bonds – Public Policy Institute of California

Video: Californians and Education

In the era of COVID-19, about eight in ten adults fear getting sick, and 80% expect bad economic times ahead. At a virtual briefing on Thursday, PPIC researcher Alyssa Dykman said the drop in consumer confidence “is unprecedented in the history of the PPIC survey.”

The event featured Dykman, who presented attitudes on K–12 education, funding, and policy preferences along with concerns over the coronavirus pandemic in the latest PPIC statewide survey. PPIC President and CEO Mark Baldassare supplied deeper context for key findings and responded to online questions.

Approval ratings have hit rare numbers: at 78%, approval has surged for Governor Newsom’s handling of K-12 education, and at 92%, public school parents express overwhelming support for school district handling of school closures. COVID-19, however, has shaken support for school bonds, with about half or fewer adults and likely voters saying it’s a good idea now for state government to fund school construction projects.

Baldassare underscored Californians’ concerns around health and finances, stating that two-thirds of adults are worried about both. Many say their lives are disrupted and about half say the stress is affecting mental health.

What do these concerns mean for California schools? “People are giving state leadership and local leadership a lot of leeway in how they respond to the public health and economic crisis,” Baldassare said. But the state will see its first test of this extraordinary support in May, when the governor submits a revised budget that will reflect revenue loss from a sharp economic downturn.

That may also lead to roadblocks for state and local school funding in November. In the March primary, “the defeat of most of the local school bond measures really caught a lot of people by surprise,” Baldassare said. “It was difficult to pass school funding measures.” At the moment Californians are hesitant to commit more funding to schools, which may impact voting on the split-roll property bond measure and others in the November election.

The survey offers several takeaways around planning for California public education. “We’ve never had anything like the school closures that are taking place,” Baldassare said. He reflected that Californians may reconsider the value of teachers going forward, including whether “teachers have the resources they need in order to do the job,” and noted that the public may have “a new understanding of the important and difficult role teachers play every day in the lives of public school children.”

Californians also may now recognize the struggles of vulnerable students, especially in terms of online access.

“It is going to be a test of Californians’ political will,” Baldassare said, “the degree to which we are committed to improving student outcomes, particularly among the large numbers of English language learners and low income students across the state.”

School Funding, COVID-19, and the 2020 Election Year

This post is excerpted from Mark Baldassare’s prepared remarks for the PPIC Statewide Survey virtual briefing on April 23, 2020.

State funding for K–12 public schools will take center stage when Governor Newsom unveils revisions to the state budget in a few weeks. The growing fiscal toll of the COVID-19 crisis is likely to affect school funding plans as a deep economic recession looms. K–12 schools have the largest share of the state General Fund, and many Californians say it is their top priority for state spending. Still, California voters seem to be pulling back their support for school funding on ballot measures.

One of the biggest surprises in the March 3 primary was the defeat of the Proposition 13 state school bond (53% voted no). The last time a state school bond failed to pass was back in 1994. Proponents have tried to explain away this loss as confusion caused by the number 13—the same as the notorious anti-tax initiative that passed in 1978.

However, outcomes of local school bond measures point to a different story. Bucking recent trends, 63% of local school bonds on the March primary ballot failed to reach the 55% threshold needed to pass. It may be that early anxieties about COVID-19 resulted in voter caution about extending debt. In the absence of exit polls to validate this theory, the April PPIC Statewide Survey sheds light on what may have happened. It also offers sobering news for efforts to convince voters to support school funding measures in the November election.

First, though, let’s dispense with the notion that views about school funding have fundamentally shifted. Today, 55% of California likely voters say that state funding for their local public schools is not enough. And 53% would vote yes on a state school bond while 50% would vote yes on a local school bond. Moreover, 53% percent would vote yes on a split roll property tax to fund local public schools—a measure that appears headed for the November ballot. All of these results today are similar to those last April, suggesting that basic attitudes about school funding are fairly stable.

But current conditions appear to be having a strong effect on the timeframe for public support. Our survey was conducted from April 1 to 9—roughly a month from the primary and a few weeks into stay-at-home orders. We find that most likely voters say it is a “bad idea” to issue state (54%) or local (54%) school bonds at this time. Majorities of Californians without children in public school agree (bad idea: state 56%, local 57%). Fewer than half across the state’s regions say it is a good idea to issue these bonds now. Only those with children in public school think that it is a good time to issue state (57%) or local school bonds (58%).

Why? Californians have had their world shaken by the COVID-19 crisis. Since January there has been a 36-point increase in expectations for bad economic times in California over the next 12 months (42% to 78%)—sending us to depths of consumer pessimism not seen since the Great Recession. And right now, 74% percent are worried about negative impacts of the coronavirus on their personal finances.

This pessimism is likely to have profound implications for school funding measures on the November ballot. The state’s fiscal and economic problems will weigh heavily on voters’ minds when they are asked to make decisions on spending, taxes, and bonds. Many may be reluctant to ask taxpayers (like themselves) to foot the bill, or to increase commercial property taxes, to make up for shortfalls in school funding.

We can also expect a rocky road ahead for the governor and state legislature. Although our April survey found a steep rise in the governor’s and legislature’s approval ratings around handling K–12 public education, state leaders now face the prospect of having to cut back on popular plans to increase school funding. During the Great Recession, we saw the governor’s and legislature’s approval ratings tumble with state budget cuts to local schools.

Our surveys will be closely monitoring all of these dynamics as California heads toward a much-anticipated November presidential election.

Video: Californians and Their Government

In California’s March 3 primary, the state ballot will feature several initiatives—including a $15 billion bond for the construction and modernization of public education facilities. Slightly more than half of likely voters approve, while 42% are opposed and 8% are undecided. PPIC researcher Dean Bonner outlined this and other key findings from the latest PPIC Statewide Survey at a briefing in Sacramento last Friday.

In November, Californians may be asked to vote on a constitutional amendment that would require state and local governments to provide housing or shelter beds to all homeless residents. About six in ten adults and 55% of likely voters say they would vote yes on such an amendment. Majorities of adults and likely voters also support Governor Newsom’s proposal to allocate $1 billion to address homelessness.

Other survey highlights:

More than six in ten Californians say housing affordability is a big problem in their part of the state, and the cost of living is causing many to consider moving out of California.
A majority of Californians (53%) approve of the way Governor Newsom is handling his job; this is the governor’s highest approval rating to date.
Views on the governor’s plan to scale back the high-speed rail project are mixed, while most approve of his proposal to build only one tunnel under the Sacramento–San Joaquin Delta.
Bernie Sanders leads all other Democratic presidential candidates with 32% support among Democratic primary likely voters. Joe Biden has 14% support, 13% support Elizabeth Warren, and Pete Buttigieg and Michael Bloomberg were tied at 12%.

Do Californians Support the Proposed School Bond?

When Californians go to the polls in March, they will not only cast a vote in the presidential primary—they will also vote on an education bond to fund construction and modernization projects. Given differences in support for the bond across the state’s regions and demographic groups, turnout will play a pivotal role in whether this measure passes.

In the closing days of the legislative session, the legislature passed and the governor later signed a bill placing Proposition 13 (the Public Preschool, K–12, and College Health and Safety Bond Act of 2020) on the March ballot. If approved by voters, the measure would authorize $15 billion in general obligation bonds to pay for the construction and modernization of California’s public schools, community colleges, and four-year colleges.

The September PPIC Statewide Survey took an initial look at support for this proposition. While two-thirds of Californians (66%) are in favor, 54% of likely voters say they would vote yes—just slightly above the majority needed to pass.

Are some Californians more likely than others to support the bond measure? Unsurprisingly, there is a wide partisan divide, with three in four Democratic likely voters (76%) saying they would vote yes compared to just three in ten Republicans (29%). Overall, independent likely voters are divided (48% yes, 44% no). But among Democratic-leaning independents, nearly two in three (64%) are supportive.

Support varies across regions, with Los Angeles (59%) and San Francisco Bay Area (57%) likely voters expressing the most support, compared to about half of likely voters elsewhere in the state.

While support is similar among likely voters with (55%) and without (53%) children in the house, there are differences across other demographic groups.

White likely voters (47%) are much less likely than Latinos (74%) and those of other racial/ethnic groups (62%) to say they would vote yes. And since school construction bonds are often paid off by property taxes, it’s notable that homeowners (44%) are far less likely than renters (71%) to say they would vote yes. Support is higher among younger likely voters (66% age 18 to 44, 48% age 45 and older). It declines as education and income levels increase.

Overall, support for the education bond currently hovers at around half for likely voters, but there is much stronger support among many regional and demographic groups—suggesting that passage could depend on who shows up to vote. If Democrats and Democratic-leaning independents turn out in large numbers for the presidential primary, that could affect the fate of this bond. Stay tuned to the PPIC Statewide Survey as we continue to track this measure in advance of the March primary.

2020 Primary: Funding Higher Education Facilities

The state legislature recently passed a $15 billion bond measure to fund upgrades to education buildings and facilities. Voters will decide whether to support this bond as part of the March 2020 primary ballot.

For higher education, the measure would provide $6 billion to the state’s three higher education systems, the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC). These funds would be distributed equally ($2 billion each)—even though the systems enroll significantly different numbers of students.

The legislature will approve specific projects as part of the annual budget process. As a condition of making funds available, the bill requires UC and CSU to develop affordable housing plans for their students.

The last time the state proposed and passed a ballot measure supporting higher education was more than a decade ago. Proposition 1D (2006) passed with almost 57% support. The total amount of funding for higher education in that initiative was about half of what is proposed in the current measure ($3.1 billion compared to $6 billion).

During the Great Recession funding for UC, CSU and the community colleges fell. One of the ways the systems responded was to defer maintenance on buildings, foregoing repairs and upgrades as a way to save money in the short run. Our estimate of the cost of addressing the resulting backlog of capital projects tops $30 billion for the UC and CSU systems. The proposed ballot initiative would provide bond authority to cover a little more than 10% of that.

The state’s community colleges are in a slightly different position. Local community college districts can issue their own bonds and make most of their own capital finance decisions. Since passage of Proposition 39 (2000), which made it easier for community colleges to pass bond measures, community college districts have been relatively successful in funding their capital needs. From 2001 to 2016, voters approved $35 billion in borrowing for local community college capital projects. In addition, Proposition 51 (2016) provided community colleges with $2 billion in state bond funding.

We know that bond measures for education generally have the support of voters, and recent PPIC polling suggests that a $15 billion education bond has a slim margin of support. Time will tell whether voters will be persuaded this time around.

Video: Californians and Their Government

As California’s 2020 Democratic presidential primary draws closer, Elizabeth Warren, Joe Biden, and Bernie Sanders lead the rest of the field by a wide margin. However, many voters say they would consider supporting a candidate other than their current choice. These and other key findings from PPIC’s latest statewide survey were outlined by Rachel Lawler in Sacramento last Thursday.

Likely voters identifying as registered Democrats or as Democratic-leaning independents support Elizabeth Warren (23%), Joe Biden (22%), and Bernie Sanders (21%) at levels well above Kamala Harris (8%) and Pete Buttigieg (6%). No other candidate is preferred by more than 3 percent, and 9 percent say they don’t know which candidate they prefer. More than half of voters who expressed a preference would consider supporting another candidate.

The survey asked about a $15 billion bond for school and college construction that has been approved by the legislature for the March 2020 ballot. It has the support of two in three adults—but only 54 percent of likely voters. This narrow margin of support coincides with concern about the state’s economic outlook. Fewer than half (41% adults, 37% likely voters) expect good times financially in California during the next 12 months.

A potential November 2020 ballot measure that would amend Proposition 13 to tax commercial properties at their current market rate and direct some of the new revenue to K–12 public schools is favored by 57 percent of adults. However, fewer than half (47%) of likely voters favor the measure, and this share is down somewhat from April 2019 (54%). A potential state bond measure to fund water infrastructure is favored by 68 percent of adults and 57 percent of likely voters.

Other survey highlights:

Californians are most likely to name homelessness (15% adults, 16% likely voters) and jobs and the economy (15% adults, 13% likely voters) as the top issue facing the state. Other issues named include housing costs, immigration, and the environment.
Most Californians view immigrants as a benefit to the state, and half are at least somewhat worried about someone they know being deported as a result of increased federal immigration enforcement.
Two in three Californians think the Supreme Court should not overturn Roe v. Wade; more than half think some states are making it too difficult to get an abortion.
Half of Californians say they have a disaster plan and six in ten have a disaster supplies kit. Six in ten are very (28%) or somewhat (32%) worried about personal injury, property damage, or a major disruption of their routine as the result of a disaster.

The Mood of California Voters and the 2020 Election Cycle

This post is excerpted from my speech at the Sacramento Seminar on October 4, 2019 in San Francisco.

Pollsters often say that a public opinion survey is a snapshot in time. The latest PPIC Statewide Survey was conducted in the days after the California Legislature finished its work in 2019 and while startling news was breaking that the president called a foreign leader for a political favor—which has resulted in the launch of an impeachment inquiry. The mood of California voters in this timely survey—especially their level of unhappiness and anxiety—is noteworthy because of its far-reaching implications for the March primary and the November election.

Let’s start with President Trump’s approval rating, which now stands at 35% among California likely voters. This is unchanged from the last reading in our July survey and has been remarkably stable over time. Today, 83% of Republicans approve of his job performance, compared to just 38% of independents and only 7% of Democrats. Given its partisan makeup, California is a reliably blue state on the Electoral College map. Still, low approval ratings for the president will increase turnout, influence the Democratic presidential primary choice, and affect all of the legislative races next year.

Meanwhile, approval ratings for Congress remain low even in the wake of Democratic control of the US House of Representatives. Today, just 24% of California likely voters approve of the way that Congress is doing its job. This is unchanged from the start of the year—as well as from a year ago when Republicans controlled the House. In California, likely voters across party lines give low approval ratings to Congress. If this trend continues, incumbents will have to work harder to keep their seats in 2020.

Closer to home, Governor Newsom and the legislature are getting mixed reviews in their first year of making policy together. Among likely voters, 43% approve and 44% disapprove of the governor, while 38% approve and 51% disapprove of the legislature. Since the beginning of the year, disapproval has increased significantly for the governor (+15 points) and the legislature (+8 points). Today, more than six in ten Democrats approve of the job that the governor and legislature are doing, compared to fewer than four in ten independents, and less than two in ten Republicans. If their ratings remain in the doldrums, the governor and legislators will have little sway over Californians’ ballot choices next year.

Equally important, California’s likely voters are in a negative frame of mind about the state of their state—even in the midst of low unemployment and budget surpluses. Fifty-four percent say that things in California are going in the wrong direction (41% say right direction). When asked about economic conditions in California for the next 12 months, a similar 54% expect bad times (37% say good times). Pluralities across party lines are now expecting bad economic times in the next 12 months—a timeframe that includes most of the 2020 election campaign season.

State bonds and tax measures will face headwinds if this level of economic unease continues. This is already evident in the modest support for the $15 billion school bond (54%) and the split-roll property tax initiative (47%) in our recent survey.

Digging deeper into the survey, more than six in 10 likely voters worry about being able to afford the cost of their health care, six in ten are concerned about the threat of a mass shooting where they live, half are worried about experiencing natural disasters such as wildfires, and four in ten worry about someone they know being deported. Candidates’ promises and plans to address these fears will likely impact the standing of current frontrunners Joe Biden, Bernie Sanders, and Elizabeth Warren—and their challengers—in a Democratic presidential primary which is very much up for grabs, as our recent survey shows.

How will voters’ views change over the next 12 months? Clearly, the political wildcard is the impeachment inquiry and how it will impact perceptions of the president, Congress, and the major parties. Uncertainty about the economy is another unknown factor. In the short run, the impeachment inquiry is likely to increase polarization, lead to more political gridlock in Washington, and heighten expectations for the governor and legislature to do more to solve the problems facing California.

PPIC Statewide Surveys will continue to monitor the broader political and economic attitudes, as well as voters’ preferences for presidential candidates and ballot measures, throughout what will be a consequential 2020 election.

Californians Favor Funds for School Construction

With little time to spare, the legislature last week passed a $15 billion school construction bond. A signature from Governor Newsom will place the bond measure—called the Public Preschool, K–12, and College Health and Safety Bond Act of 2020—on the March 2020 primary ballot. Given Californians’ general support for funding education, how do they feel about bond measures for school construction projects?

It’s important to note that the PPIC Statewide Survey has not yet asked Californians about this particular measure, which would provide funding across K–12 and higher education systems. However, we have consistently found that Californians are supportive of bonds for each system individually. (We did not ask about specific dollar amounts.)

In our April survey, about six in ten adults (62%) and likely voters (57%) said they would vote yes on a bond for K–12 school construction projects, while in November 2018 two in three adults (66%) and about six in ten likely voters (57%) supported a bond to pay for construction projects in California’s public higher education system. In both surveys, there was majority support across regions and demographic groups—except among whites (47%) for the K–12 bond. For both types of bonds, support was lower among whites than other racial/ethnic groups, and support decreased as age and income levels rose.

Despite this widespread support for these bonds, we found a significant partisan divide. For both bond questions an overwhelming majority of Democrats as well as smaller majorities of independents have been in favor; far fewer Republicans have been.

With California set to play a prominent role in the March Democratic presidential primary—potentially drawing large numbers of Democratic voters—this partisan divide could play a role in passing the bond.

We still don’t know how Californians will perceive this particular bond—in terms of the dollar amount or the joint funding of K–12 and higher education. Stay tuned for more from the PPIC Statewide Survey as we will track support for this bond, as well as many other important 2020 election issues.

LAUSD’s Measure EE and the Parcel Tax Vote Threshold

On June 4, voters in the Los Angeles Unified School District (LAUSD) will decide the fate of Measure EE, a historically large parcel tax that would generate about $500 million a year. Like all parcel taxes, Measure EE has a high bar to clear: two-thirds of voters must approve it. More than half of all proposed parcel taxes have cleared this bar since 2003.

The California Legislature is considering a constitutional amendment to lower the parcel tax vote threshold to 55%. If the legislature approves this proposal, California voters will weigh in. The amendment’s success at the ballot box is far from certain: the April 2019 PPIC Statewide Survey found that just 39% of likely voters would favor such a measure. But what might happen if the legislature and voters did ultimately approve the lower vote threshold? If the state’s recent experience with school bond measures is any indication, we would expect to see more parcel taxes placed on the ballot, with more of them passing.

The parcel tax is a California phenomenon. Proposition 13 (1978), which placed strict limits on commercial and residential property taxes, included a provision allowing cities, counties, and other districts to impose “special taxes” if two-thirds of voters approved. While the majority of parcel taxes levy a flat dollar amount per parcel—a lot or piece of property—Measure EE ties the dollar amount to the square footage of the building(s) on each parcel.

California voters lowered the approval threshold for school and community college bond measures to 55% when they approved Proposition 39 in 2000. The passage rate for K–12 bonds increased from 62% in the five-year period before Prop 39 to 79% in the five-year period after it was approved, and both the number of measures and rate of passage for K–12 bonds have been rising since 2011. This increase is especially striking given that the median bond amount has more than doubled (from $20 million to $45 million) since the threshold was lowered.

The trend has been similar for community college bond measures, though there are far fewer community college districts (73) than school districts (1,026) in the state. After Prop 39 passed, more colleges placed measures on the ballot—especially from 2001 to 2005—a higher share passed, and bond amounts increased. Passage rates increased from 42% before Prop 39 to 86% since 2011. The median amount has more than tripled since 1996 (increasing from $87 million to $350 million).

The vote on Measure EE will be important for LAUSD—the resources that the parcel tax would generate are critical to the district’s future finances. The vote will also be worth watching with the pending constitutional amendment in mind. If the measure is approved, lawmakers may see less need for lowering the parcel tax threshold. If it is defeated, the amendment may gain momentum.

Money Measures and the November Ballot

Earlier this year, we looked at how voters responded to the 107 money measures on the June ballot. The November election featured a considerably larger number of taxes, bonds, and fees: local governments asked voters to make decisions on 397 money-related questions, by our count. Most of these measures passed (314 or 79%), though success rates varied across types of taxation or borrowing.

Overall, most bonds passed (98 of 128), but the share of successful bonds for K–12 schools and community colleges (92 of 116, or 79%) was higher than the share of general obligation bonds in other spending areas (6 of 12, or 50%). Since Proposition 39 (which passed in 2000) lowered the passage threshold for school bond measures to 55%, more than 1,400 school bonds have been placed on ballots, and voters have approved more than 80% of them. Of the 92 school bonds that passed this year, 65 met the 55% threshold but fell short of a two-thirds majority.

Parcel taxes, California’s unique way of increasing property taxes in the Proposition 13 era, were the least successful type of taxes on the November ballot. However, voters did approve 60% of these measures (36 of 60), which is in line with their historical success rate. Most parcel taxes proposed by school districts passed (11 of 16, or 69%), while those placed on the ballot by fire districts were less successful (9 of 19, or 47%).

Through 2017, local governments had proposed 80 measures to tax cannabis businesses, generally based on gross receipts, size (measured in square footage), or some combination of the two. On the November ballot, there were 75 cannabis tax measures. As has been the case historically, voters approved the vast majority (69, or 92%).

Is California shedding its reputation as an anti-tax state? The fact that local measures have been successful nearly 80% of the time does not necessarily reflect voter support for taxes in general. According to recent PPIC Statewide Surveys, a majority of Californians feel that their tax burden is greater than it should be and see Proposition 13 as “mostly a good thing.” Also, savvy local leaders put money measures on the ballot only when polling or canvassing suggests the probability of passage is high.

A more precise interpretation of recent results might be that local governments have been very successful at identifying the type of taxes and purposes around which they can mount successful campaigns. Moreover, recent local measures have been put before voters during a period of economic growth. It will be interesting to see if they continue to succeed going forward.