School Bonds

A general obligation (GO) bond is a way for a school district to borrow money for school facilities, such as building new classrooms, modernizing older buildings, and improving safety and accessibility.  GO bonds must be approved by local voters, and they are repaid over time through property taxes collected by the County on property within the school district.

Most California school bonds are approved under Proposition 39, which requires 55% voter approval.  Proposition 39 bonds come with accountability requirements:

• Bond funds may be spent only on the school facility projects listed in the measure, and not on teacher or administrator salaries or other operating expenses
• The District must appoint an independent Citizens' Bond Oversight Committee (CBOC) to review bond spending and report to the public
• Annual independent performance and financial audits are required
• For a unified school district, the estimated tax rate may not exceed $60 per year per $100,000 of assessed (taxable) value when the bonds are issued

Bonds approved by voters are usually issued in several series over time, as projects are ready to move forward.  This helps match borrowing to project schedules and keep tax rates within the levels described to voters.

Learn more:

• California Department of Education, Debt Financing for California Schools Districts
• California Department of Education, General Obligation Bonds Quick Facts 
• Legislative Analyst’s Office, Proposition 39 Analysis (November 2000)
• EdSource Glossary, General Obligation Bonds