FAQ 72

What are Some Common Problems with Bond Spending?

It must be understood that the following is not a complete list of such problems – and the number of variations on each question below is massive.

1. There is spending for capital projects not included in the bond project list approved by the voters.
2. There is spending for non-capital purposes.
3. Proper procurement and project control procedures were not followed, or were not properly documented.
4. The district does not have (employee and/or contractors) personnel with the skills necessary to manage major capital programs and projects and/or has a deficient organizational makeup and delegation of duties and responsibilities.
5. The district does not have the systems and procedures necessary to manage major capital programs and projects.
6. The district has attempted to begin construction too quickly for political purposes, resulting in poor project selection, design, and/or management.
7. The district has failed to comply with all statutory, regulatory, and contractual requirements, including not performing annual financial and performance audits.
8. The district has failed to have sufficient outreach to the various communities it serves.
9. The district has not properly interacted with the California Division of the State Architect.
10. The district has not properly interacted with the appropriate local fire marshal prior to the school facility opening
11. The district has not done outreach to construction contractors and construction trades to help ensure that there will be competition for construction projects and sufficient workers to get the work done.
12. The district does not have proper claims and change order procedures or does not follow them.
13. There are bonds issued, or proposed to be issued, for terms longer than 30 years (generally speaking, bonds should be issued for the shortest possible period), and/or the district has issued capital appreciation bonds (also referred to as “zero-coupon” bonds).

(See also FAQs 10. and 14., “What can be funded with bond proceeds and what is not permitted?,” and Can any operating costs be funded with bond proceeds?”)

FAQs: https:/bondoversight.org/california-bond-oversight-committee-faq

Please Complete a Short Survey Regarding CABOC's Direction https://lp.constantcontactpages.com/sv/LhjAqTX

Interested in Furthering Your Knowledge on School Districts?

In collaboration with UC San Diego, the San Diego Taxpayers Educational Foundation is offering an elective course “Education: Performance Management” in their accredited Certificate in Community Leadership. This course equips civically engaged citizens like you with the tools to consider and develop the benchmarks your local school districts should be hitting and to budget strategically to those outcomes! 

Registration for the course is open right now, and it will be running from July 1 to July 26. $495

Register Here: https://extendedstudies.ucsd.edu/courses-and-programs/education-performance-management

Disclaimer: This course is not affiliated with CABOC. CABOC promotes bond education for effective management to the community and CBOC members. This course is offered through the San Diego Taxpayers Educational Foundation.