Authorizes the San José Unified School District to issue $1.15 billion in general obligation bonds over 30 years to fund school facilities projects and provide affordable housing for teachers and staff.
What the Measure Would Do
Measure R would increase local property tax rates at an estimated rate of $60 per $100,000 of assessed property value annually for an estimated 30 years to allow the San José Unified School District (SJUSD) to issue $1.15 billion in bonds to fund four categories of capital projects:
- Facility upgrades and repairs, including renovating or constructing new outdoor facilities, upgrading or providing new drop-off areas and parking lots, improving accessibility for students with disabilities, and upgrading fire sprinkler and alarm systems
- New and upgraded facilities for teachers and district staff and electrification of vehicles, including constructing affordable housing for teachers and staff, purchasing federally mandated electric vehicles (EVs), and installing EV charging stations
- Classroom and school upgrades, including adding classrooms to support transitional kindergarten programs, providing modern labs and career-technical facilities and equipment for students, and improving food service facilities
- Technology upgrades, including acquiring and upgrading technology or equipment and expanding telecommunications, internet, and network connections
The SJUSD Board of Education would have sole discretion over decisions regarding the projects’ scope, function, timing, location, and prioritization. As required by state law, bond expenditures would be monitored by an independent Citizens’ Bond Oversight Committee, which reports directly to the public.
This measure would increase local property tax rates at an estimated rate of $60 per $100,000 of assessed property value annually while the bonds are outstanding, anticipated to end in 2055.
The Backstory
Like bond measures for SJUSD in 1997, 2002, and 2012, Measure R would provide local bond funding for San José’s largest school district, serving 25,677 students in 42 schools, to pay for projects that the district’s operating budget cannot support.
Measure R’s bond project list reflects a recent facility assessment, which estimated that bringing all facility components up to an adequate level within 10 years would cost $1.39 billion. School staff identified critical infrastructure needs at some school sites, including leaking roofs, HVAC (heating, ventilation, and cooling) systems that cannot accommodate acutely hot weather, and facilities that do not meet current health and building safety codes.
The project list also reflects the results of a survey in four languages in which SJUSD asked registered voters to rank general project categories as high, medium, or low priorities. The survey’s more than 550 respondents indicated that upgrading classrooms, upgrading technology systems, repairing electrical systems, and updating safety systems were high priorities.
In addition to addressing facility needs, Measure R would address SJUSD recruitment and retention challenges in the high-cost Bay Area by using a portion of the bond revenue to construct affordable rental housing for staff. An assessment estimated the cost of building as many as 673 housing units on four underutilized district property sites at $650 million.
SJUSD has few alternatives to fund the ambitious project types described in Measure R. State funding for school facilities is severely depleted. A new state bond for school facilities, Proposition 2, is also on the ballot this November. If this $10 billion bond measure passes, SJUSD could leverage local bond funds as match funding and access a more significant share of state funding. If Proposition 2 fails, SJUSD would rely exclusively on local funds to support projects.
Measure R was placed on the ballot with unanimous approval from the SJUSD Board of Education. Under state law, school bonds like Measure R require a 55 percent vote to pass.
Equity Impacts
Because SJUSD has released no expenditure plan, it’s difficult to fully assess Measure R’s equity impacts. Nonetheless, SJUSD serves a diverse student body and many high-need students:
- Hispanic/Latinx students make up 51.8 percent of SJUSD’s student body, and Asian or Pacific Islander students, 16.1 percent.
- Nearly a quarter (24.1 percent) of SJUSD’s student body is socioeconomically disadvantaged and is eligible to participate in the federal free and reduced-price meal program.
- More than a quarter (28.1 percent) of SJUSD’s students are English language learners.
SJUSD is located in a region where many teachers and staff are priced out of the housing market. Although Measure R would allow SJUSD to provide affordable rental units only for its workforce, any housing development it afforded would increase the region’s overall housing supply, thereby supporting larger efforts to address the Bay Area’s housing crisis.
Pros
- Facility and technology upgrades will benefit students. Students who attend schools in high-quality facilities have better educational outcomes than those learning in lower-quality facilities, and students with access to modern technology and equipment are better prepared for college and the workforce.
- The state has encouraged school districts to provide affordable housing on unused district property sites to help address the statewide affordable housing crisis. Measure R could help SJUSD meet a long-term goal of providing affordable rental housing as part of its broader strategy to support the recruitment and retention of qualified staff.
- If Proposition 2, a state bond measure for school facilities, passes in November, SJUSD would be able to leverage local bond funds and obtain match funding for eligible projects from the bond project list.
Cons
- Measure R has a broad range of categories for funding and has not released a facilities plan; therefore, voters have no clear idea about how funds would be distributed programmatically nor about how school sites would be prioritized.
- The bond would raise property taxes on the basis of a property’s assessed value, which could result in substantial tax increases for low-income homeowners. Owners of a $1.6 million home in San José (the area median price) would pay an additional $984 in property taxes per year.