ABUNDANCE OF BONDS SCHOOL LEADERS HOPE BACKERS WON'T FLINCH.

Byline: Jill Tucker Staff Writer

Supporters of Proposition 55 on the March 2 ballot are counting on voters to shake off sticker shock and approve the $12.3 billion bond issue to finance public school facilities from kindergarten through university level.

Political observers, however, say debt-fearing voters - facing the combined $27.3 billion in long-term debt represented by Proposition 55 and Gov. Arnold Schwarzenegger's $15 billion recovery bond, Proposition 57 - could be struck by an overwhelming case of sticker shock.

``In a perfect world, we wouldn't want to make those decisions,'' said Mike Bowman, spokesman for California Business for Educational Excellence, a coalition that has endorsed the initiative. ``In a perfect world, we wouldn't want to be in this situation.''

If both bond measures pass, the state would add $1.2 billion to its annual debt payment in 2004-05 and increase it moderately in subsequent years, according to the nonpartisan Legislative Analyst's Office.

If both measures pass, the total debt payment next year would be about $4.7 billion - a debt ratio of about 6.5 percent, topping the 6 percent guideline favored by authorities in government finance.

That would be too much, according to the California Republican Assembly, a conservative grass-roots political organization that sponsors the Web site ProtectTaxpayers.com to oppose Proposition 55.

``California is in the midst of the worst financial crisis in its history,'' a writer for the group says on the Web site. ``We need more schools, not more debt for taxpayers.''

But supporters of the school bond say the state can't afford to reject the measure.

``This is critical,'' said Jack O'Connell, state superintendent of public instruction. ``We cannot ignore a generation of kids.''

The state will need 22,000 more classrooms in the next five years to meet enrollment increases, he said. Add maintenance and modernization needs - including seismic upgrades - and the total five-year demand reaches $17 billion, he said.

Proposition 55 would split its $12.3 billion in proceeds: $10 billion for facilities in kindergarten through 12th grade and $2.3 billion for the state's university and college systems.

To qualify for the money, local districts must raise matching funds, typically through local bond measures or developer fees or both.

``The day (Proposition 55) passes, we will still see a shortfall,'' added O'Connell, who also supports Proposition 57.

O'Connell isn't alone in supporting both bond measures.

Schwarzenegger supports Proposition 55, too, although he has never formally announced his position and has so far generally avoided the topic as he travels the state to promote Proposition 57.

``Both measures are important for different reasons,'' O'Connell said. ``It's not an either-or.''

About 100 statewide organizations have endorsed Proposition 55, from the Gray Panthers to the Painting and Decorating Contractors of California. Nearly 300 local groups - from the Chinese Chamber of Commerce of Los Angeles to the Woodside School District - also have signed on.

Opponents include Lewis Uhler, president of the National Tax Limitation Committee based in Roseville, Calif., and state Sen. Rico Oller, R-Granite Bay.

jtucker(at)angnewspapers.com

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