About the Coronado School Bond

Maintain the Quality of Education in Our Local Schools

Measure on Ballot. The Coronado Unified School District Board has voted unanimously to place the following proposal on the ballot for voters to support at the June 3, 2014 election: Protect Quality Education in Coronado Local Measure: To provide modern classroom technology and facilities students need for college/career success, continue advanced programs in math, science and the arts, acquire, construct and repair classrooms/facilities/sites/equipment, permit smaller class sizes, and protect Coronados quality of education, shall Coronado Unified School District issue up to $29,000,000 in bonds at legal rates, with maturities under 5 years, all bonds repaid by September 30, 2024, less than $13,200,000 outstanding at any time, independent citizen oversight, and all money staying local? A 55% YES vote among those voting on the measure is required to pass this June 3rd ballot measure. #1 Community Issue: Protecting The Local Quality of Education in Coronado. The quality of education provided in Coronado Unified School District is excellent - consistently among the highest test scores, graduation rates, and student success in rigorous college level Advanced Placement exams in San Diego County. Maintaining the high quality of our schools, keeping pace with other districts and adapting to changing demands upon high school graduates helps strengthen our community, protect property values, and prepare Coronado children for college and/or high paying jobs in technology, math, science and related fields. Proposition Benefits: The Coronado School Bond will help us to maintain manageable class sizes, continue funding advanced programs in math, science, technology and the arts, continue funding for music, visual and performing arts programs, avoid teacher layoffs, and provide the facilities and equipment needed for career and technology education so students are prepared for college and good paying jobs in fields like science, technology and the skilled trades.

The New State Funding Formula Extends Recession for Coronado Schools - 5 FACTS:
1. 2. The Great Recession cut base funding for local schools by 10 to 15 percent (while unavoidable costs like health care and energy increased by another 10 to 15 percent) from 2007-08 levels. To maintain a balanced budget during the past five years, CUSD relied on a combination of budget cuts, larger class sizes, one-time Federal grants intended to alleviate the impact of the Great Recession, and a planned spend-down of fiscal reserves prudently built up during better times. With state revenues growing again, CUSD had expected rapid relief to restore funding to former levels. Instead, CUSD got hit with a new state funding formula for schools (commonly called LCFF) that extends the Great Recession for Coronado and about 5% of California's school districts. California's new LCFF means that it will take at least eight years to restore CUSD's funding to its 200708 level. And in 2007-08 California schools were ranked 46th in the country in per student spending. Coronado Unified ranks 11th out of 12 unified school districts in San Diego County in per pupil funding. San Diego Unified School District next year will get over $1,200 more per pupil (about 18%) in state funding, and that gap will grow each year. As a consequence, while CUSD this year is grappling with material program cuts, neighboring districts are exploring lowering class sizes and expanding educational programs.

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Coronado's History of Fiscal Prudence

Nearly every school district uses bond funding for some significant capital needs. CUSD identified 36 K-12 educational jurisdictions in San Diego County. In only about 10% - 4 jurisdictions - was there no bond funding. CUSDs current tax rate of $11 per $100,000 makes it next lowest in bond funding.

Election Day: June 3, 2014. Paid for by Protect Our Coronado Schools, 1312 2nd Street, Coronado CA 92118 James Loiselle, Treasurer, FPPC Committee ID# 1363338

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CUSD has been funding most of its facilities, equipment and technology needs from General Fund or local sources. All of these capital costs are normal, legitimate uses of Prop 39 bond funds. By covering its capital needs from bond proceeds, General Fund dollars can be freed up and used instead for smaller class sizes, expanded programs and advanced programs in math, science and technology, among others. There is no other viable path to protect manageable class sizes, keep outstanding teachers on staff, and continue to provide high quality education. This bond will provide a stable source of locally controlled funding to avoid further cuts and protect the quality of our schools. All funds from the bond will stay local to support Coronado students. It cannot be taken away by the state or used for other purposes. Without this measure expect significant layoffs and other cuts to balance the budget and avoid a state takeover of our local school district.

Unique Taxpayer Protections Embedded in THIS Bond Proposal

The Coronado School Bond holds the bar high, with a combination of taxpayer protections that, collectively, are unprecedented for California school bond measures: All funds must stay local to benefit Coronado children, schools and local property values. Prudent Maximum Bond Authorization: Bonds are capped at $29 million over the 10-year program. This figure is right-sized to cover the expected total funding shortfalls over that period. No Long-Term Debt: All bonds must be paid in full by 2024 - these bonds will not burden future generations. Further, individual bond durations will be less than 5 years, which will reduce interest and issuance costs (expected to total less than $0.04 for each dollar that goes into the District). Caps on Outstanding Debt and Annual Debt Service: Bonds cannot be issued if they will cause total outstanding debt to exceed $13.2 million or total annual payments (on all bonds) to exceed $3.3 million these caps protect residents from creeping assessments on account of the bonds. Independent and rigorous Citizen Oversight: As required by Proposition 39, an independent citizen oversight committee will oversee the bond program (adding to school board oversight). Funding for capital assets only: Money can only be used for items with useful lives equal or longer than the bond life, or refinancing debt incurred to cover such items. As these costs are covered with bond proceeds, the Districts general funds will be freed up to maintain manageable class sizes and quality educational programs. NO BOND FUNDS can be used for administrators salaries, benefits, or pensions.

Cost to Taxpayers: The $29 million bond translates to $39.87 per year for every $100,000 of assessed valuation. The assessed valuation refers to assessed value, not to be confused with the market value of your home (assessed value typically is materially less than market value, since assessed value generally equals the market value at time of purchase and then increases by only 2% per year). The median assessed value is just below $700,000, which means that the majority of Coronado homeowners will pay less than $280 a year on account of this measure. Of course, Coronados higher home market values come in large part from the quality reputation of the local schools. And note further that all taxpayer payments on account of the bonds will be tax deductible on individual income tax returns. The Bottom Line: Whether or not you have school-age children, the quality of CUSD neighborhood schools contributes to your quality of life. This bond will protect Coronado schools from devastating cuts. This measure will help Coronado stay competitive with other peak performing school districts and high value California communities, continuing to prepare OUR students to thrive in college and careers. One hundred percent (100%) of bond funds will stay in Coronado for Coronado. If you care about this community, your investment here, and the future of all our children, please

VOTE YES!
Election Day: June 3, 2014. Paid for by Protect Our Coronado Schools, 1312 2nd Street, Coronado CA 92118 James Loiselle, Treasurer, FPPC Committee ID# 1363338 Page 2 of 2