Bates v. Poway Unified School Dist.
Annotate this CaseIn 2014, Poway Unified School District (the District) constructed a new elementary school. The $82 million project was funded primarily by special tax bonds paid for by homeowners in local communities. Approximately four years later, following the passage of Proposition 51, the District received reimbursement funds from the State of California ($27,672,923). The District allocated a small portion to retire local bonds but used a larger amount toward new high priority outlay expenditures. Two homeowners, Albert Bates and Bridget Denihan, disagreed with the District’s fund allocation decision and filed a petition for a writ of mandate and a complaint for declaratory and injunctive relief. The trial court denied all relief and entered a judgment in the District’s favor. On appeal, the Homeowners contended California Code of Regulations, title 2, section 1859.90.5 and Education Code section 17070.631 required the District to allocate all newly acquired “State Funds” toward retiring the local bonds, unless it could prove there was a savings during construction (but there was none). The Court of Appeal concluded the Homeowners’ arguments had merit, and reversed the judgment.
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