serving measure “created by the construction industry to benefit the construction industry.”

The bond would allocate $3 billion to new K-12 construction, $3 billion to modernizing public school facilities, $1 million to charter schools and vocational education facilities, and $2 billion to California community college facilities.

California now pays about $2.4 billion annually in debt payments on general obligation bonds for education passed by voters. Prop. 51 would add $500 million to that, according to the state Legislative Analyst’s Office.

Taxpayers can expect to pay about $8.6 billion in interest before the $9 billion bond is paid off in 35 years. But while acknowledging the size of the investment, school district officials say they are desperate for the funding and cannot meet students’ needs solely through local bond measures.

In Dublin, enrollment has doubled to 11,000 students in the last 10 years and school leaders expect to see a 50 percent jump in the next seven years. The community needs more schools but doesn’t have enough money to build them, said Michelle McDonald, a district spokeswoman.

Dublin voters have passed three facilities bonds in the past five years, raising $560 million, and can’t borrow any more based on state limits.

“Our community has done its part and the state money has dried up,” McDonald said. “We have to start putting shovels in the ground now.”

She noted that while new housing brings added enrollment, the district is restricted in how much it can charge residential developers in fees to help cover the costs. While Prop. 51 would continue to limit these development fees until 2020, school leaders are willing to sacrifice the fees for the state bond money, McDonald said.

“The deck is a little bit stacked, and not in the favor of school districts, particularly fast-growing school districts,” she said. “We’re over a barrel.”

The list of contributors to the Prop. 51 campaign doesn’t include two big advocacy groups, the California Teachers Association and the California School Boards Association, although they support the measure.

Instead, the funding list reads like a Yellow Pages section for the construction industry, including faucet and sink companies, landscapers, painters, concrete suppliers, architects, engineers, roofers, pipe fitters and cabinet makers.

The California Building Industry Association and the Coalition for Adequate School Housing, a consortium of school facilities officials and construction industry interests, are the largest donors, each contributing more than $1 million.

Without a state match, “many districts will not be able to provide appropriate and adequate facilities and we think that’s wrong,” said Dave Walrath, a consultant for the Coalition for Adequate School Housing.

In San Francisco, district officials also have an extensive catalog of facilities projects they’d like to start, including updating several sites and building schools to accommodate new housing developments, which are expected to add at least 7,000 students by 2025.

Outgoing Superintendent Richard Carranza acknowledged that the construction industry is pushing for the bond and stands to profit from it, but said that did not detract from the bond’s importance.

“If this helps them, great,” Carranza said. “All I know is our kids will have better buildings.”
Country United States , Northern America
Industry Construction
Entry Date 15 Oct 2016
Source http://www.sfchronicle.com/education/article/Proposition-51-9-billion-for-school-9202918.php

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