Gov. Arnold Schwarzenegger today vetoed an assembly bill that
would have helped Gilroy schools raise the funds to accommodate its
burgeoning student population.
Gov. Arnold Schwarzenegger today vetoed an assembly bill that would have helped Gilroy schools raise the funds to accommodate its burgeoning student population.
The bill, a piece of legislation authored by Assemblywoman Anna Caballero (D-Salinas), was born out of a meeting she had earlier this year with members of the Gilroy Unified School District board of trustees and Mayor Al Pinheiro about the deficiencies of the current developer fee program.
The bill would have made it easier for school districts to levy higher developer fees on new construction projects to pay for key facilities. It aimed to update existing law by ridding it of policies that require school districts to clear a variety of hurdles, including operating multi-track, year-round facilities and housing more than 20 percent of students in portables, before levying steeper developer fees. Currently, the district collects $2.97 per square foot on residential properties and 47 cents per square foot on commercial property, not enough to adequately accommodate the growing student population. Gilroy schools grew by more than 300 students this year.
Additionally, the school board has authorized the sale of $33 million worth of certificates of participation, a debt that was supposed to be paid back by revenues from developer fees. However, a halt on local development is hurting the district, which might have to tap into alternate sources of funding to pay off the certificates.
“I am only signing bills that are the highest priority for California,” Schwarzenegger said. “This bill does not meet that standard.”
Although Superintendent Deborah Flores could not be immediately reached for comment she has said the district and board of trustees had been hopeful that the bill would be made into law.
“Our unmet school facility needs are in the range of $100 million, and we can’t meet them with the current developer fee system in place,” she said earlier this year at a meeting with Caballero.
Gilroyans will be asked to close the gap on the November ballot by authorizing a $150 million school bond.
“The governor’s veto is a huge disappointment to communities and school board members that are struggling to build the safe, functional schools needed in fast-growing communities,” Caballero said.
“We were successful in brokering a remarkable agreement between education and the builders’ that would have benefited our children,” Caballero said. “Getting this kind of cooperation and support from both groups is quite unusual. Both the developers and the educators came to the table to work on a compromise that would provide more money for the school districts to help rehab or build new schools.”
The bill aimed to change rules adopted 10 years ago that govern the fees that cities can impose on developers to fund schools.
“The current rules are 10 years old, and they don’t fit our current needs,” Caballero said. “I intend to keep working on this issue. We can’t give up. The need is too great.”
