News items come from the U.S. Department of Educations's National Clearinghouse for Educational Facilities (NCEF).
Costs of new schools coming due
TRAVIS M. WHITEHEAD, Valley Morning Star
July 26, 2014
-- HARLINGEN — The Harlingen school district is repaying three construction bonds for a variety of projects, ranging from new schools to a performing arts center and new Ag Farm to an aquatics center.
Two of those bond packages, one issued in 1999 and the other in 2010, required tax increases totaling 17.8 cents, Julio Cavazos, assistant superintendent for business services, said.
The district, he said, also purchased $13.9 million in Qualified School Construction Bonds in 2013. These bonds were sold to finance the construction of the Harlingen School for Health Professions. The QSCB is a federal program and did not require a tax increase, and the bonds are repaid from the district’s maintenance and operations fund.
In 1999, the Harlingen district sold $80,270,000 million worth of bonds, Cavazos said. Voters approved the bond package, and the accompanying tax increase of 8.5 cents per $100 of property valuation.
The state Instructional Facilities Allotment grant is paying 47 percent of this debt, which amounts to $2,421,169, with the district paying $2,730,255 per year on these bonds. The outstanding balance is $54,990,000 on bonds that will mature in 2029.
The money from those bonds was used to build Vela Middle School and Rodriguez Elementary School, as well as renovations to the district’s central administration building and the home field side of Boggus Stadium.
These bonds also paid for classroom space that was added to several campuses, and two mini-stadiums built at Harlingen High School and Harlingen High School South.
“The (junior varsity) team plays there,” Cavazos said. “They all have a track.”
School district spokesman Shane Strubhart said the money was also used to build a field house at each mini-stadium for a weight room and shower facilities.
The $98.6 million bond issue of 2010 required another vote. Taxpayers voted approve the bond sale that would raise their taxes another 9.3 cents per $100 in property value. The district currently owes $87,285,000 on these bonds. An annual payment of $6,385,000 is made to pay these bonds.
The American Reinvestment and Recovery Act pays $1,000,090 on these bonds, bringing the payment down to $5,295,000. The Instructional Facilities Allotment grant pays $2,488, 650, and the district pays $2,806,350
Summer fix-ups for aging facilities add up for Modesto schools
Nan Austin, The Modesto Bee
July 24, 2014
-- Truckloads of black asphalt poured stripe after stripe over the aging blacktop of Tuolumne Elementary School. New Principal Heather Contreras looked beyond the brilliant black to the parched field behind, a gold shag carpet of dry grass.
“They’ve told me it will be green by the time school starts. As soon as the paving’s done, the water goes on,” Contreras said Thursday, her voice a mix of hope and excitement. That gives the parched pasture just over two weeks to change its color palette before kids return Aug. 11.
Outdoor renovation of the 64-year-old campus included steps and wheelchair ramps to manage a 5-foot drop in grade between the school and its playground, and freshly poured concrete walkways angled to accommodate up to a 3-foot shift between classroom wings.
The paving trucks will move on this week to La Loma Junior High. Playground striping will be the finishing touch for John Muir Elementary. Work is still going on at Beard Elementary, where road construction has held up progress, said John Liukkonen, district director of maintenance and construction. “Beard’s got me nervous,” he said.
This has been a fix-up summer for Modesto City Schools, with dozens of projects long delayed by the recession going on all at once.
Many Pennsylvania school districts wait for millions in state reimbursements
Mary Niederberger, Pittsburgh Post-Gazette
July 24, 2014
-- It appears the 200 school districts across the state, including 13 from Allegheny County, that are awaiting millions of dollars in state reimbursements for construction projects will continue to wait.
The reason: Legislators included only a modest increase to the reimbursement fund of the PlanCon program that since 1973 has provided partial reimbursements to districts for new construction or renovation of buildings.
The $10 million increase to the $296 million annual PlanCon fund for distribution is not expected to have much effect on the backlog of payments that has existed for several years, given that Allegheny County districts alone are owed more than $18 million.
Along with providing the increase, the new state budget signed by the governor on July 10 ends the October 2012 moratorium on districts‘ ability to apply for PlanCon reimbursements, a moratorium set in place because of the backlog of payments. But the ending of the moratorium largely means that more districts can get in line for reimbursement that may be years away.
An alphabet soup
PlanCon is an acronym for the Planning and Construction Workbook of the state education department. The state has provided reimbursement for school construction since the 1950s, but the process as it is known today has been in effect since 1973. The passage of Act 34 at that time created a complicated 11-step process with parts A through K required for partial reimbursement for school construction and renovation costs. The process is voluntary but mandatory for districts that want state reimbursement.
A project is eligible for reimbursement upon its approval of part G but does not get funded until approval of a PlanCon Part H application.
The clog in the pipeline exists after approval of part G. Of the 338 projects currently in the PlanCon pipeline, 200 have been approved through Part G.
“Everybody who is waiting is waiting for approval of H and [the state Education Department doesn’t] want to approve it, because if they approve it then they have to pay,” said Richard Liberto, business manager of the Penn Hills School District, which is owed $4 million in reimbursement on its $64 million high school project. The district is also currently finishing a new $40 million elementary school project that is also in the pipeline for reimbursement.
School construction work added 95,000 jobs, report says
Jennifer Fenn Lefferts, Boston Globe
July 24, 2014
-- In the 10 years since the Massachusetts School Building Authority was created, the agency has distributed $10.5 billion to help build and renovate hundreds of schools to improve the quality of education around the state, but the funding also has played a significant role in creating jobs and generating tax revenue, a new report shows.
The economic impact was particularly meaningful during the recent downturn, which hit the construction industry hard, according to the report, written by Alan Clayton-Matthews and Barry Bluestone of the Northeastern University Dukakis Center for Urban and Regional Planning. The building authority commissioned the report to find out what kind of impact its investments have had on the state’s economy.
“Taxpayers have a right, when they spend money, particularly $10.5 billion, to say how are you doing, what happened, what are your results,’’ said state Treasurer Steve Grossman, who serves as the chairman of the authority’s board of directors. “People need to be reassured that we are on the right track for how we are doing the taxpayers’ business. We have schools, roofs, and boilers, but in addition, it’s about jobs, taxes, revenues, and economic impact.’’
The report, released last month, suggests that between fiscal year 2005 and the year that ended June 30, the spending by the authority led to the creation of nearly 95,000 jobs and generated $4.5 billion in total employment earnings. The boost to the economy also led to approximately $411.9 million in additional state revenues — $296.3 million in personal income taxes, $67.1 million in sales taxes, and $48.5 million in business taxes — the report says.
The report also states that the estimates pertain only to the state funds allocated to cities and towns for their school construction projects, and do not include the local funding contributed by each community for the construction, renovation, and repair work.
“That much of this investment occurred while the economy was suffering the effects of the Great Recession suggests that MSBA activity played a significant role in boosting what otherwise would have been even more dire economic straits, putting unemployed workers to work, increasing consumer spending power, and augmenting the state treasury,’’ the report states.
Gov. Jerry Brown resists unzipping school construction wallet
George Skelton, LA Times
July 23, 2014
-- Who can be against building, modernizing or repairing schools? It's good for children and creates jobs.
It improves learning and stimulates the economy.
It's like motherhood and apple pie. Who dares dump on that?
Well, behind closed doors in the Capitol, a debt-dumping governor, for one.
There's a school construction bond bill that has sailed through the Assembly and five committees with 122 "yes" votes — Democrat and Republican — and not a single "no." But its chances of passing the Senate and making it to the November state ballot seem slim.
Although Gov. Jerry Brown has taken no position publicly, he has strongly signaled his resistance privately.
And that's being reflected among the Democratic Senate leadership.
Senate President Pro Tem Darrell Steinberg (D-Sacramento) is focused on trying to negotiate a water bond, regarding that as a much higher political and policy priority.
Steinberg is termed out this year and feels personally responsible for crafting a new water bond. He negotiated the last one in 2009, a pork-laden, $11.1-billion stinker that has twice been pulled off the ballot for fear of voter revulsion.
Brown — casting himself as a debt-fighting fiscal conservative — never wanted even a water bond on the ballot as he ran for reelection to a fourth term. But the drought has forced him to accept at least a smaller version of what the Legislature had been proposing.
Senate Democrats were pushing $10.5 billion. Brown said he'd accept $6 billion. So figure on maybe $8 billion.
Let's not forget, of course, that the taxpayers' cost of a bond is actually twice the sticker price when you add in interest over 30 years.
The state's outstanding general obligation bond debt is $76 billion, according to the governor's office. That currently amounts to a $5.2-billion annual hit on the general fund. Plus, there's $25 billion in bond borrowing that has been authorized but not used. Additionally, there's a $27-billion "wall of debt" that includes money owed to local governments, schools and special funds.
Rockford Public Schools 10 Year Plan: Close 8, Build 2, Consolidate
SUSAN STEPHENS, Northern Public Radio
July 23, 2014
-- A plan to close eight Rockford elementary schools and build two new ones is on its way to a vote by the school board. Last night, the school district held the last of 39 public meetings about the proposal.
Administrators settled on the plan after collecting more than one-thousand comments from the public. It’s a combination of the three proposals first presented in May. Rockford School superintendent Ehren Jarrett says he’s proud of the transparent process: “I think the fact that we DID make some significant changes shows that number one, we don’t have all the answers, or believe we do, and we really value community input when it comes to making a 250-million dollar decision."
Much of that funding comes from a referendum approved in 2012. But that was only supposed to pay for school improvements, NOT new buildings. So the district is expected to go back to voters this fall for permission to build two new schools. The Rockford School Board will vote on the entire proposal at its August 12th meeting.
Lawsuit Over Closure Of D.C. Schools Dismissed By Federal Judge
Matt Cohen , dcist
District of Columbia:
July 22, 2014
-- A federal judge has dismissed the remaining claims of a lawsuit filed against D.C. Public Schools Chancellor Kaya Henderson over the closure of 15 D.C. schools.
When Henderson announced in January of 2013 that 15 public schools would close by the end of the 2014 school year, activists with Empower D.C.—a social change community organization—filed a lawsuit to stop the school closures, claiming that they were discriminatory, disproportionately affecting minority students and students from low-income families. According to the Post, black students accounted for 93 percent of the students affected in the closures.
Empower D.C. also argued that the decision for the school closures—all of which saw under-enrollment, according to Henderson— was to free up the buildings for new charter schools and to pay bonuses for teachers, a disproportionate number of which, the plaintiffs argued, work in schools that have a majority white student enrollment.
Although U.S. District Judge James E. Boasberg originally dismissed most of their lawsuit in October, he let parts of the lawsuit—a civil-rights claim that the closure of schools by Henderson was racially motivated—move forward. However, in an opinion released on Friday, Boasberg dismissed the rest of the lawsuit, writing that "although Plaintiffs dislike charter schools, performance pay, and the increasing number of D.C. school closures, there is simply no real evidence that these policies are discriminatory."
He added in his 29-page opinion that "no one is denying that the racial disparities in the recent closings are striking. In the closed schools, after all, a startling 93 percent of students were black and fewer than 0.2 percent (six students) were white. But here, the disparity appears to be caused by the location of the under-enrolled schools, not by intentional discrimination."
But Empower D.C. says they're going to appeal the decision. "The plaintiffs in this case would be happy for their schools to reopen, though it would be too late for their children whose education was already interrupted," the group writes on their Facebook page. "They want the schools to be restored for other children, though, and for discrimination in D.C. Public Schools to stop."
Katy ISD to consider massive construction bond for new schools, renovations
Jenny Agee-Aldridge, Houston Business Journal
July 21, 2014
-- The Katy Independent School District will consider a massive bond package to resolve the rapid growth in the area.
A 200-member bond committee will recommend to the board of trustees for the school district to consider a $750 million bond, with 48 percent of that money going toward building new schools in the district.
The district is currently growing by nearly 3,000 students every year.
“Some campuses have so many students that they start lunch service as early as 9:55 a.m. Additionally, we have many aging campuses in dire need of renovations,” said Denisse Cantu, a spokesperson for the district.
If the bond goes to voters and passes, the rest of the money will go toward renovations, expansions safety projects and student activity facilities.
San Diego Unified Receives $34 Million Military Grant to Upgrade 2 Schools
ALEXANDER NGUYEN , Times of San Diego
July 18, 2014
-- A $34 million grant from the U.S. Defense Department will allow the San Diego Unified School District to renovate two elementary schools that serve the Murphy Canyon Navy housing complex, the district announced Friday.
The money will pay for permanent, state-of-the-art classrooms at Hancock and Miller elementary schools in Tierrasanta.
“This generous grant from the Department of Defense will help ensure that the students at Miller and Hancock elementary schools receive a world- class education in a state-of-the art learning environment,” Superintendent Cindy Marten said.
The improvements will include renovation of existing classrooms, replacement of aging portables with single-story permanent classrooms; enhancement of campus security, as well as fire and emergency safety systems; heating, ventilation and air conditioning work; and replacement of old electrical systems and upgrading of the technology network infrastructure.
Also, sidewalks, stairs and accessible ramps will be repaired or replaced, and food service areas will be upgraded.
All 681 students at Hancock and 793 pupils at Miller are military dependents, according to the district.
OPS plan for new schools, renovations has $683 million price tag
Erin Duffy, Omaha.com
July 17, 2014
-- The Omaha school board, with the clock ticking toward signing off on a list of construction projects in time for the November election, will consider a plan Monday that would cost nearly $683 million for renovating and building new schools.
The latest plan, presented at a board workshop Thursday, builds on options that have been discussed for months — two new high schools, in South and west Omaha, and widespread renovations for outdated schools that were passed over in the 1999 bond issue — but also adds central air conditioning for all schools and calls for Beveridge Middle to be replaced.
Some projects under consideration became casualties of budget constraints. So, instead of building two elementary schools in crowded South Omaha, consultants suggest merely buying land for the future schools.
Under the latest proposal, King Elementary wouldn’t be replaced after all, Bryan Middle wouldn’t get an addition, and early childhood education classrooms would be scratched from some elementary schools.
And more trims might be coming, even as the board stares down an Aug. 30 deadline to put a bond issue on the Nov. 4 ballot.
“I think that final number will go down,” board member Marque Snow said.
A $683 million bond issue would be the largest in Omaha Public Schools history and most likely in state history. The largest OPS bond issue to date was $254 million, passed in 1999.
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