CEFPI North Carolina REPORT ON THE STATE OF THE STATE OF SCHOOL FACILITIES

1. CEFPI North Carolina REPORT ON THESTATE OF THE STATE OF SCHOOL FACILITIES March 11, 2013 Steve Taynton, AIA School Planning, NCDPI

3. Light at the End of the Tunnel! • More improvement in housing sales and starts • Unemployment is slowly declining • Interest rates are still good • Some states showing increase in architectural jobs • Qualified School Construction Bonds gone but more QZAB available • Bid prices continue to increase modestly • Note that government usually lags the private sector in recovery

4. Synopsis of 2012 • 244 projects in 2012 (up by 70), 519 review letters. • (65– 27% of those projects are designed by the LEA - no AE) 63 projects so far (2/14/2012) this year • Only 8 New Schools in 2012, remainder additions/renovations/other • Currently running about 48 projects in some phase of design/review (Up from last year)

5. CONSTRUCTION COSTS (5)

6. New School Construction Costs • 2012 costs ran $140/ square foot • less than the $153 in 2011 • Number of samples both years is very small • We urge you to return our cost information requests - it’s the only way we can share this valuable info everyone needs! It takes LOTS of reminders from us to get info • We are looking for Total Sq. Ft. & Bid Costs as Awarded • Separate Site Work bids allow projects to be compared more easily and allow playfields to become established prior to occupancy

7. Capital Funds Two ways of looking at construction spending (2010/2011 Fiscal Year) • 1.Bonds, COPS, QSCBs, QZABs, Public School Building Capital Fund (Does not include any “Pay as you Go” money) • 2010/11 Local General Obligation Bonds passed: Nadapast five years $ -0- 2011/12 COPS, QSCBs, QZABs $315,259,351 • 2011/12 PSBCF disbursements (No ADM Fund receipts past four years) • (Lottery funds reduced by legislature last 2 years) • ADM : $ 6,140,929 • Lottery: $ 103,638,989 • Total $ 109,979,918

8. Capital Funds (Continued) • 2. Total Capital Funds Spent from Accounting Codes. • Includes only current expenses and may not include any monies paid by the county on behalf of the LEA (like COPS, xfers for Sales Tax refunds). Figures do not include debt payments for prior construction. Figures do not include any 2009/2010 expenditures but may include administration, maintenance, transportation and similar facilities) Total is $135 M less than last year

9. PSBCF Redirection & Available • PSBCF Holdback/Redirection • All Corporate Income Tax redirected from PSBCF past five years • Only $100M of Lottery directed for construction (Much less than the 40% in the original Law) • 2/13 ADM Current Unallocated: $19,346,070 • 2/13 Lottery Current Unallocated: $121,824,935 • 2/13 CURRENT TOTAL $141,171,005 NOV 2010: Unallocated Balance dropped below $200 million MAR 2011: Unallocated Balance trending below $175 million SEP 2012: Unallocated Balance dropped below $150 million

10. 2011 Use of the PSBCF Portion for Debt Service has increased from 48% to 78% in four years

11. Federal Stimulus Funding • JUST IN: Federal “Sequester” will mean a 8.7 reduction in subsidies for interest on all QSCBs, QZABs issued after March 17, 2010 • ALL QSCB Money allocated • QZAB Money (91.3% interest free (or almost) loans) still available: an additional $13,318,000 for each of 2012 and 2013- apply anytime any amount • Total Available QZAB: $36,314,000 • 35% or greater free/reduced lunch • Renovations only • 10% match with local business (can be in-kind)

12. New Stuff and Concerns • Updated School Safety Facilities Planner • Updated Engineering Checklist • Updated Facility Guidelines • Science Safety Requirements • Concerns about high cost • Lab Grade Dishwasher 8k-10k • Costly “Isimet” controls not required or needed • Are you really concerned about sinks in Science??? • Basic safety features – mostly from Nat’l Science Teachers Assn. • We will re-look at these requirements this year – give us your thoughts on what is needed and not

13. New Potential/Actual Legislative Action • The Legislature is back and bent on change • ADM fund (From Corporate Income Tax) may be eliminated • Change Lottery distribution. Currently much less than the 40% of net proceeds • Bill to allow lottery funds for technology • Bill for Charters to get Local Construction $$ • We now manage Deaf & Blind Residential Schools – they need $$ and repairs/renovations • Who Knows What they will do….

14. Other Rumblings/Bills • Tax credit for private schools or Vouchers • County money to build Charters • Eliminate Corporate Taxes no more funds from this to PSBCF (school construction) • Continued reduction of Lottery Money to school construction – allow for technology also • Republican control of numerous boards & commissions – including State Board of Ed • Counties in charge of school const/maint in lieu of School Boards (SB 236)

15. Plan Review Issues • Small, non A/E designed projects cause the most problems • Often Booster Clubs, PTA • Good intentions • Not knowledgeable about building codes or bidding laws • Poor structural, HAC, building details • Designed to be “cheap” not long lasting or energy efficient • Do schools really want a “Maintenance Nightmare?”

16. Challenge • It’s time to begin thinking about General Obligation Bonds again! • Creative Financing – Must get money from numerous sources • Get the most for your buck – quality construction, vanilla materials • Remember that longevity and low, simple maintenance are crucial – be careful with “experimentation” • True design is about function, design for learning and spatial relationships not just “how quick can we do this,” geometry games or decoration.

17. Should High Schools Keep getting Bigger (over 5K kids) and Athletics More Important?? Allen High School (Texas) New 60M 18,000 Seat Stadium