Funding School Capital Improvements: A National
Description: Funding School Capital Improvements: A National Perspective Presentation to the Oregon School Capital Improvement Planning Task Force John Myers Mark Fermanich, APA Consulting Portland, Oregon May 13, 2014 APA Background APA is a
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slide1. Funding School Capital Improvements: A National Perspective Presentation to the Oregon School Capital Improvement Planning Task Force
John Myers & Mark Fermanich, APA Consulting
Portland, Oregon
May 13, 2014<br>
slide2. APA Background APA is a Denver-based consulting firm, founded in 1983, that works primarily with state-level policymakers on education finance and governance issues.
APA has worked extensively with states on the procedures used to allocate state aid to districts and schools.
APA has worked for the Oregon Legislature: 1991 and 2000.<br>
slide3. APA Experience School finance equity & adequacy
State work on facility funding
ECS look at state capital funding formulas
Survey of school district facility needs
Bi-partisan work for policymakers<br>
slide4. Presenters’ Experience John
Former Legislator and NCSL Education Program Director
Consultant to the National Board for Professional Teaching Standards
Helped create the National Association of Charter School Authorizers
37 years of school finance formula work
Mark
Former legislative and school district staff
School finance researcher
University faculty member
29 years of education policy work<br>
slide5. School Facilities Formulas Flat Grants
Equalized Funding
Need based grants
Basic support
Full state
Revolving Funds<br>
slide6. APA work on Facilities Idaho
Trends in bond election success
Arizona
Analysis of Changes in funding for facilities
Colorado
Survey of School District facility needs
Education Commission of the States
Review of all State facility funding formulas Oregon Education Investment Board, 2012<br>
slide7. Current Challenges to Facility Funding Local elections
Equal access to facility funding
Equalization
Governance changes
Charter Schools
Virtual and Blended learning
Age and condition of facilities/deferred maintenance
Green schools/healthy schools © Augenblick, Palaich and Associates, Inc. 7<br>
slide8. The Funding Challenge 2010 estimate puts value of deferred maintenance nationwide at $271 billion, or $4,883 per student
In state by state estimates, 2008 study estimated Oregon’s total PK-12 infrastructure needs totaled $2.5 billion © Augenblick, Palaich and Associates, Inc. 8 Sources: 21st Century School Fund & AFT<br>
slide9. © Augenblick, Palaich and Associates, Inc. 9 Do Facilities Impact Student Performance? Research shows that facility conditions – general upkeep, lighting, acoustics/mechanical noise, air quality, and size affect:
Student performance on assessments
Student attendance
Teacher attendance
Teacher retention
For extensive bibliography see National Clearinghouse for Educational Facilities:
http://www.ncef.org/pubs/outcomes.pdf<br>
slide10. © Augenblick, Palaich and Associates, Inc. 10 Revenues Federal Dollars
Primarily for program specific activities
State Dollars
Equalizing local variation
Local Taxes
Uniform contribution<br>
slide11. © Augenblick, Palaich and Associates, Inc. 11 Facilities Financing Options in Oregon Local Sources:
Local General Obligation bonds
Full faith and credit obligations
Local option levies
Construction excise tax
State Sources:
State facilities grants
State bond guarantee program
Measure 68 state bonds
SB 1149 funds<br>
slide12. © Augenblick, Palaich and Associates, Inc. 12 National Examples State level funding strategies
State bond issues: multiple states, including California, New Jersey, New York. Some require districts to have long-term facilities plans
Dedicated revenue: Arizona FIRST program has had multiple funding sources
Portion of 0.6% sales tax, lease to own, pay as go<br>
slide13. © Augenblick, Palaich and Associates, Inc. 13 National Examples Shared funding strategies
State equalization aid for debt service levies, for example Minnesota
Maryland Public School Construction program: State bond funded, requires 20%-50% local match
Connecticut: state funding provides matching grants to cover 20%-80% of project costs depending on local wealth<br>
slide14. © Augenblick, Palaich and Associates, Inc. 14 National Examples Shared funding strategies
Vermont: state funding for 30% of cost of approved projects, eligibility based on enrollment growth, available space and facilities condition
Maine: revolving loan fund includes loan forgiveness for between 30%-50% of project costs, repayment of balance required within 5-10 years
Ohio: Financial Hardship Loan program provides low cost loans to address critical issues, repayment within 5-10 years<br>
slide15. © Augenblick, Palaich and Associates, Inc. 15 National Examples Shared funding strategies
Minnesota: Maximum Effort School Aid program provides low interest loans to low wealth districts
Colorado: BEST program provides matching facilities grants, funded through multiple source including public land income, lottery revenues<br>
slide16. © Augenblick, Palaich and Associates, Inc. 16 National Examples Other strategies
Dedicate portion of formula base amount for operating capital, facilities (charters), for example Minnesota, until recently Colorado
Multi-jurisdiction shared facilities, public-private partnerships<br>
slide17. Questions? © Augenblick, Palaich and Associates, Inc. 17<br>
John Myers & Mark Fermanich, APA Consulting
Portland, Oregon
May 13, 2014<br>
slide2. APA Background APA is a Denver-based consulting firm, founded in 1983, that works primarily with state-level policymakers on education finance and governance issues.
APA has worked extensively with states on the procedures used to allocate state aid to districts and schools.
APA has worked for the Oregon Legislature: 1991 and 2000.<br>
slide3. APA Experience School finance equity & adequacy
State work on facility funding
ECS look at state capital funding formulas
Survey of school district facility needs
Bi-partisan work for policymakers<br>
slide4. Presenters’ Experience John
Former Legislator and NCSL Education Program Director
Consultant to the National Board for Professional Teaching Standards
Helped create the National Association of Charter School Authorizers
37 years of school finance formula work
Mark
Former legislative and school district staff
School finance researcher
University faculty member
29 years of education policy work<br>
slide5. School Facilities Formulas Flat Grants
Equalized Funding
Need based grants
Basic support
Full state
Revolving Funds<br>
slide6. APA work on Facilities Idaho
Trends in bond election success
Arizona
Analysis of Changes in funding for facilities
Colorado
Survey of School District facility needs
Education Commission of the States
Review of all State facility funding formulas Oregon Education Investment Board, 2012<br>
slide7. Current Challenges to Facility Funding Local elections
Equal access to facility funding
Equalization
Governance changes
Charter Schools
Virtual and Blended learning
Age and condition of facilities/deferred maintenance
Green schools/healthy schools © Augenblick, Palaich and Associates, Inc. 7<br>
slide8. The Funding Challenge 2010 estimate puts value of deferred maintenance nationwide at $271 billion, or $4,883 per student
In state by state estimates, 2008 study estimated Oregon’s total PK-12 infrastructure needs totaled $2.5 billion © Augenblick, Palaich and Associates, Inc. 8 Sources: 21st Century School Fund & AFT<br>
slide9. © Augenblick, Palaich and Associates, Inc. 9 Do Facilities Impact Student Performance? Research shows that facility conditions – general upkeep, lighting, acoustics/mechanical noise, air quality, and size affect:
Student performance on assessments
Student attendance
Teacher attendance
Teacher retention
For extensive bibliography see National Clearinghouse for Educational Facilities:
http://www.ncef.org/pubs/outcomes.pdf<br>
slide10. © Augenblick, Palaich and Associates, Inc. 10 Revenues Federal Dollars
Primarily for program specific activities
State Dollars
Equalizing local variation
Local Taxes
Uniform contribution<br>
slide11. © Augenblick, Palaich and Associates, Inc. 11 Facilities Financing Options in Oregon Local Sources:
Local General Obligation bonds
Full faith and credit obligations
Local option levies
Construction excise tax
State Sources:
State facilities grants
State bond guarantee program
Measure 68 state bonds
SB 1149 funds<br>
slide12. © Augenblick, Palaich and Associates, Inc. 12 National Examples State level funding strategies
State bond issues: multiple states, including California, New Jersey, New York. Some require districts to have long-term facilities plans
Dedicated revenue: Arizona FIRST program has had multiple funding sources
Portion of 0.6% sales tax, lease to own, pay as go<br>
slide13. © Augenblick, Palaich and Associates, Inc. 13 National Examples Shared funding strategies
State equalization aid for debt service levies, for example Minnesota
Maryland Public School Construction program: State bond funded, requires 20%-50% local match
Connecticut: state funding provides matching grants to cover 20%-80% of project costs depending on local wealth<br>
slide14. © Augenblick, Palaich and Associates, Inc. 14 National Examples Shared funding strategies
Vermont: state funding for 30% of cost of approved projects, eligibility based on enrollment growth, available space and facilities condition
Maine: revolving loan fund includes loan forgiveness for between 30%-50% of project costs, repayment of balance required within 5-10 years
Ohio: Financial Hardship Loan program provides low cost loans to address critical issues, repayment within 5-10 years<br>
slide15. © Augenblick, Palaich and Associates, Inc. 15 National Examples Shared funding strategies
Minnesota: Maximum Effort School Aid program provides low interest loans to low wealth districts
Colorado: BEST program provides matching facilities grants, funded through multiple source including public land income, lottery revenues<br>
slide16. © Augenblick, Palaich and Associates, Inc. 16 National Examples Other strategies
Dedicate portion of formula base amount for operating capital, facilities (charters), for example Minnesota, until recently Colorado
Multi-jurisdiction shared facilities, public-private partnerships<br>
slide17. Questions? © Augenblick, Palaich and Associates, Inc. 17<br>