Prop. 427 asks Pima JTED voters for $250M bond

Voters in the Pima JTED district will decide Nov. 3 whether to approve a $250 million bond for career and technical education campuses and programs.

Prop. 427 asks Pima JTED voters for $250M bond
Voters in the district will decide Nov. 3 on Proposition 427, a $250 million bond, the first bond request since Pima JTED began in 2007. Caitlin Schmidt / Tucson Spotlight.

Voters in the Pima JTED district will decide Nov. 3 whether to let the career and technical school borrow $250 million, the first bond request in its 19-year history.

Pima Joint Technical Education District is a program based in Pima County providing career and technical education pathways to local high school students. It allows them to study their chosen trades, gain experience while still in high school and earn state certifications.

JTED programs include trades, careers in STEM and a variety of other fields. Its average daily membership has increased by 77% over the last five years, according to its website.

Proposition 427 would allow the district to issue and sell $250 million in general obligation bonds to fund capital improvements.

Proposed capital improvements include money to build, buy, add to or improve new and existing satellite campuses. The work would expand programs in fields such as medicine, welding and electricity and increase student enrollment.

Expanded programming will apply to a range of career options, including engineering, robotics, manufacturing, health care and others.

Roughly $163 million will be directed toward the central campuses, while $63.7 million will be allocated to the satellite campuses. Another $8.25 million will be used for administrative purposes to help further all of the goals.

If approved, the bonds would have an expected term of 15 years, though repayment is not expected to take more than 20 years. Interest rates will change with market conditions, but the district is assuming an average rate of 5% a year. The rate will not exceed 10% a year.

Support news that meets Tucson where it lives.

Give today
Pima JTED students work on computer projects at a program showcase event. If voters approve Proposition 427 on Nov. 3, the $250 million bond would help expand programs in fields such as engineering, robotics and manufacturing. Caitlin Schmidt / Tucson Spotlight.

The district expects to sell the bonds in phases.

The district would repay the bonds with revenue from taxes on the value of taxable property in the district. It estimates the average annual secondary tax rate would rise by 14 cents per $100 of property value.

Under the tax, owner-occupied homes with an estimated value of $250,000 would see an increase of $41 a year, or $615 over 15 years. For a commercial property assessed at $1 million, the cost would be $244 a year, or $3,660 over 15 years. For agricultural or vacant property assessed at $100,000, the cost would be $24 a year, or $360 over 15 years.

The estimated debt schedule shows the bonds would accrue just over $83 million in interest through 2042, bringing the total cost of repayment to $333,010,000. Issuing each series of bonds would cost an estimated $90,000.

The district’s statutory debt limit is currently $166,474,449, and the $250 million in bonds would exceed it. However, Arizona law allows the district to request bond authorization above the limit and issue the bonds when it has the bonding capacity, which it expects to have.

Local leaders have voiced support for the measure.

Alex Jacome, chair of the Pima JTED governing board, said in a letter of support that the bond sale would guarantee the growth of opportunities for students and allow them to gain critical skills.

“Pima JTED provides students with Pathways to Success, State of the Art Programs, Hands on Training, and Soft Skills that give them the basis to meet the needs of our Business and Industrial workforce,” Jacome wrote. “(Prop. 427) will allow Pima JTED to invest in critical classroom space with expansion and construction for new buildings and equipment.”

Alison Flynn Gaffney, CEO of Banner-University Medicine, stressed the growing need for a skilled health care workforce in the region.

“Early access to high-quality career and technical education can open the door to advancing career paths while helping Pima County develop and retain skilled talent,” Flynn Gaffney wrote. “For many students, Pima JTED is the first step toward careers as nurses, medical assistants, surgical technologists, emergency medical personnel, behavioral health professionals, and other essential members of our healthcare community.”

No one submitted arguments opposing Prop. 427, and there is no organized opposition campaign.

Pima JTED will host a virtual information session on Proposition 427 at 10 a.m. Saturday, Oct. 24, where officials will answer questions about the proposed bond and how the money would be used.

💡
The general election is November 3. Pima County voters can register, check their registration or request a mail ballot at recorder.pima.gov.

Ian Stash is University of Arizona alum and freelance journalist in Tucson. Contact him at ianjgs16@gmail.com.

Tucson Spotlight is a community-based newsroom that provides paid opportunities for students and rising journalists in Southern Arizona. Please consider supporting our work with a tax-deductible donation.