What Is a School Bond — and What Would It Mean for BUSD Taxpayers?
School bonds are a common way districts pay for major school repairs and upgrades — but they can raise big questions for taxpayers. This quick FAQ explains how Proposition 39 bonds work and where Bonita Unified is in the process before any proposal reaches the ballot.
A school bond is one of the primary tools public school districts use to pay for major facility repairs and upgrades that can’t be covered by day-to-day operating budgets.For districts like the Bonita Unified School District, that typically means a Proposition 39 General Obligation Bond, often called a local school bond or GO bond.
What is a Proposition 39 General Obligation Bond?
A Prop. 39 GO bond allows a school district to raise local funding to repair, upgrade, or modernize school facilities. Bond funds can be used for things like:
- Repairing or replacing aging buildings
- Classroom and technology upgrades
- Campus safety and security improvements
- Energy efficiency and sustainability projects
- Athletic and transportation facilities
Bond funds cannot be used for teacher salaries or day-to-day operating costs.
How do school bonds work?
When a district issues a bond:
- The district borrows money from investors by selling bonds.
- Investors are repaid over time, with interest.
- Bond proceeds are used only for specific, voter-approved projects.
School bonds are repaid through local property taxes within the district. The repayment period typically ranges from 12 to 24 years, depending on the bond's size and interest rates.This structure spreads the cost over time rather than requiring a large, upfront expense.
What would it cost taxpayers?
If BUSD moves forward with a bond proposal, voters would see:
- The total bond amount
- An estimate of the annual cost per $100,000 of assessed property value
- How long the bond would be repaid
Assessed value is not the same as market value and is based on county property tax assessments.
What voter protections are required?
Under Prop 39, school bonds must include:
- At least 55% voter approval
- A specific project list included in the ballot language
- An independent citizens’ oversight committee
- Annual financial and performance audits
By law:
- Bond funds cannot be taken by the state
- Funds cannot be used for purposes outside the approved project list
Why does a bond’s credit rating matter?
Before bonds are sold, districts receive a credit rating from nationally recognized rating agencies. This rating reflects the district’s financial health and ability to repay debt.
- Higher credit ratings = lower interest rates
- Lower interest rates = lower overall cost to taxpayers
A strong credit rating helps ensure bond funds are used efficiently and responsibly.
Where is BUSD in the process right now?
As of now:
- No bond amount has been proposed
- No project list has been released
- No board vote has been taken to place a bond on the ballot
District leaders say they are still gathering feedback and planning, using Facilities Advisory Committee meetings to identify needs and discuss ways to fund upgrades.If BUSD moves forward, voters would have multiple opportunities to review details and ask questions before any bond appears on a ballot.
La Verne Daily News
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