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Cabrillo Bond Measure The Vision of Local Workforce Preparation Tom Campbell’s presentation at the Chamber’s Member Lunch, Wednesday, highlighted the importance of community colleges in the California’s economic infrastructure. Campbell, as the state’s former Director of Finance, as a member of the legislature, and as a five-term Congressman emphasized the role that the state’s community colleges play in adapting local workforce skills to rapidly changing demands. Click photo above to watch video The Chamber has long been a strong advocate for Cabrillo and its role in preparing workers for local employment…as well as its role as a cost-effective alternative for the first two years of university-level study. The Chamber’s Board of Directors has endorsed the Cabrillo Bond Measure Q on the June ballot. Factor’s considered by the board in making this endorsement included: The bond would authorize sale of up to $310 million in bonds The Chamber has reviewed the list of projects in some detail. The measure proposes funding to address maintenance and improvements in existing buildings over the next fifteen years. These are real needs and will provide real value to Cabrillo’s students and their families, their future employers, and our economic community. These funds would be used to: Renovate and expand buildings (fee-revenue generating projects) $29,870,000 Maintain, repair, and improve infrastructure $100,028,000 Renovate & modernize facilities $63,542,000 Information technology improvements $100,000,000 Health and Safety Improvements $16,663,000 Preparation of the measure has included detailed projections for these projects. It also includes a second tier of projects with similar characteristics that have been vetted and listed in the measure that could be added to or substituted for others on this list based upon funding needs and evolving priorities. Cabrillo plans to issue these bonds every three years through 2030. The bonds in each issuance will be repaid within 30 years with the final bonds issued paid off by no later than 2059. This provides the college with flexibility. For instance, as workforce requirements change – and, therefore, the training required to prepare workers for jobs – the use of funds can be directed specifically at the most-current requirements and greatest opportunities. As a community with a high cost of residence, top-quality education and workforce development are fundamental elements of every local economic development strategy. While the Chamber continues to work for improvements in housing availability, costs, and transportation efficiency, it is particularly important to prepare current residents for local jobs. Local businesses must increasingly depend on current residents to meet workforce needs as the cost of housing reduces the attractiveness of Santa Cruz County to workers from outside of the area. These bonds will be funded by property taxes at the rate of $23.27 per $100,000 of assessed valuation of all property. Contrary to the implications of some recent communications by those opposing the measure, this is not the same as the current market value of property. Generally, the assessed value is the purchase price plus 1% per year since the year of purchase. While this is not an insignificant commitment for most local households, the calculations that appear in some arguments against the measure fail to reflect that the median assessed valuation in the County is far less than the median value of that property today. As a result, the annual cost to most property owners is less – sometimes very substantially less – than their calculations suggest. There is a significant backlog of capital maintenance and needed investments throughout the County at all levels of government. The Chamber has considered not only the measures on this June’s ballot and those likely to appear in November but other needs that will have to be addressed over the next decade as well. The Chamber prioritizes economic vitality and community prosperity in selecting the measures it recommends to its constituents. The Board recognizes that not all will agree. From the point of view of local economic vitality and the prosperity of local households, however, the Board is persuaded that the benefit of Measure Q to the public good and our economic community significantly outweighs its cost. This is a relatively large bond. In part because of the scope of maintenance and investment necessary today but also because it is funding 15 years of future maintenance and investment. Statewide, community colleges propose such maintenance funding to their communities about every six years. Cabrillo last did so in 2004. We expect that it will not need to do so for more than a decade in the future. While there is some uncertainty about how significant changes in the economic environment (interest rates, inflation, recession, state funding of education) might affect the current plan, it is the Board’s judgment that the longer-term commitment is more likely to be both Cabrillo’s and the communities’ benefit than not. And, because of the spacing of the bond issuance in three-year increments, it is possible to avoid the more serious risks of long-term financing while permitting the College to take best advantage of opportunities as they emerge. We were heartened by Tom Campbell’s enthusiastic support of the community college system. The Chamber continues to be a dedicated advocate for Cabrillo and its Measure Q.
Cabrillo plans to issue these bonds every three years through 2030. The bonds in each issuance will be repaid within 30 years with the final bonds issued paid off by no later than 2059.
As a community with a high cost of residence, top-quality education and workforce development are fundamental elements of every local economic development strategy.
These bonds will be funded by property taxes at the rate of $23.27 per $100,000 of assessed valuation of all property.
There is a significant backlog of capital maintenance and needed investments throughout the County at all levels of government.
This is a relatively large bond. In part because of the scope of maintenance and investment necessary today but also because it is funding 15 years of future maintenance and investment.
We were heartened by Tom Campbell’s enthusiastic support of the community college system. The Chamber continues to be a dedicated advocate for Cabrillo and its Measure Q.