March 18, 2010
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Federal investment would support ‘shovel-ready’ projects


03/09 -- Thousands of school districts around the country have “shovel ready” construction projects that would benefit from the economic stimulus package under consideration in Congress.

A survey conducted by NSBA, which yielded 1,300 responses from school officials in 41 states and the District of Columbia, identified more than 1,000 capital projects worth approximately $17 billion adversely affected by the troubled economy.

The extra money would be a boon to districts like North Carolina’s Onslow County Schools, which has more than $220 million in construction and renovation projects ready to go as soon as funding becomes available, Assistant Superintendent Jeffrey Hudson says.

Across the nation, many of the projects have been approved but not funded due to sharp declines in state and local revenue.

In some cases, districts have shifted capital funds to operating expenses to make up budget shortfalls. In others, districts’ investment funds have lost value, the credit crunch has made it more difficult to borrow, the poor bond market has made it harder to sell voter-approved bonds, and it’s become harder to convince voters to approve bond issues to finance projects.

Onslow County’s facilities needs stem from ongoing and projected enrollment growth, says Hudson. Troop increases have been approved for two Marine facilities in the area -- Camp Lejeune and New River -- and the school system is bracing for an influx of as many as 3,000 new students.

Even though the district built two new elementary schools with funding from a $90 million bond passed in 2005, Onslow County still has nearly 200 mobile classrooms. Hudson estimates the district will need six new schools within the next 10 years.

The district has schools that date back to 1926, and some buildings still have window air conditioning units and single-pane windows. Land has been secured for new schools to replace the oldest buildings, and the district has prototype designs for a new elementary school and new classroom wings that can be duplicated quickly.

New York’s Syracuse City School District has $68 million worth of construction projects approved, designed, and ready to go, including $49 million worth of projects that will be ready to start in 180 days, says facilities director Thomas Ferrara.

Like Onslow County, the district has some schools built in the 1920s or 1930s that Ferrara says desperately need to be upgraded. Many buildings need new boilers, windows, security systems, sound systems, and various upgrades to improve energy efficiency.

The biggest project on the district’s wish list is a $41 million plan to convert a traditional vocational school into a much larger Institute of Technology High School.

The district needs federal funding for the projects because it relies on funding from the city of Syracuse and the city has just about reached its debt limit, Ferrara says. Also, with a declining tax base and cuts in the district’s operating budget, the city can’t come up with the required local match for school facility projects.

In Arizona, Phoenix Elementary School District #1 has $34 million worth of school construction and renovation projects already approved by the school board, says Assistant Superintendent Kenneth Baca.

Local voters approved a $19 million bond in November, Baca says, but the district wants to avoid a second bond sale because “that would be a burden on taxpayers already hard hit by job losses and foreclosures.” And raising taxes now would discourage voters from supporting bonds in the future, he says.


Reproduced with permission from School Board News. Copyright © 2009, National School Boards Association. Opinions expressed in this newspaper do not necessarily reflect positions of NSBA. This article may be printed out and photocopied for individual or educational use, provided this copyright notice appears on each copy. This article may not be otherwise transmitted or reproduced in print or electronic form without the consent of the Publisher. For more information, call (703) 838-6789.


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