A recent report from the San Diego County Grand Jury highlights significant transparency issues concerning bond measures in the San Diego Unified School District (SDUSD).
According to the 19-page report, the district has not consistently adhered to state laws that mandate clear communication with voters regarding bond ballot initiatives.
The report criticizes the lack of detailed information in the ballot summaries, particularly regarding previous bonds’ unspent funds, which leads to confusion among taxpayers.
Currently, SDUSD has four active bonds, with the most recent being Measure U, a $3.2 billion measure that gained approval from 65% of voters in 2022.
Alongside Measure U, there are bonds from 2008, 2012, and 2018 still active, with the grand jury noting that there is $4.58 billion remaining to be issued from these initiatives.
The grand jury specifically pointed out that, since 2012, the district has failed to clarify to voters that property tax rate increases due to successive bond approvals are cumulative.
They also found instances where total debt servicing costs were not transparently presented, violating state election laws which require clear debt information.
In bond measures for 2018 and 2022, while total service costs were included elsewhere in the information provided, only annual repayment amounts were presented in the ballot summaries.
This is concerning because many voters depend on these summaries, which the report found often lacked critical details.
The language used in bond measures appeared to be repetitive across different years, creating doubts about the individuality of each bond initiative.
The grand jury stated, ‘This contradicts the argument that each bond presented a ‘specific list’ of projects for voter approval.’
They noted that this makes it difficult for SDUSD to be held accountable to the voters.
For the 2022 Measure U, the district chose not to provide a school-specific list of projects, opting instead for generic categories of work that the bonds would finance.
Of particular note, the report highlighted how the bond added provisions for building staff housing under the broad category of ‘Quality Neighborhood Schools.’
The grand jury provided seven recommendations to the district aimed at improving voter communication.
These recommendations include requiring the district to disclose prior property tax-assessment rates related to outstanding bonds, alongside the current ballot measure.
Additionally, the district should clarify the total debt servicing costs, which must include both prior bonds and the new measure.
Voters should be informed about unspent funds from previously approved bonds and provided with a requisite school-specific list of projects for each bond.
The report emphasizes that voters should receive critical information without ambiguity regarding property tax rates, potentially new initiatives funded by the bond, and thorough details concerning total debt servicing for previously approved measures.
The grand jury also urged the district to inform voters about the total debt it intends to incur and whether it will need to seek a waiver to surpass a state-defined 2.5% assessed property value limit for issued bonds.
Compounding the concerns, the grand jury noted that SDUSD has not responded adequately to multiple requests for documents and interviews, which hampered the investigation’s progress.
In response to the grand jury report, Lee Dulgeroff, SDUSD’s head of facilities, stated the district has operated its bond program with transparency and reiterated its commitment to cooperating with the grand jury’s recommendations upon review of the report.
He highlighted that the district has completed 257 major facility projects over the past 16 years, which were overseen by an independent oversight committee for accountability.
Dulgeroff emphasized that the voter-approved bond program undergoes annual independent audits, consistently receiving the highest ratings from auditors for 13 consecutive years.
In a follow-up interview, San Diego Unified Board President Cody Petterson acknowledged that several recommendations were ‘reasonable,’ including the need to communicate the cumulative nature of property tax rate increases more clearly.
He agreed on the importance of refining ballot language to ensure maximum transparency with constituents.
However, while he supported clarification regarding specific project listings for bonds, Petterson cautioned that clarity must be balanced with the need for flexibility to adapt to shifting priorities.
Moving forward, he stated the district would reevaluate its processes to enhance clarity and accountability.
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