Bond 101

Bond 101: Understanding School and Community College Bonds

What is a College Facilities Bond?

A college facilities bond is a way for the district to borrow money to improve campuses and facilities. Bonds pay for upgrades and improvements such as:

• Building new classrooms, labs, and student spaces
• Modernizing aging (or outdated) buildings
• Upgrading technology, safety and security systems, and infrastructure

The district finances these projects by issuing general obligation bonds, which are purchased by investors and repaid over time with interest from property tax revenues. This financing model enables critical campus improvements to be made immediately rather than delayed until sufficient funds accumulate through the annual budget process. As a result, both current and future students benefit from safer, more modern, and better-equipped learning environments.

How Do Bonds Work?

Step 1: Voter Approval
The district asks voters to consider a bond measure that lists proposed projects, estimated costs, and expected community benefits. Under Proposition 39, the School Facilities Local Vote Act passed in 2000, school and community college construction bonds require approval by at least 55% of votes to pass; other bonds may require two-thirds.

Step 2: Bond Issuance
Once approved, the district issues bonds by selling to investors, who provide the money upfront. This process provides the funding needed to begin planning, design, and construction of facilities

Step 3: Repayment
Bond debt is repaid over time using property tax revenue. The tax rate is carefully structured to cover both principal and interest over the life of the bonds, while remaining within legal limits.

As per Proposition 39, there is a maximum tax rate 25¢ per $1,000 – or $25 per $100,000 - of assessed value for a General Obligation (GO) Bond election. Legal bonding capacity is also 2.5% of the assessed value within the district’s boundaries.

What is Proposition 39?

Proposition 39 is a California law approved by voters in 2000 that makes it easier for school and community college districts to pass facility improvement bonds at a lower threshold.

Why it matters:

• It lowered the voter approval requirement from two-thirds to 55 percent.
• Districts can ask voters to approve bonds to fund:
  
  • Construction of new academic and career training (or workforce development) facilities
  • Renovation and modernization of existing facilities
  • Equipment and technology upgrades

Rules & Accountability:

• Bonds can only be used for facilities, not salaries or operational expenses.
• A detailed project list and tax rate statement must be included in the ballot measure.
• An independent Citizens’ Bond Oversight Committee monitors how the money is spent.
• Independent audits are required each year to ensure transparency and compliance.

Impact:

• Since 2010, Proposition 39 bonds have achieved an average approval rate of approximately 81% statewide.
• Many districts have successfully passed multiple bonds to modernize campuses and expand access to education and workforce training.

Key People Behind the Bond

A successful bond program relies on (or requires) collaboration among district leadership, governing bodies, and the community.  Each group has an important (or distinct) role in ensuring projects are done well, on time, on budget, and with transparency.

Vice Chancellor/Executive Operations Officer – Operational Leadership & Implementation

• Responsible for the day-to-day execution of the bond program.
• Oversees planning, coordination, and delivery of bond-funded projects across campuses.
• Aligns departments, project managers, consultants, and contractors to keep projects on schedule and within approved budgets.
• Ensures bond activities comply with applicable laws, regulations, Board policies, and voter requirements.
• Provides regular updates and issue resolution support to the Chancellor, Board, and campus leadership.

Chancellor – Executive Leadership & Accountability

• Provides overall executive direction for the bond program.
• Ensures the bond aligns with the district’s mission, priorities, and long-term goals.
• Communicates bond progress, outcomes, and community benefits to the Board, campuses, and broader community.
• Holds the organization accountable for delivering projects consistent with voter approval and legal requirements.

Associate Vice Chancellors – Functional Leadership

Associate Vice Chancellor – Facilities, Risk Management & Operations

• Oversees districtwide facilities operations and services that support bond-funded projects.
• Leads risk management, safety, and insurance coordination related to construction and campus operations.
• Ensures projects are delivered in a manner that protects students, staff, visitors, and district assets.
• Coordinates operational readiness so campuses can safely and smoothly occupy new or renovated facilities.
• Supports the Vice Chancellor in resolving operational challenges that arise during construction and closeout.

Associate Vice Chancellor – Planning & Design

• Leads long-range facilities planning and design standards for the district.
• Oversees architectural quality, consistency, and alignment with district goals across bond projects.
• Guides programming, design development, and design review in collaboration with campuses and project teams.
• Ensures projects reflect educational needs, sustainability goals, and community context.
• Serves as the district’s architectural authority, supporting informed decision-making throughout design and construction.

Vice Chancellor/Executive Business Officer – Financial Stewardship

• Oversees bond finances, including budgets, cash flow, and long-term fiscal planning.
• Prepares financial reports and disclosures related to bond expenditures.
• Works closely with auditors and independent oversight committees.
• Ensures bond funds are spent appropriately and available when projects reach key milestones.

Governing Board – Governance and Oversight

• Places bond measures before voters and adopts related policies.
• Provides public oversight and policy direction for bond implementation.
• Reviews progress, financial reporting, and compliance to ensure transparency and accountability.
• Supports executive leadership in major bond-related decisions.

Campus Stakeholders – Input and Collaboration

• Faculty, staff, students, and campus leadership provide ongoing input after the bond is approved.
• Help inform project priorities, functionality, and campus-specific needs.
• Participate in planning, design feedback, and transition discussions to ensure projects support teaching, learning, and student services.

Community Members – Voters and Public Oversight

• Approve the bond measure through the ballot.
• Participate on independent bond oversight committees.
• Stay informed about project progress and expenditures.
• Hold the district accountable for delivering voter-approved improvements.

Why This Bond Was Needed

The economy, workforce, and technology are evolving rapidly. Many jobs that exist today didn’t even exist a decade ago. To prepare students for these new opportunities, SDCCD must continue investing in modern classrooms, labs, and training facilities.

Key Reasons for the Bond:

• Programs aligned with emerging and high-demand careers: Biotechnology, cyber defense, advanced healthcare, clean energy, advanced manufacturing, and public safety – fields that are critical to the region’s economy and community well-being.
• Support for students’ basic needs: Facilities that enable affordable housing, transportation access, childcare, and food security – critical foundations for student success.
• Building on proven strengths: Continued leadership and excellence in training first responders, nurses, Emergency Medical Technicians (EMTs), and preparing students to transfer to four-year colleges.
• Regional Economic impact: Modern facilities support workforce development, strengthen families, and strengthen the local economy.

Looking ahead:

As educational and workforce demands continue to change, ongoing investment will be necessary (or essential) to keep programs, facilities, and technology current and responsive.

How the Bond Supports SDCCD’s Mission

The new bond will help SDCCD continue its long-standing mission of providing affordable, high-quality education and career training. Building on past investments from Propositions S & N, the bond will advance that mission while delivering lasting community benefit:

Key Benefits:

• Enhanced learning environments: Modern classrooms, labs, and instructional spaces designed to prepare students for next-generation careers.
• Advanced technology: Smart classrooms, updated labs (or laboratories), and enhanced digital tools to support teaching and learning.
• Improved safety and security: Campuswide upgrades to protect students, staff, and visitors.
• Stronger community connections: Use of skilled local labor and trades, strengthening the regional economy.