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Update on School Construction & Planning Issues

Update on School Construction & Planning Issues. July 24-25, 2008 Financial & Business Services Summer Conference. Greg Flynn, Architect, School Planning, NCDPI. Legislative Exciting Times!. 2007 Bills H1016 Medicaid Swap – into H1473 Budget Bill Dead: H1740 LEAs to levy tax

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Update on School Construction & Planning Issues

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  1. Update on School Construction & Planning Issues July 24-25, 2008 Financial & Business Services Summer Conference Greg Flynn, Architect, School Planning, NCDPI

  2. Legislative Exciting Times! • 2007 Bills • H1016 Medicaid Swap – into H1473 Budget Bill Dead: H1740 LEAs to levy tax • S1245 changes retainage • H73 raises threshold to 500K for formal bids • H735 raise to 20K sf for DOI OFSM review • 2008 Bills • H2436 Budget Bill Plant Operations Funded • H1284 Breach of Construction Contract Date • H2438 Tech Cor. Budget Lottery App. Excess • S845 Tech Cor. Env Pervious >1acre 20% or bioretention • H2137 Sales Tax Exemption did not pass. School Planning, NCDPI, 2008

  3. 2008 Legislative Action • 2008 Short Session no Major Action • 2007 House Select Committee on School Construction proposals/bills • New ½ cent local option sales tax • Extend earmarking of existing two ½ local sales taxes another ten years • Exclude Public/Private school projects from local property tax (done) • Streamline DOT/DOI reviews (H73) (done) • Reinstate sales tax refunds for LEAs (Can still work thru county to get refund) (Still an issue) • 2B Statewide School Bond – 4 Bills introduced (07) • Rejected Impact/Transfer Fees & APFOs School Planning, NCDPI, 2008

  4. More legislation/Other Stuff • Education: NC Forum/Education Everybody’s Business pushing 2B Bond 2007. No taxes 2008 • Lottery – Now meeting predictions/ Bills to convert to straight ADM / other distribution • IAQ – check schools w/out fresh air – may need to add/reopen (Last year CO2 notice, FEMA trailers) • Other Rumblings/Bills • Fiscal Modernization/ 21st Century Transportation • Transfer fees, Impact fees, APFOs, raise Charter limit, Lottery funds to Charters, Fund only one LEA per County?? • 2009 Building code (just getting used to 2006) School Planning, NCDPI, 2008

  5. Public School Capital Building Fund (PSCBF) • Procedures for $$ on website • Corp. Tax 07/08 Revenue: 87M • 86M projected (79M last year projection) • Previous years 109M, 98M, 78M • Unallocated county balances on our website along with application forms, etc. • Bill to lower Corporate Tax rate not enacted • Medicaid swap impacted ADM funding • 60% retainage (30% reduction) 45M • 41M + 19M HH = 60M School Planning, NCDPI, 2008

  6. Lottery Subfund of PSBCF • Distribution will change yearly based upon county tax rates (65% ADM 35% Tax Rate) • 139 Million for last year (140M was projected) • (prior year 40M less than projected 170M) • Use application forms similar to PSBCF/ADM fund • No Local Match required • Cannot be used for Technology • Can be used to retire debt incurred on or after January 1, 2003 • 154.2M in State Budget Bill for 08/09 • >140M+ distributed to non-bonus counties School Planning, NCDPI, 2008

  7. Other State construction funding Sources • Portions of Two ½ cent sales taxes • Earmark for school construction will begin to sunset in three years (2011) • Earmark switched to Medicaid savings - ambiguous • Bill to remove/extend sunset not yet enacted • Medicaid trade-off threatened these funds. • Literary Loan Fund • $356,471 Current Balance • 400K loan in 1998 • 300K loans in 1994 & 2004 • Above loan repayment ~45K / year, now ~90K School Planning, NCDPI, 2008

  8. Federal/Other Funding Sources • Qualified Zone Academy Bonds (QZAB) • 11.4M for each of 2006 and 2007 • Total 22.8M awarded last year to 14 LEAs • No in-state banks: CO, NM • North by Northwest Capital 1-1.5% fee 0% int • 2.7M issued • 3.5M +2M pending • 6.7M abandoned 04-05 (Dec 07) • H.R.6049 Renewable Energy and Job Creation Act of 2008 now in US Senate School Planning, NCDPI, 2008

  9. Other Funding Sources • Public Private Partnerships • Allows LEAs to pursue “capital lease purchase” • Development Corp. seeks funding on Wall Street or lending Institution • Voter approval not required • Bill exempted from property tax • Possibility of Federal Tax Exempt Bonds (Qualified Public Education Facilities (QPEF) Bonds) • Low interest rates affecting project viability School Planning, NCDPI, 2008

  10. Other Stuff • High Performance/Green Construction • Numerous projects built, more states mandates • Recap: Survey requested by Legislature: Design/Const Mgmt costs for New Schools over the past 10 yrs • Schools with Const. Mgmt. cost 8% more than average (w/CM fee included) • Avg. Design Fee New Schools 5.15% • Avg. CM Fee New Schools 4.68%(Not “at risk”) • Energy Efficiency Legislation 30% School Planning, NCDPI, 2008

  11. Construction Costs • Pressure to Reduce Costs • Usually means cuts in quality/longevity too! • Too small classrooms are a permanent problem! • $48 /sf increase between ’03 and ’05 • $11 /sf increase between ’05 and ’07 • $13 /sf decrease between ’07 and ’08 • $ 5 /sf decrease between ’06 and ’08 • Leveling now. • These are plain vanilla schools – NOT Taj Mahals School Planning, NCDPI, 2008

  12. Construction Cost Average School Planning, NCDPI, 2008

  13. Construction Cost Spread School Planning, NCDPI, 2008

  14. Prototype ClearinghouseWebsite(www.schoolclearinghouse.org) • Many prototype designs for all types of schools • Has evolved into an extensive information repository • New items • Lottery proceeds distribution • New Publications: Selected Laws, Science Safety, Design & Construction Procedures, CM @ Risk, Pre-engineered Buildings, Design for Violent Attack,CPSC Playground Safety, Water Conservation, Facility Guidelinesupdate in the works • Individual Project data • School Sanitation Rules changes coming: Grade Card School Planning, NCDPI, 2008

  15. School Planning Services • Website www.schoolclearinghouse.org • Specialized Space Profiles and Cost workups • Publications on Facility Planning Issues • Construction Cost Tracking • PSBCF Forms and reports • Plan Review and Comment • Technical Assistance on Facility Issues • Prototype Plans School Planning, NCDPI, 2008

  16. Plan Review Issues • Required by Statute to Review and Comment on ALL plans for construction: • New schools, additions and renovations • Small projects such as dugouts, concession stands, storage buildings, etc • Pre-engineered Buildings • Technology Installations • Re-roofing • Modular installations (trailers) require Approval • Booster Club Building Projects School Planning, NCDPI, 2008

  17. Questions???? School Planning, N.C, Dept of Public Instruction http://www.schoolclearinghouse.org School Planning, NCDPI, 2008

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