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NCEF News summarizes and provides links to news stories about educational facilities nationwide. To search the NCEF News pages quickly, enter a keyword using your browser's "Find on This Page"
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2009
Virginia May Delay Issuing QSCBs Until There Is More Clarity From Congress
Patrick Temple-West, Bond Buyer
December 31, 2009 VIRGINIA: More than $1 billion of bond-financed projects planned by Virginia could be delayed as the state’s new governor confronts billion-dollar deficits for fiscal 2010 and 2011. The triple-A rated state also is waiting to see if Congress will pass legislation to convert qualified school construction bonds into direct-pay subsidy bonds, like Build America Bonds, before issuing a second round of tax-credit QSCBs next year. Investors nationwide have shown limited interest in the tax-credit qualified school construction bonds created by the American Recovery and Reinvestment Act. The QSCB market has languished even as investors have embraced Build America Bonds, also spawned by the ARRA. BABs offer a direct-interest subsidy from the federal government. As of Dec. 11, state and local governments have issued more than $63 billion of direct-pay BABs compared with $2.46 billion of tax-credit bonds, according to Thomson Reuters. This month, the House passed legislation as part of a jobs bill that would offer municipalities a direct-pay subsidy from the U.S. Treasury for QSCBs and qualified zone academy bonds instead of a tax credit. The Senate has not yet considered the bill. Virginia expects to delay issuing its second tranche of QSCBs until there is more clarity from Congress. “We certainly don’t want to leap into them the old way if this new way might be a possibility,” Whitley said. Though she said the state was pleased with its initial pricing on a $61 million QSCB deal from November, the direct-pay subsidy would be “an easier execution.” The limited number of QSCB buyers means that issuers have had to offer supplemental coupons or sell them at a significant discount, said Arthur Anderson, an attorney with McGuireWoods LLP who worked with Virginia on its initial QSCB deal. QSCBs are “just not what was advertised,” Anderson said. “They were supposed to be par instruments.” The conversion to direct-pay BABs will help achieve that result for localities, he said.
West Virginia Stimulus Bond Sales Provide Funds for Schools
Cristina Mutchler, WOWK
December 29, 2009 WEST VIRGINIA: In November, West Virginia sold two separate bond issues that will provide significant funds for secondary schools and higher education institutions throughout the state. Those bond sales are significant because of the low borrowing cost West Virginia was able to achieve, and the high percentage of in-state retail investors. In July, West Virginia became the first state in the country to utilize the Qualified School Construction Bonds program statewide. Gov. Joe Manchin said the importance of maintaining healthy bond rating for the state is paying off for taxpayers. "When it comes to financing our state's needed infrastructure, we're saving millions of dollars because we've been responsible and our bond ratings are very high," Manchin said. "By being able to issue bonds at lower rates, we not only have a smaller debt service, we have more money to put toward essential school projects."
Rating Downgrades of Arizona's Debt Affects School Construction Funding
Richard Williamson, Bond Buyer
December 29, 2009 ARIZONA: Last week’s downgrades of Arizona’s debt by two rating agencies will have its most immediate impact on the sale of $735 million of certificates of participation to raise cash for the financially strapped state early next month. But the continuing negative outlooks from Moody’s Investors Service and Standard & Poor’s illustrate Arizona’s ongoing financial distress as lawmakers continue efforts to balance the budget. With the current budget running $1.5 billion short of revenue, lawmakers next month will also face a $3.6 billion shortfall in the fiscal year starting July 1. Public schools are potentially affected by the downgrades as well. The state’s issuer rating from Standard & Poor’s fell to AA-minus from AA, and the one from Moody’s fell to A1 from Aa3. But the ratings on the Certificates of Participation (COPs), which are used to finance school construction, dropped to A-plus from AA-minus and to A2 from A1. The downgrade affects the underlying rating of $580 million of certificates issued by the Arizona School Facilities Board in November 2008. The school COPs retain AAA ratings from Standard & Poor’s due to insurance provided by Assured Guaranty Municipal Corp., but that rating has a negative outlook. The 2008 COPs were used to fund construction of school facilities in the current fiscal year and to reimburse the state’s general fund for construction paid for with cash in fiscal 2008 and 2009. Under the school lease arrangements, the School Facilities Board must make lease payments, subject to annual appropriations by the Legislature and annual allocations by the board. The SFB agrees to use its best efforts to make lease payments on more than 20 school facilities under construction or recently completed.
Security Upgrade Coming for Lynn, Massachusetts Schools
Thor Jourgensen , Daily Item
December 28, 2009 MASSACHUSETTS: The School Department wants to boost security in 18 schools this year by installing “key scan” card systems designed to verify a card holder’s identity before admitting the individual into a building. The cost of $75,000 includes installing the access control systems in Fecteau-Leary Junior/Senior High School and 17 elementary schools. School employees will be issued cards to be used with the system. The scan system eliminates the time it takes for an office secretary to buzz a co-worker into a school but it allows administrators to maintain a computer record of people entering and leaving buildings. Most schools are equipped with a buzzer entry system linked to video cameras allowing school employees to observe who is seeking entry to a school. The city’s public high schools are already equipped with the card scan system said Discipline and Attendance Officer Richard Iarrobino. “Constantly trying to make improvements on school security is a major goal for School Superintendent (Catherine) Latham and the School Committee,” Iarrobino said.
Washington and Baltimore Area Private and Public Schools Compete in Greeness
Michael Birnbaum, Washington Post
December 28, 2009 WASHINGTON METRO AREA: Norwood School started buying wind power. Potomac School converted its big yellow school buses to run on biodiesel. Sidwell Friends School kicked it up a notch with a green middle-school building that brought conversations about sewage treatment to the lips of D.C. high society. The solar panels that Bullis School bolted onto its roof this month were the latest volley in a green arms race that the area's private schools have waged for the past few years. Although many public schools have gotten in the game, too, private schools have deeper pockets and more flexibility to pursue projects to woo families and be environmentally friendly. Some of the competition is tacit. But in the spring, 12 private schools from the Washington and Baltimore areas went head-to-head over reducing garbage and electricity use and increasing recycling. Educators say gentle competition is a good way to teach students about energy use. (The many sport-utility vehicles that lumber up their driveways to drop off students, they say, is further incentive to bolster environmental education.) And investing in green buildings makes economic sense for schools in ways it doesn't for businesses, they say. "A number of the things that we do in our market economy have the effect of shielding or clouding the whole concept of energy costs," said Tom Farquhar, head of Bullis School, which buys wind power exclusively, and, once the switch is flipped next month, will also draw electricity from 540 new solar panels atop its arts building. Most buildings aren't constructed by the people who will occupy them. Schools will reap benefits for decades to come, making projects more economically viable, Farquhar said. Green issues are spreading to public schools as well. In the District, a bill introduced this month would require public schools to serve local produce, and a pilot program that serves local fruit and vegetables is in place at some elementary schools. There are similar efforts in Maryland and Virginia. Public schools have also initiated green construction projects in the past few years. Students at T.C. Williams High School in Alexandria praised their naturally lighted classrooms after they opened in 2007. In Virginia, there are solar panels atop Thomas Jefferson High School for Science and Technology, and in the District, on Thurgood Marshall Academy, a charter school.
Students Design Green School
Ted LaBorde, The Republican
December 27, 2009 MASSACHUSETTS: If a group of eighth-graders gets its way, North Middle School will go "green." They have turned their attention to a "design dilemma," hoping to reshape the 10-year-old school by making it more environmentally friendly. The assignment, by teacher Lisa M. Strycharz, came as a surprise during the final days before the Christmas-New Year vacation, said Joshua M. Burrage, 14. "We must look at windows, flooring, furniture, lighting and just about everything, and come up with ideas that will make the school eco-friendly and save money," he said. Gienna C. DeGray, 13, said the assignment "ignited the imagination of everyone. We're working in teams and the 'dilemma' can be resolved." The 120 students assigned to the Bulldog team were asked to come up with a new design for a classroom, the auditorium, cafeteria, library, gymnasium and the entry hallway stairwell. DeGray, Burrage and Matthew J. Cole, 13, were assigned the library. "The library is a good place for improvement," Cole said. "It is one of the largest spaces in the school." They have an imaginary budget of $250,000 to finance their project. "We can do this," DeGray said. "We will use a lot of recycled material in the new design. Recyclables are cheaper." "Some of the windows in the library are shuttered and not always used," Burrage said. "That is a waste of solar energy and we plan to change the lighting to make energy more efficient here." "The fixtures and furniture also need to be upgraded," said DeGray. "How about changing the shelving to a clear plastic instead of wood? That can also be done with the chairs and tables." Cole said replacing the carpet will also be helpful. "Change it to wool - recycled wool, that is," he said. "We are also adding a 'Go Green' section to the library to help educate people on the importance of environmentally friendly projects and items," DeGray said. Cole said students must prepare floor plans, design a PowerPoint presentation, explain the reasons behind recommended changes and list cost estimates to complete the assignment. Burrage said lessons learned during the assignment will go beyond the classroom. "We have learned a lot about the environment and recycled stuff," he said. "It has taught us to be conscious of the environment and to be eco-friendly at our homes." "This unit will help students to create a connection between their environment and key subjects, help them gain important work and life skills," Strycharz added. "It emphasizes math, communication, leadership, teamwork, science technology and even facility planning."
North Carolina School Construction Bonds Still Untapped
Lynn Bonner, News & Observer
December 27, 2009 NORTH CAROLINA: Congress made a tantalizing offer to local governments this year, with no-interest loans for school construction and renovation. But nearly a year after the school construction bonds were approved as part of the federal stimulus package, few school districts in the state or across the country have found companies willing to buy them. That's left the promise of new schools, additions and land purchases - and the thousands of jobs that were supposed to be created by the construction work - largely unfulfilled. "I'm disappointed," said Steve Taynton, section chief for school planning at the state Department of Public Instruction. "It could do a lot of good if we could get the money out there." A new kind of school construction bond created in the stimulus package would allow lenders to claim tax credits rather than earn interest. The plan was that borrowers were supposed to pay only the principal. But officials said it has been tough to find banks interested in tax credits that won't do them much good when they're suffering losses. North Carolina has a $275 million allotment of the school construction bonds this year. Five big school districts, including Wake and Charlotte-Mecklenburg, had allocations within that pool earmarked for them. Wake was allowed to issue $17.3 million in construction bonds and CMS nearly $26 million. Some counties, including Durham, didn't ask for a chance to issue bonds. Among those counties that did, only seven have gotten their borrowing approved by the Local Government Commission in the state treasurer's office. None of those is in the Triangle. U.S. Rep. Bob Etheridge, a longtime champion of having the federal government help with school construction, recently supported an attempt to get around the problem of offering tax credits banks don't want. Under the change, state or local governments could choose to receive a direct payment from the federal government equal to the value of the tax credit. The payment would lower the local governments' borrowing costs. The provision was included in a bill the U.S. House passed this month. It awaits action in the Senate. According to Etheridge's office, only $1.7 billion of the $11 billion in school construction bonds available nationwide has been used. "Companies aren't making enough to use the credits," said Etheridge, a Lillington Democrat. The law allows allocations local governments don't use this year to be returned to the states for redistribution, along with another $11 billion available next year. With the change, local governments should be able to borrow nearly $22 billion for school construction and renovations next year, Etheridge said."We need to get them out and moving," he said of the bonds. Because counties were having so much trouble finding buyers, the state education department decided to give extensions to local governments who were trying to issue bonds. So if a county failed to sell bonds this year, it could essentially roll over its bonding authority to next year.
Schools Have Trouble Tapping Stimulus Funds
Christopher Flavelle, ProPublica/USA Today
December 23, 2009 NATIONAL: Jones Senior High School has one of the best boys' basketball teams in eastern North Carolina, but its gymnasium is on the verge of collapse. In March, engineers found that the walls and roof don't meet the state's building code and that "moderate- to high-wind velocities could threaten the stability of the structures." "I wouldn't want to be in here in a bad storm," said physical education teacher Debbie Philyaw. After the federal stimulus passed in February, North Carolina school officials thought they had found a way to repair the 58-year-old gym and other crumbling school structures. The stimulus provided money for Qualified School Construction Bonds, which is intended to let school districts raise capital through interest-free bonds to fund construction. The program also was expected to boost North Carolina's construction industry. Ben Matthews, director of school support for North Carolina's Department of Public Instruction, estimated it would create 11,000 jobs. But the bond program has become entangled in financial and bureaucratic red tape. Only $2.3 billion of the $11 billion in bonds available this year have been sold as of last week, data compiled by Bloomberg show. "States are missing a once-in-a-lifetime opportunity," said Judy Marks of the National Clearinghouse for Educational Facilities. In North Carolina, one of the 69 districts chosen by the state to benefit from the program has found a buyer for its bonds. "The idea is to stimulate the economy," Matthews said. "Then it comes to a screeching halt because our people can't find lenders." North Carolina's experience highlights why it's been so hard to get the program started. For one, North Carolina law prevents the state from issuing bonds directly, so they must be sold by individual counties. But some counties have low credit ratings, and some have been allotted such small amounts of money under the program that lenders aren't interested. Matthews said even North Carolina-based Bank of America, one of the nation's largest banks, hasn't bought any of the bonds in the state. Bank spokeswoman Nicole Nastacie said the company has invested in the bonds, but would not say where. She said the bank "will continue to consider them, subject to our ability to structure and price appropriately." Some potential lenders are also reluctant to buy bonds because it's hard to make money from them. Lenders are paid through tax credits from the U.S. Treasury worth an estimated $8 billion over 10 years. But banks battered by the financial crisis can't use the tax credits if they have no profits and no tax liability. And Treasury has yet to issue regulations allowing banks to strip off the tax credits and sell them to third parties. Some lenders have asked for interest. Branch Banking & Trust, which is headquartered in Winston-Salem, N.C., offered to buy Jones County's bonds — if the county paid 2.9% interest, in addition to the tax credits, according to Michael Bracy, the Jones County schools superintendent. BB&T spokeswoman A.C. McGraw refused to comment on the Jones County bid. She said rates are "based on a thorough analysis of each individual transaction and the terms of the loans." Jones County's manager, Franky Howard, said the county won't act until next year, when he hopes Treasury will have issued new regulations. Rep. Bob Etheridge, D-N.C., met with Treasury Secretary Timothy Geithner to ask him to issue rules allowing investors to strip and sell the tax credits. Etheridge said Geithner promised his staff was working on it. That was six months ago. "It's complicated. I can appreciate that," Etheridge said. "But that's only a reason, not an excuse. Get it done." Nayyera Haq, a Treasury spokeswoman, said in an e-mail: "We remain committed to making the Recovery Act bond programs as effective as possible and are in the process of developing additional regulations." Etheridge successfully added a provision to a jobs-creation bill passed by the House last week that would allow state or local governments to choose to get a direct payment from Washington equal to the value of the tax credit. The bill heads to the Senate, which will take it up next month. Students and teachers in Weldon City are among those waiting for the money. The school district hopes to use part of its $894,000 allotment to replace the science labs at Weldon Science and Technology High School, where rusted gas pipes have forced students to do their experiments on computers instead of Bunsen burners. "As far as any hands-on experiments, we can't do it," said Elie Bracy, the superintendent. The impact of the delay has been economic as well as educational. The city planned to use a local company, Freeman Roofing, for the repairs. On Dec. 2, Freeman went out of business and 18 workers lost their jobs. "If we had gotten those projects," said Bill Freeman, the company's owner, "we'd be in business today." [Includes estimated funding required to repair schools in each state, as of 2008, bonding authority, and bonds sold to date.]
In Ashland, Massachusetts, New School Gets an A in Energy
Kendall Hatch, Daily News
December 22, 2009 MASSACHUSETTS: School and town officials said they are pleased with the results of a study by the Green Schools Initiative that found the high school is a top-performer when it comes to energy efficiency. "In these tough budgetary times, for us to conserve energy as much as we can is extremely important," said Alan Graham, the district's technology and operations director. The high school, along with 29 other "green" and standard schools built between 2001 and 2006, took part in a study conducted by the Green Schools Initiative from 2006 to 2007. The Green Schools Initiative was a program launched by the Massachusetts Renewable Energy Trust and the Massachusetts School Building Authority in 2001. The program ended this year. School officials found out that Ashland High's energy efficiency was much better than average when compared with the other schools participating in the study. "Ashland High School is one of the finest examples of a green school in the nation," said Elisabeth Krautscheid, project manager for the Green Schools Initiative, in a letter to Superintendent Perry Davis. The study found that the high school was saving about 17 percent on its electric bill and 33 percent on its gas bill annually, compared to the same building without green technology. When plans were being drafted for the high school, which opened in 2006, it was anticipated that the building would see total energy savings of 27 percent, when compared with an identical building built to standard code. The study points out that there is an actual annual savings of 21 percent, because the original models do not take into account things like outdoor lighting and kitchen equipment. When district officials first began planning a new high school earlier this decade, they did so with the intent of building one that would cut emissions and energy costs. They decided to participate in the Green Schools Initiative, which offered incentives, in the form of grants, to districts that built energy-conscious schools. During the construction of the school, which cost about $39.8 million, the district landed a $500,000 grant for including "green" features, such as a series of solar panels on the roof, large windows and sunroofs to let in natural light and sensors that automatically adjust lights to account for the level of sunshine coming in. Additionally, there are walking trails and wetlands on school property and a stormwater system that collects water and lets it seep back into the ground naturally. Although costs for a green construction project tend to be higher than for a standard one, Davis said he was glad to see the town's investment paying off. "These tend to be more expensive at the front end but the payout comes in the long-term savings," he said. "This reinforces the decision the town made to participate in the (green schools) program." Town Manager John Petrin said he was glad to hear about the results of the study, and he hoped the town could look to the high school as a model for other projects. "Going green is certainly a worthwhile initiative these days," he said. "I'm just proud that Ashland can be a leader in this area."
Muni Market Participants Want Congress to Extend ARRA Bond-Related Provisions
Peter Schroeder, Financial Planning
December 22, 2009 NATIONAL: Municipal market participants want Congress to provide more assistance for muni bonds next year by extending or expanding many of the bond-related provisions in the American Recovery and Reinvestment Act, especially those authorizing the Build America Bond program. The House started on this course last Wednesday by approving a jobs bill that would expand two tax-credit bond programs for schools to allow state and local issuers to receive direct BAB-style payments from the Treasury Department instead of investors receiving tax credits. The provisions, which would apply to qualified school construction bonds and qualified zone academy bonds, could be the beginning of a major change in the muni market, with Congress modifying the tax-credit bond programs, which have never really taken off, to reflect the more popular BABs. As of Dec. 11, state and local governments had issued more than $63 billion of direct-pay BABs, which provide them with federal payments equaling 35% of their interest expense. That compared to a paltry $2.46 billion of tax-credit bonds that were issued during the same period, according to Thomson Reuters. The QSCB program accounted for most of that tax-credit bond issuance — 144 deals totaling $2.4 billion — but still fell far short of the $11 billion Congress authorized for the program for 2009. An additional $11 billion of QSCBs have been authorized for next year. QZABs have not fared nearly as well. Despite receiving $1.4 billion in authority as part of the ARRA enacted in February, just 16 issues totaling $43.1 million of QZABs were sold in 2009, according to Thomson Reuters. As far as extending the BAB program beyond its Dec. 31, 2010, expiration date, it appears the discussion already has moved beyond "if it will happen" and instead has advanced to "when it will happen" and "for how long," as well as, "who else will be allowed to participate" in the program. On the regulatory front, market participants are hoping the coming year includes additional guidance on some ARRA provisions, but also a return to regulatory needs that existed before the stimulus package monopolized much of the Treasury's lawyers' attention in 2009. The Treasury and the Internal Revenue Service recently identified 10 muni bond projects they hope to release under their 2009-2010 priority guidance plan. At the top of their list is stripping guidance on tax-credit bonds and how issuers or investors can strip the credit from the bond and sell it separately. Some market participants hope stripping will broaden the tax-credit bond market, but Treasury officials have warned that stripping should not be seen as a cure-all and that there are a number of complicated issues that they must work through before proposing guidance.
Wisconsin School Board OKs Federal School Construction Bonds Despite Possible Downfalls
Teresa Stowell , Daily Times
December 22, 2009 WISCONSIN: After months of discussion, board members approved a resolution authorizing the issuing of school construction bonds of about $1.3 million. The district's financial advisers explained how those bonds came close to not working out as planned. The Qualified School Construction Bonds are beneficial to school districts because they come with zero interest. There are some downfalls to the bonds, which almost caused a problem for the Watertown district's bonds. “We are very fortunate to receive these dollars because they often come with mixed results,” Mike Clark, of R.W. Baird, said. “We just worked with a district in northern Wisconsin rated at AA and they received no buyers. Another district ended up paying supplemental interest instead of the zero interest.” Clark said although the bonds are a great deal for school districts they come with several strings attached, which has deterred buyers. The district originally applied for $3.3 million for the bonds and was approved for $1,356,00. Those bonds will be divided into two different portions to work on the facilities in the district. A total of $856,000 will be used as part of the $22,385,000 that was approved in the November 2008 referendum, which includes updating the district's elementary schools. The $500,000 of the bonds will be used to finance projects at the middle school that were not included in the facilities referendum plan. Those updates will include new lights, ceilings in the hallways, cafeteria and library, as well as painting throughout the building. More bonds will be available in the spring and the district plans to reapply to finance the remaining portion of the referendum dollars. Clark reminded district officials and board members that the district must use the funds as they had planned. “These dollars will be monitored closely and need to be spent in a way that will mirror your application,” Clark said. “If the district would spend it inappropriately, you could lose your tax credit.”
90 Cameras to be Installed Outside Chicago Public Schools' Schools Thanks to Donation
Fran Spielman, Chicago Sun Times
December 19, 2009 ILLINOIS: Ninety cameras will be installed outside Fenger and 39 other Chicago Public high schools to stop what Mayor Daley called the ugly “epidemic of children killing children,” thanks to a $2.25 million gift from the banking giant that employs the mayor’s brother, Sun-Times reports. Last year, a bloody weekend for CPS students prompted Daley to link 4,844 cameras inside schools and 1,437 exterior school cameras to police districts, squad cars and the 911 center. Until that time, real-time video from school cameras was accessible only to school security. Thanks to J.P. Morgan Chase, where William Daley serves as Midwest chairman, 40 more high schools will get exterior cameras. They include Fenger, where 16-year-old Derrion Albert was beaten to death in September during a brawl captured on videotape and played around the world. Another camera will be installed outside Walter H. Dyett High School, 555 E. 51st St., where two students have been murdered this year. The extra layer of protection can’t come soon enough for sophomore Brandi Wilson, who’s tired of “gang wars” that sometimes extend her school day. “They happen around 3 p.m. or 4 p.m. when we’re getting out of school, and I just don’t feel safe,” Wilson said after Daley’s news conference at Dyett. “I call my mom and I tell her, `Mom, I’m not coming home right now. I’m staying inside of the school because there’s shooting going on outside or there’s a gang fight going on outside.’ And she’s like, `They’re gonna have to do something. I don’t like that you don’t feel protected.’” With the outdoor camera, Wilson said, “Maybe we can concentrate more on our school work instead of having to worry about the next violent thing that’s gonna happen.” Schools CEO Ron Huberman stressed that some of the new cameras would be “outside the immediate envelope” of the school because that’s where the violence takes place. Daley stressed that none of the new cameras would have blue strobe lights that carry the stigma of a high-crime area. “You won’t even see this unless you’re looking for it,” he said.
Jobs Bill Would Revise School Construction Bonds Programs
Peter Schroeder and Audrey Dutton, Bond Buyer
December 17, 2009 NATIONAL: The House of Representatives approved a jobs bill that would expand two tax-credit bond programs for school projects to allow state and local issuers to receive direct Build America Bond-style payments from the Treasury Department instead of investors receiving tax credits. While the Senate would not take up the bill until next year, municipal market participants said provisions in the House-approved Jobs for Main Street Act of 2010 — which would apply to qualified school construction bonds and qualified zone academy bonds — may represent a sea change with Congress beginning to revise the fledging tax-credit bond programs to reflect the more popular BABs. "It's huge. I think this has the potential to be a game-changer," said Sam Gruer, managing director at Cityview Capital Solutions LLC. "I can't see why anyone would borrow on the tax-credit basis if this option is available to them." "In light of the success of the BAB program, this is a sensible step forward and could jump-start the QSCB and QZAB programs next year," said Jeremy Spector, a partner at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC and chair of the American Bar Association's committee on tax-exempt financing. "If successful, the next step would be to extend the direct subsidy payment to other categories of [tax-credit bonds]." State and local governments this year have issued more than $63 billion of direct-pay BABs, which provide them with federal payments equaling 35% of their interest expense. That compares to a paltry $2.46 billion of tax-credit bonds that were issued during the same period, according to Thomson Reuters. And the QSCB program accounted for most of that tax-credit bond issuance — 144 deals totaling $2.4 billion. But the QSCBs issued still fall far short of the $11 billion Congress authorized for the program in 2009. An additional $11 billion of QSCBs have been authorized for next year. Despite receiving $1.4 billion in authority as part of the American Recovery and Reinvestment Act enacted in February, just 16 issues totaling $43.1 million of QZABs were sold in 2009, according to Thomson Reuters. Under the provision of the jobs bill that would extend the direct-pay BAB structure to QZABs and QSCBs, issuers of these bonds would simply sell them at taxable rates, and the Treasury would give them direct payments equal to the lesser of the actual interest rate of the bonds or the daily credit rate for municipal tax-credit bonds. Sources said they expect most of the subsidies will be paid out based on the tax-credit rate, which was included because otherwise issuers and investors would have no incentive for keeping interest rates down since any rate would be fully subsidized by the federal government. The Treasury bases the tax-credit rate on taxable bonds with ratings ranging from single-A to triple-B from various market sectors. But market participants have complained in the past that they often have had to offer supplemental interest coupons to investors to market the credits, even though the programs are intended to subsidize 100% of interest costs. "One of the reason why the tax-credit structure hasn't worked … is because it's very difficult to market tax credits, it's hard to find investors," said Michael Decker, co-head of the municipal securities division at the Securities Industry and Financial Markets Association. He added that with the direct subsidy option, "you won't run into the hurdles that have forced issuers to need to offer the supplemental coupon." "This is a rare example of something where adding a new code provision and making the code longer actually makes it simpler in practice," said Frederic J. Ballard of Ballard Spahr LP. The provision would be funded by $4.1 billion redirected from the Troubled Asset Relief Program. Most of the costs to the federal government for QZAB and QSCB programs were already budgeted when they were authorized, and the $4.1 billion would cover the cost of increased issuance, sources said. Representatives from the Joint Committee on Taxation, which is charged with scoring the provisions, could not comment on how the $4.1 billion figure was reached.
New Orleans Recovery School District Looks at Making Charters Pay Rent
Sarah Carr, Times-Picayune
December 17, 2009 LOUISIANA: The Recovery School District is seriously considering whether to charge its charter schools rent for use of their buildings, a move that district officials say would put the city more in line with many cities where charters pay for their facilities. "What we are doing now is not sustainable," said Ramsey Green, the district's director of operations, who said nearly half of his staff's time goes to handling the charter requests. School space, including responsibility for repairs, will likely become an increasingly hot-button political issue over the coming years, as good-quality buildings already stand at a premium and some school buildings require significantly more maintenance than others. In the short term, the construction of several new buildings through the $2 billion school facilities plan for the city might fuel the debate, as some schools move into state-of-the-art buildings while others remain in more dilapidated ones. Officials at the National Alliance for Public Charter Schools say it's not unprecedented for charters to get their buildings rent free -- or virtually rent free -- but that most charters bear the responsibility for finding their own facilities. As a result, the majority do not occupy traditional school building space. "I think that could change over the next five to 10 years as charters become an increasingly important part of the landscape," said Todd Ziebarth, vice president of policy for the charter school alliance. "In a tight economy, we might see (more states and school districts) moving to provide access to vacant buildings." Georgia lawmakers last year passed a bill requiring school districts to share their unused space with charters for free. California provides money to charter schools to help defray facilities costs. And in New York City, the mayor and school chancellor have handed over vacant buildings and classrooms to charters, making for some uncomfortable bedfellows when traditional and charter schools with different programs and resources share space. Fueled partly by President Barack Obama's support, the number of charter schools, already topping 5,000, will likely continue to grow. New Orleans remains the only city where more than half of all public school children attend the publicly financed, privately run schools, however. The Recovery School District and the Orleans Parish School Board, the two major overseers of charters in New Orleans, have historically provided their charters rent-free building space. But, in certain cases, it's been unclear whether the district or the charter school bears responsibility for maintenance or repairs on the buildings. Such issues have typically been resolved on a case-by-case basis, said Green. "It almost becomes this weird sort of negotiation when a charter asks the RSD to handle something on its building," he said. Charging rent would put the responsibility more concretely in the district's hands. Green said the RSD is still researching possible rent structures. It could charge schools on a square foot or per student basis; the district is also considering how to factor in building quality. Some charter school students still attend school in portable units erected after Hurricane Katrina, while several hundred others will soon attend cutting-edge school buildings that incorporate the latest in environmental and tech-friendly designs, like the new Langston Hughes charter school building in Gentilly. Shirley said the RSD's 38 charters already feel like they pay rent because they owe about $340 per student each year toward the School Board's bond debt. Because of existing state laws, the School Board's 12 charter schools do not contribute to the bond debt. Inadequate state money for school facilities looms as a potentially larger problem than rent payments, said Nash Molpus, associate director of Tulane University's Cowen Institute for Public Education Initiatives. Most New Orleans school buildings "stink" because of decades of neglect or Katrina-related damage, according to Shirley, and the state provides no money for school building costs. Molpus said 41 states provide schools with some kind of money for facilities. The state of Louisiana provides nothing. "We don't want anyone to be nickled and dimed" on repairs or rent, she said. "We know that the charters don't have the money. And we know the RSD doesn't have the money." The lack of a clear or public process for assigning charter schools to buildings adds to the confusion, Molpus said. Right now, the RSD leadership decides which of its charter schools go where. But the calculus can seem mysterious. "It's difficult to convince a charter to take on their (share) in terms of maintenance if they don't have any sense they are going to be in a building from one year to the next," Molpus said.
Congress OKs Budget With Increase for Education
Alyson Klein , Education Week
December 15, 2009 NATIONAL: Congress last week approved a fiscal year 2010 spending measure that would provide level funding for key education programs, even as lawmakers and the Obama administration weighed the prospect of a jobs package that could include new education aid for cash-strapped states and localities. A House-Senate conference committee Dec. 8 agreed to a bill that would finance programs in the U.S. Department of Education at about $63.7 billion, a 2 percent increase over fiscal 2009, but a 0.7 percent decrease over the president’s request of $64.2 billion. The conference committee rejected a Senate proposal to create a $700 million new grant program for school facilities. Instead, lawmakers may use a pending bill that would reshape the federal student-lending system as an opportunity to provide some funding for school facilities. Meanwhile, President Obama’s Dec. 9 speech suggesting that new legislation could provide fresh funding for the nation’s infrastructure has some education advocates hoping that the package could include funding for school facilities. But it isn’t clear just yet how much, if any, aid in a potential jobs package would be steered toward K-12 education or to avert teacher layoffs. For now, education organizations are flagging what they want to see in the potential jobs package. For instance, the 3.2 million-member National Education Association sent a Dec. 3 letter to members of the House of Representatives asking that they consider including an education jobs fund in the new legislation. The union is also seeking money for school facilities or an extension of school construction tax credits, additional Title I grants for districts, and special education money.
New Hampshire Panel Recommends Suspending School Construction Aid to New Applicants
Associated Press, Education Week
December 15, 2009 NEW HAMPSHIRE: A legislative panel's interim report on New Hampshire's school construction aid program is recommending that lawmakers suspend aid for new applicants, but not before June 30. Committee members had agreed that withdrawing state aid now could doom projects that would be considered this spring because the state pays up to 60 percent of the project costs. The committee is studying changes to the cash-strapped aid program and its inequities, such as helping poorer districts that have a harder time getting local support for projects than wealthier districts. The report notes that state grants have grown 150 percent in the last decade.
Massachusetts School Building Authority Presents Largest-Ever Construction Reimbursement
Will Richmond, Herald News
December 15, 2009 MASSACHUSETTS: With a group of Matthew J. Kuss Middle School students in attendance, state Treasurer Tim Cahill and Massachusetts School Building Authority Executive Director Katherine P. Craven presented school and city leaders with a ceremonial check for $113,402,487, representing the state’s reimbursement for the construction of the Viveiros, Letourneau and Fonseca elementary schools and Kuss. Cahill and Craven said it is the largest check ever presented by the state to a municipality since the MSBA was created in 2004 to manage funding for school construction projects across the state. The program had previously been managed by the state Department of Education, but fell into $11 million in debt. The city’s school projects were reimbursed under the MSBA’s Pro-Pay system, under which communities are reimbursed monthly as school construction costs mount. The regular payments enable all municipalities to avoid having to issue debt to finance the MSBA’s share of projected costs. Cahill said that in Fall River’s case, the system allowed the city to save about $48 million in local interest costs. With the $113 million in hand, Superintendent Meg Mayo-Brown called the state’s financial commitment “a significant investment in all of our children.” “With these funds we are able to offer a state of the art learning environment that all of you so richly deserve and technology unmatched in the state,” Mayo-Brown said.
Students Can Enter Virtual World to Test School Design
Staff Writer, BBC News
December 15, 2009 UNITED KINGDOM: Students and teachers in Birmingham will be able to test plans for rebuilding schools using a computer-game style virtual world. A project linking universities and software developers will allow schools to experiment with different furniture layouts and building designs. It has been likened to playing a computer game in which characters can move around a 3D environment. Birmingham has plans to rebuild or refurbish 82 secondary schools. This virtual tool will help with one of the biggest Building Schools for the Future projects in the country. Birmingham City Council's education director, Sylvia McNamara, says it will give "students, school leaders, governing bodies and the local community the opportunity to creatively engage with design concepts". Allowing more people to test ideas, such as the furniture, fixtures and fittings, will improve the usefulness of the finished design, says Emma Leaman, who works for the council as a "transforming education officer". "It's intended to make sure schools are not just built with one person's vision," she says. The intention is to allow schools to explore their new surroundings before the buildings are opened - and to allow schools to engage with plans during the design process and before the construction begins. The on-screen avatars who explore the design include wheelchair users, allowing the design to be tested for suitability for disabled students. The Learning Environments Virtual Reality Online Simulator (LEVROS) has been developed by a technology company, MOOFU, with the Institute of Education, University of London, Birmingham Local Education Partnership and Kenn Fisher of Melbourne University. Dr Fisher says that young people of the internet generation are used to such computer game environments. "Simulation is increasingly being used in many educational and training sectors to minimise laboratory and practical costs," he said.
Abu Dhabi to Build 18 New Schools in 2010 Based on Students' Plans
Dina El Shammaa, Gulf News
December 14, 2009 UAE: An environmentally friendly building and space for recreation and sports are some of the vital features school premises should include, according to some public school students. As part of the Abu Dhabi Education Council (Adec) 10-year strategy plan, 18 new buildings will be built by mid-2010 across the emirate of Abu Dhabi. In order to encourage student contribution in school designs, Adec sought proposals from students of 130 schools across the Emirates. A panel of judges chose 18 designs from which they selected the top three which were from Al Afaq Model School, Al Yarmouk School and Sir Bani Yas School. From these schools, 18 students were selected and each was given an award and a free laptop during the three-day Building Schools Exhibition Conference, which started on Sunday. "The future schools design competition not only provided students with a valuable creative integrated learning opportunity, but also gave us insight into the features and elements of school design that appeal to students. A number of elements that we plan to incorporate into our new schools, such as sustainability features, space for creative activity and sports, and open environment, were important to these students as they were envisioning the future of schools in the emirate," said Salem Al Sayeri, acting director general at Adec. The two-storey school building will include an auditorium, advanced scientific laboratory, computer room, music room, sports hall, an indoor swimming pool and gymnasium, library, large double-height dining space, eco-friendly courtyard, and a roof-top science class for outdoor learning. The schools will also be eco-friendly with energy efficient air conditioning systems, and water-saving devices. Orientations, insulation and shading have been carefully planned, and all the electricity required for daily consumption in classrooms will be generated at the school site. "The new school premises will have an environment-oriented culture, to help keep classrooms unpolluted and promote hygiene and cleanliness while learning. Today's announcement to launch one of the most basic projects is just a beginning," said Hamad Al Daheri, division manager for infrastructure and facilities at Adec. A deal was signed between Adec and Musanada, which will provide design and construction management services.
Madison, Alabama School Construction Bond Comes with Strings Attached.
Trang Do, WAFF 48 News
December 11, 2009 ALABAMA: There may be more costs involved in the $36 million dollar interest-free loan for a new school in Madison Alabama. The city of Madison's plan to pay for a new high school by way of an interest-free qualified school construction bond loan has hit a slight snag. "What we've found though is that the bond markets have changed since June when we first started talking about this and because of that they have to offer coupons," said Mayor Paul Finley. They're coupons that would make the bonds more attractive to a potential buyer. But that means the city would have to make up the cost of the coupon. The first group of school systems getting stimulus construction bond money learned their borrowing cost would be an additional 1.19 percent per year. “What that would mean to Madison is a little over 300,000 dollars a year that would be added to the overall 36 million dollars that we have to pay back," Finley said. Madison is in the second group of schools and won't find out their rate until March 2010. If market conditions are favorable, supplemental coupons may not be needed.
New Jersey District Awarded Grant to Upgrade School Security
Howard Prosnitz, Teaneck Suburbanite
December 10, 2009 NEW JERSEY: Teaneck was one of 111 school districts awarded the Readiness Emergency and Management for Schools (REMS) grant from the U.S. Department of Education; 334 districts applied nationwide. The $90,679 grant will be allocated over a period of 18 months and used to upgrade school security. The grant will provide training and practice in emergency response for teachers and administrators and will also access the potential vulnerability of school buildings, said district spokesman David Bicofsky. An essential element for handling an emergency is the coordination of radio communications. "People have to be able to communicate with each other," Bicofsky said, noting that a breakdown in communication exacerbated the tragedy at Columbine High School. "One of the real faults is that emergency response agencies are often on separate radio frequencies," he said. The grant will provide for the purchase of radios and "go kits," containing security related items for teachers and administrators.
North Carolina School Systems Unable to Find Buyers of QSCBs With Zero Interest
Laura Oleniacz , Sun Journal
December 09, 2009 NORTH CAROLINA: Jones County school officials are looking to replace both the high school and the middle school gymnasiums using $2.2 million in zero-interest Qualified School Construction Bonds. The county’s bonds were part of a $272 million total awarded by the N.C. Department of Public Instruction for school projects across the state. In the bond program, banks that provide zero-interest loans for school projects receive tax credits from the federal government as part of the economic recovery package Jones officials haven’t been able to find a bank to buy their bonds at a zero-interest rate said Michael Bracy, Jones County Public Schools Superintendent. Jimmie Hicks Jr., attorney for the Jones County Board of Commissioners, said Jones County officials have called “virtually every bank with a brick-and-mortar presence in Eastern North Carolina” and even looked to financial institutions in Wall Street for funding partners. He said that no school system in the state has been able to get a bank to buy the Qualified School Construction Bond with a zero-percent interest rate. Some systems in the state have found financial partners, Hicks said, but lenders are looking to add on interest rates up to 2.9 percent for the loans. Franky Howard, county manager, said officials received a quote from BB&T for a loan with a 2.17 percent interest rate, which would tack on an additional $381,000 to the cost of the project that was not originally agreed upon. “The problem is, because the tax benefit isn’t as good as intended, the banks are charging supplemental interest,” Hicks said. . The proposal is to build an entirely new high school gym on 27 acres of land adjacent to the current high school, said Kelly Michaud, district spokeswoman. The new middle school gym would be built on the current school property. The gyms were found to be in disrepair after an assessment was completed in the spring, Michaud said. They have to be evacuated in severe situations because of concerns of the roofs’ collapse, and they’ve been identified as liabilities by both the county and the schools’ attorneys.
Voters Approve Largest School Bond Issue in Oklahoma History
Jason Grubbs , kjrh.com
December 09, 2009 OKLAHOMA: Voters in the Broken Arrow School District have given their overwhelming approval of the largest bond issue in state history, $295 million. Seventy-percent of the voters said yes to Proposition I for school and district improvements totaling $285 million. Another seventy-percent of the voters said yes to Proposition II for bus purchases totaling $10 million. 60 percent voter approval is required for successful school bond elections in Oklahoma. Voter turnout was a record for a Broken Arrow School Bond Election. Superintendent Dr. Gary Gerber says construction on new schools and classrooms could start in about six months. The money will go towards three new schools, new buses, new technology, new gymnasiums and allow the district to get rid of 200 portable classrooms.
EPA Unveils New Policies on Water at Schools
Kevin Freking, Associated Press/Yahoo News
December 06, 2009 NATIONAL: The Environmental Protection Agency unveiled a new national strategy to enforce safe drinking water laws in small, rural communities and pledged to redouble efforts to protect children from toxic water in schools. The announcement came during a hearing by the Senate Environment and Public Works Committee held to examine reports of widespread water contamination and unsafe levels of lead and other toxics flowing through the pipes at thousands of U.S. schools. As part of the new approach, EPA officials said the agency would pay particular attention to chronic violators and said in some cases they would ask small water systems to restructure or merge to improve their safety records. The hearing followed an Associated Press investigation showing that roughly one in five schools with their own wells violated the Safe Drinking Water Act in the past decade, a problem that until now has gone largely unmonitored by the federal government. Under federal law, schools with their own wells — which represent about 10 percent of the nation's schools and are often located in isolated, rural communities — are required to test their water and report any problems to the state. In turn, the state is supposed to send all violations to the federal government. Larger, urban schools that get water from local utilities, however, are not required to test for toxics because the EPA regulates their water providers. That means there is no way to ensure detection of contaminants caused by schools' own plumbing. Lead, for instance, often concentrates at higher levels in school pipes than in most homes since they contain dozens of soldered joints where the metal can flake off. EPA officials said they would begin targeting repeat violators of the nation's safe drinking water law in January, but Boxer said she needed more specifics about how all schools' water systems would be monitored for compliance.
Ohio Schools Say They'll Stay True to School Safety Law Repealed by Budget Bill
Kurt Moore, Marion Star
December 05, 2009 OHIO: Local school administrators are vowing to remain true to the principles of Jarod's Law, a state school safety law repealed as part of the state budget bill.That doesn't mean they'll miss it. The law was passed in 2005, two years after a tragic accident in Lebanon, where a 6-year-old first grader died when a cafeteria table fell on him. Legislators spurred by the tragedy proposed a law that required local boards of health to inspect schools annually for health and safety dangers. An advisory committee spent 18 months writing up comprehensive sanitary and safety guidelines ranging from inspecting equipment such as tables, bleachers and playgrounds to scheduling radon testing. "The intent behind Jarod's Law was absolutely good," River Valley Local Schools Superintendent Tom Shade said. "It was a tragic incident. "There probably was some overarching." Similar sentiment was expressed to legislators as some schools complained about the costs associated with replacing equipment that didn't meet the law's standards and the employee hours spent ensuring compliance. The law was repealed as part of the 3,120-page state budget bill passed in August. Tom Raga, a former state representative who had sponsored the original legislation, said Jarod's Law could have been revised instead of eliminated. "That put us back to square one, where the school districts have no state oversight to make sure they're not deferring maintenance and creating situations that are unsafe for our schoolchildren." If nothing else, Raga said, Jarod's Law changed the mindset of schools when it comes to safety.
Modern Alabama High Schools Make Use of Green Technology
Leada Gore, Madison Record
December 04, 2009 ALABAMA: With funding in place, Madison school officials are now faced with the task of deciding what type of high school will best serve the need of a growing student population. Building such a school doesn’t come cheap, either. If Madison follows prevailing school construction trends, the new high school will be heavy on technology and multi-use spaces. “We’re seeing an emphasis on technology and common spaces, such as cafeterias that serve as multi-use spaces,” said Perry Taylor with the State Department of Education. “Many of the new schools are incorporating lecture halls or performing arts studios.” According to the State Board of Education, there are 470 high schools in the state, with only 43 new high schools built since 1999. The median cost for construction is $150 per square foot, a cost that includes construction, equipment, furnishings, fees and site work. High schools are designed with 27-30 square feet per students for grades first through 12. With an estimated cost of $63 million, Madison’s school falls in line with several others in Alabama either currently under construction or recently completed. One such school is Hewitt-Trussville High School in Jefferson County. Recently completed for $70 million, the 361,000 square-foot facility incorporates an array of new technology and features found in modern high schools. The school was built as a “green” school, incorporating existing trees and woodlands and protecting flood plains. The school contains 70 classrooms, two gymnasiums, band and choral halls and a 1,180-seat theater. It also has a pedestrian bridge leading to two separate football fields, two soccer fields and a band practice field. Madison’s new school will be built to accommodate 2,000 students in 350,000 square feet. It will cost $52.5 million with an additional $10.5 million for sports fields, furnishings, etc. and will be located in the Limestone County portion of Madison.
Cash Crunch Fuels Fight Over Impact Fees for School Construction
Kerry Hall Singe, Charlotte Observer
December 04, 2009 NORTH CAROLINA: The battle over who should pay the costs of growth in Cabarrus County is intensifying as a major developer now says it shouldn't have to pay fees dedicated for new schools. Crescent Resources last month became the latest developer to sue the county over its adequate public facilities ordinance, which requires homebuilders to pay thousands of dollars per house or apartment being built if there aren't enough public facilities to serve new residents. The lawsuit follows an August decision in three similar lawsuits, where a judge ruled in favor of developers, saying the county didn't have the right to impose the fees. The county maintains it has the authority to collect the money and has appealed the judge's decision. At stake are millions slated for new school construction that potentially could be refunded to homebuilders. If the courts side with developers, the county would have to figure out a way to pay for new school construction. That could result in higher property taxes. The county has collected more than $6.5 million since it imposing the fees in 2000 and has committed more than $4 million to ongoing projects. "The developers think they should be able to develop their property as they see fit and when they see fit, and it shouldn't cost them anything other than the normal development fees," said County Attorney Richard Koch. "But you've got to have seats for the kids that are generated (by the new development). In early 2008, more than two dozen developers jointly sued Cabarrus County, protesting its ability to levy the fees. They've asked for refunds of more than $2.6 million. The county hasn't responded to that lawsuit. Cabarrus County adopted the ordinance in 1998 to help it deal with its rapid growth. Six years later, the N.C. General Assembly passed special legislation granting the county the power to enforce it. Rates have risen from $500 per single family lot in 2000 to the current $8,617. The county calculates each new house adds about $12,000 in school capital costs. Developers of multifamily units pay $4,153 per unit. Owen Furuseth, an urban studies professor at UNC Charlotte, said such ordinances are common in Sun Belt states such as Florida and California that have grown rapidly. In North Carolina, state lawmakers grant local governments the authority to impose the fees. Local governments must specify why the money is needed and what it will be used for.
Under Proposed Legislation, Schools Could Keep Unused Qualified School Construction Bond Allocations
Peter Schroeder, Bond Buyer
December 03, 2009 NATIONAL: Large local school districts would not be forced to give up their unused qualified school construction bond allocations to states to keep them from expiring at the end of the year under legislation proposed by the top tax writers in the House. The bill, introduced by House Ways and Means chairman Charles Rangel, D-N.Y., and ranking minority member Dave Camp, R-Mich., also would clarify that regulated investment companies such as mutual funds that purchase and hold tax-credit bonds should treat tax credits like cash and pass them through to shareholders. The legislation is designed to make a number of technical corrections to recently enacted laws, including the American Recovery and Reinvestment Act, which created several new tax-credit bond programs and expanded others. Members of the Senate Finance Committee are expected to introduce identical legislation soon. “This bill responds to valuable feedback we have received to improve on how America’s tax laws are operating,” Rangel said. “I hope the House and Senate can swiftly pass this legislation.” The QSCB technical correction addresses a portion of the stimulus law that had market participants scratching their heads and crossing their fingers that the ARRA did not intend to block local school districts from carrying forward unused allocations. The QSCB program, which was created by the ARRA, required the Treasury Department to allocate $4.4 billion of a total $11 billion of the bonds this year to the 100 largest local school districts across the nation. The second $11 billion tranche of QSCBs will be allocated sometime next year. However, the legislation did not give those districts the ability to carry forward unused allocations to the next year, leading some market participants to question whether that meant the districts had to transfer those allocations to their respective states, which were granted the ability to indefinitely carry forward unused cap. An attorney with the Internal Revenue Service confirmed that interpretation of the law last month, telling a group of bond attorneys that the school districts’ allocations would expire if they do not issue the bonds by the end of the calendar year, unless they give the allocations to their states. Attorneys were skeptical this was intended by lawmakers, given that they went to the trouble of directly allocating the bond capacity to the large school districts, coupled with the fact that tribal governments — which received $400 million under the program — were given the ability to carry forward cap. The ARRA requires the Treasury to allocate 40% of the $22 billion authorization directly to the 100 largest school districts, with the remaining 60% going to the states, which then sub-allocate that bond authority to localities. When the ARRA was drafted, lawmakers included a provision permitting regulated investment companies to pass through any tax credits obtained from tax-credit bonds to shareholders, to complement the potential for an unlimited amount of tax-credit Build America Bonds to be issued under the law. The technical correction would clarify how those credits would be treated. But given that mutual funds are not heavily investing in tax-credit bonds and no tax-credit BABs have been issued yet, sources said this provision does not hold any immediate ramifications. It could prove helpful in the future if regulated investment companies become big buyers of tax-credit bonds.
Wyoming Governor Seeks School Construction Funds
Jackie Borchardt, Billings Gazette
December 03, 2009 WYOMING: School construction projects in Natrona County got another chance this week when Gov. Dave Freudenthal announced his budget proposal for the 2011-12 biennium. Freudenthal recommended nearly $270 million for school capital construction in the next two fiscal years. That amount covers the top 40 projects in the state. The state School Facilities Commission evaluates and ranks buildings based on three weighted criteria: Building condition makes up 50 percent, capacity issues 35 percent and functionality 15 percent. The governor’s proposal counters a recommendation to slash the school construction budget nearly in half, from $162 million to $82 million, from the Legislature’s Select Committee on School Facilities. That budget would include seven construction projects instead of 15 or 16, said Ken Daraie, director of the School Facilities Commission. The governor’s proposed amount includes $165.7 million for construction projects, $82 million for major maintenance projects and $18.6 million for component level projects. Component level projects are improvements that cost more than a district’s major maintenance budget, such as a new roof for a building in otherwise good condition. Not tackling major remodeling needs could mean increased costs later. “Anything less than this (governor’s request), and we’re simply deferring maintenance,” Daraie said. “Deferring maintenance comes at an expense later.” Without school construction, major construction companies that moved into the state over the past five years might leave, said Mark Antrim, the Natrona County School District’s associate superintendent for facilities and technology. Low construction costs make now a good time to build, and saving money to spend later would only lower the value of those dollars, he said.
Using Solar Energy to Power New Jersey Schools Is on the Rise
Krystal Knapp, The Times
December 03, 2009 NEW JERSEY: School officials in the Bordentown Regional School District are banking on the sun to provide for the district high school's energy needs and cut energy expenses long term. On Dec. 8 the school board is asking voters to approve an $8.5 million bond referendum to fund solar panels at the high school and new athletic fields, including a turf field. Across New Jersey this year, 13 of 14 special-election referendums that included solar projects received voter approval, according to data from the Web site of the New Jersey School Boards Association, a federation of district boards of education that advocates, trains and provides resources for public schools. Last year nine of 13 such referendums also passed. That's a good sign for Bordentown officials who will ask residents to approve a total project cost of $8,499,975, of which $5,879,039 will be raised by taxes. The district also will receive over $2.6 million in debt service aid from the state. Officials estimate that the project would save $127,238 annually in energy costs and earn an additional $424,125 per year from energy certificates. School officials estimate that the sale of solar renewable energy certificates will be enough to pay the debt service so that taxpayers in Bordentown City, Bordentown Township and Fieldsboro will not see an increase in their school taxes from the project. Superintendent Constance Bauer said that projection takes into account potential changes in the energy market. "It's a win-win situation for us," Bauer said. "Installing solar addresses educational issues, environmental issues and the economy." Bauer noted that sometimes people in the community think the plan sounds almost "too good to be true" when they hear the district will recoup its investment. People sometimes don't realize that energy companies are required to seek renewable energy sources and buy the energy certificates, she said, adding, "It is important to seize the opportunity now at a time when interest rates are low too." The interest in using solar energy to power schools is on the rise and is expected to continue, experts say. A hot topic at the New Jersey School Boards Association (NJSBA) annual conference this fall in Atlantic City, the solar trend is considered the fastest growing segment of school construction over the past few years, and is only expected to grow. The conference offered a seminar on funding solar projects, and conference attendees had an opportunity to tour the Atlantic City Convention Center roof, which is billed as the largest single array of solar panels in the nation. According to data provided by the New Jersey Board of Public Utilities, as of Oct. 31, the state has funded a total of 66 K-12 public school solar projects in more than 30 districts. These projects have been funded in the form of rebates paid out through New Jersey's Clean Energy Program, a Board of Public Utilities initiative to promote clean power in government and the private sector. The program has been administered since 2003 and has distributed $31.5 million in rebates for solar power projects with a total capacity of 10,391 kilowatts, according to Public Utilities spokesman Doyal Siddell. That capacity, Siddell said, is enough to power almost 1,300 homes or 130 office buildings a year. In a news release in August 2008 called "Schools Harness the Sun," the NJSBA highlighted the solar trend and noted that 68 more applications came in for solar funding rebates in the year up to the release, a figure that nearly matched the participation of New Jersey public schools for the previous five years combined. NJSBA spokesman Mike Yaple said since August 2008, another 24 school districts proposed funding solar through bond referendums, with 20 of 24 proposals passing. In December 2008 alone, eight of the 20 construction referendums involved solar.
After 5 Years, Pennsylvania Classrooms No Safer
Kristen A. Graham , Philadelphia Enquirer
December 03, 2009 PENNSYLVANIA: Though Pennsylvania students have made academic progress over the past five years, their schools are no safer, state education officials announced today. Roughly 68,000 incidents were reported for the 2008-09 school year statewide, about the same as five years ago. "Clearly, more must be done to change the climate of our schools, and there is room for improvement even within our schools that most students, parents and teachers would consider safe schools," said Gerald Zahorchak, Pennsylvania's Secretary of Education. Along with the school safety numbers, Zahorchak also said that there will be a push for school districts to better report violence and better tools for monitoring school safety.
Editorial: Minnesota Legislature Must Craft New Rules on Financing Charter School Facilities
Opinion Writers, Star Tribune
December 03, 2009 MINNESOTA: When the Minnesota Legislature agreed to provide lease aid for charter schools a decade ago, the need was clear. Charter programs had trouble securing suitable, stable facilities. Many school districts wouldn't rent to them, and they had no ability to tax or get lower-rate loans. Consequently, the state offered aid to help them rent. But since then, some creative financiers and school insiders have found ways to work the system to their advantage -- at a disturbing cost to taxpayers. A recent Star Tribune investigation revealed that some growing charter schools have constructed buildings with high-cost junk bonds. Reporter Tony Kennedy's Nov. 29 story also revealed that several schools diverted building funds to pay mysterious fees for lawyers, consultants and school leaders. The practice must stop. While it is not illegal under the existing and inadequate laws, it is a clear waste of taxpayer dollars. One example involved St. Croix Preparatory Academy, a charter that recently opened a $21.7 million building near Stillwater. Using junk bond financing, school officials paid about $140,000 in fees -- including some to themselves. In another case, a local municipality authorized bonds for a charter school in exchange for a $45,000 processing fee that was used to buy a new firetruck. That may be a worthwhile use of public money, but it has nothing to do with education. Charter programs pay off bonds with state aid designated for facilities -- not for unnecessary fees or city equipment. Under state law, charter schools are not allowed to purchase or construct buildings with lease aid. But as some charters grew and needed more stability and control over their facilities, they created affiliate, nonprofit entities to buy or build facilities and serve as landlords. In essence, the schools were renting from themselves. Technically that's legal, because nothing in the law addressed such an arrangement.
A Colorado College Looks to Sun for Campus Power; Qualified Energy Conservation Bonds May Finance Project
Staff Writer, Pueblo Chieftain
December 02, 2009 COLORADO: The Adams State College Board of Trustees moved forward with a solar power proposal that could supply the campus with as much as 30 percent of its power, should Xcel Energy and the governor's energy office sign off on the project. The board voted unanimously Tuesday to pursue a project that would supply the school with 5.3 megawatts of power per year, making it the largest such project on any of the state's college campuses. The bulk of the power would come from two ground-level arrays -one on a 5-acre parcel the school owns at the north end of campus near the Rio Grande and a 15-acre parcel that lines the south side of U.S. 160 across from the school. Part of the approval from trustees allows school administrators to pursue either a lease or purchase of the latter property. Both ground-level arrays would have the ability to track the sun through the course of the day. The project would also install roof-mounted systems on Plachy Hall, the Student Union, Nielsen Library and the school's education building. Plans with Maryland-based SunEdison call for the school to receive power at or below what it currently pays for power, said Bill Mansheim, vice president for finance and administration at the school. SunEdison, which runs an 8.2-megawatt plant near Mosca, would build the plant. A key component of the project's financing would have to come from the governor's energy office, which controls the distribution of $51.2 million in tax credit bonds. Should the college qualify for the Qualified Energy Conservation Bonds, it would have to repay the principal on a regular schedule, but those bonds generally do not require interest payments. Bond holders would receive a federal tax credit but would not get an interest payment. So far, $31 million in bonds remain and the energy office will select qualifiers between now and the end of January, said Todd Hartman a spokesman for the office. Construction of the project would also depend on the selection of the project by Xcel to take part in its Solar Rewards program.
Texas School District's Security Systems Lauded
Sandra Engelland, Keller Citizen
December 02, 2009 TEXAS: Additions of security cameras, visitor tracking software and burglar alarm upgrades are drawing national attention to Keller schools. In this month’s issue of Security Magazine, a monthly publication for security industry professionals, Keller, ranked No. 18, is one of 23 school districts from around the country noted for cutting-edge security technology and protocols. "I’m very pleased we achieved the recognition," Deputy Superintendent Mark Youngs said. "It speaks of the commitment the [school] board and the public have made to district security." The magazine surveys school districts, colleges and businesses in a variety of fields to develop the rankings. In the kindergarten through 12th grade education division, districts were ranked based on a comparison of spending levels and number of security officers per student, employee and square foot of its facilities. The 2008 bond package helped land Keller on the list, with $1.25 million for additional security cameras, entry access controls, visitor check-in software and burglar alarms. Almost all of the 300 to 400 new cameras have been installed on district property – most of them filling in holes on the exterior of campus buildings – bringing the total to almost 1,000 cameras at 40 facilities. Each of the four high schools has about 100 security cameras. Schools with younger students have proportionally fewer cameras.
Illinois Governor Signs Bill to Tap New Federally-Backed Construction Funds; Build America Bonds, School Building Financing Means Jobs
Press Release, Illinois Government News Network
December 02, 2009 ILLINOIS: Governor Pat Quinn signed into law a bill that allows the State to issue federal stimulus-supported Build America Bonds and Qualified School Construction Bonds to fund critical capital projects such as roads, bridges and schools. This funding is part of Governor’s Quinn’s Illinois Jobs Now! capital construction bill, signed into law last summer, which will retain and generate about 439,000 Illinois jobs over the next six years. Illinois Jobs Now! will spur employment in the construction, transportation, manufacturing, environmental sectors and other industries. “Putting people to work is my top priority. This important legislation gives us the financing tools needed to move forward with school construction and other capital projects that will put people to work and help get our economy going,” said Governor Quinn. Senate Bill 1514 allows for the procurement and payment of Build America Bonds and Qualified School Construction Bonds, programs initiated by the American Recovery and Reinvestment Act of 2009. Qualified School Construction Bonds can be used for the construction, rehabilitation or repair of public school facilities. They may also be used for the acquisition of land on which such a facility is to be constructed. The bonds are tax-exempt and provide federal income tax credits in lieu of interest to purchasers. The State expects to issue up to $488 million in Qualified School Construction Bonds by the end of the first quarter of 2010. This is the full amount allotted to Illinois by the federal government. The Build America Bond program authorizes state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010. The bonds can finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. Under the program, the federal government will reimburse Illinois for 35 percent of the bond’s total interest paid to investors. The State expects to issue its first Build America Bonds in the first quarter of calendar 2010.
Minnesota Voters Approve School Construction Bond; Stimulus Funding at Stake
Tanner Kent , Mankato Free Press
December 01, 2009 MINNESOTA: With millions of dollars in savings at stake, residents of the Montgomery-Lonsdale School District approved a $29.7 million bond proposal during a special election on Tuesday. Taxpayers approved the measure with 1,106 votes in favor and 702 against — a 61 percent majority. The proposal, which calls for much-needed structural and maintenance upgrades at the district’s combined middle and high school, was bolstered by a pair of loan programs that drastically softened its tax impact. In August, Montgomery-Lonsdale was one of a dozen Minnesota school districts to be awarded school construction bonds at low- or no-interest for 16 years through a stimulus-funded tax credit to the institutions who finance the bonds. The state allowed the district to use the no-interest bonds for up to $10.7 million of its construction proposal. The remaining loan amount will be issued in so-called Building America Bonds, which entitle the district to a rebate equal to 35 percent of its interest payments on the bonds for 25 years. According to calculations by district financial consultants, the savings through reduced and rebated interest payments will amount to $10.5 million. The yearly tax increase for the owner of a $175,000 home will be approximately $253; the increase on a $250,000 commercial property will amount to $614 per year. In preparation for the election, district officials carried out an exhaustive public information campaign that included public meetings, presentations for community groups and several district-wide mailers. District officials also conducted dozens of tours inside the secondary school, the core of which was built in 1936.
Virginia School District Considers Raising Community-Use Fees of School Facilities
Holly Hobbs , Fairfax Times
December 01, 2009 VIRGINIA: As the Fairfax County Public School system searches for funds, "the school system is looking at all sources for revenues," said Dean Tistadt, chief operating officer of the school system. One of those is community-use fees, which would impact the 1,195 groups that use one of Fairfax County's 196 schools during weeknights and weekends. "Our buildings are in use more hours each week for community use than instructional purposes," Tistadt said. During fiscal 2009, the school system generated about $4.8 million in fees to use its buildings, according to the Facilities and Transportation Services department. However, it spent about $9.14 million in maintenance, utilities and cleanup on community uses. Tistadt said the school system is looking to close that $4.3 million gap by about $200,000. There are about 130 churches, more than 400 homeowner associations and condo groups, about 90 tutors and about 130 sports groups among the 1,195 organizations that use school facilities as meeting places. Tistadt said the schools are always being asked by community group leaders to increase hours and access to facilities.
Build America Bonds Financing College and University Projects; Chicago Selling QSCBs
Jeremy R. Cooke, Bloomberg Press
December 01, 2009 NATIONAL: New issues of Build America Bonds may rise 40 percent from this year’s monthly average to total $110 billion in 2010, JPMorgan Chase & Co. strategists said. The stimulus initiative, under which the U.S. Treasury pays 35 percent of the interest for states and municipalities, may produce $9.17 billion a month in deals next year, JPMorgan estimates, as more issuers seek lower net borrowing costs than on traditional tax-exempt financing. The increase would help to buoy the value of bonds in the broader municipal market. Following are descriptions of pending sales of municipal bonds; the timing and amounts may change. Virginia College Building Authority intends to take interest-cost bids from investment banks seeking to underwrite as much as $447 million of bonds to finance capital projects at public institutions of higher education in the state. As much as $390 million of the deal ranging in maturity from 2015 through 2030 may be bid as Build America Bonds. University of California plans to sell as much as $539 million of Build America Bonds backed by gross revenue from its five medical centers, which totaled $5.6 billion last fiscal year, according to Moody’s. The deal will fund expansion and renovation projects at the medical centers for UC San Diego, UC Irvine, UC San Francisco and UC Los Angeles. The fifth center, associated with UC Davis, is in Sacramento. Chicago Board of Education, overseer of the third-largest U.S. public school system, plans to sell $254.2 million of taxable Qualified School Construction Bonds through Goldman Sachs. Investors will be compensated with federal tax credits under the stimulus program designed to provide zero- or low-interest construction loans to public schools.
Alert Regarding Distribution of Qualified School Construction Bonds in California
Staff Writer, CASH Register
December 01, 2009 CALIFORNIA: Issues have been raised over the legality of the distribution of authority to issue bonds under the federal Qualified School Construction Bonds (QSCB) Program. Bond counsel for many districts throughout California specifically questioned whether or not the delegation of the responsibility to allocate the tax credit authority under the QSCB Program by California Department of Education complied with the federal law’s definition of “State.” Secondly, there is question about whether a lottery to allocate the authority was in keeping with federal and state law. The Department of Education, the State Treasurer’s Office, the Governor’s office and others are working to find a solution to this dilemma. Most recently, the Department of Education issued a letter to awarded districts informing them that legislation is being pursued that would expressly authorize, approve and ratify the 2009 allocations announced earlier this year by the Department. We understand that urgency legislation, which would take effect upon the Governor’s signature and requires a two-thirds vote in both the Assembly and Senate, will be introduced in early January. The bottom line is we believe that districts will not be able to sell bonds by the end of 2009.
Stimulus Help Not So Helpful for Some Washington State School Districts
Steven Friederich, Daily World
November 30, 2009 WASHINGTON: Millions of dollars of what was supposed to be interest free bonds to help school districts across the country will likely go unused and rural districts where unemployment is rampant will likely be some of the biggest victims, some education leaders say. In Hoquiam, Washougal and elsewhere around the country, School Boards and superintendents are turning away what was supposed to be “free money” to help with school-related construction projects. Under a provision of the American Recovery and Reinvestment Act, local school districts come up with voter-approved bonds, levies or general fund dollars for big construction projects and the federal government provides a lump-sum, interest-free amount of money upfront to help the districts save their cash starved operating budgets from spending anything more than necessary. But for some school districts, it’s not working.
ARRA Guidance A Priority for Treasury Department
Peter Schroeder , Bond Buyer
November 30, 2009 NATIONAL: The Treasury Department Wednesday highlighted guidance on tax-credit stripping, Build America Bonds, and other programs stemming from the American Recovery and Reinvestment Act as high priorities in its 2009-2010 priority guidance plan. Of the 315 projects listed, the document highlighted 10 separate regulatory projects involving municipal bonds that Treasury and Internal Revenue Service officials would like to tackle between now and the end of June. At the top of the list for munis is additional guidance on tax-credit bonds. Although the document does not specify which topics that guidance would address, market participants expect the Treasury to address how issuers or investors can strip the tax credit from the bond and sell the two separately. While many bond attorneys and other market participants for months have sought stripping guidance, believing it could expand the market for tax-credit bonds, Treasury and IRS officials have said they are still working through a number of complicated issues, and also have warned that stripping should not be viewed as a cure-all for the tax-credit bond market. ARRA authorized the sale of $11 billion of taxable tax-credit qualified school construction bonds this year and so far at least $1.5 billion if the debt, in 119 issues, has been sold, according to Thomson Reuters. In addition to stripping, several programs created or expanded by ARRA are guidance priorities. Most of the ARRA-related bond programs are set to expire after Dec. 31, 2010. The Treasury hopes to get out additional guidance on BABs, addressing a number of questions that have emerged over the last few months. Additional guidance on qualified school construction bonds is also on the agenda.
New York City’s Schools Share Their Space With Charter Schools, With Bitterness
Jennifer Medina, New York Times
November 29, 2009 NEW YORK: Mayor Michael R. Bloomberg has made charter schools one of his third-term priorities, and that means that in New York, battles and resentment over space — already a way of life — will become even more common. He and his schools chancellor, Joel I. Klein, have allowed nearly two-thirds of the city’s 99 charter schools to move into public school buildings, officials expect two dozen charter schools to open next fall, and the mayor has said he will push the Legislature to allow him to add 100 more in the next four years. In Harlem, parents have chafed and picketed against an expanding charter school network, the Harlem Success Academy, which is housed in several public schools. In Brownsville, Brooklyn, a plan to close a failing elementary school and let a charter take over the building was shelved after a lawsuit. At P.S. 15, teachers and parents were furious about plans for PAVE to expand next year, after having been told the school would be gone by the end of this academic year. Several hundred parents filled a middle school auditorium in Marine Park, Brooklyn, in the spring to rail against a proposal to house the new Hebrew Language Academy there. The school eventually found a home in a yeshiva. Charter schools, privately run but publicly financed, are generally nonunion, freeing them from labor restrictions. They have gained traction with their promise of innovative teaching methods and more flexible work rules for teachers. Arne Duncan, President Obama’s education secretary, has told states that they must remove impediments to charter schools as a condition of winning so-called Race to the Top grants. In New York, as in most states, charter schools receive no money for construction, forcing them to raise millions on their own — or find a willing host. In other cities, where charters are only begrudgingly accepted by public school officials, tensions between public and charter schools sharing a building would be unheard of, because the charters are forced to find their own homes. Mr. Klein has aggressively eased the way for charter schools, citing their popularity — most have far more applicants than seats. “There are so many talented people out there, and I want them to come to New York,” Mr. Klein said in an interview. “Why would we want to put up barriers to that?” Todd Ziebarth, the vice president of policy for the National Alliance for Public Charter Schools, called support like Mr. Klein’s “extremely rare.” “In starting a new school, you are also launching a small business,” Mr. Ziebarth said. “Space is the most difficult and challenging thing to think about and figure out.”
New Hampshire's State School Building Aid Remains Essential
Staff Writers, Concord Monitor
November 29, 2009 NEW HAMPSHIRE: In 2008, Gov. John Lynch balanced the state budget by bonding up to $80 million in school building aid due cities and towns in the coming biennium, but because the general fund did not end up with a deficit, no money was borrowed. In a few weeks, however, for the first time ever, the state will borrow the $40 million needed to pay its share of school building aid. The Legislature also authorized the bonding of $49 million in school building aid for fiscal 2010 and $46.3 million in fiscal 2011. If it continues on that path, state Treasurer Catherine Provencher told lawmakers, by 2019 or so, the debt service on the bond will be larger than the annual amount of school building aid. That's a certain path to fiscal ruin. Bonding aside, when a legislative study committee looked at the upcoming school building program, members decided it was unaffordable. Using a formula to determine a school district's ability to pay, the state contributes between 30 percent and 60 percent of the cost of building a new school or renovating an old one. The state's share totals, on average, about $45 million per year. That's not much in a two-year budget of some $11 billion. But without state aid, school districts, rich or poor, would be unable to pass the bonds necessary to upgrade or replace schools. A House committee is expected to vote next week to suspend aid to all school building proposals not previously approved. Lynch, in an interview with New Hampshire Public Radio's Josh Rogers, said he is open to a suspension. He also wants to look at revamping the program to further target aid to the neediest school districts. Suspending aid would do a huge injustice to school districts that have worked for years to put school improvement plans before voters next year. Concord, which is moving ahead with a massive plan to consolidate and replace what are in some cases century-old elementary schools, got its paperwork in early. It would not, as things stand, be affected by a suspension. But Claremont, which has already spent $300,000 on plans to renovate its aged high school, hasn't yet been approved for state aid and isn't scheduled to vote on its $22.9 million high school renovation and addition project until spring. Suspending state aid in January would delay or doom the Claremont project. Passing school construction bonds is never easy, even in well-off communities. And in every community, no matter what its tax base or median income, there are poor and middle-class people struggling to hang on. Targeting aid beyond the current spread penalizes them the most. Capping the amount eligible for school construction costs so the state isn't paying for, in the words of Senate President Sylvia Larsen, Cadillacs in one community while others make do with Edsels, might make sense. But targeting school building aid raises other issues. The state's contribution to school construction costs was one of the justifications for setting the state's obligation to fund an adequate education for every student absurdly low. Reducing or eliminating building aid to some communities would provide grounds for going back to court.
San Antonio Students Lend a Hand to Improve Classrooms
Michelle De La Rosa , San Antonio Express-News
November 28, 2009 TEXAS: Second-graders at Westwood Terrace Elementary School will walk into their classrooms to a surprise on the level of “Extreme Makeover: Home Edition.” They'll see brightly painted walls and decorative touches, thanks to high school volunteers who gave up some of their holiday vacation to help. Corporate volunteers are expected to help to complete makeovers in five classrooms. “I feel the school is beautiful, but it's going to look even better in their classrooms,” Principal Gracie Guess said. The overhaul is part of a character education program the students are studying called Just Bee. The program's author, Saul Serna, flew in from Illinois to coordinate the effort. “It's not about painting the walls and changing the look,” he said. “It is about creating an environment where the children are inspired to develop their character and values to positively impact our world.” This is the third school that Serna, with his wife, Jan Mansfield, has made over as part of the program. Environment, he said, is crucial to stimulating students. Volunteer Jane Vinogradova, a Jay senior, thinks so, too. Her family is from Russia, and she said that when she attended school there, her classrooms were lively and decorated with depictions of fable characters. The school's classroom walls are painted in neutral colors typical of most public schools. Vinogradova said she wanted to help amp up the vibrancy. “I just want them to be happy and comfortable in their environment,” she said. “They spend seven hours here. It's a home away from home.”
Ohio School District Sues Over Air Pollution
Associated Press, Washington Post
November 28, 2009 OHIO: A school district near Cincinnati is suing a plastics plant, accusing it of continuing to release chemicals in the air that exceed government safety standards. Three Rivers School District closed an elementary school across the street from the plant in 2005. The district says it has been unable to sell the building and is burdened by crowded classrooms. Students were shifted to two other elementary schools, and some courses are taught in cafeterias or storage areas. The lawsuit seeks compensatory and punitive damages. The plant had been cited with several environmental violations. Terri Fitzpatrick, a spokeswoman for plastics maker Lanxess Corp., which previously owned the plant, says the company took steps to enhance environmental controls. The plant continues to operate under a joint agreement between Lanxess and Ineos Group.
Texas School Districts Differ on Use of Federal Stimulus School Construction Bonds
Karel Holloway, Dallas Morning News
November 26, 2009 TEXAS: Some area school districts have taken advantage of two federal stimulus programs giving them a break in the bond market, saving millions over the next couple of decades. But while the deals are good, the timing has to be just right, keeping some districts from cashing in. Others have passed, saying the terms aren't right for them. The Plano and Garland school districts recently sold a total of $167 million in bonds, some under the federal Build America Bonds and Qualified School Construction Bonds programs. The federal programs essentially allow the districts to pay a lower interest rate. "I believe we saved $15 million over 25 years," said Linda Madon, executive director of financial services in the Plano Independent School District. Meanwhile, the Dallas school district sold bonds before the programs began, and Mesquite was ready for its bond sale before program details were worked out. The Richardson district rejected them, citing potential high costs, a lack of flexibility and market concerns. The varied outcomes show the complex nature of school bond finance and the federal programs. Several school districts said their financial advisers spent days creating charts comparing the benefits and disadvantages of traditional bond sales with those under the federal programs. "There are some additional requirements in reporting and additional oversight," Madon said. "The savings were just so tremendous that we just couldn't pass that by." School districts regularly sell bonds to pay for major construction such as new buildings, as well as renovations to old buildings and major equipment purchases. They pay the bonds back with interest over many years. Like the interest rate on a home mortgage, the bond interest rate determines how much the district must pay back. Recently, districts have sold bonds at 4 percent to a little less than 5 percent annual interest. Under the Qualified School Construction Bonds program, districts can sell bonds that pay no interest. Garland used the program for $10 million of a roughly $30 million bond sale, saving hundreds of thousands of dollars, said Rene Barajas, assistant superintendent for finance. To make non-interest-bearing bonds attractive to buyers, the government gives them a tax credit that probably saves them more than they would have earned on an interest-bearing bond. In bond sales, timing is everything. Interest rates can change daily, and there are willing buyers on some days, but not others. Plano sold $32 million in bonds through the same program but could find no buyers at zero percent interest, Madon said. So the district will have a one-time payment of 1 percent of the bond amount – still less than the district would have paid in long-term interest. The district, which recently sold $137 million in bonds, negotiated several complicated deals. It sold some through the regular market, some through the QSCB and still others through Build America Bonds. One drawback of the federal programs is their complexity. Districts can use QSCB bonds only to pay for certain projects. The Build America Bonds program, meanwhile, allows districts to pay buyers a higher interest rate that is subsidized in part by the government. Districts can decide whether to use the subsidy to reduce the property tax rate used for paying off the bonds or to pay district operating expenses. Because of the tricky timing required and the complex details, some districts opted to sell bonds the old-fashioned way, resulting in higher interest rates and higher payments. Dallas, for instance, could have sold about $73 million in bonds under the QSCB, but the district had sold $400 million before the program started and wasn't ready for another sale, district spokesman Jon Dahlander said. If the district sells bonds next year, financial officials will re-examine the program, he said. The programs just didn't work for other districts. Fast-growing Frisco ISD qualified for $20 million under the program but didn't use the option, said Richard Wilkinson, assistant superintendent for facilities and finance. "Recently, when we needed to sell bonds, no one in the market was picking these bonds up," he said. "We couldn't take a chance on going out and not having the bonds picked up." The Richardson district analyzed the QSCB program and decided against it, said spokesman Tim Clark. There are downsides to using either program, administrators pointed out. Dividing bonds and selling several batches at once under different programs, as Plano and Garland did, can lead to higher administrative costs. The projects that can be paid for by the qualified construction bonds are limited. Also, federal regulations associated with the bonds can lead to higher construction costs, they said. And a lot of extra paperwork is involved. "Our financial advisers have spent a lot of time and effort working out the details," Madon said. "For those kinds of savings, it's worth it."
What Does Historic Mean to Winona, Minnesota School Buildings
Cynthya Porter , Winona Post
November 25, 2009 MINNESOTA: To people on the outside, they might just look like old buildings. But to people who call Winona home, the facades of longtime landmarks are their past, part of the story that weaves the tapestry of what Winona is today. For this reason, the Historic Preservation Commission is unapologetic in its efforts to identify and protect landmarks that stand throughout the community. Most recently, the HPC has drawn the ire of District 861 school board chair Stacey Mounce Arnold and a local newspaper editor for announcing its intention to see four Winona elementary schools placed on local and national historic registers. The designations would mean that current and future owners would have to go through a special process to raze or significantly alter the exterior appearances of the buildings. Arnold has decried the measure as an end run to prevent the district from closing Central Elementary, the smallest and arguably the most historically interesting of the buildings. Historic designation would drive off potential buyers of the building, she said, because of the limitations it would place on the property. But proponents of historic preservation say the assertion is wrong, and that historic designation can actually attract buyers interested in repurposing a building using the tax breaks and grants such designation can provide. Being added to the local or national historic registers would have no impact on what the interior of a building is used for, and numerous examples exist throughout Minnesota of historic school buildings that have been turned into condominiums, apartments and community centers. Addressing the school board last week, Winona Historic Preservation Commission member Bob Sebo said the commission is in the process of obtaining funding for studies required prior to designation. “We are in no way saying they must remain schools, but we are saying they are important to the city,” he said. Sometimes, said Sebo, an architectural study finds that a structure has been too altered to be considered authentically historic, as was the case with the Old Wagon Bridge. “When we learned it had been too altered, we ceased our work,” he said. Sebo said he expects the nomination and designation process to be complete in 2010. Building owners do not have to participate in the process for a building to be identified by local authorities as historically significant. To determine its historical significance, architects examine the origin and use of a building, noting particularly its architect, architectural features, and purpose. Historic designation, particularly on a local level, provides added protection from demolition as the preservation commission and city officials must agree before a historic building can be torn down. It can also provide valuable funding avenues and tax credits for those seeking to restore or reuse a building, most notably thanks to a statewide preservation movement to save historic school buildings.
Bond Program Considered for Georgia County School Projects
Laura Camper, Times-Georgian
November 25, 2009 GEORGIA: The Carrollton school system is looking to expand and President Barack Obama’s stimulus package includes a tax credit bond program that could provide an opportunity to get started in early 2010. The Qualified School Construction Bond Program allows investors who purchase the bonds to receive a tax credit, and allows school systems to use that money for capital projects. Georgia is allowed to sell up to $250 million in bonds in the program. The bonds would allow the Carrollton school system to acquire funding for its capital projects tax free and pay the money back within 16 years. In addition, during the time the school system was paying back the bond funds, the money would go into a fund and the school system would make interest on the money. The money could be paid back with special purpose local option sales tax dollars or with general funds. The Carrollton school system has been considering the program as a way to fund needed renovations in the high school bathrooms and the old gym as well as add a 38-classroom wing onto the middle school to help with future growth. The Board of Education approved a resolution to request the funds in September and administrators applied for $8 million to pay for the projects. “When you look at it, it’s a no-brainer,” said Steve Spofford, chief operating officer for the school system. “Not only is it free money, it’s money that you’re going to make money on.” But things have changed since the program was unveiled to the school systems. In a few school systems throughout the country that have already tried to sell the bonds the bonds haven’t done as well as the schools had hoped. “(The feds) didn’t give enough of a credit to investors for these bonds,” Spofford said. “Now when they buy the bonds they want to buy them with what they call a supplemental coupon. A supplemental coupon means they want to attach a 1 or 2 percent of the loan amount paid annually to the investor.” The way the program is designed the money for the projects would not come from the state or federal government, bu t from the investors. With the economy being so difficult the tax credit may not be a big enough incentive to sell the bonds. But because the systems aren’t allowed to pay the bonds off early, that makes what could have been an inexpensive way for schools to do some expansion or renovation much more expensive. It adds about $1.8 million to the bill for the Carrollton system. Right now, bond councils across the country are trying to work with the federal government to reach an agreement that would make the program work for the school systems. That problem, and just the fact that it has taken so long to roll out the new program, has led the state to postpone the scheduled start date. The program was originally set to roll out in two waves in 2009 and 2010. Now, there is only one — the systems will receive approval in February 2010 and must sell the bonds by Dec. 31, 2010. Carrollton City Schools had received approval last week, but will now have to wait until after February to start selling bonds under the new time line. “It is a good thing for us,” Spofford said. “It gives us time to work this thing out.”
Wichita, Kansas School Board Approves Second Sale of Stimulus Bonds for New Schools
Lori Yount, Wichita Eagle
November 25, 2009 KANSAS: Projects for the $370 million bond issue for Wichita schools are moving along faster than expected, administrators said. The school board approved the second sale of bonds this week.With the recession hitting construction companies hard and federal subsidies readily available through stimulus money, the district has been able to find good deals, said Linda Jones, chief financial officer. "We've issued more than one-third of our bonds because interest rates and construction bids have been so good," she said. Board members approved the sale of $32 million in Qualified School Construction bonds, which the federal government subsidizes by providing tax credit to the bond buyer, rather than the district paying the buyer interest. To make up a gap in the amount of tax credit the federal government will pay and the actual interest rate on the bonds, Jones said the district will pay 1.35 percent on the $32 million. That interest rate is lower than the roughly 4 percent the district will pay on $188 million in bonds it issued this spring. Jones said the federal subsidy on the latest bond is expected to save the district about $10 million. The $32 million will be spent entirely on the new northeast high school because of federal wage laws the district must follow with the subsidized bonds. A larger construction firm will most likely take on the contract for the high school, and a larger construction firm is more likely to be versed in the federal wage laws, Jones said.
Reception Cool in Arizona for Tax Credits Offered to Stimulate School Building
Alex Bloom , Arizona Republic
November 24, 2009 ARIZONA: A federal stimulus program that uses federal tax credits to spur nationwide school construction might not be as attractive as was intended for Arizona school districts needing new schools. The American Recovery and Reinvestment Act allotted $372 million in tax credits over two years to the Arizona Department of Education, $16.1 million in credits to Mesa Public Schools and $21.4 million in credits to Tucson Unified under the Qualified School Construction Bonds program. The program provides federal tax credits in lieu of interest payments to school-bond holders and lease-to-own certificate holders who buy into the program at the state or school-district level. The intent of the program is to let districts shift part of the cost of bonding or state lease-to-own projects to the federal government through the tax credits, thereby stimulating more construction and business activity. A number of issues surround the program, however, raising questions about whether districts, particularly poorer districts that need the most help, will take advantage. Among the concerns: Districts that agree to be part of the program must comply with federal contracting requirements, which include labor standards that require higher wages to be paid on projects financed through the program. Some observers worry that the school bonds will be less marketable to buyers if tax credits instead of actual interest payments are offered as part of the payback. In the lease-to-own programs, the feds require that new school facilities built under the program be put up as collateral to private investors until the lease-to-own terms are up and the state pays in full for the new facilities. An Arizona law passed in September gives the Arizona School Facilities Board permission to make up to $100 million in lease-to-own deals through the Education Department's tax-credit allotment. The state board can sell certificates of participation to financiers to fund new school construction. Those certificates would be paid down by the state over a set period, with investors getting back their initial investment plus the tax credits offered by the federal government. "You borrow money, and whatever project you use the money for becomes collateral to ensure that you pay it back," said Judy Richardson, vice president of public finance for Stone & Youngberg LLC. The School Facilities Board has approached school districts around the state - including Cave Creek Unified School District, which wants to expand Cactus Shadows High School - about using the method to finance new school construction projects. But investors, Richardson said, are not enthusiastic about the lease-to-own certificates First, it is unclear how much resale value the certificates or the bonds might have given that there are no interest payments attached. Additionally, those bonds floated by poorer school districts would have lower credit ratings, which further affect their marketability. "The tax credits just aren't that attractive," Richardson said. "There aren't that many buyers that would rather have a tax credit instead of interest." Some school districts that have acquired bond capacity through the state Education Department's program have actually had to sweeten interest payments in order to attract buyer interest. The School Facilities Board is considering the same approach.Mesa Public Schools is not enthusiastic about using its bond allocation, according to Gerrick Monroe, assistant superintendent of business and support services. The district would have to get voter authorization for a new bond program. With declining enrollment, the district does not need new schools. And with federal labor standards forcing the district to pay higher construction wages to use the bonds, the district might get only $10 million worth of work for the price of $15 million. "We might be cutting off our nose to spite our face," Monroe said. Cave Creek Unified's governing board already voted to move forward with the program, however. The money will not come directly from taxpayers; the district has been waiting for a $12.25 million allocation from the School Facilities Board since 2006, said Kent Frison, Cave Creek's associate superintendent of operations and finance. "Certainly, whether the project moves ahead or not is all based on whether the state is able to raise the funds," Frison said. "We'll move ahead in the planning stage because we don't want to be behind in case they are successful." Dean Gray, interim executive director of the School Facilities Board, said lease-to-own could fund about seven school projects statewide, with money available as early as February.
California School District May Seek $25 Million Loan for Solar Panels With QSCB Funding
Eric Louie, Contra Costa Times
November 23, 2009 CALIFORNIA: The San Ramon Valley school district is leaning toward applying for a low-interest, $25 million federal stimulus loan to install solar panels that officials says would lead to big electricity savings. Margaret Brown, assistant superintendent of facilities, said the district could net $7 million to $10 million in energy savings after 16 years. After 25 years, which is considered the life of the equipment, savings would equate to $23 million to $30 million, Brown said. If the district goes ahead with the plan, the panels could be installed this summer, she said. The district is one of 43 in the state that, through a lottery, is eligible to apply for low-interest "qualified school construction bonds," district spokesman Terry Koehne. "By all indications (going solar) is a major, major energy savings," he said. Since the eligibility announcement earlier this fall, district administrators and the school board have been going through a complicated analysis of the benefits of adding solar panels to a handful of its more than 30 schools. The board wants to make sure the district's savings assumptions, which factor in a rise in energy costs, are correct so the schools wouldn't be expected to pay more money in the future. The money would have to be paid back at 2 percent interest over 15 years, Clarkson said. The $7 million to $10 million estimate factors in the cost of loan repayment. It also includes money the district would get back from Pacific Gas and Electric Co. rebates. Maintenance is covered by the panel provider. Brown said the panels would supply about 30 percent of the district's electricity. Clarkson said officials haven't determined which schools would get the panels, which would be installed in parking lots rather than on rooftops. He said four contractors have sent proposals, which range from having panels installed in six to eight school sites, primarily middle and high schools.
Tax Increase Plus Federal Stimulus Bonds and USDA Loan to Fund School Construction in North Carolina County
Colin McCandless, Franklin Press
November 23, 2009 NORTH CAROLINA: Macon County property owners will see a 1.5-cent tax increase in 2010. County commissioners voted for the increase unanimously. The increase will help fund school-construction projects, including the new North Macon K-4 School and renovations for Nantahala School. The decision came as the board evaluated different options for funding the projects. In early 2009, commissioners and the school board agreed to delay construction of North Macon School and put the project on hold because proceeding with debt payments would have required a tax increase amid an economic downturn. The urgency to move on these projects derived from several factors, especially current construction costs and interest rates. "I don't have a crystal ball, but probably you can't get construction costs any lower than what they are right now," county manager Jack Horton said. "Or interest rates much lower than what they are right now. "Although it is an additional burden on the tax rate, it is an investment that will not only provide facilities for our children for years to come, I think it will have some economic benefit and put some people to work as well." North Macon School has been estimated to cost $15 million, including the architectural and engineering work. The funding option commissioners approved would include a $10.4 million USDA loan, financed at an estimated 4.25 percent interest rate over 25 years. They will also use a type of new-construction funding called a "QSCB allocation" for $3.5 million of the cost, at an estimated 1.97 interest rate over 15 years. The financing package includes a "QZAB" loan, which can only be used for renovations, to fund $1.8 million in Nantahala School improvements. This loan will be financed at 1.97 percent over 15 years. In addition, a portion of needed Franklin High School renovations will be paid for with $1.3 million from reserved funds in the county's general fund. The estimated annual debt service payments for the construction and renovation projects would be approximately $1.3 million a year. Asked to explain the benefits of the USDA loan and why they want to do the loan at this particular time, finance director Evelyn Southard said that commissioners had given her a cap as to what the maximum effect on the tax rate could be. Southard said the USDA is the only the vehicle the county has for financing these school projects that will go beyond 20 years of annual debt service payments. "And it has to go beyond 20 years to stay in that tax rate that you're looking for," Southard said. She added that USDA loans can go up to 40 years, though the commission decided they do not want to go beyond the 25 years of debt service for North Macon School. Southard also explained that there is an application process you have to go through to even get the 4.25 interest rate with the USDA loan. (They must send proposals to banks and get construction bids before applying to the Local Government Commission to approve the loan). The QSCB allocation of approximately $3.5 million for North Macon has already been set - the school system applied for this figure and was approved, according to Southard. Last year, the county appropriated some up-front costs ($980,000) from the general fund for architectural and design work and that budget amount was transferred. Beale said they had come to the point where they needed to make a decision about North Macon School. If they want to proceed with construction at the end of the next school year, they had to get their loan application and other information into the Local Government Commission. Additionally, they needed to commit in order to schedule the FHS and Nantahala renovations for when school gets out. Horton explained that if the county does not pursue the QSCB and QZAB loans and commit to them before Dec. 31 they will revert back to the state and be reallocated to other school systems. He said if the county does commit to the projects, then Brigman could write a letter to the state and the state can reserve those funds for the county for the 2010 calendar year.
Stimulus Jumpstarts Louisville, Kentucky School Construction Projects
Antoinette Konz , Courier-Journal
November 23, 2009 KENTUCKY: A new arts pavilion is the most recent in a series of district construction projects this year totaling approximately $52 million — half of it courtesy of the federal government’s stimulus funding. Jefferson County Public Schools will use approximately $26 million from its general fund and the remaining $26 million from stimulus in the form of qualified school construction bonds to pay for the projects, said Mike Mulheirn, executive director of facilities and transportation for JCPS. Although the district will have to repay the bonds, it will not have to pay any interest, Mulheirn said. The board has already approved some of those stimulus projects, including $26 million at Valley High School for a new 800-seat auditorium and 1,500-seat gymnasium, along with several other renovations. Others projects this year will include new library media centers at Bowen and Roosevelt Perry elementary schools and heating and air conditioning and renovations at four other schools. Mulheirn said the district typically spends $25 million annually on renovation and construction projects, which include everything from roof repairs and heating and air-conditioning replacement to building media centers and other additions. But the stimulus funding has allowed the district to speed up its construction wish list, completing projects that otherwise would have been undertaken several years down the road. “The stimulus funds will help us get some extra projects done without costing the taxpayer any extra money in interest,” Mulheirn said, adding that the district will get approximately $29 million in stimulus funds next school year. “These are all projects that have been approved as part of the district’s overall facility plan.”
New Bond Program for School Construction and Renovation [QSCBs]
Don Parker-Burgard, District Administration
November 23, 2009 NATIONAL: A unique window of opportunity has opened for states and districts to finance school construction and renovation. Through the Qualified School Construction Bond (QSCB) program, created by the American Recovery and Reinvestment Act (ARRA), the federal government will provide tax credits, in lieu of interest paid by the state or district, to bondholders. A study from the Congressional Budget Office and the Joint Committee on Taxation has found that although such tax-credit bonds are “a relatively insignificant source of financing” when compared to the $1.7 trillion in so-called tax-benefit debt issued by states and localities between 1991 and 2007, they offer a more efficient use of such funding and are projected to grow. The states and districts that issue the bonds will be responsible only for paying back the principal, making it possible for them to purchase land, build new buildings and/or renovate existing buildings at a savings of up to 50 percent. For each of 2009 and 2010, $11 billion has been allocated to states and certain large local education agencies based on their share of Title I Basic Grant funds. They will have until the end of each successive year—2010 and 2011—to use their allocations. States may either directly issue the bonds on behalf of schools, or suballocate this authority to localities and districts. The tax credit bondholders receive, set by the U.S. Treasury Department, will approximate the amount of interest typically paid on such debt.
Ohio District May Receive More Federal Stimulus Money for School Construction
Kurt Moore, Marion Star
November 22, 2009 OHIO: A campaign promise of federal help to build a new school may turn into more than expected for Elgin Local Schools. The district was told prior to the Nov. 3 bond issue that passing the bond issue would guarantee Elgin at least $2.5 million and possibly up to $6 million in interest-free loans thanks to federal stimulus money. That has increased to more than $11.97 million, school officials said Thursday. Ohio received about $267.1 million through the American Recovery and Reinvestment Act of 2009 to use towards public school construction projects. The Qualified School Construction Bonds program provides federal tax credits that bond holders can receive in lieu of interest, which is meant to significantly reduce an issuer’s cost of borrowing money for school construction projects. Elgin was part of a pool of $100 million set aside for school facility projects that were in the planning stage in districts that had not yet passed a bond issue. Out of 39 bond issues on the Nov. 3 ballot, Elgin interim Superintendent Jim Craycraft said only nine passed. “With stimulus money you got to spend it or it goes back, because it is meant to stimulate the economy,” said Craycraft. “They need to get the money out. That more than doubled the amount we were supposed to get.” What it means for Elgin is that, when the district sells bonds to cover the construction costs, it will cost less to borrow the district’s share of the $35.9 million project. Elgin Treasurer Kim Reynolds said how much less and what it will mean for taxpayers is not yet known because the state is still studying how best to distribute the stimulus money. “I think there will be some kind of savings,” she said. “But it’s just unknown at this time.” She said school officials will release more information once they can determine the savings to taxpayers. About 52 percent of voters passed a combined 7.49-mill, 28-year bond issue and a 1-mill continuous improvement levy on Nov. 3, according to unofficial Marion County Board of Elections results. At the time the district estimated it would cost the owner of a $100,000 property about $229 per year.The money will help construct and maintain a centralized kindergarten-12th grade building that will be built on the current Elgin High School campus and demolish the district’s existing four buildings. The Ohio School Facilities Commission will cover about $20 million of the project’s cost.
Federal, State Officials Highlight Early Learning and Community Schools
Christy Goodman, Washington Post
November 22, 2009 MARYLAND: U.S. Education Secretary Arne Duncan, U.S. House Majority Leader Steny H. Hoyer (D-Md.) and State Superintendent of Schools Nancy S. Grasmick visited C. Paul Barnhart Elementary School in Waldorf recently to discuss the importance of early learning and full-service community schools. Barnhart is one of three elementary schools in Charles County with a Judy Center, which provides comprehensive services for at-risk schoolchildren from birth through kindergarten and their families. Hoyer, along with Sen. Ben Nelson (D-Neb.), recently introduced the Full-Service Community Schools Act of 2009, which would provide $200 million a year for five years to fund grants for partnerships between school districts and community-based organizations, which is the Judy Center model. The Senate established Judy Centers, named for Hoyer's late wife, with a $7 million grant in 2000 to provide comprehensive services, including career counseling for parents, health care, nutrition and early childhood education.
Indiana School Operations and Construction Referendum Gives Taxpayers Say
Niki Kelly, Journal Gazette
November 22, 2009 INDIANA: Gov. Mitch Daniels recently declared the new referendum process is "working pretty darn well" in Indiana. Capital construction projects and operational increases for schools have failed more often than not since November 2008 – a 58 percent failure rate overall and 65 percent when considering just capital-project votes. Under the previous remonstrance process involving dueling petition drives, school projects had a 50-50 history of passing. "It’s about the economy more than it is an anti-public school issue. The bottom line is people are looking at their pocket books and they are empty," said Dennis Costerison, executive director of the Indiana Association of School Business Officials. "I think districts will struggle getting construction referendums passed until the economy improves." Lawmakers in 2008 went to a referendum process for most construction projects when property tax increases are at stake. It already existed for operational increases though it was used rarely. Both types of referendums, when approved, are kept outside any calculation of property tax caps. This means homeowners and other property taxpayers have to pay for the projects even if they have reached the established limits on property taxes. "I think people are showing a lot of common sense," Daniels said. "If somebody makes a good case locally for more spending or more taxes to pay for it, Hoosiers are showing they are willing to go for that. "If you can’t make the case, they’re turning it down, sending people back to the drawing board." So far, referendums seeking additional money for a school district’s operational expenses are more likely to succeed. Construction projects are a harder sell. Only six have passed since implementation of the rule, and four of those were in November 2008. Since then, it has been virtually impossible. "We certainly have a concern that over time that things need to be updated and to be renovated occasionally," said Nate Schnellenberger, president of the Indiana State Teachers Association. "While everyone understands that right now may not be the time to spend resources, once the economy turns around I hope voters will approve them. It will be interesting to see if the statistic remains the same in the future." There were some concerns when referendums were originally debated that they would lead to crumbling buildings, especially in urban and poorer districts. But Chuck Little, executive director of the Indiana Urban Schools Association, thinks voters will do the right thing. "I think there is great possibility and opportunity in referendums. Indiana doesn’t have a history of referendums but it will develop, and Hoosiers will understand that they have an effect on school policy," he said. "They can show their pride through voting." So far, the data don’t bear out any pattern on referendums when comparing wealthy with poorer districts. Of the referendums that passed, four districts had per-capita incomes above the statewide average, and six were below. Of those referendums that failed, nine districts had per-capita incomes above the statewide average, and six were below. "We are not seeing a pattern of inequity, which is good," Espich said. "It’s direct democracy in action. There is a greater desire by the public to be empowered. They are better educated, and this gives them the chance to make decisions."
Legal Loophole Keeps California School Construction Cash Local: Lease-Lease Back
Dave Moller, The Union
November 20, 2009 CALIFORNIA: A Nevada County contractor has landed his second school building job in less than one year, using an innovative arrangement that keeps local tax dollars in the community. In June, Grass Valley's Sierra Foothills Construction Co. and Tru-Line Builders used the arrangement to win the $13.2 million contract for the second phase of expansion and renovation at the Sierra College campus in Grass Valley. That work was paid for through a local, tax-funded bond issue. Now, Sierra Foothills has landed a job with the Nevada City School District to build a new bicycle repair shop at Seven Hills Middle School using the same process. Planning and engineering is expected to cost $500,000, and construction to cost another $500,000, paid for by an anonymous donor. The district's contract with Sierra Foothill also calls for retrofitting bathrooms and sidewalks to accommodate disabled people at Deer Creek Elementary School, according to owner Keoni Allen. The cost for that work has not been established yet, he said. The innovative arrangement that enabled a local builder to win the contract is lease-lease back, which is allowed under the California Education Code, said Dick Cowan, formerly of Sacramento-based Clark and Sullivan Construction. The firm completed the first phase of the Sierra College job and worked with Allen and Brady to land the second phase. “It's a common misconception that there's only one way” to build or expand a school, Cowan said. Under the process, contractors must prove they can do the work for a guaranteed price. When the job is awarded, the school district leases the construction site to the main contractor, Cowan said. That allows the contractor to go out and negotiate for the local subcontractors and suppliers he wants. Once the job is done, the contractor leases the site back to the school district for occupation. “That means we get to do the jobs with local tax money and keep the business here in town,” Allen said. “We're proving the local construction industry can do this kind of work quickly and efficiently.” Most publicly funded construction continues to be governed by state regulations that require agencies to award contracts to the lowest bidder. But about 10 percent of California's school districts are taking advantage of the provision for lease-lease back in the Education Code and using it to keep dollars local and have greater local control over design and building, said Cowan, who now works for a large, statewide construction firm. In addition, the regular bidding process “caused change orders and disputes that weren't the most economical way to go in the end,” Cowan said. “The real cool part is we have a new skill unit the college (work) helped impart to the local construction industry,” Allen said.
Comparing House and Senate School Facilities Programs in the Student Loan Bill
Jennifer Cohen, Ed Money Watch Blog
November 17, 2009 NATIONAL: In July we analyzed funding for K-12 school facilities in the student loan reform bill, the Student Aid and Fiscal Responsibility Act, as passed by the House Education and Labor Committee. The full House passed the bill in September and preserved the $2.0 billion per year school repair program. Although the Senate has not yet acted on a similar student loan reform bill, a version drafted by the Senate Health, Labor, Education and Pensions Committee was leaked a couple of months ago. The leaked bill suggests the Senate is headed in a different direction than the House when it comes to funding school facilities construction. Both of these pieces of legislation provide a glimpse into the federal government's first major foray into directly funding K-12 school facilities and neither propose an insignificant amount of money. The most striking difference between the two versions is that the House includes a two-year, formula-based investment in K-12 school facilities, and the Senate bill creates a five year competitive program for K-12 school repair, renovation, and construction. The House bill distributes funds for repair, renovation, and modernization among states and school districts according to each state and district's share of total federal Title I dollars. This means that every school district in the nation that receives Title I funds will receive some share of its state's school facilities funds after the state withholds up to 1 percent for administrative purposes. Unfortunately, the House bill spreads just over $2.0 billion in each year over more than 13,000 eligible school districts. In the end, it's likely to amount to a drop in the bucket relative to the total expense of modernizing schools. Additionally, the House bill prohibits spending on new school construction, with the exception of $30 million each year for Louisiana, Mississippi, and Alabama. The leaked version of the Senate bill, however, avoids the danger of spreading the funds too thin by creating a competitive program administrated by the states but funded by the federal government. Essentially, the program distributes $500 million each year from 2010 to 2014 to states according to their share of Title I funds, much like the House program. However, once states receive their funds, they must create a competitive grant program through which they will award funds to selected school districts and charter schools within the state. [Includes side-by-side comparison chart and more analysis.]
Editorial: Allowing D.C. Charters to Use Closed Facilities
Editorial Board, Washington Post
November 16, 2009 DISTRICT OF COLUMBIA: The D.C. government has never been particularly generous when it comes to making space for public charter schools. It grudgingly accepts applications from charters hoping to acquire vacated school buildings but, more often than not, opts to sell the properties to private developers or, worse, lets the buildings rot. So it's important to celebrate when the city gets it right -- as in the recent renovation of an old elementary school into an incubator for fledgling charters. Draper Elementary School on Wahler Place in Southeast closed at the end of the 2008-09 school year. The facility will now serve as home to two new public charter schools until they outgrow it. Achievement Preparatory Academy Public Charter School is a middle school in its second year of operation; National Collegiate Preparatory Public Charter High School is in its first year. The project comes courtesy of the D.C. Charter School Incubator Initiative, a partnership between a nonprofit established by Sallie Mae and the D.C. Office of the State Superintendent of Education to help charter schools find appropriate and affordable space. The U.S. Department of Education is helping to fund the Draper renovation. Finding appropriate facilities is a struggle charters face nationwide. Many end up crammed into church basements or take out expensive loans to turn warehouses into school space. That's why the reuse of Draper to accommodate up to 500 public charter school students is so significant. Think, for instance, what would have happened to E.L. Haynes Public Charter School and Capital City Public Charter School -- two of the city's highest-performing schools -- if the initiative had been unable to give them space to operate and grow. Look also at the promise already being shown at Achievement Preparatory in boosting student performance. Test scores from 2007 show that 29 percent of students entering the school were proficient in reading and 35 percent were proficient in math; in the 2008-09 school year, 56 percent of the students were proficient in reading, and 82 percent were proficient in math. And, 83 percent of these students are economically disadvantaged. There are six incubator sites in the city. Three are former schools that Mayor Adrian M. Fenty agreed to make available. We hope that's a sign of a new willingness by the city to make sure surplus schools are used for public education by allowing charters to buy or lease them.
Gates Foundation Helps Houston Charter Schools Build by Securing a Bond
Jennifer Radcliffe, Houston Chronicle
November 15, 2009 TEXAS: The Bill & Melinda Gates Foundation pledged $10 million to help the Knowledge is Power Program (KIPP) secure a $62 million bond. This will help the charter system start construction that will allow enrollment to double to more than 11,500 students in five years. KIPP hopes to reach 21,000 students at 42 schools in Houston over the next decade. “KIPP's $100 million expansion plan, announced in March 2007, had stalled some because of difficulties securing credit in the bad economy, officials said. Gates' help is expected to save KIPP about $10 million by lowering the interest rate on the 35-year note.” The Gates Foundation is making a total of $30 million available for high-performing charter schools. KIPP is the first charter school to receive such a guarantee from the foundation, but others, including Houston's YES Prep Public Schools, could follow suit under the program. “Financing facilities is one of the biggest challenges charter schools have,” said David Dunn, executive director of the Texas Charter School Association. “The financial support helps charter schools, public campuses funded with tax dollars, overcome one of their biggest obstacles: finding money to build campuses. Unlike their traditional counterparts, charters systems cannot hold bond elections or levy tax rates.”
Two Minnesota Schools Receive Stimulus Funds for Energy Improvements
Anna Erickson, Park Rapids Enterprise
November 14, 2009 MINNESOTA: Park Rapids Area High School and Frank White Education Center will undergo indoor air quality, maintenance and energy efficiency projects with the help of federal stimulus money. “The school really needed these improvements,” said Superintendent Glenn Chiodo. “What really put us in the position to be able to do them was the availability of stimulus dollars.” The total cost of the project is estimated at $12,232,417. Stimulus money will cover about $7.6 million, Chiodo said. “Without that money, there’s no way we would have been able to do this,” he said. The school district will issue three series of bonds for the project: general obligation alternative facilities bonds, series 2010A; general obligation alternative facilities bonds, series 2010B (qualified school construction bonds); and general obligation capital facilities bonds, series 2010C (qualified school construction bonds). Improvements will include a boiler replacement at the high school and roof work, along with energy improvements and deferred maintenance at the high school and Frank White Education Center. Chiodo said the earliest that work could begin on the projects is next spring. “The boiler work is the top priority,” he said. The rest of the work would ideally be next summer when school is out, he said.
Largest School Building in Kentucky to Open Soon: 330,000 Square Feet on 88 Acres
Joanie Baker Hendricks, Daily News
November 14, 2009 KENTUCKY: More than 1,200 students know they will be walking through the doors of South Warren Middle and High School next year, but they don’t know what they’ll see once they come through. Currently, 30-foot cathedral ceilings and hallways as wide as city streets are quietly awaiting the first echoes of students. And as workers begin lining those hallways with lockers and painting some of the classroom walls for the school to open in the fall, officials said they can hardly wait to begin what will soon become the new “community school.” South Warren Middle School Principal Eddy Bushelman looked out the windows Thursday of the middle school library, envisioning the athletic fields coming up from the fields just outside. “This is going to be so pretty at night when it’s all lit up with ball fields,” Bushelman said. The principal said the school will build a family and community loyalty as students will grow from seventh to 12th grade in the building. The 330,000-square-foot school will be the largest school building in the state. But its mere size - which would require a 2-mile rope to wrap around just the building - is only one of its impressive qualities. The entire facility sits on 88 acres and carries a $68 million price tag for the building, greenhouse and athletic fields/buildings. South Warren has gained national recognition for becoming the largest building constructed of insulated concrete forms in the country. The walls are made of two sheets of insulating Styrofoam filled with about 8 inches of concrete. The method of insulation is reported to drastically reduce heating and cooling energy use and has been used in other Warren County schools. More than a mile of these walls separates the far high school entrance from the far middle school entrance of the boomerang-shaped facility. The crux of the two wings is shared by a giant concrete amphitheater, which is on its way to becoming the largest school auditorium in the area with more than 750 seats. Students from the different schools will not be able to access opposing wings without an adult, according to Bushelman and South Warren High School Principal Terry Cook. In fact, other than the auditorium, the two wings are connected only by a shared kitchen that has separate serving areas and “cafetoriums” on either side. The facility continues to expand with the middle school wing facing Rich Pond Road and the high school wing facing Nashville Road. Already, mahogany cabinets with glass fronts are lining the state-of-the-art science classrooms - decked out with the newest experiment tables and equipment. The libraries are built like giant fish tanks with midsized windows dappling the walls on the first and second floors to allow passers-by to see “the learning taking place.” Architect Kenny Stanfield, with Sherman Carter and Barnhart, said the library/media centers were designed to provide a “Barnes & Noble” atmosphere that gives students a comfortable place to engage. Hundreds of classrooms showcase giant windows that flood the learning spaces with natural light. A future courtyard can be seen from some of the windowed hallways along the building. Many beams are still exposed as workers continue welding and wiring throughout the building, but in the middle school gymnasium, six basketball goals have been installed and await their first three-point shots. Both principals agreed that the “Great Halls” in the central area of each wing add a dramatic flair to the building; they have giant entryways and a balcony overlooking two staircases that merge at a landing.
California District Uses Stimulus Funds to Install $25 Million Solar Field
Sarah De Crescenzo, Porterville Recorder
November 12, 2009 CALIFORNIA: Up to 15 acres of solar panels could be installed within city limits using bonds worth $25 million allocated to Porterville Unified School District for school facilities construction through the 2009 American Recovery and Reinvestment Act. The funds allocated to PUSD are part of $700 million in Qualified School Construction Bonds available this year statewide. A three-way partnership is currently in place between PUSD, Southern California Edison and the city of Porterville as the school district determines how to best use the funds. PUSD trustees unanimously approved a resolution to authorize the issuance of Certificates of Participation with relation to the QSCB program by Dec. 31. Superintendent John Snavely said the project, which may encompass three different solar sites, has the potential to be the “envy of the state.” Snavely said the output of the installations could be from 2.5 to 7 megawatts, or potentially higher. With only 2.5 megawatts, he estimated the district could potentially cover 40% of their current energy costs. Were it to go about 100%, the district would be able to sell the extra power for a profit. “There are real opportunities to help the finances of the district,” Gibbs said. According to Gibbs, the money will be used for school construction “one way or another,” though the solar installation is currently the district’s top choice. QSCB funds must be utilized for facility needs. The money does not have to be repaid for 15 years, and the interest rate is likely to be extremely low.
Clark County, Nevada’s School District Maintenance Backlog Triples
Emily Richmond , Las Vegas Sun
November 11, 2009 NEVADA: According to a report presented at a recent Clark County School Board meeting "backlog of maintenance work orders had nearly tripled to 12,937 from 4,327 at the end of July 2008." It continues “the district’s maintenance department categorizes its service at the third level — “managed care,” which means school interiors appear only “average,” with minor blemishes on the exteriors. Buildings are generally well lighted and clean, although heating and cooling systems periodically fail.” Paul Gerner, Clark County schools' associate superintendent of facilities, said, "Current levels of maintenance services are unsustainable and not in the long-term interests of the district." The Las Vegas Sun points out that "most campuses are not in obvious neglect. But some of the chores that were once part of the daily routine are being put off, increasing the risk for larger and more expensive problems." It goes on to state that “the district has cut its operating budget by more than $133 million to about $2.1 billion. The facilities division — which includes maintenance, landscaping and grounds — was understaffed even before the most recent budget cuts, district officials said. Divisions across the board were cut about 12 percent, but the cuts were especially felt in the maintenance department because it was lean from a prior $15 million reduction in funding. The facilities division staff dropped to 453 full-time employees this year compared to the 489 in 2008. According to the industry standards set by the Association of Physical Plant Administrators the maintenance department should require nearly 1,200 workers to handle the jobs. The School Board presentation indicates “The district’s carpentry and painting divisions are the most severely understaffed, operating at less than 15 percent of the recommended levels. The budget cuts cost the landscaping and grounds division about 26 full-time employee positions, out of 188. The loss is particularly felt at some of the high schools that no longer have a daytime employee to help with trash collection and custodial duties.”
Voters Across Oklahoma Approve School Bond Issues
Associated Press, KFSM.com
November 11, 2009 OKLAHOMA: Voters in two Oklahoma City metro-area school districts have approved major school bond issues. Voters in Edmond approved a $36.1 million bond issue to build new classrooms at seven schools, improve athletic facilities at all secondary schools and allow the purchase of new buses. The project includes a $6.6 million renovation of Memorial High School. And voters in the Putnam City School District passed an $80.6 million bond proposal to pay for 100 construction projects across the northwest Oklahoma City district. Other school districts approving bond issues on Tuesday were Fox in Carter County, Mounds in Creek County, Amber-Pocasset in Grady County, Haywood in Pittsburg County and Shawnee in Pottawatomie County.
Stimulus Funded School Renovations Welcomed in Tazewell County, Virginia
Staff Writer, Bluefield Daily Telegraph
November 11, 2009 VIRGINIA: Construction should soon be underway on eight additional school renovation projects in Tazewell County. The work is being made possible through Tazewell County’s share of the federal stabilization dollars. In all, the eight projects total approximately $1.69 million. The work will include air-conditioning for all of the classrooms at Graham Intermediate School; new lockers at Graham Middle School; new windows for Abbs Valley-Boissevain Elementary School; air-conditioning for classrooms as well as replacement lockers at Tazewell Middle School; an air-conditioning system for the library at Tazewell High School; new student lockers at Richlands Middle School; and air-conditioning for the library at Richlands High School. All eight of the projects are needed and welcomed. The school system just recently completed five other school renovation projects, which included new heating and air-conditioning systems for five elementary schools. The federal stimulus dollars also will help to finance the upgrade of cafeterias and kitchens throughout the school division, according to School Superintendent Dr. Brenda Lawson. While some school systems in the Commonwealth are using their stabilization dollars for salaries and personnel, Lawson said officials were encouraged to use the funding in the way it was originally intended by the state and federal government to assist with job creation and helping to stimulate the economy. Work on the second round of school renovation projects could begin by the year’s end. Lawson said all eight projects should be completed by next summer. It ís good to see stabilization dollars being put to a worthwhile use in Tazewell County. Anything that can be done to improve the learning environment for both students and staff is welcomed. Students in Tazewell County deserve the best learning environment possible, including air-conditioned classrooms. While it is not very hot outside right now, classrooms will certainly be stuffy again next summer.
Requirements for Final $11.5 Billion State Fiscal Stabilization Funds Available
Press Release, U.S. Department of Education
November 09, 2009 NATIONAL: Secretary of Education Arne Duncan announced that application requirements for the final $11.5 billion in State Fiscal Stabilization Funds under the American Recovery and Reinvestment Act (ARRA) of 2009 are now available. In exchange for this unprecedented funding boost, the department is asking states to provide some basic information on teacher distribution, the collection and use of data, standards and assessments, and support for struggling schools. Identifying what works and does not work in the classroom will promote a shared responsibility for improving educational opportunities and outcomes that engages all of the key stakeholders – students, parents, teachers, principals, administrators, community leaders, business leaders, and elected officials at every level. Taken together, these four commitments will help ensure outstanding teachers in America's schools, arm educators with the tools and data needed to determine what does and doesn't work in our nation's classrooms, align curricula and assessments with rigorous standards that prepare young people for college and careers, and transform our lowest-performing schools. The application, requirements, and summary of the requirements can all be found here: http://www.ed.gov/programs/statestabilization/applicant.html.
Cool for School. Architects Design for Education, and Get an A+
Sam Lubell, New York Times Magazine. Design and Living.
November 08, 2009 NATIONAL: As you drive past downtown Los Angeles on the 101 freeway, one building grabs your attention, its concrete and steel tower swooping and twisting like a roller coaster. A multitiered group of oversize geometric structures arranged around concrete and grass courtyards, this complex is not, in fact, an amusement park. It’s the new Central Los Angeles High School No. 9, which opened in September. The building, designed by the edgy Austrian firm Coop Himmelb(l)au, tosses aside any preconceived notion of what a school should look like. But then, creative architects have always contradicted conventional school-design wisdom, moving beyond the one-room schoolhouse, the concrete superblock and (more recently) the mall-like gigantosaur. Richard Neutra and Robert Alexander’s University Elementary School (1950) in the Westwood section of Los Angeles, now called the UCLA Lab School, is a collection of restrained brick and masonry buildings with large windows, wood built-ins and, in some cases, sawtooth skylights, which are situated around shaded, grassy fields, a redwood grove and a creek. Taliesin Associated Architects, founded by Frank Lloyd Wright, created the Prairie School (1965) in Racine, Wis., a series of, yes, prairie-style buildings clad in red brick, their low-lying, elegantly curved profiles hugging the landscape. The Modernist pioneers Eliel and Eero Saarinen, with Larry Perkins, designed the Crow Island School (1940) in Winnetka, Ill., as a series of L-shaped ‘‘one-room school’’ modules — each with its own courtyard — to provide a sense of both intimacy and spaciousness. Nowadays, equally unconventional architects continue to brave bureaucracy and parental scrutiny in the name of innovation. Still, the question remains: do highfalutin designers really make better learning spaces? Steve Joost, the chief financial and operations officer at the Prairie School, says that while he absolutely loves the school’s design — including carpeted floors, wood finishes and human-scaled dimensions — maintaining such a complex can be a challenge. "It’s kind of like working in a piece of art," he says. And Andrea Schoening of Coop Himmelb(l)au trusts that people will eventually embrace High School No. 9’s most exceptional elements. Says Touitou, "I believe that kids have to be surrounded by beauty as soon as possible. It just never hurts."
Tennessee Communities to Receive Financing to Build or Repair Schools
Staff Writer, Clarksville Online
November 08, 2009 TENNESSEE: Communities throughout Tennessee will receive financing to build or repair schools as a result of the Tennessee State School Bond Authority’s (TSSBA) action. The TSSBA finalized plans to sell up to $184 million worth of Qualified School Construction Bonds (QSCBs) as part of a program created by the federal American Recovery and Reinvestment Act. The bonds are tax credit bonds that provide a federal tax credit to the investor on a quarterly basis. The bonds may also pay a supplemental coupon to the bondholders on a quarterly basis The TSSBA selected a bond underwriting team, approved a final bond resolution and finalized documents needed to move forward with the bond sale. The TSSBA had preliminarily approved the loans in September and, after some revisions in loan amounts and the addition of the City of Kingsport as a new borrower, the revised list of project loans were approved by the TSSBA. The TSSBA will invest the proceeds from the bond sale in the State Pooled Investment Fund (SPIF) and will disburse the funds to the communities to pay the expenses related to their school construction projects. The communities authorized to receive portions of the bond money will be required to spend the proceeds on qualified projects within three years of the bond sale and comply with federal Davis-Bacon regulations. The sale is expected to be completed with bond proceeds available for disbursement in early December. Additionally, the communities are required to enter into binding contracts for at least 10 percent of their allocation of the bond proceeds within six months after the bond sale. Of the total bond proceeds, Memphis City Schools will receive $42,960,000 and Metropolitan Nashville Public Schools will receive $21,760,000 for various projects. Those two school systems received direct allocations from the federal government because they were among the nation’s top 100 local educational agencies with the largest numbers of school-age children from families living below the poverty level. [Includes a list of participating communities that were selected through a competitive application process to receive bond proceeds.]
U.S. Stimulus Funds Prompt Quicker Baltimore Area School Renovations
Liz Bowie, Baltimore Sun
November 07, 2009 MARYLAND: Fueled by federal stimulus dollars, school districts in Baltimore City and Baltimore County are speeding up construction projects that have been on hold for years for lack of funding, including the possible construction of the first new city school in a decade. While most of the money - $300 million to be spent statewide over four years - will go toward essentials such as new boilers, chillers, roofs, doors and windows - the city hopes to use some of its dollars to build a new Lexington Terrace school on the west side and an athletic facility on the east side. Dozens of schools would get new media centers. "It is a tremendous boost," said J. Keith Scroggins, chief operating officer of the city schools. "It is like getting seven years of allocation from the state in a two-year period." The infusion of money means that after the last school bell rings in June, work crews will begin a construction push that is expected to reach every school in Baltimore. The city school system has an estimated $1 billion of deferred maintenance on its schools, an amount that would take many years to catch up on without a boost in funding. In the county, the money is expected to go toward funding high school renovations, said the district's chief financial officer, Barbara Burnopp. "We won't do a different project," she said, "but we will do it more quickly." The county is systematically going through its aging high schools and putting in new windows, heating and cooling systems and doing other upgrades, including adding to science laboratories and technical education classrooms. As part of an effort to get the economy going, the federal government is authorizing 100 school systems in the country with a high percentage of poor students to issue tax credit bonds for school repairs and construction. In Maryland, only three jurisdictions have received the bond authorization: city schools, which can issue $116 million; Baltimore County, which will get nearly $40 million; and Prince George's, which will get about $50 million. In addition, the state is allowed to issue another $100 million that will go toward funding projects across the state. This fiscal year, Baltimore County's expenditure for all capital projects was $224 million, including funds from the state. Baltimore City, in contrast, has a budget for school construction and renovation of about $83 million. The school systems and the state must pay back the principle over 15 years. Bondholders are given a credit on their federal income tax, according to David G. Lever, executive director of the Maryland Public School Construction Program. Baltimore County issued its bonds Oct. 27 and the city expects to do so next month after getting approval on a technical detail by the Board of Public Works later this month. Because the Maryland General Assembly passed a bill several years ago allowing the city schools to issue a maximum of $100 million in bonds, the school system will have to return to the legislature this winter to ask that the $100 million cap be raised. The state pays for up to 94 percent of school construction and renovation costs on projects in the city and 50 percent in Baltimore County.
Alabama Town Thrilled to Get Stimulus Funding to Build New High School
Leada Gore, Hartselle Enquirer
November 05, 2009 ALABAMA: Brick and mortar dreams for a new high school will soon become reality, built on the foundation of a massive influx of interest-free federal funding. Hartselle is receiving $22.115 million through the Qualified School Construction Bond program. The money is part of the federal economic stimulus program designed to shore up the nation’s economy and can only be used for new construction or repair of existing school facilities. “We’re thrilled to receive the funding and it’s going to allow us to do things we’ve not been able to do before,” Mayor Dwight Tankersley said. “It’s a once-in-a-lifetime opportunity and we need to take advantage of it." In Hartselle’s case, the money will go towards the construction of a new high school. That move will allow the existing high school building to be used as a junior high and free up that facility to ease crowding at the system’s three elementary schools. It also sets in motion a plan to help pay for the estimated $40 million cost of constructing a high school. When they first learned they could possibly receive the funding, city leaders said they would introduce a 1-cent sales tax to cover the additional cost. The 1-cent tax would generate some $1.6 million annually. A sales tax would have to be approved by the city council. It would take about a month after its passed to institute. A property tax requires a vote of the people. Tankersley said financial advisors have advised the stimulus funding, 1-cent sales tax, a $350,000 pledge from the school board and refinancing the city’s existing bonds pledged towards the schools would be enough to cover construction costs. The city is now awaiting information on how the money will flow from the government, Tankersley said, and when it will be received and what the payback schedule will be.
Vermont Voters OK School Renovation Projects; Will Use Zero-Interest Bonds
Staff Writer, Burlington Free Press
November 05, 2009 VERMONT: Renovation projects for Charlotte and Hinesburg schools edged closer to funding with voters in both towns approving bond proposals. The votes place those projects in line for federal zero-interest bonds, which will be allocated Nov. 13. Under the federal stimulus bill, the U.S. Treasury has allocated money for zero-interest bonds called Qualified School Construction Bonds, and Vermont's authorization for 2009 is $24.8 million for repair and renovation. The Hinesburg School District plans to renovate the Hinesburg Community School wing built in 1969, and to improve the 1952 addition.
New Omaha Schools To Be Built With Federal Stimulus Bonds
Michaela Saunders, Omaha World-Herald
November 05, 2009 NEBRASKA: The Omaha Public Schools is mailing packets to begin finding a designer for a new middle school at 132nd and State Streets. The school could open in fall 2012. The new school is expected to be paid for with a portion of nearly $40 million in construction bonds authorized to OPS by the federal stimulus program. The district will use two kinds of bonds, which don’t require a public vote. According to the Internal Revenue Service, Build America Bonds are available to state and local governments for building improvements. In this case, the federal government will pay up to 35 percent of the interest to investors in the bonds. The interest-free Qualified School Construction Bonds are specific to public schools and qualify investors for income tax credits in lieu of interest, according to the IRS. District officials expect sale of the bonds to be completed this month. The bond proceeds also will build an elementary school at 42nd and V Streets and help pay for Saddlebrook Elementary, which opened this school year in northwest Omaha.
Commission Approves $15 Million Stimulus Bond for Tennessee School Renovation
Mac Maclean, Bristol Herald Courier
November 04, 2009 TENNESSEE: The Sullivan County Commission unanimously approved plans to accept $15.4 million worth of bonds the school system will use to renovate and expand Ketron Intermediate School. The bond money, which comes from the stimulus-funded Tennessee Qualified School Construction Bonds program, will be used to add 23 classrooms to Ketron’s campus north of Kingsport in the county’s Bloomingdale community. Payments on these bonds could be due as early as February 2010 and cost the county about $100,000 per month for the next 17 years.
Clark County, Nevada Assesses Future School Building Needs
Associated Press, Mercury News
November 04, 2009 NEVADA: Officials say the Clark County School District doesn't expect to need to build new schools for the next 10 years. Officials said the reason is flat population growth. Still, the district expects to have $4.9 billion in capital needs for school renovation and replacements, educational equity, technology and equipment. The board has given itself a January deadline to decide whether to pursue a bond program during next year's elections or defer it until 2012. A 1998 bond program for 101 new schools and 11 replacement schools is nearing an end with five schools left to be built.
Broward School Board: Despite 34,800 Empty Desks, District Didn't Overbuild
Kathy Bushouse, South Florida Sun Sentinel
November 04, 2009 FLORIDA: Projections show Broward public schools will have more than 34,800 empty seats during the 2012-2013 school year, but beleaguered School Board members said the district didn't overbuild and the numbers don't show the whole picture. They said the district needs a school-by-school review of how classrooms are being used, rather than a school's overall capacity compared to its enrollment. For instance, some schools may have eight autistic students in a classroom designed to hold 18. Others may have 18 Advanced Placement students in a classroom for 25. The state, however, requires the district to look at overall capacity at individual schools and for the district. That means Broward can't build classroom additions or new schools in the overcrowded western part of the county because many schools in the east are underenrolled -- some up to 40 percent. Broward's billion-dollar school construction program has been under intense scrutiny since the Sept. 23 arrest of suspended board member Beverly Gallagher, who faces federal corruption charges for allegedly accepting bribes and steering school construction contracts to favored companies. The district has been criticized for overbuilding and getting multiple extensions to its plant survey, the state-approved review done every five years that accounts for every available seat in the county, as well as planned construction projects. Schools Superintendent James Notter said the district's enrollment projections did not anticipate "the explosion in the charter school population." While enrollment in traditional public schools dropped by more than 15,000 students since 2006, Broward's charter schools grew by more than 7,000 students in the same time period. He also said the district continued to build new schools and additions to comply with class size and growth management requirements.
Minnesota Voters OK Most School Building Projects; Stimulus Bonds Helped
Brian Johnson, Fianance and Commerce
November 04, 2009 MINNESOTA: Aging roofs, inefficient building systems and crowded classrooms are about to get some attention in the Hastings school district, and the Red Lake district is a step closer to addressing its building needs. But the Hermantown School District is still looking for money for its capital program. Those are among the noteworthy results from Tuesday’s school bond referendums, which generally turned out well for school districts looking to modernize their classroom space, fix up their buildings or improve their technology. Overall, voters approved 13 of 15 school district capital bond questions, ranging from a $420,000 initiative in Becker to $35 million for building upgrades in Red Lake. The approvals represent more than $60 million worth of work, although the $35 million Red Lake program still requires legislative approval. Hastings was a big winner. Voters in that district approved three separate ballot questions: $6.8 million for roofs, windows and building maintenance; $8.4 million for heating and ventilation; and $4 million for new classrooms and classroom renovations. Most of the money for the $19.2 million Hastings program – $16.8 million worth – comes in the form of zero-interest bonding authority from the American Recovery and Reinvestment Act of 2009. The Hastings vote allows the district to take advantage of that stimulus-funded bonding authority, which was announced in September. “Without a doubt, call it a huge carrot, a huge incentive, but that definitely helped tip the scales” in favor of approval, Collins said. Overall, a dozen Minnesota school districts were awarded $75.8 million in low- or no-interest loans via the stimulus. None of the other referendums approved or rejected Tuesday involved stimulus awards. In other capital bonding referendums, the Wayzata and South St. Paul school districts approved levy renewals for technology improvements; St. Peter approved $428,000 for deferred maintenance; and Menahga rejected an $8.5 million referendum for classroom additions, renovations and parking lot improvements. Six of the 15 capital bond questions involved “one day bonds” for slightly less than $500,000. Those referendums essentially let the district keep bonding authority that otherwise would have been returned to the state.
82% of School Foodservice Operators Applied for Stimulus Equipment Assistance
Staff Writer, Foodservice Equipment & Supplies
November 04, 2009 NATIONAL: Topping the wish lists of school foodservice directors is equipment that can help them enhance the functions of cooking, freezing and serving meals, according to a study conducted by research and consulting firm Y-Pulse, LLC. The data also showed that 82 percent of the school foodservice operators participating in the study applied for a share of the government’s $100 million appropriation package for equipment assistance, which was signed into law earlier this year. Other items on school foodservice directors’ wish lists include vehicles to transport food, safety-related items and vending machines. Those foodservice directors with cooking equipment on their wish lists most often cited a desire for steamers and combi ovens, while walk-in coolers and freezers were the top vote getters among those looking at new freezing systems. Participants seeking funds for serving equipment most often mentioned new serving lines, followed by new milk coolers. Part of the American Recovery and Reinvestment Act, the equipment grants were designed to ultimately improve the quality of school foodservice meals, particularly in schools with at least half of students eligible for free or reduced-price meals. The allocations cover the acquisition of new equipment, renovation of existing equipment or replacement of equipment through state agencies.
Texas Eye on Stimulus Money: Bonds Don't Get the Same Market Reception
Laylan Copelin, Window on State Government
November 04, 2009 TEXAS: The federal stimulus package is more than just money distributed through grants or contracts. It also includes new types of bonds for government borrowing. Several new bonds in the American Recovery and Reinvestment Act are intended to allow state and local governments, including school districts, to borrow at lower costs. Qualified School Construction Bonds are for the construction, rehabilitation or repair of public schools. The school districts pay zero or very low interest on bonds while investors get tax credits to offset income taxes. Build America Bonds can be used by state and local governments, not just school districts. The federal government will cut the costs to local and state governments by subsidizing 35 percent of the bond interest. Under the first program, the feds gave Texas access to about $1 billion in new school construction bonds for 2009. The state's 18 largest school districts got $465 million of that $1 billion directly from the federal government. But 11 of the 18 returned all or part of it — more than $300 million — to be redistributed by the Texas Education Agency to smaller districts. Why did so many return it? "You've still got to convince your voters" to approve a tax increase to repay new debt, says Joe Smith, a retired school superintendent who tracks school bond elections at his Web site, TexasISD.com. "You are asking for a tax increase, so it's not a good time." Smith says the number of school bond elections have declined with the economy. In May 2008, school districts held 94 elections. In November of that year, it fell to 38. In May, it rose to 50, but so far Smith has identified only 28 on this November's ballot. Bob Aikin with The Aikin Group advises Texas school districts on bond elections. He blames timing for the schools' response. Congress passed the Recovery Act in February. By the time the program became available, Aikin says, "It was too late to get it on a ballot." The schools that used the new financing method had unused bonding capacity from previous bond elections, Aikin says. They didn't need voter approval to take advantage of the new bonds' better terms. The Texas Education Agency has reallocated the unused portion of the $1 billion to smaller school districts. About one in 10 school districts applied. The state has given the districts six months to complete the bond deals. The challenge, says Carlos Sharpless, a public finance manager with the brokerage firm Stern Agee in Houston, is finding investors who prefer tax credits to interest. "To have an appetite for them," Sharpless say, "you've got to have taxable income." Most investors in Texas school bonds are big banks, Aikin says. Although some investment banks are reporting record profits, not all big banks need tax credits to offset income. "They're looking for revenue," Aikin says of many investors. That may be why Build America Bonds have been popular on Wall Street. Build America Bonds are taxable bonds that pay higher interest — competitive with corporate bonds. The federal government's subsidies come as rebates to the local and state governments. Those rebates, Aikin says, can be used for any legal purpose — not just to help pay off the bonds. He writes in an education newsletter that cash-strapped school districts — if they structure the deal correctly — might free up money for daily operations. Aikin expects more school districts to take advantage of the Recovery Act's bond programs in 2010 as the economy improves. "For those districts who haven't jumped in," he says, "the market will become more active."
Detroiters OK $500M School Bond; Stimulus Bonds Will Give Taxpayers a Break
Chastity Pratt , Detroit Free Press
November 03, 2009 MICHIGAN: Detroiters voted to pay $500.5 million to build, renovate and modernize Detroit Public Schools, according to preliminary results. Taxpayers will get a break on the interest rate for the bond - $246 million will be interest-free under the federal stimulus program’s Qualified School Construction Bonds program. The interest rate on the remaining $254 million will be cut by 35% under the Build America Bonds program. The funds will be used on eight new schools, 10 school renovations and technology and security upgrades districtwide.
Texas School District Bond Package Passes; Stimulus Bonds Benefit Taxpayers
Traci Shurley, Star-Telegram
November 03, 2009 TEXAS: Arlington school district voters supported by a nearly 2-to-1 ratio a $197.5 million bond package to provide building upgrades, technology, transportation and fine arts equipment for the district’s more than 63,000 students. The bond issue will raise the district’s tax rate almost 5 cents from 2011 through 2017, adding $40 to the yearly tax bill of the owner of a $100,000 home with a $15,000 homestead exemption. Seniors with an over-65 exemption won’t see an increase. The district’s tax-impact figures depend on selling no-interest Qualified School Construction Bonds, a program that is part of the federal stimulus package. Arlington has until Dec. 31 to sell $12.8 million in bonds. It can sell an additional $12.8 million next year, said Cindy Powell, associate superintendent of finance.
Students Dig Addition
Charles M. Bartholomew, Post-Tribune
November 03, 2009 INDIANA: Kids think it's cool to be able to watch an excavating machine at work right outside their classroom window. So how much cooler is it for them to put on construction hats and go out and watch their principal at the controls, scooping up the first dirt for the new addition to their school? Liberty Elementary School Principal Christy Jarka sat in the cab as she made the excavator take the first big bites out of the lawn to break ground for the $5.2-million remodeling and addition. She waved down at the 500 youngsters cheering and applauding her efforts. "I've never done that before! That was so much fun!" shouted Jarka as Rudy Sutton, owner of the R.V. Sutton construction firm, helped her down from the cab. Monday was the start of the 10-month project that will add a 29,000 square foot early learning center -- kindergarten and first-grade classrooms and space for a computer lab, art classes, and a large group instruction room, all to be completed in time for the 2010-11 school year. Jarka passed out gold shovels to five lucky students, who posed in front of the excavator with architects Bob Gerometta and Jessica Vargas, Director of Special Services Mark McKibben, and the entire Duneland School Board. She praised the year-long work by a committee of school design experts, staff, and parents for which the board approved $5.9 million in general obligation bonds to fund construction, financing and other "soft" costs, and contingencies. "They really listened to what we needed," she said.
15 Pittsburgh Schools on Chopping Block; Study Is a Starting Point for District
Joe Smydo, Pittsburgh Post-Gazette
November 03, 2009 PENNSYLVANIA: A consulting firm recommended closing 15 city school buildings, a proposal sure to stoke controversy in a district still debating the merits of a 2006 restructuring. City residents are particularly attached to their high schools, and DeJong Inc., an Ohio planning firm, recommended closing two of them -- Peabody in East Liberty and Oliver on the North Side, although the Oliver building would remain open as an alternative school. Under the plan, Oliver's students would go to Langley High School in Sheraden and Peabody's students would go to a reconstituted Westinghouse High School in Homewood. School board members Floyd "Skip" McCrea and Thomas Sumpter called DeJong's work a resource for the district to use in developing its own plan to address its declining enrollment. Superintendent Mark Roosevelt said last week that he envisioned a two- or three-year process for implementing the district's plan. Mr. Roosevelt acknowledged that DeJong's recommendations would provoke "some amount of turmoil or disgruntlement." Some parents still lament the 2006 reorganization and say it hasn't done enough to promote achievement. In all, officials said, the plan would affect 35 schools and two early-childhood centers. While some would be closed, others would be assigned new grade configurations, face adjustments in feeder patters or have classrooms relocated to other buildings. The district now has about 70 schools and early-childhood centers. The proposal comes about three years after the board closed 22 schools -- 18 buildings altogether -- in a push to streamline the district amid dropping enrollment and fear of a state takeover. "This time, we're in a far better situation," Mr. Roosevelt said, referring to what he's hailed as improvements in academics and finances.
Charter Schools Building Dilemma
Karin Piper, Examiner
November 02, 2009 NATIONAL: Concerns for charter school facilities are growing. These semi-independent public schools often have to be creative in finding building space and might operate in church basements, retail centers, or trailers. While building disparity between public school options is no news for long-time charter families, this topic is finally on the radar for various leaders and investors. In Washington D.C. for example, there are empty public school buildings that are being converted to all sorts of things but education. Robert Cane, the executive director of Friends of Choice in Urban Schools, writes: “The D.C. public school children being crammed into inappropriate industrial and temporary sites attend the increasingly high-performing charter schools. Meanwhile, the D.C. government is spending more than $2 billion on traditional city-run public schools.” Cane points specifically to a historic school building which was the home to one of the first publicly funded schools for African American children, but now refaced and sold off as a high-end condo complex. But what is a district to do for its charter schools if there are not any empty buildings available? Look at Douglas County (DCSD) in Colorado, for instance. DCSD is the home of 56,000 students in 74 public schools of various flavors, 8 of these are charter schools. To solve spacing issues for the overcrowded traditional schools the district has utilized a year-round-tracking system so students can time-share the building space. The DCSD charter schools are filled to capacity and have deep wait lists. One K-8 charter school with a capacity of 400 students added a bonus class to accommodate its wait list of 3,000 hopeful families. There are no empty buildings owned by Douglas County School District suitable for use of its expanding demand. Besides building bunk-desks there are few ideas left on the table for accommodating site-based learning in such a district. Yes, playgrounds, libraries, cafeterias, and PE halls, are some of the assumed offerings for school children that many charter school students might go without in make-shift school-buildings. Yet there are hundreds of thousands families who still opt for these schools. The reason is really quite simple: The school—with or without a decent building—offers schooling which meets the needs of their kids.” There is indisputably a disparity across our nation in facility options for chartered public schools than non-public chartered schools, and for a district to sell available space for profit over providing for one of its schools—is simply wrong. However, don’t discount the craftiness behind some of the leaders of innovative public charter schools. University Academy Charter High School (New Jersey) turned an abandoned laundry building into an award winning architectural design for its school. The famed Media and Technology Charter High School (MATCH) in Boston, MA, is a former auto dealership. Another charter school took an old barn and gave it new life as a school building. Watching the creative solutions which often are preserving architectural history and frugal is quite exciting.
Texas' School Fund Might Invest in Charter School Facilities
Kate Alexander, American-Statesman
November 02, 2009 TEXAS: For Texas' charter schools to secure permanent homes, they have long relied on friendly financial backers to buy into the education experiment. Someday soon, one of those backers might be the state's 155-year-old public school endowment. The State Board of Education, which oversees the $22 billion Permanent School Fund, is looking into targeting a small portion of that fund to build or finance charter school classrooms and facilities. Details on the size of the potential investment and how the arrangement would work are in flux. Board members have discussed seeking an opinion from the Texas attorney general first, to be sure the board has the authority to make such an investment. But a thornier question facing the board will be whether it can make investment decisions with goals other than responsibly generating the most money for the state's public schools. The board is "managing this money for a purpose," said Kevin O'Hanlon, a former general counsel for the Texas Education Agency who was asked by Board Member David Bradley, R-Beaumont, to explore the idea. "What they're using the money for is not irrelevant to the ultimate determination," O'Hanlon said. "This is leveraging the funds in order to support public education. That is a collateral benefit." Other legal and investment experts say the trustees' sole obligation is to maximize returns prudently, so any investment in charter schools facilities would have to produce returns comparable to other, similar investments. What kind of return a charter school investment would need to generate varies widely depending on how the board chooses to proceed. Whatever the expected return, it must account for the risk of the investment, said Lori Taylor, a professor at the Texas A&M University Bush School of Government and Public Service. Private investors consider charter schools a somewhat risky investment because the schools typically do not have long financial track records, adequate cash reserves and long-term security. Only a small number of the 215 charter schools have earned investment-grade bond ratings that allow them to borrow money at lower interest rates to construct classrooms and other buildings. Unless the fund is fully compensated for the riskiness of charter school investments, "it is an implicit subsidy," Taylor said. Traditional school districts pay for buildings and other capital costs by asking voters to approve bond packages backed by property taxes. But charter schools, which are privately-managed public schools, do not have taxing authority. All of their money comes from the state based on student attendance. Nor do charter schools receive the additional aid offered by the state to help offset the local cost of facilities. That difference in state funding amounts to about $1,000 per student, said Lisa Dawn-Fisher, deputy associate commissioner for school finance at the Texas Education Agency. Charter operators say that disparity means that they have to do more with less and that they have little assurance their school won't one day be swept out from underneath them, because most schools lease their buildings. Members of the Legislature have tried repeatedly to resolve that facility problem, but cost concerns and other issues have kept any bills from passing. For example, an effort to target facilities aid to high-performing charter schools didn't get traction because it was deemed too exclusive. It is the job of the Legislature, not the trustees of the Permanent School Fund, to find a policy solution to the charter school facility problem, said Lonnie Hollingsworth Jr., director of legal services and governmental relations at the Texas Classroom Teachers Association. This past spring, legislators did approve a new program that aims to reduce the charter schools' cost of borrowing money by backing some of the debt issued to pay for facilities. It is similar to a guarantee offered to traditional public school districts. Many charter schools, however, cannot even qualify for the bond market where traditional public schools typically get money for buildings.
Connecticut Prep Schools Leading The Way When It Comes To Going Green
Rinker Buck, Hartford Courant
November 02, 2009 CONNECTICUT: The new, $34.6 million Armour Academic Center at the Westminster School is the kind of gleaming monument to achievement and prosperity that has made Connecticut prep schools so widely known. But stepping downstairs to the cellar of the 85,000-square-foot building is a journey to another kind of future that Connecticut's private schools are pioneering. There, arrayed against the north foundation wall like a Rube Goldberg contraption, are 72 plastic pipes and related plumbing and pumps that are the heart of the building's alternative energy Geothermal Heat Exchange system. These pipes and pumps circulate 10,000 gallons of a water and glycol mixture through 72 wells drilled 475 feet beneath the Simsbury bedrock. The circulating water system takes advantage of the simple principle that, below the frost line, the earth retains a relatively consistent temperature of 55 degrees. In the winter, heat drawn from the relatively warmer circulating water is used to warm the building. In the summer, the relatively cooler water draws away the heat from the building to provide air conditioning. The system will allow the Armour center — home all day to 450 students and faculty — to be heated and air-conditioned all year without burning a single gallon of oil. Westminster is so confident of its new geothermal system that it didn't even bother to install a conventional backup boiler. "I know of no other geothermal unit this advanced, anywhere in the country, and yes it's ironic that this benchmark project originated at a private school," said mechanical contractor Edmond Macri of Avon, who spent five years working with Westminster's building committee to design the system. "At your typical new commercial building, the owners or investors just assign the job out to the architects and engineers and expect it to get done," Macri said. "At Westminster, from the headmaster on down, there was this strong impetus to be a good citizen and reduce the school's carbon footprint by becoming personally involved in the design and construction." But Westminster is only the beginning. At Avon Old Farms in Avon, a new solar array on the roof of the hockey rink will provide about 75 percent of the school's needs on its core campus. Westover School in Middlebury and Pine Point School in Stonington have recently switched on similar solar generating units. The Watkinson School in Hartford is completing a new science center with separate solar and geothermal systems that, its designer says, will be New England's first "energy neutral" building, meaning that the structure produces as much energy as it uses. At Loomis Chaffee in Windsor, waste heat from the school's generator plant is reclaimed to warm the library and two dormitories. Outdoor lighting on part of the campus has been converted to LED, or Light Emitting Diode bulbs, which consume one-tenth of the energy of the conventional lights they replaced. These prep schools are now competing for green credentials in much the same way that they once competed for students by promoting new language labs or dorms. Energy experts consider the trend important, because proving that alternative energy can work in high-use buildings in the chilly Northeast will significantly advance new technologies.
Federal Bond Funds for Alabama Schools Step in Right Direction
Staff Writer, News Courier
October 31, 2009 ALABAMA: The $6.1 million awarded by the state to Limestone County Schools is sorely needed to fund construction and renovation. In Alabama, this part of the stimulus plan worked. When Congress created the Qualified School Construction Bond program earlier this year, it allowed states to sell bonds for all school systems at one time, said State Superintendent of Education Dr. Joe Morton. The Qualified School Construction Bond program provides tax credits to bondholders, as opposed to tax-exempt interest, which allows bonds to be offered with no interest. Gov. Bob Riley signed a law earlier this year allowing the state’s Public School and College Authority to issue the Qualified School Construction Bonds for local school systems. “It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this — it’s a win-win situation for Alabama,” Morton said during a press conference Thursday at Bob Jones High School in Madison. Morton accompanied Riley to announce allocation, including the one to Limestone County Schools, of the $263 million in bond money. Of the 46 systems receiving funds in this first round, only eight received more funds than Limestone. The reason? Systems impacted by Base Realignment and Closure received additional funding to help them carry the load of more students. Some school systems that will be impacted by BRAC, including Madison County and Huntsville City, did not submit requests for bond money, Riley’s office said. While we know much more is needed to put our schools in their best condition, we are glad to see this initiative to make Alabama schools suitable places to learn. Alabama has ranked near the bottom in education funding for many years and that sometimes shows in the results of our children’s scores. Creating safe and healthy places to learn is a step in the right direction
Governor Riley Announces Bond Funding to Help Construct, Repair Alabama Schools
Press Release, Office of the Governor, State of Alabama
October 29, 2009 ALABAMA: Governor Bob Riley announced the allocation of $236 million in interest-free bonds to help all 46 school systems that applied from across Alabama to finance the construction or repair of public school buildings. This announcement is for the first half of the $236 million, with the other 50% anticipated in early 2010. “Modern and safe schools will help better prepare our students for the future,” Governor Riley said. “With these bonds, systems can repair, renovate, and construct much-needed schools while also stimulating our economy.” State Superintendent of Education Dr. Joe Morton stated, “The ability of the state to sell bonds for all school systems at once was brought about by a bill adopted in the Special Session of the Legislature earlier this year. It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this-it’s a win-win situation for Alabama.” State Superintendent of Education Dr. Joe Morton stated, “The ability of the state to sell bonds for all school systems at once was brought about by a bill adopted in the Special Session of the Legislature earlier this year. It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this-it’s a win-win situation for Alabama.” The bonds are part of a new federal program created by the economic stimulus law that Congress passed earlier this year. The Qualified School Construction Bond program provides tax credits to bondholders, as opposed to tax-exempt interest, which allows bonds to be offered with no interest. Governor Riley signed a law earlier this year allowing the state’s Public School and College Authority to issue the Qualified School Construction Bonds for local school systems. Using the PSCA saves money for local school systems on bond issuing costs and annual payments. This bond money is in addition to earlier allocations Alabama schools received from a $1.07 billion school construction bond that Governor Riley signed into law in 2007. That bond issue provided funds for construction and repairs to every city and county K-12 system as well as public four-year and two-year colleges. [Includes complete list of bond amounts distributed to school systems]
Detroit Public Schools Paid Double Value for Land
Chastity Pratt Dawsey, Detroit Free Press
October 28, 2009 MICHIGAN: Detroit Public Schools paid double the appraised value for about two dozen parcels of land using funds from the $1.5-billion school construction bond voters approved in 1994, school officials said. The land was appraised at $2.7 million, but DPS paid $5.6 million partly because of what officials said was a real estate flipping scheme, according to a chart school investigators compiled. Even the appraisals were inflated. Of 28 properties researched by school officials -- many of which were bought for locations for new schools -- the true cash value was $812,800.
Some School Districts Paying Interest on U.S. Tax Credit Bonds
Lisa Lambert, Forbes/Reuters
October 26, 2009 NATIONAL: School districts with low credit ratings still have to offer interest payments on special tax credit bonds included in the U.S. stimulus plan, Fitch Ratings said. 'To compensate for weaker credit ratings and changing market conditions, some issuers have had to offer supplemental interest payments or original issue discounts,' the rating agency said. The American Recovery and Reinvestment Act passed in February created a new funding option for schools: construction bonds that offer federal tax credits in place of interest payments. Unlike past tax credit bonds, these offsets for federal income tax liabilities are 'strippable' -- they can be sold and traded separately from the bond principal. The credits allow schools to issue debt without having to pay interest, but some are finding they have to offer more incentives to attract buyers, Fitch found. Recently, Hawaii sold $32 million of qualified school construction bonds with the longest maturity, 15 years, and had to offer a 1.45 percent coupon with it. A Texas school district's $15.28 million of bonds that were sold last week carried a 1.55 percent coupon, and a South Carolina school district offered a 1.2 percent coupon on $15.06 million of bonds sold earlier this month. Information on sales of the debt has been slim. Many small issues have been sold competitively and many more of the bonds are privately placed by underwriters. 'Currently, there is a limited market for the bonds, and with little or no secondary market liquidity,' Fitch said in its special report on the debt. 'QCSBs have to date been purchased mainly by a limited number of institutions and commercial banks.' Beyond issuers having to offer 'supplemental' coupons on the bonds, and investors not having much desire to buy these bonds, the program has other hazards, Fitch said. As it rates the bond issues, Fitch will look at what type of sinking fund the issuer is using to pay off the debt. The law requires that the bonds have a maximum 15-year final maturity, Fitch said, and the bonds are expected to be sold in a single bullet maturity. 'Fitch believes bonds with 'balloon' payments present challenges that issuing districts need to manage,' the report said.
Maine School Facing Loss Of Accreditation If Repairs Are Not Made
Tim Goff, WCSH6-TV
October 26, 2009 MAINE: Lake Region High School is in jeopardy of losing its' accreditation if major repairs on the facility are not made soon. The building was designed to accommodate about 400 students when it opened over 40 years ago. Today, the school has about 625 students enrolled. "The library is very, very crowded. It is simply inadequate for the numbers of kids. The cafeteria is very, very crowded," said Lakes Region Principal Roger Lowell. "We have some health and safety issues. We have a lot of crowding issues and if we want to maintain our accreditation we have got to spend some money on this building." School officials have proposed a $13.9 million renovation plan that will increase space and address other concerns educators have with the building. "The automotive shop and the bus garage are right within the building itself and because of that you get air quality issues," said Lowell. "That is a major concern." The plans call for building a stand alone automotive shop and bus garage. The wing where they are currently would be renovated into classroom space to accommodate students in one of the two portable classrooms on the property. Other improvements would then be made to increase office space and make the cafeteria and library large enough to handle the needs of students. "In our case, the determination is this facility is not adequate and it is getting in the way of the programs that we are trying to deliver here," said Lowell. "Our accreditation issues are all facilities based." School officials hope townspeople will understand that despite the tough economy, the school has needs that need to be addressed. "The plan that we have is a very affordable plan. We are not looking to build a brand new school," said Lowell. "We don't have much choice. We have got to spend some money on this building."
Harvard May Alter Some Expansion Plans
Tracy Jan, Boston Globe
October 23, 2009 MASSACHUSETTS: Harvard president Drew Faust indicated that there is a strong possibility the design of its much-anticipated $1 billion science complex, at the heart of the university’s expansion into Allston, may be scaled back as Harvard grapples with new financial realities. The university is in the midst of reassessing options for Allston, including potentially “reimagining," or redesigning, the 589,000-square-foot complex. The university’s endowment has plummeted 27 percent, to $26 billion in June, amid the economic downturn. Harvard also disclosed last week that it lost $1.8 billion from its cash accounts last year because it took the highly unusual step of having the endowment fund invest the money, instead of keeping the funds in more conventional bank-like accounts. Faust had warned in February of a delay in completing the science complex, which would house scientists working on stem cell research across Harvard’s various schools. Stem cell researchers from Harvard Medical School, the School of Engineering, and the Faculty of Arts and Sciences who were scheduled to move into the science complex by the original 2011 opening have been relocated to a renovated laboratory space on Harvard’s Cambridge campus, Faust said. They will remain there “for some period of years until we can imagine investing more" n new science construction, she said. Even though it has slowed its expansion plans, Harvard continues to be committed to the Allston community, Faust said. Construction workers are finishing the foundation of the science complex, work that is expected to continue until the end of the year. She said the university has been talking to residents about a plan to find interim uses for the vacant Harvard-owned buildings and lots in the once industrial neighborhood, where Harvard owns more than 350 acres.
Community College Projects Fueling Unexpected Building Boom in L.A.
Joe Florkowski, Architectural Record
October 23, 2009 CALIFORNIA: The nine-college Los Angeles Community College District is in a unique situation. Despite a nationwide economic slump that is one of the worst in 50 years, the district has money to spend—and to build. LACCD, which serves more than 220,000 students throughout Los Angeles County, is in the middle of a $5.7-billion building program, funded by three bonds passed in the last eight years. The program, which began 2004 and is expected to be completed by 2014, is intended to modernize and add new facilities throughout the district. The LACCD is working with numerous architectural firms, including Leo A Daly, Arquitectonica, WWCOT, and Harley Ellis Devereaux. Of the nearly 90 new buildings planned for the district, eight are completed, 29 are under construction, and 50 are either in the design phase or do not yet have an architect assigned to them. The construction boom is being funded via a $1 billion bond passed in 2001, a $1.2 billion bond passed in 2003, and a $3.5 billion bond passed in November 2008. Larry Eisenberg, the district’s executive director of facilities planning and development, believes voters approved the largest ballot measure by more than 70 percent last fall—as the stock market was being battered and the economy was staggering—because they recognize the significance of education, especially during a recession. “I think people realize that community college is a pathway,” he says. Certainly, the district isn’t wasting any time putting the money to use. Eisenberg estimates that they’re spending about $30 million a week in construction payments. He adds that the district has been able to capitalize on the low-bid environment and, in some cases, has been able to “get deeper” down its wish list because of it. For instance, at Pierce College, the cost saving have allowed the district to build a child development center at the campus that was not originally in the budget. “It’s helping us a lot. It’s an amazing market right now,” Eisenberg says. One significant aspect of the program is that most of the buildings are designed to earn LEED certification. Two completed buildings have already achieved LEED Silver status and six are under review. The district has not set specific guidelines for LEED certification but has asked its designers to maximize sustainability wherever possible. “We try out a technology to see if it works or not,” Eisenberg says. “Pretty soon, we will have it down pat.” The district is not the only one pleased to be building. General contractors, hungry for work, are finding that the LACCD is a good partner to have during the recession. Riverside-based J.D. Diffenbaugh is currently building three projects for the LACCD and describes the district as one of its best clients. “Even though they are a public agency, everything they do is open book,” says Valerie Leonard, who works in the contractor’s business development department. “There are no surprises.” The Los Angeles office of Harley Ellis Devereaux is designing a learning resource center at the Los Angeles Trade-Technical College. The firm also is working on a design-build project with general contractor S.J. Amoroso; they recently won the bid for an 80,000-square-foot student union center at Los Angeles City College. “LACCD is one of the clients that actually has money to go forward with projects,” says Brent Miller, AIA, principal at Harley Ellis Devereaux. “Overall, it’s a very well-managed program.” He also is impressed with its commitment to green building. “We’re very excited that the district has taken the lead to push a sustainable program and demand this from the architecture community,” he says. “We think it’s money well spent.”
Stimulus Bonds for Montana School Construction Benefit Taxpayers
Mike Dennison, Billings Gazette
October 23, 2009 MONTANA: State assistance and federal stimulus money is making a $7.5 million high school expansion in Hardin a bargain for the school district and local taxpayers, Superintendent Al Peterson said. The state will provide nearly $1 million for the Hardin project, under a 16-year-old program to help certain school districts pay for building projects. Hardin is one of six schools statewide that will take advantage of $30 million in special federal stimulus money earmarked for school building projects in Montana this year. Another $30 million will be distributed next year. Another Eastern Montana school using stimulus funds for a building project is Huntley Project, which is rebuilding its school with $9.75 million in bond funds. Hardin school officials estimate that the two programs are saving local taxpayers as much as $5.5 million over the 15- or 16-year life of the bonds. The district estimates that taxpayers will pay about $40 more a year in property taxes on a $100,000 home to finance the $7.5 million project. The federal stimulus money is designed to cover the interest costs of the bonds through a federal tax-credit mechanism. Hardin officials estimated the district's interest savings at $4.5 million, based on a 5 percent interest rate. The state assistance is for school districts whose tax base is below the statewide norm. The Hardin School District's tax base is about 29 percent below the norm, so the state will cover 29 percent of a maximum amount allotted to each district based on its number of students. The maximum for Hardin is about $220,000 a year, so the state will pay nearly $65,000 a year to help cover the bond, or $972,000 over 15 years.
New Cooling Technology Expected to Save Florida School District Money
Arielle Stevenson, St. Petersburg Times
October 23, 2009 FLORIDA: Classrooms are empty when the air-conditioning system at Roland Park Elementary and Middle goes on at 9 p.m. The 3 miles of tubes spiraling inside each of eight ice tanks on campus will freeze solid by 5 a.m. In the morning when students arrive, a mix of glycol and water flows quietly through the tubes, and the ice outside them maintains the internal temperature. Glycol allows the water to drop to 19 degrees without freezing. Meanwhile, a heat exchanger collects the warmth from indoors and channels it through the ice tanks. Then fans blow over the cooled water, creating cold air that brings each classroom to a comfortable 76 degrees. Roland Park is one of five schools where Hillsborough County schools have installed the systems, called thermal energy storage. Hunters Green, Schwartzkopf, Bing and Boyette Elementary schools also got the systems. They're made by Calmac, which has been building ice skating rinks for 30 years. The company discovered the same technology could be used to cool buildings, according to its Web site. Instead of the tubes lying flat, like on an ice skating rink, they spiral inside 7- by 7-foot tanks that contain 17,000 gallons of water. Most of the energy is spent during off-peak hours, which saves the district money, says Bob Wegmann, general manager of operations for the Hillsborough County School District. The new systems — which cost $585,708 to install — are projected to save $50,000 to $75,000 a year in those five sites alone. If the technology lives up to expectations, Tampa Electric Co. will give the district a rebate for an estimated $132,000, according to utility spokesman Rick Moreira. "This estimated rebate amount is one of the largest we've paid," said Moreira. At Roland Park, the new equipment works in tandem with an existing air system, cutting air-conditioning needs in half. All of the systems installed are partial storage systems, designed to meet half of a site's air-conditioning needs. But three schools have been running them at higher capacity, getting even more cooling power. "For about a six- to eight-month period, we can operate partial storage efficiently as full storage, which is less expensive. It's during the hotter months, June, July, etc., that we use them as partial storage," said Wegmann.
New Jersey School Construction Projects are Delayed by State-Contractors Dispute
Lisa Fleisher, Star-Ledger
October 22, 2009 NEW JERSEY: Five New Jersey school construction projects — including one to replace a Newark building destroyed by lightning — have been delayed for months because of a fight between the state and a contractors group about the bidding process. The state Schools Development Authority said it can cut costs and speed up projects by combining the design and construction phases, but the Mechanical Contractors Association of New Jersey said the process would be unfair to small contractors and would ultimately cost taxpayers more. The authority wanted to test the process on five of the 25 of school projects it has planned for construction or pre-construction this year, including Newark’s Elliott Street School, which burned after a lightning strike in 2006. The school’s 680 students have been split among three other schools. The other schools affected by the fight are the Redshaw Elementary School in New Brunswick, the Lorraine Place Elementary School in Keansburg, Jersey City Elementary School No. 3 and Jersey City Early Childhood Center No. 3. The association sued in April and the state Appellate Division the following month ordered the state to stop work on the $40 million Elliott Street School. The two sides delivered arguments today before an appellate court panel, but it could be months before the judges return a decision. With traditional projects, the authority receives two sets of bids: one for design plans and another for construction. Last year, the authority proposed streamlining the process so that one contractor would be selected to both design and build a school in a process known as "design-build." "Many times you can get at the same or lower price a higher-quality performance out of the parties that are building the schools," said Janesa Urbano, vice president and chief counsel for the schools Authority. The authority used the design-build process once before with success, spokesman Larry Hanover said. In 2006, the authority used the process to build the Summerfield Elementary School in Neptune. The $23 million school cost $216 per square foot, compared with $249 per square foot for other projects that year, he said. This year, the agency decided to start using the process more, saying it was trying to get projects going as quickly as possible to create jobs amid the recession. But the contractors association said combining the bidding could open the door to corruption and overcharging. The process also would make it impossible to evaluate costs from one bid to another, because the state would be choosing from different designs, said Alan O’Shea, executive director of the contractors association. The contractors also take issue with another part of the process: The schools authority picks four finalists from a preliminary group and invites only them to submit bids. Authority officials said the process actually increases competition because it doesn’t cost as much for a contracting company to enter the bidding — and because the finalist firms will put more effort into their bids.
New $15 Million Florida School Will Include Lots of Airplane Noise
Dave Weber, Orlando Sentinel
October 22, 2009 FLORIDA: A new $15 million school next to Orlando Sanford International Airport is being built on property that federal aviation officials caution could be noisy from airplanes taking off and landing. But Seminole County school officials say average noise levels won't be a problem at the new Midway Elementary School, although the airport's main runway is just across the road. "It's like having a conversation with the vacuum cleaner on at your house," said Scott Stegall, director of facilities planning. Construction of the school north of the airport is scheduled to be completed by Christmas. Students will move in after winter break. Work was under way at the corner of Brisson Avenue and State Road 46 before school-district officials sought the required review by the Federal Aviation Administration, and the review was not completed until July. Deputy Superintendent George Kosmac said he knew the two-story building would bring no objections from the FAA, whose main concern would be obstructions to landing paths. Kosmac said that based on a consultant's report, the district also knew about the noise issue. But the FAA reminded the district that building a school on property tagged as noisy "would be considered a noncompatible land use and would not be recommended." Kosmac said the school was pushed back on the property, nudging the structure barely outside the designated 65-decibel "high noise" line encircling the airport. The FAA had another recommendation as well: "If you decide to proceed with the proposed development, it would be recommended that noise attenuation/insulation features be incorporated into the design and construction," the report said. But school-district officials discounted that advice. No added insulation has been included in the building, said Jay Taylor, project director. "Our walls are pretty strong anyway, with the concrete block," he said. A new Midway Elementary to replace the current worn building has been planned for years, but finding a suitable location has been difficult. Three earlier choices were polluted, and the airport property had arsenic contamination that was cleaned up. Officials point out that the county, city and airport signed off on various approvals including zoning, permits, utilities and airport concerns. But permitting mistakes have been made around the airport before.
Detroit Mayor Pushes $500M School Construction Bond Using Stimulus Funding
Marisa Schultz, Detroit News
October 22, 2009 MICHIGAN: Passing a $500.5 million school bond in the November election will mean modern schools, jobs and rejuvenated neighborhoods, Mayor Dave Bing said in endorsing the proposal. Bing said Detroit can't pass up the chance to borrow the money under the federal stimulus program at zero and low-interest rates for school construction and renovation. "This is real shot in the arm for the city of Detroit and for the children of the city of Detroit," Bing said in his first public support of Proposal S. Proposal S calls for building four high schools and four buildings for pre-kindergarten through eighth-grade classes. Five other high schools and five PK-8 schools would be updated and renovated. Combined, it would mark the largest public works project in the city of Detroit, Bobb said. The plan would not raise taxes, but extend the 13-mill tax rate from the previous 1994 school bond proposal from 2033 to 2039. The construction would create nearly 11,000 direct and indirect jobs in Metro Detroit, supporters say. Bobb said he'd use legal incentives -- quotas are illegal -- to ensure Detroit-based contractors, workers and minority and women-owned business will have opportunities to perform the work. Bobb, who will be staying on as emergency financial manager for a second year, has closed 29 schools this year and plans to shutter 33 next year in an effort to right-size the school district to its smaller population. Neighborhoods where schools have closed will see new, modern facilities, Bobb said. "Without this program, there will be no new Martin Luther King Jr. High School built for $55 million or no new school in the Brightmoor area for $35 million," Bobb said. A poll released by the public relations firm promoting Proposal S found voters narrowly approved it -- 40 percent to 37 percent -- but when respondents received details of school construction, the margin increased to 63 percent in favor and 23 percent opposed.
School Unveils the Largest Solar Installation at a Private School in New England
Press Release, PRWeb
October 21, 2009 CONNECTICUT: The Avon Old Farms School celebrated their newly installed 205kW solar electric system, which is the largest operating solar array of any private school in Connecticut and all of New England. At a dedication ceremony, Senator Chris Dodd and Chair of the Connecticut Clean Energy Fund Board Norma Glover both delivered remarks. Located on the roof of the Jennings Fairchild Ice Rink, the solar panels will power a significant portion of the core campus buildings reducing the school's CO2 emissions by 6.3 million pounds over the 25 year life of the system. This CO2 reduction is equivalent to planting 30,000 trees or eliminating 6.9 million driving miles. The electricity generated by the solar energy system will cost the school about 30% less than electricity from the utility. The solar system was installed by Connecticut-based Alteris Renewables, recently ranked the fastest growing renewable energy company in the Northeast. As the third party owner of the solar panels, EOS Ventures financed the system enabling Avon to go solar without the usual large upfront capital investment. Additional financial support from the Connecticut Clean Energy Fund (CCEF) was secured for this project. The large capacity of this solar electric system highlights Avon's commitment to a sustainable environment. Along with a multitude of other energy saving initiatives at the school, this solar array demonstrates that Avon Old Farms is a leader among the Green Schools Alliance, an association of K to12 public, private and independent schools uniting to take action on climate change and the environment.
Orange County, Florida Might Not Fix 41 Schools by 2015 as Vowed
Erika Hobbs, Orlando Sentinel
October 20, 2009 FLORIDA: Seven years ago, Orange County's school leaders promised to renovate 136 schools by the end of 2015 if voters approved a half-penny sales-tax increase estimated to raise about $2.2 billion. Today, that promise is coming up far short, with district officials saying they'll be able to finish only 91 schools if conditions don't improve. A number of forces converged to lower expectations. The first sign of trouble came in 2006, when prices for building materials skyrocketed around the world, forcing School Board members to curb spending and scale back on some projects. Then, the worst economic crisis since the Great Depression sent sales-tax collections plummeting and severely hurt the district's ability to borrow money. Finally, administrators' own decisions slowly chipped away millions of dollars from their already ailing construction budget. The district's chronic financial woes have become so severe, in fact, that there's serious talk about going back to voters in search of more money. That alone would underscore an equally serious problem: One-third of the 41 schools at the bottom of the school district's priority list for repairs and renovations — schools that so far have no funding — are majority-black campuses. Two of those schools – Washington Shores and Richmond Heights elementaries — are specifically named in a federal desegregation case that Orange County's school district has been battling for more than 40 years. And the courts are watching to make sure those schools are no longer neglected. School leaders acknowledge it will be difficult to prove in federal court that schools in some black neighborhoods are in the same condition as those in white areas. But they will not discuss the issue, on the advice of the school-district attorneys. The situation has left them scrambling to figure out a solution: Shuffle the list? Curb spending? Ask voters for more money? The School Board is far from agreeing on an approach.
Missouri School Districts Seek Bond Issue OK to Capture Federal Money
Kevin Carbery, Suburban Journals
October 20, 2009 MISSOURI: Federal money is the carrot dangling before voters in the De Soto and Hillsboro R-3 school districts. Both entities have bond issues on the Nov. 3 ballot. Officials in both school districts hope to tap into available federal stimulus money for renovation projects. Hillsboro officials are asking residents to approve an $18 million bond issue, while De Soto officials are requesting their voters agree to an $11.5 million bond issue. Both measures require a four-sevenths, or 57.1 percent, majority to pass. Officials from both districts are pointing to the Qualified School Construction Bonds program, which is part of the federal stimulus package approved by the Congress, as the reason for floating bond issues before voters. The program allows school districts to issue general obligation bonds at no- or low-interest rates. Funds from the program must be used for the construction, rehabilitation and repair of a public school facility or the acquisition of land to build a facility. A stipulation to qualify for the federal money is that a district must approve general obligation bonds with the amounts to each school district to be awarded through the Missouri Department of Elementary and Secondary Education through an application process. "If we chose not to run a bond issue, we would not be eligible for the federal funds," De Soto Superintendent Andy Arbeitman said. "Somebody else would get it."
Data Shows a Possible Wide-spread Presence of PCBs in Brooklyn Schools
Hashim Rahman, YourNabe.com
October 19, 2009 NEW YORK: Recently obtained School Construction Authority (SCA) data reveals that between 2008 and now, over 30 recently-renovated Brooklyn schools contained high levels of PCBs, a toxic chemical compound that was banned in 1978. This data was obtained from the SCA by the New York Lawyers for Public Interest (NYLPI), the organization representing Naomi Gonzalez, a Bronx mother who is suing the SCA and Department of Education (DOE) for not removing PCBs from her daughter’s school. According to SCA data, many Brooklyn schools contained PCB concentration levels far above 50 parts per million.The Environmental Protection Agency has determined that PCB concentrations above 50 ppm present an unreasonable risk to human health. The DOE could not comment on whether PCBs were removed from the recently-renovated Brooklyn schools because of pending litigation, though a DOE spokesperson did say that they are “engaged in positive and productive discussions with the United States Environmental Protection Agency to develop an agreement on a plan to address the PCBs in NYC public schools.”
Stimulus Money for School Construction in Every District in North Dakota
Staff Writer, KFYRtv.com
October 17, 2009 NORTH DAKOTA: Money from the Recovery and Reinvestment Act also known as the stimulus bill is helping put men to work. But on Lincoln Ave. in Minot this money and these workers aren`t building a road or a bridge. No, this project`s a little different. The workers` hard work will add new classrooms to Minot`s Erik Ramstad Middle School. "It not only puts people back on payrolls," said Democratic Sen. Byron Dorgan of North Dakota, "but this kind of investment is going to provide an asset at the end of it: better schools." Minot School District received a $5.9 million grant under the stimulus for school construction. They`re building not only at Ramstad but also at Jim Hill Middle School, and Sunnyside and Edison Elementary Schools. "I think that investment in our kids is extremely important," said Dr. David Looysen, Superintendent of Minot Public Schools. "And I think most of Minot thinks that, too." With new permanent classrooms being built with the federal stimulus money, many of the portable ones are being phased out. And that means a better learning experience for your kids. "Just think about it for a minute," Dr. Looysen said. "They`re in the classroom, but they also have PE in the building, music in the building, the lunch room`s in the building. I think it`s pretty important we try to provide a good learning environment for the kids." And that`s why Dr. Looysen thinks the stimulus money is not going to waste in North Dakota. Because thousands of children in the decades to come will benefit from the actions of the workers building the schools with stimulus funds. To see video: http://www.kfyrtv.com/News_video.asp?news=34784
School Construction Costs Down in California: More Contractors Bidding
Natalie Hoffman, Napa Valley Register
October 15, 2009 CALIFORNIA: Napa Valley Unified School District has a history of hiring mostly local contractors for its major construction projects, but the lagging economy is prompting changes in who is getting the work. One example is the approximately $12 million modernization and expansion project under way at Napa New Technology High School. The district hired one Napa County contractor and another from San Leandro for the New Tech job. Of the subcontractors on the project, one is from Napa County, seven from Sonoma County, two from Solano and two from Marin, according to the district’s planning department. Sixteen other New Tech subcontractors are based in Sacramento and other cities outside the North Bay, according to Don Evans, the district’s director of school planning and construction. The reason is increasing competition in the construction sector, which has many tradespeople working for less and traveling longer distances to find work, Evans said. Historically, things were different. Most district construction jobs awarded prior to those approved under Measure G — a $183 million bond approved by voters in 2006 — went to contractors in Napa, Solano and Sonoma counties. “Recently, that trend has changed,” Evans said. “Until the last 12 months, if you were to look at our general contractors and subcontractors’ awarded jobs, the high majority were from our area. Napa New Tech is different ... and I think it’s a sign of the unfortunate economic times that we’re in.” Evans said the reason most of the district’s most recent projects have gone to general contractors and subcontractors outside of the area can be found in California’s Education Code and public school construction contracts — jobs must go to the lowest bidder. “Some of the subcontractors, especially on the job at the new high school in American Canyon and Napa New Tech, perform work that is not available within our geographical area because they’re specialized subcontractors,” Evans said in an e-mail. Evans said some of these include specialists in plumbing, mechanical, electrical and roofing for major projects and school sites. District Trustee Jose Hurtado said while local economy’s health is a priority, the district has its own financial constraints. Sometimes, that means having to hire outside of Napa County. Meanwhile, the school district is wrapping up its Measure G projects. While local contractors are feeling the pinch of the ailing economy, the cut-throat competition is a boon to the school district and other organizations hoping to get more bang for their buck when it comes to project bids. Evans said although most construction projects under Measures G and M are coming in at budget, many done during the past 18 months have come in as much as 20 percent below budget.
Report: New Orleans Schools' Recovery Depends on Increased Federal Involvement
Sarah Carr, NOLA.com
October 14, 2009 LOUISIANA: If the federal government doesn't do more to assist with the recovery of New Orleans schools, gains made over the past four years will prove unsustainable, according to a new report by the Southern Education Foundation. Officials must give particular attention, it said, to rebuilding the city's destroyed school buildings and to supporting instruction within their walls. In the past year, school officials have embarked on what could become a $2 billion, decades-long drive to rebuild and renovate dozens of campuses throughout the city. Locally, several watchdog groups have voiced alarm that the plan could exacerbate inequities in the city if some of the children move into state-of-the-art new buildings in the next five years, while even more remain in outdated and in some cases dilapidated structures. The foundation's report echoes that concern. It praises the Federal Emergency Management Agency for committing $165 million toward the city's school infrastructure this year and for providing money that allowed a new Langston Hughes Academy, a charter elementary school, to open in August. "Despite these efforts, federal commitments to New Orleans schools remain long delayed and grossly insufficient for restoring the city's infrastructure of public education, " the report says. "It has been more than four years since Hurricane Katrina, and FEMA is still haggling with local school officials." FEMA officials have held up their relationship with the state-run Recovery School District as a model, citing successful negotiations that allowed them to streamline the process of reimbursing the schools for classroom materials destroyed in the flood. And Recovery School District officials have said they have a good working relationship with the federal agency.
Virginia Governor Announces $119 Million in Bonds for School Construction
Press Release, Virginia Governor's Office
October 14, 2009 VIRGINIA: Governor Timothy M. Kaine announced the availability of $119 million in American Recovery and Reinvestment Act (ARRA) bond authorizations for local school divisions to finance energy efficiency improvements and renovations, as well as renewable energy projects for public school buildings. Projects will be financed through the Qualified School Construction Bond program (QSCB), and will be selected through a competitive evaluation process. Eligible projects can include, but are not limited to, improving heating, cooling and ventilation systems and controls, building improvements such as insulation and windows, more efficient lighting, as well as solar photovoltaic, solar hot water, biomass, or on-site wind power systems. "Today's announcement will advance two of the Commonwealth's top priorities-education and energy efficiency. When school divisions lower their energy consumption, they can lower their energy costs and direct more resources to the classroom, all while reducing their environmental impact," Governor Kaine said. "The projects made possible by these ARRA bonds will create jobs, improve our children's learning environment, and promote green technology and construction here in the Commonwealth." The $119 million in bonds will provide both immediate and lasting impact through energy efficiency improvements and renewable energy retrofits to existing public school buildings. New construction projects will not be eligible for these bonds. Efficiency improvements are among the most cost effective ways to help resolve energy cost challenges. Funded projects will reduce public schools' energy demand and energy bills, reduce greenhouse gas emissions, and provide a safer and cleaner environment for Virginians. Renewable energy retrofits will also be eligible for funding-such as the installation of solar panels or small wind turbines. These improvements will also provide learning opportunities for students on energy efficiency and energy conservation. School divisions and local governments can submit project applications through November 11, 2009 using an application now available on the Department of Education website. Project proposals will be evaluated and selected by a team of experts from the Department of Mines, Minerals and Energy, Department of Education, and Department of Treasury. Project announcements are expected by mid-December. Earlier this year, Governor Kaine announced the initial allocation of $71.6 million in QSCB's for eight projects in seven Virginia localities. Those previously announced bond allocations will finance K-12 school construction and renovation.
Green Schools in the Oregon Trail School District
Garth Guibord, Sandy Post
October 13, 2009 OREGON: There are approximately 1,500 computers in use in the Oregon Trail School District, according to the district’s facility operations director, Jim Seipel. To protect these machines from viruses, it is necessary to keep them on 24 hours per day, 365 days per year. “There’s two days a week where it’s worthless to have them on,” Seipel explained. But not all is lost. In the summer of 2008, the district purchased a software package to manage the electricity the computers used by putting them in sleep mode when not in use. While the software package cost approximately $30,000 and yearly renewals will be $2,000, and it wasn’t fully installed on every computer until that fall, the results were dramatic. “It almost paid for itself in savings the first year,” Seipel said. “It’s $30,000 we didn’t have before.” All 10 schools in the district recycle at some level, typically paper recycling. Some schools bring sustainability to the classroom, including the Green Team at Cedar Ridge Middle School, which puts students in charge of collecting recyclables and lets them grow fruits and vegetables in a greenhouse; and the Green Club at Sandy High School, whose members get involved with green activities throughout the community. District schools can also participate in the county’s Green School program, which provides a roadmap on how to make changes within schools and offers a plan on how to set sustainable goals. Other green practices in the district include motion detector lighting, composting, reusable containers and recycling batteries, cell phones and ink cartridges. While there is no district policy on recycling, Superintendent Shelley Redinger mandated last year that school buildings be kept at 68 degrees. When the new Sandy High School opens in 2012, it will include some sustainable aspects, but what will be included has not been finalized. Options for the new school include geothermal heating and cooling, natural lighting during the day, sunscreen configurations and collecting rainwater for non-potable use, which offers savings in two ways. Meanwhile, upgrades and work at other schools in the district included in the bond for the new high school continues, and some of it will provide energy savings for the district. Sandy Grade School will receive double-pane windows on the west side of the north wing, Welches Elementary and Middle schools will receive upgraded and more efficient heating units, and some schools will have steam traps replaced to improve boiler efficiency.
Kids Freed From East Rock “Prison”
Melissa Bailey, New Haven Independent
October 13, 2009 CONNECTICUT: When the city tears down the cement walls of the East Rock Magnet School, students will have a new home complete with park space, windows and light. The existing school [designed by Edward Larrabee Barnes] was built in 1973. It is marked by large, windowless walls of concrete. The two entrances on Nash Street are set so far back from the sidewalk that visitors sometimes have a hard time figuring out where the front of the building is. “Absolutely atrocious,” is how East Rock Alderman Roland Lemar described the existing school’s design. He called it a “1970’s-style prison” that “turns its back on the neighborhood.” The current school suffers from poor acoustics and lighting, said school construction chief Sue Weisselberg. The new school would address that by adding a lot more windows — both windows facing out and windows inside the school. Plans show a two-story gymnasium/cafeteria surrounded by a horseshoe of classrooms on each level. Skylights would let natural light into the large central space, as shown above. Windows in the hallways and classrooms would look out onto the southern park when possible.
Op-Ed: Little Restored Schoolhouse
George Allen and Paul Goldman, New York Times
October 12, 2009 NATIONAL: “More than a half-century after Brown v. Board of Education, the dream of a world-class education is still being deferred all across the country,” President Obama declared in a recent speech to the N.A.A.C.P. “There are overcrowded classrooms, and crumbling schools, and corridors of shame in America.” So we have come together — one Republican, one Democrat — to develop a common-sense solution to fix the problem of crumbling schools in a manner that doesn’t require the federal government to tax, borrow or spend one dime. Our School Modernization and Revitalization Tax Credit — Smart Credit — is also guaranteed to create hundreds of thousands of private-sector jobs, critical at a moment when unemployment has reached a 26-year high and threatens to climb even higher. Several studies show a statistical connection between outmoded schools and educational underachievement and the schools most in need of modernization are disproportionately in inner-city neighborhoods and rural areas. But to fix these schools, Congress need only make a simple, one-sentence change to a little-known clause in the federal tax code. In 1986, President Ronald Reagan and Congress created a 20 percent federal historic rehabilitation tax credit. Generally speaking, rehabilitation projects involving structures at least 50 years old can qualify for this credit, which is equal to roughly 20 percent of the modernization cost. It is widely acclaimed for having created jobs, restored buildings and spurred economic activity. This credit is applicable when an aging local school building is renovated for a different use by private investors. But it is not should the same investors want to invest the same money to turn the same building into an up-to-date local school. The I.R.S. “prior use” rule disallows such credits in the latter situation. But if this “prior use” rule were amended to allow for school rehabilitation, then decaying school buildings could be sold to private investors, modernized and then leased back to school authorities. This approach has already been proven to work and save taxpayers considerable money. When Gov. Tim Kaine of Virginia was the mayor of Richmond, he used this basic sale-leaseback arrangement to update a local school, Maggie L. Walker High, built during the Depression, and transform it into a regional magnet school that reopened in 2001 and now serves the top students in Central Virginia. (This shift from local to regional school satisfied the “prior use” rule. With the Smart Credit, previously unaffordable projects now become affordable. Moreover, we eliminate the costly political and bureaucratic favoritism now pitting one locality against another in a fight for the limited school construction money in the stimulus plan. Potentially, there may be $100 billion in tax-credit-eligible school modernization projects nationwide. Now is the perfect moment, with prices for construction materials down, to unleash the private sector to create tens of thousands of jobs while making schools better for millions of students. We have talked to business investors. If Congress will amend the law, we already have the money pledged to modernize more schools, at one time, than has ever been done in any locality in Virginia’s history. The same is possible for your community.
South Dakota Schools Thankful For Federal Construction Money
Josh Verges, Argus Leader
October 12, 2009 SOUTH DAKOTA: A new federal program aimed at helping struggling school districts catch up on infrastructure has found demand in some states far beyond what the government is willing to pay for. That's not the case in South Dakota where all 24 school districts to apply for Qualified School Construction Bonds will have been approved for $56 million in interest-free loans, which shave as much as one-third off the total cost of building projects. The two-year, $22 billion QSCB, a creation of stimulus legislation, was touted as a jump-start for the construction industry and a boon to education. But officials at four of the 12 South Dakota school districts approved in the first round of awards say they would have done the projects without the incentive. Jennifer Cohen, education policy analyst at the nonpartisan New America Foundation, said South Dakota's experience is unusual. Most states have so many needy school districts that they have to reject QSCB applications. With demand more than five times the state was approved for, California education officials held a lottery to determine who would get bonding authority. "The needs for these sort of incentives were much greater because it was literally a matter of doing or not doing the program," Cohen said. As a relatively financially sound state, South Dakota has benefited from a funding formula based on Title I poverty allocations. Cohen said a more equitable system would have sent money to school districts that demonstrate a need. "The way the funds were distributed (to the states) did not have a lot to do with the need," she said. Nationally, QSCB has been a popular initiative. David Shreve, education policy analyst at the National Conference of State Legislatures, said school construction is a good way for the federal government to help pay for education. Like highways, Congress helps build the infrastructure but does not take control over it. "We think it's a very legitimate role for the federal government to play," Shreve said. "There are serious infrastructure needs out there, and I think this addresses it." He doesn't blame school districts for taking advantage of incentives they don't really need. "If you're going to buy a car you're going to look for the best deal," he said.
Irvine, California School District Wants Kids to Compete to Cut Energy Costs
Sean Emery, Orange County Register
October 11, 2009 CALIFORNIA: Educators say a race to cut back energy usage among local schools could teach students about the cost of wasted electricity, but only if utility companies speed up their own "green" efforts. The idea for a friendly competition among students to see who can reduce energy use at their respective schools is the latest in an ambitious Irvine Unified campaign to "go green." But Irvine Unified officials still need Southern California Edison's help to get the up-to-date energy usage info needed to get the effort under way. Irvine Unified officials have already asked teachers and staffers to cut back on their energy usage at work, last year directing them to remove personal appliances from their offices and classrooms. Paying electricity costs for a microwave, fridge or coffee maker here or there may seem like a drop in the bucket for a district that spends about $4 million a year in energy costs. But those little costs can add up to several hundred dollars a year at each of Irvine Unified's 35 campuses and district facilities. And at a time when Irvine Unified leaders, who already sliced $18 million out of this year's budget, are facing an expected $20 million shortfall next year, every dollar counts. As teachers, staffers and students work to cut energy usage to the bone, the next step is moving to what Parham calls "smart usage" by timing district activities to avoid the peak hour expenditures that can quickly run up an electricity bill. Parham says the move to smart usage and friendly energy conservation competition is hampered by billing info that is several months old and isn't specific about each school and district facility. It's a far cry from the up-to-the-minute, site-by-site energy output info that Irvine Unified is looking for. The outdated info also impedes Irvine Unified's efforts to identify and eliminate unexplained jumps in energy usage, said Mark Sontag, a curriculum coordinator for math and science who, along with maintenance director Joe Hoffman, explores anomalies in energy costs at each district facility.
Biggest Chunk of Seattle Tax Levy Would Go Toward Re-opening Shuttered Schools
Sara Kiesler, seattlepi.com
October 08, 2009 WASHINGTON: The single biggest chunk of a proposed school tax levy will go to re-opening schools that have been shut down. About $48 million of the Buildings, Technology and Academics III Levy is projected to cover the costs of re-opening five shuttered elementary schools, including two that were shut down as recently as 2007. Seattle Public Schools said at a levy workshop that it needs to re-open the schools to manage capacity for the proposed New Student Assignment plan. School board members Cheryl Chow and Michael DeBell expressed concern about explaining to the communities surrounding Rainier View and Viewlands elementary schools why they were shut down in the first place. Rainier View will cost about $7.4 million to re-open, while Viewlands is expected to cost about $11.1 million. "Where in the planning is the community?" asked Chow, whose Southeast Region district includes Rainier View. "When we made that decision in 2007 it hurt the communities, and now because of enrollment going up we're saying were re-opening it." The total projected levy that will go before voters Feb. 9 in a special election could provide either $253 million or $282 million for much needed upgrades. For a homeowner in Seattle, it would be about 4 cents per $1,000 worth of taxable home value, according to Seattle Public School staff.
Missouri School District Bond to Address Vital Repairs With Help From Stimulus
Roger Meissen, Fulton Sun
October 08, 2009 MISSOURI: For just a few dollars per year, voters can ensure that vital repairs are made here to ensure the longevity of school property and improve the quality of learning for students district wide. After months of deliberations, North Callaway School Board members made the hard decision in August to pare down a request for school improvements to just the basics, slashing millions of dollars off of April's failed ballot proposal. Instead of calling for additions to the school, new classrooms and eliminations of modular trailers, the board heeded voter dissent and will just address maintenance, security issues and air quality in its four schools. Some might wonder why North Callaway wants to pursue another bond proposal after three heart-wrenching losses in as many years, but those promoting the bond issue are quick to point out an unprecedented opportunity this year. Thanks to federal stimulus funding, districts around Missouri are privy to get millions in interest-free loans. Through a Qualified School Construction Bond program, districts that approve ballot issues in November will have the first shot at about $141 million of those interest-free bonds. In August, Gov. Jay Nixon announced that the Department of Elementary and Secondary Education divvied out more than $141 million to 33 districts who passed bond issues in April. Each district will receive bonds that cover 61 percent of their projects. Depending on how many bond issues are approved, North Callaway could get more or less than that. Qualified Zone Academy Bonds also have about $25 million more available to schools due to stimulus funding. It helps schools with populations of low-income students, such as those who receive free and reduced school lunches, to apply for more interest reducing bonds. In addition, building costs have dropped dramatically in the past year due to the economy. In a July 16 school board meeting, the district's architect expounded on the savings it should take advantage of. "Usually we increase our costs by about 5 percent per year, but lately we've had bids coming in 30 percent below January 2008 prices and we were amazed," said David Kromm, with KRJ Architects, Planners and Interiors. "We weren't sure if this was a fluke, but other bids came in last week telling the same story." These combined elements mean a possibility to take care of the district's imminent need at a substantially lower cost. The district only needs a 4/7 margin -- approximately 57 percent -- to pass this bond proposal in November, and Cassidy is hopeful. "We've seen building costs come down and the possibility of these zero interest bonds that works to our advantage," Cassidy said. "Our school board recognizes we have this opportunity to build trust, go back to a foundation by getting these core maintenance issue and then look to the future."
America's Greenest Colleges
Brian Wingfield, Forbes
October 08, 2009 NATIONAL: The Sustainable Endowments Institute released its 2010 report card which tracks green initiatives at 332 schools in the U.S. and Canada. Twenty-six schools received the highest grade, an A-, including: Arizona State University, Middlebury College, the University of North Carolina at Chapel Hill, the University of Pennsylvania and Pomona College. The Sustainable Endowments Institute focuses on the 300 schools with the largest endowments, meaning that wealthy schools are highlighted. An additional 32 school who opted to pay a $700 fee were also included in the survey. Forbes compiled it’s list of green colleges by using the Sustainable Endowments Institute's 2010 report card as a basis because of its thoroughness but also took the following factors into consideration: Schools who earned green marks for participating in the Environmental Protection Agency's "Green Power Partnership," which promotes the use of wind, solar and other renewable energy. Schools that participate in the American College and University Presidents' Climate Commitment, which promotes campus sustainability efforts and aims to reduce greenhouse gas emissions. Colleges also received credit for making the Princeton Review's "2010 Green Rating Honor Roll." Another plus was a school's participation in a voluntary sustainability tracking program run by the Association for the Advancement of Sustainability in Higher Education (AASHE). Some of the Forbes’ standout are also well-funded, like Harvard and Yale. Harvard's "Green Campus Initiative," which had a $12 million green loan fund, was folded into a new Office for Sustainability. Yale's sustainability office has been around since 2005 and this year installed 10 small wind turbines on the roof of the engineering and applied science center. State schools also do well on this list: Arizona State University, for its part in the Presidents' Climate Commitment, the Princeton Review's green honor roll and participation in AASHE's sustainability tracking program. The University of Washington's Seattle campus, at least 75% of commuters take environmentally friendly modes of transportation. The University of North Carolina buys 20% of its food from local producers, gets high marks for green building initiatives and has a policy to purchase energy-efficient appliances. Washington State's Evergreen State College, which gets 100% of its electricity from renewable sources, made the Princeton Review's green honor roll and is part of the university presidents' commitment for climate neutrality. The University of California at Santa Cruz and the University of Central Oklahoma can account for all of their electricity use through green power sources.
Louisiana’s Monroe City School Board Approves $10M in Bonds
Barbara Leader, The News Star
October 07, 2009 LOUISIANA: The Monroe City School Board approved the issuance of $10 million in bonds for construction and renovation projects in the district. The board voted to adopt a resolution for the incurring of debt and the issuance of Qualified School Construction Bonds. This will provide the district with money to complete projects at a zero percent interest rate. Money will be spent according to a list of renovation and construction priorities already identified by the district.
Senator Boxer Plans Hearing on Toxic School Drinking Water
Garance Burke, Washington Post/Associated Press
October 07, 2009 NATIONAL: The head of the U.S. Senate Environment Committee said that legislators will hold hearings to address toxic drinking water in the nation's schools following an Associated Press probe into the widespread problem. California Democratic Sen. Barbara Boxer called for the hearings to be held in Washington this year after an AP investigation revealed unsafe levels of lead, bacteria and pesticides have surfaced in the water supplies at thousands of schools. In the last decade, contaminants have been found in drinking fountains and school pipes in all 50 states in small towns and inner cities. But the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied. Boxer, who chairs the Committee on Environment and Public Works that oversees the Environmental Protection Agency, has seized on the issue as a top priority, and has asked EPA officials to explain what actions they will take to protect school children from polluted water. Among the issues discussed were the agency's inadequate record-keeping. The EPA only has authority to collect drinking water quality data from schools with wells, which represent 8 to 11 percent of the nation's schools. In the past, EPA officials have said that schools with unsafe water represent a small percentage of the nation's 132,500 public and private schools. They also have said the agency has no legal power to require that all schools test their water, and can only provide guidance on environmental practices. EPA officials acknowledge the agency's database of schools in violation of the Safe Drinking Water Act is plagued with errors and omissions, however. The problem goes beyond schools that use wells since schools in Baltimore, Seattle, Los Angeles and other large cities that draw water from public utilities also have shown contamination.
$24 Million in Stimulus Funds for New Mexico Schools, Colleges Energy Projects
State of New Mexico, Press Release
October 06, 2009 NEW MEXICO: Governor Bill Richardson announced more than $24 million in federal stimulus funds will go to schools, colleges, tribes and other agencies to improve energy efficiency all over New Mexico. The New Mexico Energy, Minerals and Natural Resources Department has awarded funding to 28 projects selected through a competitive process. “These innovative projects throughout the state will provide energy savings through such things as installing solar power, energy efficient lighting, heating and cooling systems, and implementing web conferencing technologies,” Governor Richardson said. “The investments from the American Recovery and Reinvestment Act will lead to significant energy conservation, which makes government more efficient and saves tax dollars.” [Includes list of award recipients.]
EPA to Brief Senator Boxer on Toxic School Drinking Water
Garance Burke, Washington Post
October 05, 2009 NATIONAL: A California senator called on the head of the Environmental Protection Agency to disclose how the agency plans to address the widespread problem of toxic drinking water in the nation's schools. Democratic Sen. Barbara Boxer wrote the agency in response to an Associated Press investigation showing water supplies at thousands of schools have been found to contain unsafe levels of lead, pesticides and dozens of other toxics. Contaminants have surfaced at public and private schools in all 50 states, and in small towns and inner cities alike over the last decade. But the AP found the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied. Citing a "lack of a national strategy for monitoring schools' water," Boxer asked EPA officials to explain how the agency oversees and enforces drinking water quality rules to her committee staff. Boxer also requested an outline of specific actions taken to address problems in schools' drinking water, a timetable for when those efforts will be completed and a report of any new legal authorities needed to protect students from toxic drinking water.
New Jersey Schools Test Design Standards for School Interiors
Shankar P. , NJBiz
October 05, 2009 NEW JERSEY: The New Jersey Schools Development Authority will experiment with a standard design and architecture plan for school interiors, with the hope that replicating those plans will save time and money. Kris Kolluri, agency chief executive, told NJBIZ the SDA will invite design proposals before December for a proposed early childhood center in Passaic City. Design and architecture firms that routinely contract work from SDA were divided about the merits of the standardization experiment; many who were contacted declined to comment for fear of jeopardizing their relationships with the agency. But others said it could be a good idea if it retained the creative aspects of their work, and that it might actually redirect saved money to more construction projects. “The basic goal is to try and test a pilot school where we incorporate standard elements,” Kolluri said of the program, called Kits Apart. The plan is to settle on four sets of designs for interior fit-outs, including classrooms, auditoriums, labs, cafeterias and gyms, he said. While “not every school can be standardized,” Kolluri said the best candidates are early childhood centers and elementary and middle schools. “We don’t believe doing that for high schools is an appropriate idea at the moment,” he said. Kolluri said SDA will roll out its experiment with a process akin to a “design competition, where every community will have the ability to help us develop the schools’ outside design so it fits its individual context.” “Establishing standards is a good thing,” if balanced “with the design team’s creativity to address local conditions,” said Ed Klimek, partner at KSS Architects, in Princeton, which does a fair amount of work for SDA and charter schools. But care needs to be taken to ensure the experiment doesn’t produce “a rubber stamp for creating learning environments,” he said. Klimek said it is possible to strike a balance between standardized designs and creativity. “In the charter schools, we have designed some very interesting standardized designs, but retained the elements of creativity,” he said. “Having standards does reduce time, because we can all work off of the same basis point.” Kolluri said schools in Chicago have been built with standardized designs, and that it is “time for us in New Jersey to test it now.” He wants to go about it one step at a time to check if it has “the highest quality, from a sustainability and education standpoint.” Suzanne Sowinski, owner of Sowinski Sullivan Architects, in Sparta, said she isn’t worried the standardization may reduce business for firms like hers. “I am a taxpayer, too,” she said, adding that with the savings from standardization, “maybe you could get more classrooms, bigger schools and more construction work.” Sowinski felt that while standardized designs do not necessarily hurt creativity, she doesn’t want to see “cookie-cutter schools.” In any event, Kolluri is looking for alternatives. “We are at an important point in our school construction program, where we need to change the way we do business to see if we can build schools faster, better and do it in a more cost-efficient way,” he said. In July 2008, the state Legislature approved $3.8 billion to resume the schools construction program following its suspension in 2005, when its predecessor, the Schools Construction Corp., faced accusations that it misspent some of its $8.6 billion budget. “Design and architectural expenditures have been a major driver in the overall cost of school construction because of a number of issues related to poor planning and oversight,” according to the initial report of the state’s Office of the Inspector General in April 2005; among the report’s recommendations was the adoption of standard designs. Kolluri said he isn’t sure how many designs his office will need to solicit before a standard is adopted. “I would be content if the one school we are about to test out covers all the standardization criteria,” he said. “Then we could replicate it. But I am not willing to commit to a certain number” of experiments.
Dayton, Texas Rosenwald Project Nears Completion
Carol Skewes, The Vindicator
October 05, 2009 TEXAS: Alumni of Colbert Elementary, the oldest school in Dayton, toured the school's renovations to see how the old school house is being restored. It was not called Colbert back then. It was called “the colored school”. The school's construction was partly funded by the Julius Rosenwald Foundation. Julius Rosenwald, formerly president of Sears, Roebuck and Co., worked with Booker T. Washington, of The Tuskegee Institute, so that African American children could attend school. During the Great Depression, the Rosenwald Foundation created a program, where communities in 15 southern states could donate land and/or some money, which the foundation would match with a seed grant, under Booker T. Washington’s leadership. They designed each school with the highest efficiency in mind, because money was scarce. The schools all had large windows along East and West walls to maximize sunlight, and accordion doors down the center of the building, which created separate spaces for different grades. Community meetings could also be held inside. This school taught all grades, through high school. “From the time it was built (1933) until 1967, the school was segregated.” said Guidry, a member of Colbert-Rosenwald Corporation. This organization works on a grassroots level to raise funds to complete the Rosenwald Project. Guidry commented “About 5,000 schools were built throughout the South by The Rosenwald Initiative. Only a few hundred still exist.” Coleman stated “This was the original building, and that was all there was.“ This school came very close to being lost. Two Colbert staff members, Marie Elliott Redman and Katrina Dicky, recognized the old school house, inside an outer structure, which had been condemned. At about the same time, Jo Ann Paul read an article on the Rosenwald Foundation that described design details of the schools, and realized Colbert was actually a Rosenwald school. They immediately alerted the proper authorities, and puzzle pieces began to align, making the renovation a reality. The Rosenwald school, inside the condemned building, was in better shape than the outside structure. Hayman noted “This has been a five-year process. We went to Austin for some training, applied for a first grant, then other grants. There was real support from the community, when they heard there was a Rosenwald grant. Hurricane Ike benefitted us so we could go to Phase Two. Now, we are ready for Phase Three.”
Designed for Learning
Jody Lawrence-Turner, Spokesman-Review
October 04, 2009 WASHINGTON: Fresh air, daylight and elbow room improve learning in schools. Who’d have thought? Temperature, acoustics and safety make a difference too. Technology, well, that’s a no-brainer. As Inland Northwest schools are remodeled, rebuilt and modernized, greater consideration is being given to design elements that national studies show can create better learning environments. “A lot of natural light, comfortable spaces are more conducive to learning,” said Kevin Foster, Ferris High School principal and a committee member for the district’s remodeling projects. “Technology makes more items available to the classroom.” Greg Brown, Spokane Public Schools director of capital projects, said facilities designers “know that good learning environments are positive to the education of the students and well-being of the teachers.” Spokane Public Schools is in the second phase of a 25-year plan to make major changes at all of its traditional high schools while also addressing smaller-scale changes at other schools along the way, such as heating and cooling systems that pump fresh air into classrooms, basic maintenance and upgrading athletic facilities. Districts around the region vary when it comes to improvements being made at schools. Funding is the primary constraint. Coeur d’Alene School District recently remodeled two of its schools. Freeman School District in south Spokane County is building a new high school. Central Valley School District has had to forgo some desired projects because voters have rejected the last three bond proposals. “Greenacres, Ponderosa, Chester and Sunrise are four schools that are currently open-concept schools (minimal interior walls) – that is not good,” said Central Valley spokeswoman Melanie Rose. “It’s hard for one class to do what they need to do without disturbing a neighbor. Student learning is impacted in those buildings.” Students in noisy environments can score 20 percent lower on reading tests, according to a study released in 2002 by the National Clearinghouse for Educational Facilities. Noise also hampers a student’s general cognitive abilities, the study said. As Spokane schools undergo major remodels, acoustics have been a consideration in regular classrooms as well as areas where activities are apt to be loud – band, orchestra or choir rooms, for example. In those special classrooms, sound-absorbing padding is mounted on the walls, and curtains can be pulled around students to further dampen noise, Brown said. The new regular classrooms are equipped with sound systems that allow teachers to use wireless microphones to speak to students in the 850-square-foot spaces. Most schools being remodeled throughout the region are integrating more daylight and fresh air. A study released earlier this year that analyzed three school districts in Washington, California and Colorado showed increased natural light in schools had a profound impact. “Students in daylit schools outperformed the students in non-daylit schools by 5 to 14 percent,” according to a study published by the federal Department of Energy’s National Renewable Energy Laboratory. “In one school district, students with the most daylighting in their classrooms progressed 20 percent faster on math tests and 26 percent faster on reading tests when compared with students in the least daylit classrooms.”
Colorado School District Nears Completion on Security System
Jack Weinstein, Steamboat Pilot & Today
October 04, 2009 COLORADO: The installation of security cameras and an automated door access system at the Steamboat Springs high school almost is complete, said Rick Denney, the district’s facilities director. The process started a week after school began in late August. The cameras — located outside as well as in common areas, corridors and areas commonly used by the public but not in classrooms — run on a Web-based system that records, but they aren’t monitored all day, Denney said. Only a few administrators have access to them. He said the new security measures are being implemented at all district schools and the transportation facility. The system should be complete by the end of November. The systems were paid for by a $533,000 Community Oriented Policing Services Securing Our Schools grant that the district was awarded in September 2007. The grant required that the district match the funds to implement several security-related measures in the schools — after a safety and security audit the district commissioned in February 2007, Denney said. The bill for the $677,000 system was split evenly between the grant and a district match. The grant also funded part of the purchase of 800-megahertz radios for district staff and bus drivers. The district paid half of that $290,000. Denney said the automated door access system, which will involve issuing district staff electronic key cards, would be integrated with the security cameras to monitor who enters and exits school facilities. The key cards also will be staff members’ identification badges. He said the key cards would replace traditional keys and have several advantages. Denney said key cards could be issued to community groups that use schools, and if they were lost would be deleted from the system and wouldn’t require re-keying schools — “an expensive endeavor.” “It’s a vast improvement in security,” he said.
New School Buildings Merge Art and Architecture
Winnie Hue, New York Times
October 01, 2009 NATIONAL: Math students at the Christopher Columbus Family Academy learn about angles by measuring whimsical figures of hot-air balloons, paper airplanes and pinwheels built right into the walls of their school. Seventh graders figure out direction by mapping the sculptures of the north, south, east and west winds that serve as compass points for the building. And fifth graders study astronomy by searching for Cassiopeia in an inlaid night sky that stretches across the lobby floor. The Columbus school incorporates sculpture and other art into nearly every corner of its year-old building with the hope that it will inspire students in this working-class Hispanic neighborhood to learn. It is one of a growing number of newly built or renovated public schools across the country that look more like cultural centers than the austere, utilitarian houses of learning of the past, displaying museum-worthy pieces commissioned from artists alongside more traditional finger paintings and statues of school mascots. Columbus even drew up a curriculum guide this fall for using this untraditional architecture in class lessons. “Looking at art is not just an aesthetic; it’s a learning resource,” said Abie Benitez, principal of the Columbus academy. “We’ve created a framework for everybody to find a connection to the art in the building — and to the building itself.” New Haven has emerged at the forefront of a movement to build schools that are aesthetically pleasing as well as functional, and to turn plain brick-and-mortar walls into show-and-tell lessons. Fourteen of the 31 public schools built or renovated here in the past decade have merged art and architecture with education in some fashion. “New Haven prides itself on art and ideas, so it’s a good environment for developing this kind of program,” said Tom Roger, director of the city’s school construction program, a project with a cost of more than $1 billion. In New York City, where schools house one of the largest public art collections in the world, almost half of the 23 new buildings that opened this fall incorporated artwork in their design and construction, city officials said. For instance, the Frank Sinatra School of the Arts in Astoria, Queens, has a glass facade etched with the names of hundreds of performing artists and hallways that display video clips of student activities. Across the country, Los Angeles just opened one of the most expensive high schools ever built: a $232 million complex of silvery geometric shapes for a school of visual and performing arts. “None of our schools are cookie-cutter designs,” said Shannon Haber, a spokeswoman for the Los Angeles school district. “Ours use vibrant colors, the designs are complex, and we don’t use the same architect for each one.” Educators and architects say that these new schools challenge long-accepted notions dating back to the 1950s of school buildings as no-frills projects designed to fulfill safety specifications and to be completed as quickly and cheaply as possible, particularly in fast-growing cities and suburbs. “People thought of schools as warehouses for kids,” Mr. Roger said. “It’s a box, so why does it need to be a nice place?” But Mr. Roger and others say that thinking began to change as health and environmental concerns over indoor air quality and lighting led to higher standards for school buildings. Newer cost-efficient technology also allowed architects to customize schools in a way not possible before. And now art has become an integral part of many new and existing schools, supported with donations from parents and local government grants. Washington State, for instance, has spent $509,744 to create and install artwork in 14 public schools in the past two years. Maine, which has a similar program, gave Dirigo Elementary School in Peru $44,400 worth of sculptures and paintings in the past year for its library, cafeteria and hallways. “We’re always trying to connect our teaching to real life, and how good is this?” said Kathy Richard, the principal. In the Boston suburb of Needham, parents raised $75,000 to pay for three giant hanging sculptures — a DNA spiral, a metal cylinder inscribed with mathematical representations of infinity and a shooting comet — that were installed last year in the lobby of the high school, and helped get a new course on public art added to the curriculum.
California Public School Energy Projects Eligible for State Loans: ARRA Funding
Staff Writer, CASH Register
September 30, 2009 CALIFORNIA: Cities, counties, special districts, public schools, colleges and universities, and public hospitals are eligible to apply for low-interest loans designed to help stimulate local economies and job growth, while promoting investments in energy efficiency and reducing greenhouse gas emissions. Funded through the American Recovery and Reinvestment Act (ARRA), these loans will be available at a one-percent interest rate and available through the California Energy Commission (CEC). The loans were created for eligible public energy efficient and renewable energy projects in California. The CEC are providing these loans to promote green workforce development,building energy efficiency retrofits and clean-energy. Up to $25 million in funds are available with a maximum loan amount of $3 million per application. There is no minimum loan amount. Loan repayments for energy projects can take up to 15 years, including principal and interest (approximate 11 years simple payback). Simple payback is calculated by dividing the dollar amount of the loan by the anticipated annual energy cost savings.
New Orleans School Construction Oversight Panel is an Unfulfilled Promise
Sarah Carr , Times-Picayune
September 30, 2009 LOUISIANA: Nearly a year after the state and the Orleans Parish School Board approved a nearly $2 billion facilities spending blueprint for New Orleans schools, the panel charged with overseeing the projects and spending has yet to meet. In fact, it doesn't even exist. Establishing an oversight committee is 'the fiscally responsible thing to do when you are spending that kind of money,' said Linda Johnson, a member of the state board of education. Meanwhile, school officials have already spent or committed to spend more than one-third of the $700 million designated for the projects in the first phase of the plan. The role of the oversight committee will not be to micromanage the construction process, several people said, but to play a critical watchdog function. State officials said the process of collecting nominations for the panel has gone more slowly than anticipated, but that it's now a priority. They anticipate the panel will be formed in the next month. The oversight committee will not approve specific contracts or hold veto power. But it will regularly review the master plan budget and demographic changes that could affect the plan, as well as monitor progress. So far, local officials only have commitments to cover fully the first phase of the master plan -- the $700 million -- although Recovery School District Superintendent Paul Vallas said he still hopes to secure money for later phases, and thinks he can already count on another $200 million. The oversight committee will include five members: one experienced in construction management and nominated by local universities; one nominated by the local chapter of the Associated Builders and Contractors; one certified public accountant or financial auditor from the American Institute of Public Accountants; one nominated by the Urban League; and the last nominated by the New Orleans Business Council. The final group must be approved by both BESE and the Orleans Parish School Board.
Massachusetts Gives Initial Approval to $660m in School Construction
Brock Parker, Boston Globe
September 30, 2009 MASSACHUSETTS: State officials moved ahead with $660 million in school construction projects in 15 districts throughout the state in a move that State Treasurer Tim Cahill said would provide a boost to the state’s economy. In all, the state authority decided it would award $321-million for the schools and the rest would be picked by local governments. The 15 towns and school districts that would benefit from the state funding now have 120 days to garner local approval to fund the portions of their school projects not covered by the state’s contribution. Among the school districts approved for funding were: Needham, Wayland, Billerica, Brookline, Chelmsford, Danvers, Dedham, Hamilton-Wenham, Nashoba, Norfolk, Plymouth, Rochester, Rockland, Sharon, and Sturbridge. Go here for a description of the projects. The plans approved by the Massachusetts School Building Authority will combine state and local funding to build or renovate three high schools, three middle schools and nine elementary schools, said MSBA Executive Director Katherine Craven. They serve about 1 percent of the state's total student population. "It’s going to create a lot of jobs throughout the state and a lot of economic activity,” said Cahill, who chairs the MSBA and is running for governor. In all, the state authority decided it would award $321-million for the schools and the rest would be picked by local governments. The 15 towns and school districts that would benefit from the state funding now have 120 days to garner local approval to fund the portions of their school projects not covered by the state’s contribution
Demand Soars for Stimulus-Backed School Facilities Bonds
Alyson Klein, Education Week
September 29, 2009 NATIONAL: Construction bonding authority—a technical, and often obscure, source of capital funding for school districts—has emerged as a hot ticket for those looking to finance school facilities work under the federal government’s economic-stimulus program. With little stimulus money expected to be left for construction after states make up for recession-driven budget cuts, districts are scrambling for some $24 billion or more in zero- or low-interest bonds under the $787 billion American Recovery and Reinvestment Act. “This is a once-in-a-lifetime deal,” said Judy Marks, the associate director of the National Clearinghouse for Educational Facilities, based in Washington. Not only are bonds available, she said, “the cost of construction materials is down, the cost of labor is down, a lot of contractors who would be busy bidding for [office buildings and other projects] are competing for school construction.” One result: stiff competition in some places for a new program created under the stimulus law—Qualified School Construction Bonds—that can be used to build, upgrade, or repair school facilities. In California, school districts applied for QSCB tax credits to cover $3.7 billion in projects, even though the state got to allocate just $700 million in construction bonding authority under the stimulus law for this fiscal year. The state decided to hold a lottery to determine which districts should get the funding. Tennessee received authority to allocate $121 million in projects under that same program, but it got applications for $305 million, leaving some districts out of luck. Despite the high demand for those programs, some school districts, particularly in areas hit hard by the recession, have had a tough time convincing voters to approve bonding projects, said Mary Filardo, the executive director of the 21st Century Schools Fund, a nonprofit research and advocacy organization. “The really poor districts are saying, ‘We don’t even have the money to pay back the principal,’ ” she said. In part to help head off that potential problem, West Virginia, which received nearly $80 million in bonding authority under the federal program in fiscal 2009, decided to administer the bonds at the state level. Unlike districts, in West Virginia, the state doesn’t need a voter referendum to issue bonds. “We get the money; we just give it [out],” said Mark A. Manchin, the executive director of the state’s school building authority. So far, West Virginia has been able to fix 17 of its leakiest roofs and replace 15 HVAC systems. The state also plans to build at least one new school with the help of the bonds.
Los Angeles Schools Sell $1.4 Billion in Build America Bonds to Fund Facilities
Rob Copeland, Wall Street Journal
September 29, 2009 CALIFORNIA: The Los Angeles Unified School District, America's second-largest public school system, is readying an offering of $1.83 billion. The Los Angeles school sale will fund new facilities and debt refinancing. Most of the sale - $1.4 billion - will be issued in the form of taxable Build America bonds, or BABs, with the remainder split between taxable and tax-free debt. The 720,000-student district is mid-way through a $20.3 billion program to reduce overcrowding in its 196 schools and centers. The offerings are expected to get a good reception, despite some concerns about valuations in the market and the financial situation of the issuers
EPA Tells Schools to Test Aging Caulk for PCBs
Libby Quaid, Associated Press
September 29, 2009 NATIONAL: Hundreds of school buildings across the United States have caulk around windows and doors containing potentially cancer-causing PCBs, the Environmental Protection Agency says. The danger to students is uncertain, and EPA does not know for sure how many schools could be affected. But the agency is telling schools that they should test old caulk and remove it if PCBs turn up in significant amounts. EPA Administrator Lisa Jackson said PCBs remain in schools and many other buildings built before the chemicals were banned in the late 1970s. "We're concerned about the potential risks associated with exposure to these PCBs, and we're recommending practical, common sense steps to reduce this exposure as we improve our understanding of the science," Jackson said. The agency said it would conduct new research into the link between PCBs in caulk and in the air, which it said is not well understood. Studies in European countries have shown that PCBs in caulk contribute to dust and air inside schools and other buildings. EPA now recommends testing for PCBs in peeling, brittle, cracking or deteriorating caulk in schools and other buildings that were built or renovated between 1950 and 1978. The caulk should be removed if PCBs are found at significant levels, the agency said. The agency also will conduct its own tests on PCBs in schools. The law already requires that building owners remove caulk if they discover very high levels of PCBs. But proper removal is very expensive. The agency also set up a PCBs in caulk hot line, 1-888-835-5372, and Web site, http://www.epa.gov/pcbsincaulk/.
Opinion: L.A. Unified School District Takes Hammer to its Building Unit
Constance L. Rice, Los Angeles Times
September 29, 2009 CALIFORNIA: The construction unit of the Los Angeles Unified School District has successfully and cost-effectively built 80 new schools and won scores of awards. So how has Supt. Ray Cortines rewarded this efficient unit? By driving out its superb leadership. Guy Mehula, the talented head of the construction division, resigned after LAUSD leaders made clear their intention of dragging Mehula's quasi-independent team back under the tight control of the district. Taking away the unit's autonomy would be a huge mistake. The district has tried micromanaging the construction of schools, and it failed miserably. If you need convincing, just think about the disastrous cost overruns and construction errors of the Belmont Learning Complex. For those who don't remember the horrific details, the district began construction at Belmont (or the Edward R. Roybal Learning Center, as it was finally called) without required environmental reviews or professional managers, ultimately building a $160-million high school that the state declared unusable for children. A scathing audit of the debacle concluded that the project had violated environmental and public safety laws, and that the uninformed district had "tolerated a culture remarkably indifferent" to standards or accountability. The audit referred several of its findings to the district attorney for criminal investigation. With a pressing need for new schools, then-Supt. Roy Romer and a newly elected board of education were determined to avoid more Belmonts, so they established a facilities division that was independent, expertly run and free of the district's torpid bureaucracy. The new unit was staffed by construc- tion professionals and experienced Navy engineers who were insulated from political and union pressures. Schools were built by carefully selected contractors who were closely monitored by an expert staff of auditors and managers. The new division, charged with managing a $20-billion construction effort, quickly established a system of value-based contracting that permitted necessary -- but not political -- changes to contracts. And Romer was true to his word: The school board set policy and acquired land for schools, but otherwise stayed out of the way. Now Cortines has rescinded key provisions that helped shield the facilities division from unwarranted interference. He announced the removal of the unit's specially assigned and quasi-independent lawyers and limited many new employees to 10 months of work and pay per year-- something few competent construction professionals would agree to. Cortines and the board also want to set salary limits that are not competitive. Mehula resigned because these and other proposals would end the independence that has made the school construction unit a success.
Suburban Schools Try New Approach for Wind Farm Using Federal Tax Credit Bonds
Jameel Naqvi, Daily Herald
September 28, 2009 ILLINOIS: When three suburban school districts devised a new funding model to build a 20-Megawatt wind farm downstate, one of its architects described the districts as the "Don Quixotes looking for the windmills." That has become an apt metaphor for the struggles of Community Unit District 300, Keeneyville District 20 and Prospect Heights District 23 to reduce their energy costs and become better stewards of the environment. In early August, the districts proposed a financial model that relied on private investors who would lease the wind farm for several years before turning it over to a consortium of the three districts. The model would have taken advantage of tax credits provided under the federal stimulus package and could have generated $3 million in annual profits to be split by the members of the consortium. But the school districts recently discovered that while Illinois law allows districts to own and operate wind farms, it does not explicitly allow leasing them. It is also unclear whether the proposed partnership would qualify for federal tax credits. "We would have to change legislation, and then there's still no proof that the (Internal Revenue Service) would accept that model," said Dave Ulm, District 300's supervisor of facilities and energy management. "It's been abandoned." Instead, the school districts unveiled a new model this month that is simpler on paper, though far from a certain success. Like the previous model, the new funding structure takes advantage of tax credits, the federal stimulus and private investment. Under the new model, District 300, by far the largest of the three districts, would issue about $22 million in Build America Bonds. The federal government, under the provisions of the stimulus package, subsidizes 35 percent of the interest on the bonds, reducing payback costs. Private investors would provide almost $23 million, for a combined $45 million to develop and operate a 20-Megawatt wind farm in central Illinois for 25 years. The consortium of the three school districts would repay the bonds over an estimated 15 or 16 years, using revenue from the wind farm. Any revenue leftover would be split between the districts. They project $1 million in annual profits for the first seven years, $1.5 million for each of the next eight years and $3.5 million annually for 10 years after that. Investors would receive an estimated $35 million in federal new-market tax credits, designed to spur growth in depressed areas.
Washington State School Districts Get Stimulus Funding
Howard Buck, Columbian
September 27, 2009 WASHINGTON: Prairie High School will get a long-awaited sewer hookup and new athletic fields, thanks to nearly $4 million in interest-free school construction bonds obtained under a federal economic stimulus program. The Battle Ground school district will also use bond proceeds to upgrade video monitoring at 18 locations, improve several fire alarms and reconfigure a Prairie High parking lot for better safety. The Camas, Ridgefield and Washougal school systems will also receive federal bond support. In a spin-off of the American Recovery and Reinvestment act of 2009, Washington state was allocated $164 million in interest-free Qualified School Construction Bonds this year, out of $11 billion targeted nationally for schools in both 2009 and 2010. Bonds may be used to rehabilitate or repair school facilities, or to construct school buildings and acquire school land. This month, leaders at 18 Washington districts received good news, including: -- Battle Ground will use a portion of its $3.99 million share to dispense with the Prairie High septic system, one of Clark County's five largest (permitted for as much as 7,320 gallons per day) and dating to the school's inception in 1978. That will allow construction of recreational facilities on the old drain field, including a new softball and soccer field. They should help ensure compliance with federal Title IX gender equity rules for athletics, the district said. The parking redesign at Prairie will separate school buses from auto and pedestrian traffic. (The campus also will soon have a new, north-side access to Northeast 119th Street, built in conjunction with the WinCo store now going up and the new sewer hook-up.) -- Camas will convert $15 million of unsold bonds left from a $90 million bond measure approved by voters in 2007. That should save $8-10 million in interest payments. The district will soon identify appropriate projects. Ridgefield will put $1 million into heating-ventilation and lighting improvements in all schools, said Superintendent Art Edgerly. Washougal will use $1 million for energy-saving retrofits at several schools. A replacement for the aging Washougal High gym floor also might be in the works, said Business Manager Roseann Lassman. Evergreen district leaders agreed Wednesday to submit a request for the next round of QSCBs, to be awarded in 2010. The district seeks up to $23.7 million to construct and furnish a new Health and BioScience Academy that had been included in a $249 million bond measure rejected by voters last March.
Stadium Light Pole Alert Leads to Discovery of Defects
Paul Steinbach, Athletic Business Blog
September 24, 2009 NATIONAL: When Athletic Business reported in August that light poles manufactured by Whitco Co. LP had collapsed at multiple stadium sites since 2007, the Consumer Product Safety Commission was winding down a months-long investigation but had yet to shed its light on the matter. On Aug. 24, the commission released an alert, stating in part, "CPSC recommends that Whitco Co. LP outdoor steel stadium light poles be inspected by a qualified professional immediately to reduce the risk of poles falling over and crushing a patron or bystander." Fortunately, despite significant structural damage resulting from nine CPSC-confirmed failures of Whitco poles installed between 2000 and 2006, the commission is unaware of a single reported injury. That said, even poles that show signs of defects but remain standing can wreak havoc on athletic department operations. This month, visible cracks in four poles forced administrators at North Point High School in Charles County, Md., to reschedule or relocate games and practices involving its football, field hockey, and boys' and girls' soccer teams until the poles could be removed. ROTC exercises and physical education classes were displaced, as well. "With the information we have now, we are not taking any chances," Charles County Public Schools superintendent James Richmond stated in a release. "The result of not removing the poles could be devastating." Days later, University of Arkansas-Monticello athletic director Chris Ratcliff announced that cracks found in the base plates of poles surrounding Convoy Leslie-Cotton Boll Stadium would shut down not only that facility until welders could make repairs, but the adjacent Steelman Fieldhouse and a nearby residence hall, too. "It's just been a very stressful time ever since we discovered the problem," Ratcliff told the Pine Bluff Commercial. Such discoveries serve to reinforce the need for every institution that hosts activities on lighted fields to heed the CPSC's advice and have poles inspected immediately and regularly, and — as Wesley Oliphant of ReliaPOLE Solutions Inc. told us this summer — preferably by a licensed professional engineer experienced in the design and manufacture of poles
Some Nevada Lawmakers Question School Energy Grants
Sandra Chereb, Associated Press
September 24, 2009 NEVADA: Some state lawmakers questioned the proposed disbursement of federal stimulus money for school energy efficiency programs, saying equal amounts to Nevada's 17 school districts is disproportionate. James Brandmueller, program manager for the Nevada Energy Department, told the Interim Finance Committee's stimulus oversight panel that the $7.5 million grant would provide each district with $441,000. Brandmueller, who has been on the job about a month, said some rural schools are in dire need of upgrades and lack other means for improvements. He said most of the schools in Washoe and Clark counties, the state's largest population hubs, "tend to be newer schools and are more energy efficient." Brandmueller said school districts are being invited to attend workshops to propose projects for the funding.
Drinking Water Unsafe at Thousands of Schools
Associated Press, MSNBC.com
September 24, 2009 NATIONAL: Over the last decade, the drinking water at thousands of schools across the country has been found to contain unsafe levels of lead, pesticides and dozens of other toxins. An Associated Press investigation found that contaminants have surfaced at public and private schools in all 50 states — in small towns and inner cities alike. But the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied. The contamination is most apparent at schools with wells, which represent 8 to 11 percent of the nation's schools. Roughly one of every five schools with its own water supply violated the Safe Drinking Water Act in the past decade, according to data from the Environmental Protection Agency analyzed by the AP. In California's farm belt, wells at some schools are so tainted with pesticides that students have taken to stuffing their backpacks with bottled water for fear of getting sick from the drinking fountain. Experts and children's advocates complain that responsibility for drinking water is spread among too many local, state and federal agencies, and that risks are going unreported. Finding a solution, they say, would require a costly new national strategy for monitoring water in schools. Schools with unsafe water represent only a small percentage of the nation's 132,500 schools. And the EPA says the number of violations spiked over the last decade largely because the government has gradually adopted stricter standards for contaminants such as arsenic and some disinfectants.
School's Wood Chip Heating System Saves $50,000 A Year
Jordan Davis, Claremont Villager
September 24, 2009 VERMONT: As temperatures drop in coming weeks, taxpayers in Weathersfield won't have to worry about skyrocketing heating oil prices for the town's K-8 school. School Board Chair Stephen Walasewicz said the new wood chip heating system at the consolidated Weathersfield School — which houses 200 — has saved the board an estimated $50,000 in heating costs in one year when compared with the costs of oil heat for both schools before consolidation. Walasewicz said heating costs for the Perkinsville Elementary School during the 2007-2008 school year were around $29,000 and for the Weathersfield Middle School, about $42,000. Subtracting the cost of the wood chips used last year — 200 tons at rougly $13,000 — Walasewicz said "you're close to $50,000 in annual savings based on market fluctuation." Walasewicz said the savings generated by the new heating system have gone well beyond the board's expectations. Regarding public concerns about air pollution, Walasewicz said the wood chip boiler has a miniscule impact on the environment. On a typical winter day, the wood chips are delivered by tractor-trailer trucks and deposited into the school's 60-ton capacity storage pit. The chips, roughly an inch and a half in diameter, are then transported to a conveyor belt by a large augur to a metering bin, which uses lasers to prevent blockage as the chips are transferred to the boiler. "As with any alternative fuel there is a little extra work involved," Graham said. "Every day there's a bit of ash removal from the grates and you have to monitor the computer system which runs the whole thing." Graham said the school's old oil boilers are still used as a back-up heating source.
Energy Conservation Saves New Jersey School District $1 Million
Steve Prisament, Shore News Today
September 23, 2009 NEW JERSEY: Galloway Township Public Schools’ energy savings has topped $1 million in just over two years, according to school records and the company that initiated the program. The district has attained a 32 percent cost savings totaling $1,028,769 in 26 months since forming a strategic alliance with Energy Education Inc., a national energy conservation company. Steve Bolli, manager of school building operations, tracks energy consumption including electricity, water, sewer, natural gas and fuel oil using energy-accounting software. He compares current energy use to a baseline period and calculates the amount of energy that would have been used had conservation and management practices not been implemented. By tracking consumption and analyzing energy use, he can quickly identify and correct areas that need immediate attention.
Nevada Uses Recovery Zone Economic Development Bonds for School Renovation
Susan Voyles , Reno Gazette Journal
September 23, 2009 NEVADA: The Washoe County Commission agreed to give $15 million of $39.7 million in low-cost, federally subsidized economic stimulus bonds to the Washoe County School District for school renovation. Administrators plan to use that amount and $22 million from Reno's share of the stimulus bonds to leverage a $40 million bond sale in a few weeks, said Mark Stanton, assistant school superintendent. The district had sought $23 million. The vote came after commissioners declared Washoe County a recovery zone, entitling it to bonds that come with a federal subsidy of 45 percent of the interest costs. Because of a formula involving unemployment rates that changed from 2007 to 2008, Reno and Washoe County are the only entities in Nevada to get Recovery Zone Economic Development Bonds under the federal economic recovery act.
Federal Dollars for School Construction, Round Two
Bruce Buckley, Architectural Record
September 22, 2009 NATIONAL: Revisiting efforts to funnel federal funds into school construction, the House has approved a measure that would authorize more than $6.5 billion for K-12 public school and community-college projects. The provision is part of a bill, which the House passed on Sept. 17, that would expand the federal loan program for college students and curtail private lending. The measure would authorize $2.02 billion annually for fiscal 2010 and 2011 for modernization, renovation or repair of K-12 public schools. Another $2.5 billion would be available for new construction or modernization of community colleges, starting in fiscal 2011. Groups like the American Institute of Architects support the bill and are encouraged to see the House pass it. But Andrew Goldberg, AIA's senior director for federal relations, says the legislation could face a tough battle ahead. "The outlook for passage in the Senate is unclear," Goldberg says. He notes that the Senate could vote on its version of the college-loan measure by the end of September and says, "That¹s where we¹ve seen roadblocks on school construction for some time." The House attempted to add school construction funding to what became the American Recovery and Reinvestment Act this winter, calling for $14 billion. But the Senate zeroed out that school-construction provision in the final bill in February. Under the new House-passed measure, green design and construction, a major initiative for the Obama administration, factor heavily into the funding requirements. Half of the bill's funds for K-12 school construction would have to be used for green projects in 2010, and 75% of the money would have to be used for such projects in 2011. Half of the funds for community colleges also would be required to go to green projects. The bill also would establish an advisory council on green, high-performing public school facilities.
What Happened to that Facilities Money in the Stimulus?
Alyson Klein, Education Week Blog
September 22, 2009 NATIONAL: Remember the compromise Congress came up with on school facilities in order to pass the economic-stimulus package? Proponents decided to ditch the billions in school construction grants to win support from moderate lawmakers for the overall stimulus. Instead, school districts were allowed to use a portion of their State Fiscal Stabilization Fund money (whatever was leftover after backfilling cuts) for school modernization, along with a whole bunch of other options. Have any of them actually been able to take advantage of that? As we've written before, most of the $39 billion in state stabilization funding went to make up for cuts states had made to K-12 and higher education. So far, it appears that just three states - Arkansas, North Dakota, and Wyoming - have been able to use a portion of their state stabilization money for school modernization and repair, according to a preliminary analysis by the very knowledgeable folks at the 21st Century School Fund, which advocates for school facilities funding, particularly for districts that serve low-income students. Of course, not all the state stabilization money has flowed just yet, so there could be more school modernization spending down the road. But my guess is that it will be in states that are in comparatively good financial shape, since others will need the money just to make up for what they've lost. That leaves the school construction bonding authority in the stimulus. States are just beginning to spend one large piece of that, the $22 billion in school construction bonds. Some advocates are worried that needy school districts won't be able to take advantage of the bonds because they can't even put up the principle. But Bob Canavan, of Rebuild America's Schools, a coalition that advocates for school facilities, tells me that the bonds are very popular. In fact, out in California, school districts submitted proposals for over $3 billion worth of projects, even though the state has an allocation of just $700 million for the bonds. The Golden State is holding a lottery to decide who gets the funding, which may be more efficient, but doesn't take need into account, some advocates say.
School’s Design Gets Lots of Input
Eric Robinette, Middletown Journal
September 20, 2009 OHIO: A project as large and complex as the new Edgewood High School has to be a creation not only of an architect, but of everyone who will be affected by it. That’s why the design of the $46 million school has seen input from everyone ranging from the board of education to community members. The current freshman class, which will be the first to attend the new building, will have its say as well. “We were involved in the design and planning,” said John Snyder, board of education president. He said the board especially liked how the building featured many wide, open spaces, with an emphasis on natural light. “It’s not a luxury kind of thing. We’re taking advantage of what’s available. We’re not building a Taj Mahal,” he said. One of the main reasons the new building was needed was to relieve overcrowding, particularly in the elementary buildings. “It provides us more room, for one thing. In the last year our enrollment did fall off a bit. We think that will pick up again. We’ll set ourselves up for 25 to 30 years as far as this new facility. We should not have space problems for years to come. It gives us the ability to put kids in classrooms and not cram kids under the stairwells,” Snyder said. The Ohio School Facilities Commission, which provides oversight of the construction project, is paying for $20 million of the cost, while the district will pick up the other $26 million. Eventually, this will necessitate a need for more operating money, said Superintendent Larry Knapp. “This will be a bigger, better, smarter building ... the heat and air conditioning will be economically designed and installed ... it will be more economical to operate in the years to come,” said Knapp. The staff members at Edgewood High School has chimed in too. One of their ideas was to group similar classrooms together, like math and science, to allow more chances for collaboration and sharing of resources. “We’ll be sure the money goes toward education and not aesthetics. The new high school will give us the ability to use resources in the most effective fashion,” said Bob Buccheim, the principal of Edgewood High School. Since the Ohio School Facilities Commission does not fund amenities like auditoriums, the new high school will not have one. The one at the existing high school will continue to be used, and administrators expect that should suffice, since it was built with about 200 more seats than is typical for a school of Edgewood’s size. The district’s design team also invited parents to express their concerns, which included the fact that the building would be technologically advanced. The OSFC requires that every classroom has an LCD projector, the principal said. The class officers from the class of 2013, the first that will attend the new school, will be at today’s groundbreaking, and members of that class will have input on design aspects as the building gets close to completion, Buccheim said.
Detroit Public Schools Advocate Seeks Return of K-8 Schools
Peggy Walsh-Sarnecki, Detroit Free Press
September 20, 2009 MICHIGAN: After nearly a century of middle and junior high schools, Detroit Public Schools Emergency Financial Manager Robert Bobb wants to eliminate all the district's middle schools and switch back to kindergarten through eighth grade buildings. Experts say the consistency of staying with one group of teachers through eighth grade can make a dramatic difference. Dubbed elemiddles, the schools can be found in a handful of other metro Detroit districts such as Birmingham, Southfield, Dearborn and Highland Park. They are springing up in large cities such as Philadelphia, Baltimore and Cincinnati. The concept of combining elementary and middle school grades in one building stems from the idea that middle school-aged children will do better in a more nurturing environment. Urban districts, including Detroit Public Schools, are betting these so-called elemiddle schools will help improve academic achievement. Suburban districts use elemiddles to offer parents a choice between their child transferring to a middle school or continuing in their elementary school building. Educators like them because they give children consistency in their learning and make it easier for teachers to know their students, and teachers can coordinate the curriculum across the grades. Parents like them because their children can attend one school for a longer period of time. Some don't want their children to grow up too fast. There is little hard research to back up the theories about the benefits of elemiddle schools. One study conducted by Johns Hopkins university in 2007 found elemiddle students in Philadelphia did better academically than their middle school counterparts. The study concluded the improvement was due to the school having fewer students in each grade, rather than the grade configuration. Birmingham's Covington School has a perfect score in its state report card.
Federal Program Could Trim Cost of Oregon School Bond
Staff Writer, East Oregonian
September 19, 2009 OREGON: Hermiston taxpayers could save as much as $23 million over the next 20 years, thanks to a federally backed program allowing school districts to sell bonds at a no-interest rate. The Hermiston School District announced it's been approved to sell $25 million of its $69.9 million bond package through the Qualified School Construction Bond Program, funded by the federal stimulus package. The district applied through the state Department of Education last month. Approval means the district has until Dec. 31 to issue the bonds. Under the program, the district would have to pay back only the investment amount during the life of the bond - without interest. Hermiston's $25 million approval is the maximum allowed by the program. But if any of Oregon's share of the money goes unclaimed, the district could apply for $10 million more in sales, according to the application. Hermiston voters approved the bond package last year. It will finance the construction of three replacement school buildings:?Armand Larive Middle School, West Park Elementary School and Sunset Elementary School.
University of Oklahoma Approves $127 Million in Build America Bonds Projects
Julianna Parker Jones , Norman Transcript
September 19, 2009 OKLAHOMA: The University of Oklahoma will take advantage of a federal program that garners a lower interest rate on the $127 million in bonds it will soon issue. For the Build America Bonds, the federal government pays some of the interest on the bonds issued, reducing the amount of interest paid by OU to about 3.8 percent, said Chris Kuwitzky, chief financial officer of the Norman campus. Normally, OU issues bonds at a nonprofit rate, garnering 4.6 to 4.8 percent interest, he said. The university would have issued bonds that way, but the Build America bonds turned out to have the perfect timing on OU's current bond projects, Kuwitzky said. The projects to be funded by the bonds already have been started, and require bond funds to complete, he said.
Macon County, NC School System to Utilize Both QZABs and QSCBs
Marla Dalrymple , Macon County News
September 18, 2009 NORTH CAROLINA: The Macon County School System is making plans to utilize money from two potential sources. The state has approved applications the system submitted for both school renovations and new construction. The state has approved $3.8 million in Qualified Zone Academy Bonds (QZAB) and $1,348,953 in Qualified School Construction Bonds (QSCB). If the board of commissioners decides to approve the debt, the governmental bonds are interest-free. The QZAB funding must only be used for upgrades and renovations to existing facilities. School Superintendent Dan Brigman said that the QZAB funding could cover necessary renovations at both Nantahala School and Franklin High School. A 10 percent community match is required for use of QZAB funding. The matches can be made in either funding, services or support. The QSCB funding can be used for new school construction and requires no match. In order to secure the funding, the system must have projects ready to go, with bids in hand, by December 31 of this year. It feels like the more we build,” said Commissioner Jim Davis, “the more ya’ll want ... We’re spending a ton of money.” Some joked that the interest-free loans, provided through the Federal Recovery and Reinvestment Act, are like “free money.” Mary Gruebnau, statistical research analyst with the State Department of Public Instruction, said that the QZAB and QSCB funding is a great deal, but must be paid back. She said that, compared to a coventional loan, these governmental bonds save about 50 percent over time. Gruebnau added that many school systems have applied for the funding, several requesting as much as $34 million.
Editorial: A Shiny School, a Clear Message
Grand Rapids Press Editorial Board , Grand Rapids Press
September 18, 2009 MICHIGAN: When retired Grand Rapids fire investigator Pablo Martinez walked in the colorful gleaming new lobby of his old neighborhood elementary school this week, he felt a surge of joy and pride. "It's on the up," he said about the Grandville Avenue neighborhood and its newest star attraction: a gorgeous $11.5 million renovation of Cesar E. Chavez Elementary, which was dedicated with a neighborhood open house and party. Martinez said it's fitting his old Hall Elementary is renamed Cesar Chavez, since the civil rights leader wanted all children to get the education he lacked when working the fields. Pride is what every preschool-to-fifth-grade student who walks through those same doors will feel. The school's colorful murals, fun playground, rooftop garden, well-equipped classrooms, impressive library, and wall of giant windows onto Grandville Avenue send a powerful message to the children of a needy neighborhood. The school sends the message that students there are important to city residents who agreed to raise their taxes to fund the $11.5 million in improvements to the tired old school. City residents wanted them to have an impressive public school building to learn in every day, just like schools in wealthy districts. The school's wall of windows anchors the southern end of Grandville Avenue, a bookend to the beautiful neighborhood arts academy and library to the north. The renovation of Cesar Chavez Elementary is the 11th and final major capital improvement project by the district, all funded by a $165 million school construction bond approved by city voters in 2004. The success of each of those 11 projects lays a solid foundation for when the district goes back to residents to ask for part two: money to fund improvements at the four neighborhood high schools and City High
City, County Schools Receive Federal Funds for Construction Projects
Sherri Drake, Memphis Commercial Appeal
September 18, 2009 TENNESSEE: Memphis City and Shelby County schools have been approved by the state to receive a combined $55.5 million in federal stimulus funds for construction projects. The districts applied for the Qualified School Construction Bonds with permission from the Shelby County Commission, which plans to repay the no-interest loans within 15 years. Shelby schools, which requested $25.7 million, was among several Tennessee school systems competing for the federal bonds given out by the state. The state awarded the suburban district $13.8 million to replace worn-out Elmore Park Middle. The Bartlett school was built in the 1950s and mostly has wood-frame buildings, said Richard Holden, chief of operations for Shelby schools. Elmore Park doesn't meet modern safety codes and has several portables. "It has exceeded its life expectancy," Holden said. "It's time to replace it." They plan to build a new Elmore Park on the current campus and have it ready by the start of the 2011-12 school year, Holden said. But the district is still left without funding for much-needed improvements, including plans to relocate Millington Central High's cafeteria, Holden said. Memphis City Schools requested and was granted $41.7 million, the biggest allotment of any district in the state. MCS didn't have to compete for funds and will receive the money directly from the federal government because of its large population of impoverished students. The funds are important to MCS because they allow the district to get started on projects this year. With tax receipts down, "it's difficult for the school board to predict when it might be able to get money from the county to build these schools or renovate," said board member Betty Mallott
Recovery Act Funds Repair Hist. Black Colleges & Universities Historic Buildings
Press Release, Department of the Interior Recovery Investments
September 18, 2009 NATIONAL: Secretary of the Interior Ken Salazar announced that 20 Historically Black Colleges and Universities (HBCUs) will be the beneficiaries of $14.25 million for historic preservation grants aimed at providing assistance in the repair of historic buildings on their campuses. In a press conference at Howard University with university president Dr. Sidney A. Ribeau, Salazar noted that the Department made these funds available under the American Recovery and Reinvestment Act (ARRA) for projects that will repair and preserve campus buildings listed on the National Register of Historic Places. “The recovery funds not only will restore historic buildings on these campuses but also will provide a boost to individuals and companies performing the repairs, college communities and related local economies,” Secretary of the Interior Ken Salazar said today. The National Park Service invited all HBCUs to submit grant applications for grants to repair and preserve historic buildings on their campuses. The buildings selected for this apportionment of grant funds were assessed as being the most architecturally and historically significant buildings on these HBCU campuses, and as needing essential repairs to preserve them and make them useable. These much needed repairs will address issues such as termite and wood rot damage, leaking roofs and water damage, asbestos and lead paint removal, masonry work, electrical rewiring, heating, air conditioning and ventilation systems and achieving accessibility for disabled persons. The full list of the funding amounts made available to HBCU projects follows.
$52.5 Million Recovery Act Project to Replace Navajo Community School
Press Release, Department of the Interior Recovery Investments
September 17, 2009 ARIZONA: Assistant Secretary-Indian Affairs Larry Echo Hawk joined Navajo Nation President Joe Shirley and other Indian Affairs and Navajo tribal officials September 16 in a ceremonial groundbreaking event for Phase II of a major school replacement and improvement project at the historic Rough Rock Community School on the Navajo Reservation in northeastern Arizona. The project is funded under the American Recovery and Reinvestment Act of 2009 (ARRA) and is being carried out under the Indian Affairs Office of Facilities, Environmental and Cultural Resources (OFECR) in conjunction with the Bureau of Indian Education (BIE), the Navajo Nation and the Rough Rock Community School. “The Rough Rock Community School Replacement Project is an important priority for the Interior Department and Bureau of Indian Education,” Echo Hawk said. “The $52.5 million provided under the American Recovery and Reinvestment Act will revitalize this historic school by creating an improved learning environment for its students, teachers and staff, as well as bringing much-needed jobs to the Navajo people.” Opened in July 1966 as the Rough Rock Demonstration School, the facility was the first Bureau of Indian Affairs school to be directly operated by American Indians themselves, as well as being the first Navajo-operated BIA school. The K-12 school, which currently serves approximately 440 day and residential students, is still a part of the Bureau school system, now administered by the BIE. The project is being built in two parts. Phase I, which began on June 15, is the construction of a replacement K-8 dormitory for residential students. Phase II will be the replacement of a K-8 academic building and two dormitories. Other structures on the Rough Rock campus also will receive improvements. The project, which must be completed within two years, is being developed to meet the U.S. Green Building Council’s Leadership in Energy & Environmental Design (LEED) Silver Certification criteria. In addition to applying green design, materials and technology, the Rough Rock Community School Replacement Project, which is on the BIE’s 2004 Replacement School Construction Priority List, also meets ARRA requirements for being “shovel-ready” and creating jobs. The OFECR estimates that the project will create 40 to 50 jobs that will provide employment to Navajo tribal members.
Report Examines Tennessee’s Efforts to Keep Schools Safe from Violence
Staff Writer, Clarksville Online
September 17, 2009 TENNESSEE: A report released by the Tennessee Comptroller of the Treasury’s Offices of Research and Education Accountability (OREA) examines Tennessee’s efforts to make sure that its schools are safe. A legislative request to initiate the report was prompted after a tragic fatal shooting at a Tennessee high school in 2008. The Keeping Tennessee Schools Safe report provides a comparison of state laws, policies and requirements with accepted best practices for keeping schools safe from violence. The report states that Tennessee has made significant progress since the mid-1990s toward ensuring the safety of its students and school personnel. The 2007 Schools Against Violence in Education (SAVE) Act established statewide comprehensive planning and accountability requirements for school districts to meet regarding school safety and violence prevention efforts. Although safety and violence prevention efforts are addressing most of the identified best practices for safe and secure learning environments, staff and funding needed to implement the requirements are limited and decreasing, according to the report. In addition, the report concludes that state-level guidance related to school building security is lacking. Such measures include school resource officers, metal detectors, random searches and video surveillance systems. “It is intuitive that such efforts enhance building security, but we found little research evaluating those security measures as a means to deter or prevent violent incidents,” said Susan Mattson, legislative research analyst and co-author of the report. “Although the SAVE Act currently requires school officials to report on security strategies and procedures they have in place, it does not require them to assess their appropriateness or effectiveness.” The report describes options the Tennessee General Assembly and state education officials could take for enhancing and improving school safety efforts. Some of the options listed for consideration include how to allocate limited state funds for school safety; requiring statewide school climate assessments to better guide the state’s policies and programs; reexamining Tennessee’s criteria for designating schools as dangerous; and to more closely monitor the SAVE Act’s effectiveness.
Portola Valley, California Schools May Go Solar with Federal Stimulus Funds
Andrea Gemmet , The Almanac
September 17, 2009 CALIFORNIA: Portola Valley schools may go solar, thanks to a nearly $3 million windfall from federal stimulus funds. A proposed project would install photovoltaic solar power systems at both Corte Madera and Ormondale schools, and be funded by up to $2.85 million in tax credits from the Qualified School Construction Bonds program, said Portola Valley School District board member Judy Mendelsohn. The systems would generate enough power to cover 100 percent of the school's energy costs, she said. "If we can finance both projects with bonds, that's great, and if we can't afford it, we can't afford it," Ms. Mendelsohn told The Almanac. "Everybody wants to be green, but for the district, we'll only do it if fiscally it makes sense." A likely spot for the solar panels is the roofs of the multi-use gyms, she said. The tax credits cover the interest payments on school construction bonds, and are intended to free up school district money for additional construction or facility rehabilitation projects. The bonds would have to be issued by the end of 2009, or the district forfeits the stimulus funds, Ms. Mendelsohn said. Voter approval for the bonds isn't needed, she said. "The payments to pay back the bonds would come from our savings in energy costs, (so) no new taxes or assessments would be needed," she said. "Because the bonds would be interest-free for the district, we would get substantial savings over the 15-year term of the bonds. This savings is what may make the project financially feasible for us." Portola Valley was one of only two districts in San Mateo County to be chosen, via a lottery, to receive the stimulus money. The other one is the San Mateo-Foster City school district. California's share of the $22 billion Qualified School Construction Bond tax credits is an estimated $2.7 billion over two years. It's part of the American Recovery and Reinvestment Act that was signed into law in February. A second wave of the stimulus money will be allocated next year.
Slow Economy Has Silver Lining for School Construction
Eric Stevick, Herald
September 17, 2009 WASHINGTON: Hal Beumel figured the Everett School District had an enticing project when it went out to bid for a new elementary school. The district’s director of construction was disappointed when just one contractor bid. That was three years ago. Times have changed dramatically since then. Wall Street wobbled, companies pulled back on expansion plans, and now contractors hungry for work are literally going back to school. These days, the Everett district wants to rebuild two more schools. For one project, they got seven bids. The other drew nine. The competition has resulted in millions of dollars in savings for taxpayers, and projects that would have been bare bones three years ago are now being built with additional features. “It’s making up for the hard hits we took a few years ago,” Beumel said. “It’s also a way we can get jobs and money into the economy as well.” It’s not just a windfall for Everett. Low bids and robust competition are becoming a familiar story for school construction projects in Snohomish County and throughout Washington. “Across the state, there’s just a lot more bidders out there,” said Gordon Beck, director of facilities for the state Office of Superintendent of Public Instruction. Today’s bidding climate is a far cry from the sticker shock districts felt in 2006 when construction costs spiked. At that time, analysts blamed surging costs on several factors. Steel, concrete and copper wiring were at a premium because of China’s construction boom and the rebuilding in the Gulf Coast region following Hurricane Katrina. High oil prices jacked up the cost of getting those materials to building sites. And construction projects closer to home, such as high-rises in downtown Bellevue, were gobbling up workers and intensifying the competition for labor.
USGBC Launches National Green Schools Campaign
Staff Writer, Dexigner
September 17, 2009 NATIONAL: As school doors across the nation open for the new school year, the U.S. Green Building Council (USGBC) is set to launch year three of its National Green Schools Campaign, a broad-based initiative involving policy makers, teachers, parents and students who want to substantially improve the indoor environmental quality of America's schools, along with making them more energy efficient, water efficient and resource efficient. On September 8, USGBC and 11 educational and environmental groups kicked off the Coalition for Green Schools at a meeting featuring remarks by Martha Kanter, Under Secretary for the U.S. Department of Education, about the multiple, but critically important pathways for greening America's schools. This first ever alliance between the nation's leading educational and environmental organizations brings together the country's strongest advocates for healthy, safe and sustainable K-12 learning environments prized for their contribution to higher test scores among students, higher retention among teachers and lower absenteeism rates for both groups because of improved indoor air quality.
Colorado School Construction Program Begins Saving Rural Districts
Nelson Garcia, 9news.com
September 17, 2009 COLORADO: Charlie Jackson walks around to the school buildings and sees the same problems over and over again, because the district never had enough money to address those problems - until now. "I think all of us have the same issues that we're sitting there with limited funding with maintenance projects that keep backing up," Jackson said. Jackson is the director of maintenance for the Alamosa School District. He says the district has needed new buildings for decades, but because its lower population, it cannot generate enough tax dollars. "Our budget is $12 million a year, and we still have to educate kids," Jackson said. He says Alamosa Schools have repair needs that total closer to $40 million as buildings approach 100 years of service. At Polmost Primary, students and teachers have dealt with at least 60 roof leaks within the past year. "We end up patching and patching and patching," Jackson said. Polmost is also overcrowded. Alamosa Superintendent Robert Alejo says its small kitchen and small common areas put a strain on the student body. Right now, about one-third of all the students at Polmost must attend class in modular buildings outside dubbed "trailer row." State Treasurer Cary Kennedy and other leaders worked to change that. They created the B.E.S.T. Program or Building Excellent Schools Today. "B.E.S.T. allows the state to partner with those small rural school districts to give them the access to the capital that they need," Kennedy said. B.E.S.T. utilizes the School Land Trust. When Colorado became a state, the federal government donated millions of acres of land to be used solely to support K-12 schools. Farmers, oil companies, businesses use these lands and pay rent or mining fees to the state each year. The revenue generated has grown to about $90 million per year. Before B.E.S.T., all of that money was put into the Colorado School Permanent Fund. The interest earned on that fund is used to support schools. The increased revenue from the Land Trust is allowing B.E.S.T. to use some of that money to subsidize construction projects in rural school districts, while continuing to grow the Permanent Fund. B.E.S.T. has determined funding rates for school districts based on need. For major projects, a local district can pass a bond measure to raise a portion of construction costs for a new building. B.E.S.T. will provide the rest. For example, a district may raise $2 million dollars through a bond issue and receive another $18 million through B.E.S.T. to build a $20 million school building.
Tennessee School District to Use QSCBs for Energy Efficiency Projects
Heather Mullinix , Crossville Chronicle
September 17, 2009 TENNESSEE: The Cumberland County School System has been awarded $2.6 million as part of the Qualified School Construction Bonds program of the Tennessee State School Bond Authority. The zero-interest loan will go toward the $5.28 million energy efficiency project approved in May by the Cumberland County Board of Education. TRANE has recommended an energy conservation program to upgrade lighting, HVAC, windows and plumbing systems across the school system. The total project has been estimated at $5.28 million. While much of the project has a 15-year payback, some of the necessary upgrades cannot provide enough energy savings during that period of time to recoup their cost, McBee told the Chronicle. That includes new windows for Homestead and Pine View elementary schools, which are not insulated. At Pine View, caulking is gone and duct tape is used to hold the windows in frames. Replacement of the heating system at Cumberland County High School is another project with capital expenditures. The Cumberland County Board of Education has already approved moving forward with that project, since a boiler at the school went out in the spring and replacement is necessary to heat the school this winter. An energy audit of the school system found utility costs were about 20 percent higher than expected, which TRANE said was due to inefficient facilities and worn-out equipment. TRANE recommended an energy program and is guaranteeing projected energy cost savings, McBee said, noting that if the school system didn't see the projected savings, TRANE would make up the difference. Those savings would be applied to any bonds needed to pay for the project. If the school system could obtain zero-percent financing for the entire project, the payback on the investment would be 15 years, McBee said, with TRANE projecting $6.25 million in energy savings over 15 years. Only 12 school systems across the state were approved for the QSCB bonds, for a total of $180 million. Awards were made on a competitive basis. Communities authorized to receive portions of the bond money will be required to spend it on the projects within three years of the bond sale. Funds are expected to be available in late November. Funding for the bonds comes through the American Recovery and Reinvestment Act in the form of tax credit bonds. The school system is also looking at other grant funding opportunities and has made several applications. There is also an application pending through the Qualified Zone Academy Bonds program, which also provides for no-interest bonds.
The School of One: The School of Tomorrow
Arthur E. Levine, Huffington Post
September 16, 2009 NEW YORK: The New York City Public Schools' Middle School 131 has adopted a bold and radical experiment. "The School of One" is a prototype for our nation's schools in the decades to come. It's a model much more powerful and potentially far-reaching than any other reform, including much-ballyhooed charter schools, to date. Today's schools are an anachronism. They resemble the assembly lines of the industrial era, when they were conceived. Groups of 25 to 30 children, beginning at age five, are moved through 13 years of schooling, attending 180 days each year, and taking five major subjects daily for lengths of time specified by the Carnegie Foundation in 1910. These schools are time-based -- all children are expected to master the same studies at the same rate over the same period of time. They focus on teaching -- how long students are exposed to instruction, not how much they have learned. They are rooted in the belief that one size fits all -- all students can benefit equally from the same curriculum and methods of instruction. We have learned much about education since today's schools were created. We know now that what students learn and what they are taught are different, and that learning is what matters. We know that children learn different subjects at different rates, some slower and some faster. We know that children have different learning styles, which make different methods of instruction more or less effective for them. We also know that today's new technologies offer the prospect of individualizing education for each child and gearing instruction to the student's particular learning style and most effective means of instruction. In the years to come, we will be challenged to rebuild our schools to reflect these realities, largely because our information economy, which focuses on achieving common outcomes rather than seeking common processes, demands it. Our schools will shift their attention from teaching to learning, time-based to outcome-based education, and mass instruction to individualized instruction. The School of One turns the current model of education on its head, flipping the relationship between teaching and learning. Student learning becomes the focus -- the driver -- of schooling. Specifically, the School of One translates fifth- through seventh-grade math into 77 skill and knowledge areas. Students are assessed on their mastery of each area, and the program is geared to each student's areas of strength and weakness. The goal is for each student to master all 77 skills and body of knowledge.
Parents Rally for Air Conditioning at Maryland Middle School
Arin Gencer , Baltimore Sun
September 16, 2009 MARYLAND: Dozens of Baltimore County parents rallied in Towson, continuing to push for air conditioning in a Lutherville middle school where they say a renovation project has made the classrooms intolerable on warm days. Ridgely Middle School parents have been seeking a solution for about two years, ever since the school was renovated with design features - tighter windows, lowered ceilings and an insulated roof - to maximize air-conditioning efficiency. But the cooling units were never installed because the project budget did not include money for the equipment, school officials have said. County Councilman Kevin Kamenetz said that he has asked the county auditor to investigate whether the situation at Ridgely is unique, using temperature logs and other data, and to find alternative funding sources, such as federal stimulus money or excess funds from other projects. Slightly more than half of the county's school, center and program buildings lack air conditioning. During a presentation last December, school officials said it could take seven to 10 years to install air conditioning in the nearly 90 schools without it - and that retrofitting buildings just for air conditioning could easily exceed $450 million.
Governor Touts N.J. School Construction Program For Revitalizing Communities
Aarti N. Maharaj, NewsroomJersey
September 15, 2009 NEW JERSEY: Citing the importance of school construction investments to improved educational opportunities, Governor Jon S. Corzine, visited the Edmund Hmieleski, Jr., Early Childhood Center in Perth Amboy to announce the New Jersey Schools Development Authority (SDA) has completed 144 major construction projects, including 45 new schools. All told, the SDA has invested $5.293 billion in projects since January 2006, generating an estimated 45,800 jobs and creating approximately 45,000 new student seats. During the visit, the Governor said New Jersey's school construction program has emerged as a vital component in the education of students while also creating jobs to stimulate the State's economy. "The school construction program is building a better future for students throughout New Jersey as well as for our state's economy," Governor Corzine said. "Not only do the students of today benefit from these projects, but future generations of students will benefit for decades to come. This program is playing a critical role in helping New Jersey take the lead in recovering from this economic recession, creating and saving thousands of jobs." Forty-five of these 144 construction projects are new schools. The others include additions and/or renovations, address overcrowding, provide additional program space for early childhood education and deliver up-to-date technology such as interactive smart boards. In addition to projects in SDA Districts, the SDA provides grants of at least 40 percent of costs to Regular Operating Districts. Approximately 80 percent of RODs throughout New Jersey have benefited from these grants. The SDA continues to advance projects to meet the Governor's direction to mitigate the effects of the national recession. It is on track to begin preliminary or full construction of 27 Capital Plan projects in 2009. Overall, the SDA will invest $1.3 billion in these projects. Over the life of the projects, the SDA expects to create or save approximately 11,000 jobs. This funding was made possible by legislation signed by the Governor in July 2008, authorizing $3.9 billion in new school-construction funding, creating the largest state school construction program in the country. New Jersey's school construction program has achieved these milestones while undergoing significant reforms. The SDA has streamlined and accelerated processes. Now, all SDA projects are required to have a comprehensive budget, scope and schedule before receiving SDA Board approval and beginning work on a project. In addition, the SDA now operates under a Capital Plan, developed in 2008, that allocates funding and dedicates reserves to 52 projects to ensure all projects are completed. Initiatives to recover funds where possible have also been launched by the SDA. An Environmental Cost Recovery Initiative Team was established to recover funds from responsible parties for the costs of environmental remediation of project sites. The SDA's Office of Chief Counsel is working to recover funds from responsible parties for project delays and design errors. So far, the SDA has recovered $15.6 million.
Denver Public Schools May Save $55 Million on Bond Projects
Jeremy P. Meyer , Denver Post
September 15, 2009 COLORADO: More than half of the 275 projects in Denver Public Schools' 2008 bond are complete and district officials think they have realized $55 million in savings through low interest rates over the life of the bond. Denver voters passed a $454 million bond in November, the largest school construction bond in Colorado history. The repayment, including interest, was expected to be as much as $990 million. The district sold the first $150 million of bonds earlier this year at a lower-than-expected net interest rate of 5.1 percent — resulting in $55 million in savings, said chief operating officer David Suppes. Suppes said the savings could continue through at least two programs designed through the federal recovery act to help the municipal bond markets. The bond was to make critical school repairs, build a new school campus and restore historic North High School. The district also thinks it will save a minimum of $200,000 a year in energy costs by upgrading to energy-efficient fixtures, such as boilers and chillers. "We are thrilled to go green and save the district some green," said Superintendent Tom Boasberg.
Testing for Toxics at Schools Sparks Questions, Lawsuits
Blake Morrison and Brad Heath, USA Today
September 14, 2009 NATIONAL: Almost a year after tests by USA TODAY found significant levels of two potentially toxic metals in the air outside the Highlands High School in the Allegheny River valley, local health officials expanded their own monitoring efforts here. The reason: Air samples taken by the county earlier this year showed even higher levels of the metals than what USA TODAY found — on two days, at least nine times more. Highlands, flanked by two metals plants, is among scores of schools where regulators — local, state or federal — are monitoring outdoor air for toxic chemicals, many that pose unique dangers to kids. The monitoring is not required by law but came in response to the USA TODAY investigation that identified hundreds of schools where chemicals from nearby industries may permeate the air. "We don't know enough to say it's a problem, but we don't know enough to say it's not a problem," says Keeve Nachman, an environmental toxicologist with Johns Hopkins University who examined the county's findings for USA TODAY. He says the county's findings reflect "potentially concerning exposures." Such unanswered questions have prompted action across the nation. Residents in Indiana and South Carolina have filed lawsuits against industries in their communities. Activists in Pennsylvania, Texas and Ohio continue to fight construction of facilities they believe would threaten the health of children in the area. The government also has responded. In an unprecedented step, the U.S. Environmental Protection Agency launched a $2.25 million program to examine air quality outside 63 schools in 22 states. In addition, EPA administrator Lisa Jackson appointed a new director for the agency's Office of Children's Health Protection soon after the Obama administration took office. Ruth McCully, the former director, told USA TODAY last year that examining air quality outside schools was "not my responsibility." To date, the EPA has begun monitoring at 60 of the 63 locations. As at Highlands, officials stress that the first samples are intended to discern whether students face any immediate dangers from toxic chemicals, not to evaluate chronic health risks, which often requires longer monitoring periods. At a few schools, preliminary results indicate chemicals at levels that generally are considered safe for short-term exposures. At other locations, monitoring continues. At Stevens Creek Elementary in Cupertino, Calif., for example, regulators plan to monitor for at least a year because a nearby cement kiln wasn't operating when the first samples were taken in July. Such facilities typically release chromium. "This is a really important effort. We see this first and foremost as an effort to help us understand the broader issues we might be dealing with," says Peter Grevatt, who replaced McCully as the director of the EPA's children's health office. "By no means do we think that the focus is just on these" 63 schools. "It's really an effort to try to understand broadly the scope of the issues we might be looking at nationwide."
Virginia School Awarded up to $18 Million in Zero-Interest Bonds
Alicia Petska, Lynchburg News Advance
September 11, 2009 VIRGINIA: Lynchburg has been awarded up to $18 million in zero-interest bonds from the federal stimulus bill for the construction of the new Sandusky Middle School. City officials expect they will only be able to use $10.5 million of that due to eligibility restrictions. The bonds can only be used for future construction costs; the new middle school project broke ground last year and only has about $10.5 million in expenses left, City Manager Kimball Payne said. The award will save the city millions in future interest payments. The new Sandusky Middle School has a total budget of $28 million and will open in 2010. It will be the city’s first new school in almost 30 years. Its energy-conscious design is expected to be LEED-certified by the U.S. Green Building Council. The state as a whole has $191 million in stimulus-backed bonds to fund school construction projects. The bonds are being allocated directly by Governor Timothy M. Kaine. The state eliminated funding for its own school construction program due to the budget crisis and is using the waiting list from that program to determine how to distribute the stimulus money.
Tennessee School Gets $20 Million Loan through the Federal Stimulus Program
Matthew Stewart, The Daily Times
September 11, 2009 TENNESSEE: Maryville City Schools’ Coulter Grove Intermediate School has been approved for a $20.4 million no-interest loan available through the federal stimulus program. Maryville was among 16 school systems selected through a competitive application process to receive a portion of the state proceeds. Stephanie Thompson, Maryville Director of Schools estimates between 20 and 25 people had worked on the loan application during the program’s two-week turnaround. Last November city officials postponed a $25 million bond issuance for Coulter Grove Intermediate School due to the global financial crisis. The Tennessee State School Bond Authority agreed to sell more than $180 million worth of Qualified School Construction Bonds as part of a program created by the federal American Recovery and Reinvestment Act. State officials said that 135 projects with a total value of $305 million had been requested. Of the total bond proceeds, Memphis City Schools will receive $41.7 million and Metropolitan Nashville Public Schools will receive $21.1 million. Communities receiving funds will be required to spend the money on projects within three years of the bond sale. The sale is expected to be completed with bond proceeds available for disbursement in late November.
Virginia Governor Announces $71.6 Million in Bonds for School Construction
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