University of Maryland College Park Office of Executive Programs

Newswire Week 18(1/27-2/2)

LOCAL

Lack of funds could mean big school changes

The Baltimore Sun - January 30, 2003 Thursday

http://www.sunspot.net/news/local/howard/bal-ho.transfer30jan30.story

Howard County's schoolchildren and their parents can expect major classroom changes if county and state officials don't find more money for school construction, school board member Courtney Watson says.

County Executive James N. Robey, a Democrat, has proposed using an increase in the county's real estate transfer tax to repay $215 million in bonds that would be sold to fund the construction. Some Republicans do not like that idea. No one has produced an alternative plan, however, and Robey says he has "no Plan B."

With Robey's transfer tax idea facing a Feb. 12 vote of the county's legislative delegation, County Council members are scrambling to find another idea or to help forge a compromise.

Because the transfer tax is in state law, an increase must be approved separately by the county's eight delegates and by its three state senators. That means Kittleman and fellow Republican Sen. Sandra B. Schrader can kill the plan.

Schrader said she is undecided but worried about increasing the cost of buying a home. "It's not an equal tax, because it's only applied to people buying homes," she said.

Robey argues that sales of all homes are fueling the crowding of classrooms. Using a separate fund to borrow against, and then to pay off the debt, would preserve the county's general funds, he said.

Robey's plan would increase the cost of buying or selling a house - by $1,250 on a $250,000 house - which has drawn opposition from county real estate agents.

ACROSS THE NATION

New York

In the Region/Westchester; Building Them Because They (Students) Have Come

The New York Times - January 26, 2003, Sunday

http://www.nytimes.com/2003/01/26/realestate/commercial/26WCZO.html

Prompted by increasing enrollments and the availability of extra state aid in recent years, as well as changes in technology and teaching methods, public school districts throughout Westchester are spending millions of dollars to renovate old and outdated facilities and build new classrooms.

In all cases, expanding enrollments motivated voters to support the bond referendums to finance the new school construction. For some school districts in the late 1990's, the availability of enhanced state aid also led to new construction spending.

School design, both architects said, must be functional in terms of addressing the current needs of teachers and students. It must also blend in not only with the architecture next to it but also with the environment outside. Most important, they said, schools should be designed with a look ahead, so that as future needs change, the buildings and classroom sizes can adjust accordingly. Roofs need to be replaced every 20 years. Heating and cooling systems often need to be replaced after 40 years.

Florida

Polk debates way to pay for schools; Impact fee or broad-based tax?

The Ledger (Lakeland, FL) - January 28, 2003, Tuesday

http://www.theledger.com/apps/pbcs.dll/artikkel?SearchID=73124966204052&Avis=LL&Dato=20030128&Kategori=NEWS&Lopenr=301290350&Ref=AR

LAKELAND -- A broad-based tax rather than an impact fee on new homes is what some Polk builders and Realtors have in mind as the solution to the local school funding crunch.
There is widespread agreement that more money is needed for schools. As Polk County continues to grow, the 10year price tag for school construction is estimated at $500 million.
But the question is whether it should be raised by an additional impact fee on new home construction, a broaderbased tax on property transactions or a sales-tax increase.
The local industry groups representing builders and Realtors do not have an official position on the issue, and it's not clear whether they will.
Sue Riley, chief executive officer of the Lakeland Association of Realtors, said the group hasn't talked about impact fees. Jay Reardon, LAR president, said it was more of a builder's issue, and he didn't know whether the association would discuss it formally.
Ken Welch, president of the East Polk County Association of Realtors, said his group didn't have a stand on the issue and hasn't discussed it. He said the Florida Association of Realtors has concluded an increase in the sales tax is the best decision.
County commissioners will make a decision after they meet with the Polk County School Board, probably in February, to discuss the findings of an impact fee study funded jointly by the County Commission and School Board.
Individual builders and Realtors prefer an increase in documentary stamps (known as doc stamps) or raising the county's sales tax.

New York

Cuts would deepen disaster for city schools

The Buffalo News - January 30, 2003 Thursday

http://www.buffalonews.com/editorial/20030130/1029777.asp

If Gov. George E. Pataki's budget proposal is enacted, most kindergarten and prekindergarten classes would be eliminated next year in Buffalo city schools, and average district class sizes would jump to about 30 students.

Interscholastic sports and adult education programs would be wiped out, and most guidance counselors and elementary school librarians would be let go, Superintendent Marion Canedo said Wednesday.
Pataki's budget -- if adopted without changes -- would result in a city schools deficit between $50 million and $60 million, she said. That would mean a third consecutive year of deep personnel cuts and elimination of the staff needed to carry out the federal government's No Child Left Behind legislation. Kindergarten, which is universally provided across the state but is not required, probably would be eliminated.

Atlanta

Economic downturn hits schools

The Atlanta Journal and Constitution - January 30, 2003 Thursday

http://www.accessatlanta.com/ajc/epaper/editions/thursday/city_life_e383f3500678c0150001.html

Atlanta's sales tax revenues have slumped since the terrorist attacks of Sept. 11, 2001, but school officials say strong revenues before then have enabled the district to complete its construction projects on time.
In 1997, Atlanta voters approved a five-year, $450 million sales tax referendum for school construction and to retire $141 million in debt. The system took in $465 million, just above the initial projection, by the time the tax expired in June. With the money, the system erected eight buildings --- Parkside, Centennial Place, Bethune, Cook, Adamsville, Hope, Herndon and Heritage Academy elementaries --- added classrooms to several others and renovated dozens of other schools.
Revenues were strong during the boom years of the late 1990s and into 2000. Sales tax receipts routinely ran $1 million to $2 million above projections during that time. However, collections have dropped off sharply as the economy slowed. For the past year, monthly receipts have been running about $1 million below projections.
Atlanta voters last year approved a second five-year sales tax that is projected to bring in $541 million to build up to seven schools and renovate or expand 32 others.
Tax collections for this second sales tax program, which began in July, are running slightly below projections, but school officials say they are not concerned. Margaret Coleman, the district's chief financial officer, and Valerie Thomas, facilities services director, said they didn't expect to have to cut any projects.

New York

School building aid threatened

The Post-Standard (Syracuse, NY) - January 31, 2003 Friday

http://www.syracuse.com/search/index.ssf?/base/news-6/1044005923298532.xml?syr

Some school renovation projects would be delayed and others would cost local taxpayers considerably more money under the state budget proposed by Gov. George E. Pataki Wednesday.
The governor is trying to rein in school construction spending, which has ballooned in recent years. His plan would throw all new school construction projects into a "priority pool." The state Education Department would rank the projects and decide which ones to fund. Currently, the state has no cap on the amount of money it provides for school building projects. It approves all projects that meet state requirements, then pays a percentage of the cost based on each district's need.
Under the governor's priority plan, the state would put a cap on building aid. Projects would be ranked based on a district's need and whether the project resolved health and safety problems, overcrowding and other factors. If the budget is approved, projects approved by the state after Friday could be denied funding or their funding could be postponed.

Arizona

Horne would give districts control of school construction

The Associated Press State & Local Wire - January 31, 2003, Friday

http://www.azfamily.com/news/local/KTVKLNews20030131.d40b4fa.html

PHOENIX - The Legislature should scale back the state's school building program by giving local districts the authority to finance the construction and maintenance of school buildings, state Superintendent Tom Horne said Friday.
A bill to transfer much of that power from the School Facilities Board to local districts would free up $350 million that lawmakers could use to plug the state's budget deficit, Horne said.
The board oversees the Students First program, enacted by the Legislature in 1998 to resolve a years-long political and legal battle over the disparities in facilities between districts. The disparities had largely arisen out of the districts' reliance on local property taxes to pay for school buildings. The Arizona Supreme Court had ruled that the disparities in funding violated the Arizona Constitution's mandate for a "general and uniform" public school system.

Ohio

City, school officials in Akron want to raise income tax

The Plain Dealer - February 1, 2003 Saturday

http://www.cleveland.com/news/plaindealer/index.ssf?/base/summit/1044095680166250.xml

City and school officials have proposed increasing the city's income tax by a quarter of a percentage point to raise millions for school construction.
Raising the income tax to 2.25 percent for 30 years would produce about an extra $360 million. The district must show by this summer that it can provide at least $270 million for new construction to receive $409 million from the state from the tobacco settlement fund for schools, city officials said. The city can use income tax money for school construction as long as the buildings are used by both governmental entities. A joint effort would create Community Learning Centers that would expand an after-school tutoring program begun last year. The centers would be open to adults as well as students, city officials said.
The tax increase is the latest proposal following a defeat last November of a countywide sales tax increase from 5.75 percent to 6.25 percent for 30 years. The extra $32 million a year from that increase would have been shared by 17 school districts. The Akron district would have received $11 million a year.
Mayor Don Plusquellic supported the sales tax initiative and still believes that it is the best way to fund school construction, but said he doesn't want to lose the state funds for construction. He said a property tax increase, which is how the Cleveland, Dayton, Toledo, Canton, Youngstown and Columbus districts provided matching money to get state funds, would not pass.

Wyoming

Bill to create school construction oversight survives first reading

Wyoming Tribune-Eagle - February 1, 2003 Saturday

http://www.wyomingnews.com/index.asp

CHEYENNE (AP) -- One of the major pieces of legislation in this year's session survived its first look in the House. HB134 would create a commission to guide financing of state buildings and coordinate planning with the School Facilities Commission. Expanded use of bonding is a key provision. The measure would raise the cap on revenue bonding allowed for school construction from the current limit of $100 million to $350 million. HB134 would also expand the limit on bonding for state buildings from $105 million to $250 million and continue authorization of up to $60 million in bonding for projects by cities, towns and counties.
Repayment of bonds would be repaid with federal mineral royalties, same as they are now.
The bill authorizes annual repayments of up to $28 million from those royalties of which the state receives about $250 million a year.
Since the Wyoming Supreme Court declared school building construction to be solely a function of the state and not individual school districts, the Legislature has been wrestling with ways to address an estimated $500 million to $1.3 billion needed for new schools.
Two bills were passed on final reading and sent to the Senate. One would revise statutes dealing with trusts and the other would apply the prohibition on workplace age discrimination to everyone 40 and over, instead of those from ages 40 to 70.

Massachusetts

Prototypes of school buildings promoted: State official says plan would save millions

The Boston Globe - February 2, 2003, Sunday

http://www.boston.com/dailyglobe2/033/learning/Prototypes_of_school_buildings_promoted+.shtml

Massachusetts' inspector general is urging the state Department of Education to create design prototypes that cities and towns across the state can use to build schools, saying the move would save the state millions of dollars in school construction.
"We think it can save tens of millions of dollars a year for cities and towns and the Commonwealth as well," Inspector General Gregory Sullivan said last week.
"The amount of money available for school projects has been threatened by the budget crisis. This is something that we're looking at very seriously, and we think it would be beneficial." According to Sullivan, having prototypes approved by state education officials would lower design costs, reduce the occurrence of inadequately or overly designed schools, lead to quicker review and approval by the Department of Education, and ensure that each new school building would meet state design standards and technology requirements.

Articles compiled by Sujin Bae

Graduate assistant for the School Construction Funding Project

Van Munching Hall University of Maryland, College Park, MD 20742-1821

poissone@wam.umd.edu