September 30, 2008 - Gov. Schwarzenegger Vetoes Caballero School Funding Bill

AB 2173 Would Have Revised Developer Fee Rules to Raise More Money to Build Schools
SACRAMENTO – Gov. Arnold Schwarzenegger today vetoed a bill by Assembly Member Anna Caballero (D-Salinas) that would have helped public schools raise the funds they need to build new schools in communities that are building new housing. The bill carried no cost to the state of California or taxpayers.

The governor’s used boiler plate language to explain his veto of AB 1028, along with dozens of other bills, saying, "I am only signing bills that are the highest priority for California. This bill does not meet that standard."

AB 2173 sought to change rules adopted 10-years ago that govern the fees that cities can impose on developers to fund schools.

“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,” said Assembly Member Caballero.

“We were successful in brokering a remarkable agreement between education and the builders’ that would have benefited our children,” said Caballero. “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 called for a shared effort by both developers and school officials. Builders agreed to pay for additional school construction costs beyond the base per-pupil grants, such as costs associated with geographic variances and individuals with exceptional needs. Districts agreed to file timely applications for funding with the state, funding which is often reimbursed to developers.

“The current rules are 10 years old, and they don’t fit our current needs,” said Caballero. “I intend to keep working on this issue. We can’t give up. The need is too great.”

Caballero introduced the bill last spring after talking with members of the Gilroy Unified School District board of trustees and the major of the city of Gilroy about the deficiencies of the current developer fee program.

AB 2173 was sponsored by the Coalition for Adequate School Housing, an association of school districts and county boards of education that was formed in 1979 to work for school infrastructure.