Measure SOS
What is measure sos?
Measure SOS is a school bond measure presented to voters in Palos Verdes. It would allow the PV School District to take on a debt of $297,800,000. This debt would be repaid through an annual tax to property owners in Palos Verdes. Including interest, the total cost to local taxpayers would be close to half-a-billion dollars. Click here to read the full text for the Measure SOS Bond Resolution.
who is funding the promotion of measure SOS?
The committee pushing to pass this bond has raised almost $143,000 mostly from businesses in the building trades who presumably hope to profit from the debt taken on by the community. This money has been used for mailers, signs, advertising, etc. We are concerned that the pressure to pass this bond is not generated by local voters, but rather by outside parties interested in financial gain. Manny Serrano has been heavily involved in fundraising for the pro bond committee. He is married to our District Superintendent, Devin Serrano, which potentially creates a conflict of interest on her part.
how would this money be spent?
The bond money would be used for maintenance and repair to school buildings. Specific areas of need have been identified at each school site. Approximately 1/3 of the money would go towards “soft costs” such as permits, evaluations, consultants, etc. This amounts to almost $100,000,000, which only leaves about $200,000,000 for actual projects.
How did the district determine the amount of money needed?
This information has not been published by the school district. The Bond Resolution contains no cost estimates for the projects listed. There is no prioritized list of projects that would be funded by the money from Measure SOS.
what would be the cost to each property owner?
The Bond Resolution claims that each property owner would pay about $300 per million of assessed valuation. Annual payments to the district would continue for 20-27 years. However, these are only assumptions based on many variables. The school district has reserved the right to increase the tax rate at any time for any reason, and the length of time needed to repay the debt can be extended. (see page B-1 of the Bond Resolution)
is there an opt-out for seniors?
No. The Bond Resolution contains no opt-out or sliding scale for senior citizens or for anyone else.
What about the kids?
If Measure SOS passes, children in school now would be paying off the debt until they are in their forties. The maintenance and repairs funded by the loan would not outlast the debt payments. By the time current students send their own children to school, they will still be paying the loan. Children need to be protected and cared for, not handed decades of debt by the adults in their neighborhood.
what accountability measures would be put in place?
A Citizens Oversight Committee is required, however those serving on the committee would have no decision making authority and they would be appointed by the School Board, whom they are meant to oversee. Any violations of the Bond Resolution would need to be addressed through an expensive lawsuit, and the district would fund its defense with our tax dollars.
are we still paying off debt for previous bonds?
Yes. Property owners in Palos Verdes are currently still paying debt on three previous bonds: Measures K, R and S. Those funds were spent long ago, but a debt of about $50,000,000 remains. In addition to these three bonds, Measure M requires Palos Verdes residents to pay a permanent annual parcel tax to the school district. This tax has no sunset and increases every year. Currently each property owner pays $515. Next year the rate will be $531.87. On top of these bonds, residents of L.A. County recently approved Measure LA, a community college school bond for $53,000,000,000. Palos Verdes homeowners will be paying off the debt on this bond for the next 40 years. (see Measures R, K and S) (see Measure M) (See Measure LA)
would the bond debt outlast the improvements to facilities?
The projects listed in the Bond Resolution are only repairs or maintenance. The debt is predicted to take 20-27 years to repay. Most items will likely need to be replaced or repaired again before the loan is fully repaid. Measure SOS asks voters for a lump sum of double the annual operating budget in order to make repairs to buildings. This calls into question the overall sustainability of the school district.
what portion of the District budget is allowed to be spent on facilities?
The School District budget is divided into two categories: Restricted Funds and Unrestricted Funds. Unrestricted funds may be used to repair or maintain facilities. Every year the district receives about $150,000,000 in Unrestricted Funds. The district currently spends about 4% of their income on facilities, but this is by choice, not by law. Public schools must keep 3% of their total budget in reserve. This is to cover all expenses, not just facilities. School leadership has flexibility on how to spend the remaining 97%. There is no limit on the percentage of funds which may be spent on facilities. (see audited financial reports here)
would commercial properties be taxed?
Yes. Residential and commercial property would both be taxed. However, public property owned by the government would not be taxed. Property owners in the Eastview neighborhood of Rancho Palos Verdes would not be taxed. Families who send their children to PV schools but live in another district would not be taxed.
Do schools in PV receive less funding than other districts?
Yes. The schools are paid a specific amount per pupil by the state. The amount our district receives per pupil is determined by the LCFF (Local Control Funding Formula). While it is true that under the current system Palos Verdes receives less per student than other districts, remember that this formula only went into effect in 2013. Prior to that time the district also deferred maintenance until the problems were extreme and could be used as leverage to promote a bond measure. We are still paying debt on three bonds that were passed before 2013. (see LCFF)
How can schools plan for expensive repairs to buildings?
Long term planning for large expenses is another topic to consider. The district has no investment funds to plan for future infrastructure costs. However the district is looking ahead and anticipating significant expenses to pay for the healthcare benefits of retired staff. The district recently spent $1,000,000 from the general fund to open an investment account, in order to be prepared for this large future expense. It goes to show that the district leadership can exercise good judgment and financial planning for important long term expenses. They have simply chosen not to prioritize their buildings this way.
how can schools maintain facilities without a bond?
The solution is fiscal responsibility. Every family and business must prioritize needs and make financial decisions accordingly. Palos Verdes public schools already receive $150,000.000 every year, and from those funds they must maintain 17 buildings. The school facilities have not been prioritized by the district, and income has been spent in other areas. The solution to deferred maintenance is not a massive and unpredictable debt to be shouldered by property owners. The school district simply needs to prioritize school buildings when making financial decisions. They may find themselves in a tough spot right now, but that is not the problem of ordinary people who do not use the public schools, which amounts to at least 75% of the population in our district. The unrestricted annual income for PVPUSD is about $150,000,000 per year with additional income in restricted funds. Local control allows the unrestricted funds to be spent at the discretion of the School Board, with only 3% held in reserve. The other 97% is available. We must insist the public schools operate within their means.