California school districts continue to face severe budget pressures as utility and construction costs soar, making it difficult to maintain quality education while managing school infrastructure. (See Table 12.)

Construction costs have increased year-over-year since 2020, with supply chain delays extending equipment delivery to 6-12 months or longer. Districts postponing infrastructure projects often face 1.5-3 times higher construction costs than original estimates.

These fiscal challenges are potentially exacerbated by AB 218, which extends the statute of limitations for filing claims of childhood sexual assault, leading to significant increases in insurance liabilities for districts across California. Districts must complete their master plans and find savings within their budgets to maintain fiscal stability while ensuring safe and energy-efficient learning environments.

Proposition 2: A Strategic Solution for Schools

Proposition 2, California’s bond with $8.5 billion for K-12 facilities, offers help to mitigate these budget challenges. By implementing modernization pro-jects, districts can address deferred Company maintenance and aging infrastructure, lower operational costs and provide relief to their budgets.

Why Proposition 2 Matters: Equitable Funding and Long-Term Support

Proposition 2 establishes a sustainable funding framework through 2033, requiring districts to develop and submit a five-year facilities master plan. The program addresses historical funding inequities by providing greater support to small and disadvantaged districts.

“California school districts are at a crossroads. The combination of rising energy costs, aging infrastructure and increased insurance liabilities puts a real strain on our ability to prioritize student learning,” said San Bernardino City
Unified School District Director of Facilities Planning and Development & California Coalition for Adequate School Housing (CASH) Chair Thomas Pace. “Proposition 2 offers a lifeline – but districts need to act decisively. By investing in smart infrastructure now, we not only reduce long-term operational costs, but we ensure our schools remain safe, healthy and sustainable environments for students and staff alike.”

Steps for Districts to Take Now

With a three-year processing timeline and limited funding, districts must act quickly to capitalize on this transformative opportunity. Key steps include:

1. Evaluate your master plan and facilities to identify infrastructure modernization projects.
2. Partner with an energy service provider to implement these projects.
3. Identify opportunities for financial support.

By investing in energy-efficient solutions now, districts can ensure that more re-sources remain available for what matters most: educating the next generation.

By Jack O’Connell, Former State Superintendent of Public Instruction and Thomas R. Jackson, Corporate Vice President Sales and Major Projects, Climatec Energy – A BOSCH Company