i.5.2.1 Proposition 39 General Obligation Bonds

School districts may issue general obligation bonds with 55% voter approval if they meet certain requirements with regard to expenditures, tax rates, and oversight of the bonds.34 Districts that issue these bonds must establish an oversight committee “to inform the public concerning the expenditure of bond revenues.” The committee’s duties will be to “actively review and report on the proper expenditure of taxpayers’ money for school construction.”35 Education Code also requires school districts to conduct oversight and identifies penalties to be assessed against school or community college districts that do not appoint an oversight committee. Districts that avail themselves of the authority to issue these bonds must also complete an annual independent financial and performance audit and provide this to the oversight committee.36