Now that Santa Monica voters have approved Measure QS, the Santa Monica-Malibu Unified School District has shared new insights into expected bond expenditures.
Measure QS, approved in November, authorizes SMMUSD to issue up to $495 million in general obligation bonds for facility improvement projects. During the SMMUSD Board of Education’s Feb. 20 meeting, the board approved the issuance and sale of up to $200 million of the Measure QS pie, slated for a variety of ventures.
With the $200 million issuance, a total of $194,114,000 will be placed into projects, centralized expenses and contingency costs. The costliest projects, both in the range of $37 million, will be the new STEM Building on the campus of John Adams Middle School and the Roosevelt Elementary School Library and Early Elementary project.
Other projects taking up the budget of the first issuance include the Grant Elementary School New Classroom Building ($31.2 million), the Lincoln Middle School 500s Modernization and HVAC ($20.8 million), the Grant Library, Courtyard and Early Elementary project ($18.8 million) and the SMASH Mod/Sitework and Parking endeavor ($16 million). The SMASH project will have the most allocations on the 2025 Q1 list, receiving $4 million in the quarter.
Financial Advisor Jon Isom stated that by issuing $200 million and having a spending plan for the next 18 months, the district shows the Internal Revenue Service (IRS) that it is going to put dollars “to work” and not just sit on funding.
Another reason to move forward quickly with bond issuance, Isom said, is the “exponential effect on construction cost escalation” due to the Palisades Fire. He recommended the district take action before costs go up, with the option to pull the plug on various projects if variables change.
“Our expectation is that, (and) we’re already seeing it, concrete is going to be more expensive, steel is going to be more expensive, wood is going to be more expensive, labor is going to be more expensive because there’s going to be so much demand,” Isom said.
Another potential impact from the fire lies in a Gov. Gavin Newsom executive order on Jan. 16. The order waives any late penalties for property tax payments due on April 10 and December 10 of this year until April 10, 2026, for all-inclusive properties within three District zip codes: 90402, 90265 and 90260.
Isom added that while the district and finance team do not think the bond issuance will be impacted by the order, he said he will return with “more clarity” on the matter before further district decision making occurs.
Measure QS will return to the Board of Education agenda on Thursday, as its latest meeting will award a contract for preliminary services in the Samohi Student Services Building project. The contract, to be awarded to Erickson-Hall Construction Co. in an amount not to exceed $152,154, is the latest step in the Measure QS project part of Phase 4A of the Samohi campus plan.
In addition, district staff will provide an update on Facilities Improvement Projects and budget updates for each bond measure (Measure QS, Measure MM, Measure M and Measure SMS). The study sessions will be followed by a discussion item around having a “reverse floor” for the district fiscal budget.
