Compromise in the works for bill restricting schools use of long-term bonds
Stakeholders battling over legislation that would restrict schools from using long-term bonds appeared Wednesday to find compromise on amendments that would make the bill more palatable to districts.
The Senate’s education committee decided to delay further action until next week, giving Assemblywoman Joan Buchanan, D-Alamo, time to consider proposed changes to AB 182.
Meanwhile, the panel moved several other key education bills including one that would rewrite the rules implementing sanctions against school officials who fail to report changes in an employee’s work status while an allegation of misconduct is pending.
Interest in regulating schools’ access to long-term, high interest bonds was sparked last fall on the cusp of the November election and the all-important tax hike for schools. Press reports attracted statewide attention to $105 million in borrowing assumed by Poway Unified using capital appreciation bonds that will eventually cost taxpayers close to $1 billion.
Currently, districts have authority to issue bonds under various sections of both the Education Code and the Government Code. But in attempting to tighten up regulations around CABs, Buchanan proposed limiting schools’ bond finance options to the more restrictive Education Code.
“I think the issue that we’re trying to deal with right now is do we try and streamline it so it’s clear that schools issue