PROPOSITION 39

On November 7, 2000, the voters of California approved the Smaller Classes, Safer Schools and Financial Accountability Act (“Proposition 39”). 

General Obligation Bond Provisions:

Use of Funds

Bond funds can only be used for construction, reconstruction or replacement of facilities. Can include furnishing and equipping of facilities, or the acquisition of real property for facilities. Cannot include salaries or other operating expenses. The cost of the independent audits required by Prop 39 cannot be absorbed by bond funds - they must be paid out of district operating funds.

List of Projects

A list of the projects to be funded by the bond must be provided to the voters. The Compton Community College District (CCCD) Board of Trustees must also certify that safety and information technology have been considered in developing the list of projects.

Required Audits

The CCCD Board of Trustees must conduct an annual, independent performance audit to ensure that funds have been expended only on the specific projects listed. The CCCD Board of Trustees must conduct an annual, independent financial audit of the proceeds from the sale of bonds until all funds have been expended for the facility projects.

AB 1908 Requirements

In addition to Prop 39 provisions, AB 1908 became effective with the voters' approval of Prop 39. The additional provisions under AB 1908 include:

• Board Approval
  Two thirds of the Governing Board must approve placing a bond issue on the ballot. The Board of Trustees must formally decide whether to seek approval at the 2/3 level or the 55% level. Once the 55% approval is sought, the district must comply with all provisions of AB 1908, even if the bond is approved by a 2/3 majority.
• Election Dates
  The bond can only be included on the ballot of a statewide primary or general election, a regularly scheduled local election, or a special statewide election. 
• Property Tax Rate
  The tax rate levied for a bond election is limited to $25 per $100,000 of assessed valuation for community college districts.

Oversight Committee

Within 60 days of voter approval of a bond, the Governing Board is required to appoint an independent citizens oversight committee. The committee is charged with the following:

• ensuring that funds are used appropriately
• receiving and reviewing the annual audits
• inspecting facilities and grounds to ensure compliance with Prop 39
• reviewing deferred maintenance plans
• reviewing cost-saving efforts by the district to maximize bond revenues and make recommendations

The CCCD Board of Trustees must provide technical and administrative assistance to the committee, and provide funds (not bond funds) to permit the committee to publicize their conclusions. Proceedings of the committee must be open to the public and they must issue a report at least annually.

Oversight Committee Membership

The committee must consist of at least seven members. No employee or official of the district may serve on the committee. The individuals who must be included on the committee are:

• a person active in a business organization representing the business community within the district
• a person active in a senior citizens organization
• a person active in a bona fide taxpayers organization
• one enrolled student who is active in a group such as student government
• one person who is active in a group supporting community colleges, such as an advisory council or foundation