The California Chamber of Commerce Board of Directors has announced its support for Proposition 2, a measure on the November ballot. This proposition authorizes a $10 billion general obligation bond aimed at funding the construction and rehabilitation of facilities for public schools and community colleges.
According to the California Department of Education (CDE), around 30% of K-12 classrooms in the state are over 50 years old, with 10% being at least 70 years old. The CalChamber highlights that these schools need updates to address health and safety issues, wear and tear, modern educational standards, and environmental efficiency.
Researchers from the Public Policy Institute of California estimate that there is more than $100 billion in needs for new construction and modernization in the state's public schools. Since 2018, funds for new K-12 construction have been exhausted, with modernization funds fully allocated by February 2019. As of June 26, 2024, the Office of Public School Construction has received applications totaling $1.186 billion for new construction and $2.282 billion for modernization—amounts that exceed available funds from previously approved school bonds.
The Board of Governors' approved Five-Year Capital Outlay Plan for California Community Colleges projects facility needs amounting to $23.2 billion from 2023-24 to 2026-27.
Without new state funding, builders who pay fees to offset school impacts could see those fees increase significantly as school districts demand full mitigation. Depending on location, school impact fees could rise by $17,000 to $21,000 per unit. This would increase costs and discourage future development throughout California.
The home building industry also risks losing protections under the California Environmental Quality Act (CEQA) if there is no fully funded School Facilities Program. Before a law was passed in 1998 establishing a consistent system for cost-sharing responsibilities among builders, school districts, and the state, local school districts used CEQA lawsuits to delay projects and pressure home builders into covering all costs of new schools.