On the ballot: County School Board Referendum; Q&A with the District regarding the 1/2 sales tax
The Observer submitted a list of questions to the School District of Lee County, asking for information on their respective ballot referendums.
Below is the School District of Lee County’s answers to questions concerning the County School Board referendum:
– What is the Lee County School District asking voters to decide?
The School District of Lee County is asking voters to decide on a half-cent investment in education that would raise an estimated $59 million a year over the next 10 years to fund safety and security improvements, new school construction, critical school maintenance projects and technology upgrades.
– How will it appear on my ballot?
Levy of One-Half Cent per Dollar Sales Surtax for Educational Improvements, Equipment and Technology
Shall a half-cent per dollar sales surtax be levied by The School Board to fund the construction of new schools, reconstruction and renovation of existing schools, acquisition of equipment, including safety and security equipment and technology for a 10 year period beginning January 1, 2019, with oversight by an independent citizens’ committee? Proceeds of the surtax will be used to fund the acquisition, construction, renovation, equipping and financing of public school facilities and technology.
– YES
– NO
– Where will I find it?
Voters in the City of Cape Coral will find the half penny for schools as the second to last item on their ballots. For the rest of Lee County, it will be the very last item. This year’s ballot is very long, so we are encouraging voters to start at the end.
– Why is the additional revenue needed?
In 2006/2007, the School District of Lee County received approximately $318 million dollars in capital funding; last year we received $133 million. During that time the student population in our traditional schools increased by 10,000, (Please see attached capital-funding bar graph.) The bottom line is that state funding for capital projects has gone down while our enrollment has increased. Our buildings are over capacity and the additional population creates greater maintenance needs. Public Education Capital Outlay (PECO) dollars from the state have been all but eliminated. The legislature continues to divert 25 percent of Lee County’s property tax revenue, which is designated for our capital budget, to its general fund. In addition, it determines the amount of property taxes we collect. So while county and city budgets see increases when property taxes go up, we do not due to legislative control. In fact this year, they decreased the amount we received over last year resulted in a loss of $7.2 million. As for impact fees, those are determined by the County Commission and are currently being collected at 45 percent which will generate $6.9 million this year. Finally, many people ask about the lottery money as a source of revenue. Last year we received $3.5 million from the Florida Lottery, enough to run our district for less than one day. Other school districts, county and municipal governments in the state of Florida also feel the pinch. In terms of comparison, Lee County is one of just six that does not have an additional source of revenue.
– Where will the money go? What projects will be funded?
Per the ballot language, this money can be spent only on capital projects like the building of new schools, maintenance of schools, equipment for classrooms, technology upgrades and safety and security improvements. (See the board approved project list here: www.leeschools.net/cms/One.aspx?portalId=676305&pageId=1272596 ) The money cannot be spent on salaries, raises, bonuses or the like. Our district is growing between 1,500 2,000 students each year, which is the equivalent of a high school. The money would go toward building 6 new schools in our district, rebuilding two of our older schools (Franklin Park Elementary & Cypress Lake Middle) and adding student stations at Lehigh Senior High School. In addition, each school has a list of projects that the half-cent investment would help fund. Readers can find those lists online at: www.leeschools.net/our_district/change_for_change/school_by_school_project_list.
– How will this project plan benefit students and our educational system?
Capital funds are critical in providing secure, well-maintained and technologically advanced facilities. Our students are competing with students around the world for jobs and opportunities. If we cannot provide an environment where they feel safe, where they can focus on their education in buildings that are not falling apart and overcrowded, where they have access to the best technology and resources to succeed, then we have failed them, the business owners who look to hire them, and our community as a whole.
– How will this project plan benefit our community?
Research shows that education may be THE single most important single economic driver in a community, promoting higher incomes, less crime, better jobs, and healthy growth. Quality public schools increase property values, and the economic health of a community. Businesses, professionals, and highly skilled workers relocate to communities based on the merits of the school system, both for their children and for future employees. A high quality school system benefits everyone’s bottom line.
– If I vote YES, how much will it cost me individually?
It is estimated the average family of four making $50,000 a year will spend an additional $64 a year. Food, medicine and gasoline are exempt and the tax is capped at the first $5,000 of any large purchase so the most it can add is $25. We also estimate that tourists will pay 30 percent of revenue raised.
– Why can’t these new schools and other needs be funded out of the taxes I already pay?
It is important to note that the tax rates are not set by the school district, but by the state legislature. The District’s capital budget is $185 million less than it was 10 years ago, and there is no indication from the legislature we should expect any increase. We are adding between 1,500 and 2,000 new students every year, the equivalent of new high school. Our schools in the east and south zones are currently over capacity, and projections show the entire District will be over capacity in just five years. We are deferring maintenance projects, so air conditioners are getting older and roofs leakier, so our schools are showing their age. The bottom line is that between the cuts we have made and the money we receive, there are not enough dollars to cover the cost of necessary repairs and new buildings.
– I thought impact fees were supposed to pay for needs necessitated by growth. How did the school district fall behind? Why can’t impact fees be used to catch up?
Impact fees, which are set by the County Commission, are collected at 45 percent and expected to provide $6.9 million to the District this year. At 100 percent, the fee would provide about $15 million. With the new schools we need to build, necessary safety and security improvements, deferred maintenance and technology upgrades, The School District of Lee County has a capital budget shortfall of $478 million. Our annual capital budget is $261 million for the 2018-2019 school year. An elementary school costs approximately $50 million to build, middle schools cost $60 million and high schools up to $90 million. The revenue from impact fees is simply just too small to count on for a significant portion of our capital budget.
– Earlier this year, members of the Lee County Legislative Delegation offered a joint opinion that the proposed tax is not needed, that there are alternate solutions to the District’s financial challenges. How do you respond to those who say the issue is “not a lack of revenue, but of spending and planning priorities?”
Audit after audit shows that we have prioritized planning and spent taxpayer money efficiently. When the Board decided to bring this issue to the ballot, our legislative delegation responded by passing a law requiring the District to undergo an operational audit. We welcomed that audit, and in August, Florida’s Office of Program Policy Analysis and Government Accountability (OPPAGA) lauded the School District of Lee County for our “economical, effective and efficient” operations. In 2006, the same agency awarded the District the Seal of Best Financial Management. 79 percent of our budget goes to Direct School Expenditures and School Instructional Support. Only 3.3 percent is for administrative costs. In addition, our budgets and audits are online for anyone to read.
Budgets:
www.leeschools.net/cms/One.aspx?portalId=676305&pageId=1282883
Audits:
www.leeschools.net/cms/One.aspx?portalId=676305&pageId=3164519
The School District of Lee County is continuously looking for ways to cut expenses while still providing a high quality education. In the capital budget, we refinanced debt, saving almost $27 million, reduced contractual services, prioritized energy savings initiatives to improve energy costs saving $38 million, reduced the budget for maintenance of schools by 36 percent, and cut $2.9 million in transportation costs alone over the past two years.
We are one of the only Districts in the state working to raise revenue through innovative programs like naming rights, digital advertising, facility rentals and the sale of outdated equipment that we can no longer use, but is valuable to others.
We did not get into this situation because of a lack of planning or mismanagement of taxpayer dollars. We are in this situation because our county is growing and our funding is not keeping pace. We have continually asked to meet with our elected officials to discuss these very issues. We have either never gotten a response or have been declined.
– I don’t have children in the school system. Why should I vote YES?
An investment in public education ultimately improves the community around you. Many businesses and highly skilled professionals relocate to regions based on the merits of a school system. A successful, high-quality public education system is a major driver of economic development, promoting higher incomes, better jobs, less crime and increased property values. In addition, the students we are educating today will be your doctors, auto mechanics, financial advisors, pharmacists and other professionals of tomorrow.
– What is the District’s Plan B if voters vote NO?
The School District will have to borrow more money for school construction. Currently we pay approximately $180,000 a day in debt. Those payments are required to come from the capital budget, so we would end up diverting more money away from students and sending it to a bank instead. We would need to increase our use of portables for extra classroom space. Necessary maintenance and renovations on existing buildings would continue to be deferred due to lack of revenue, eventually costing more in the future due to building and equipment failures. Safety and security improvements would be slowed. Students would fall behind in technology. Double sessions are also a possibility if new space cannot be added.
– What additional information should I consider before I cast my ballot?
Many people have questioned two things as we have been out in the community talking to voters.
The first has been about the timing of the new contract and the raise for Superintendent Greg Adkins. Dr. Adkins contract was set to expire this month, before the General Election, so waiting until after Nov. 6 to negotiate was not an option, and doing so before the school year started provided necessary stability for our District. In addition, Dr. Adkins runs the ninth largest school district in the state, and the 32nd largest in the country. When he took the position three years ago, he was underpaid. In the three years he has held the position, he never received a raise. Even with his new contract, he is still one of the lowest paid Superintendents for a district of this size. Had he decided to leave, we would have had to do a national search for his replacement, which could have cost upwards of $100,000. Good leaders know how important it is to keep talent, especially at the top and given Dr. Adkins’ leadership, experience and knowledge of this district, it would have been detrimental to wait.
The second topic that comes up is the cost of Bonita Springs High School. Did the district make a mistake when it came to calculating the cost of the high school? Yes, however this was not mismanagement of money; it was bad estimation because of a flawed process that did not take into account construction labor inflation, construction materials inflation and a reduction in local workforce. When Dr. Adkins learned about the issue, he immediate put it on a board agenda for public discussion. The District reorganized the responsible department, hired a consultant and used local experts in the construction field to rewrite our processes and procedures. The bottom line is that in Florida, it costs about $65 million to build a high school, and BSHS will come under that cost. In addition, we now have a streamlined, effective process for all of our new construction to make sure nothing like this happens again.
Finally, this referendum is a question on investment in our children and in our community’s future. Our buildings are not only used for our students, community members and organizations use them year round, and in cases of emergency, like Hurricane Irma, they are places where thousands of residents go for shelter and security. The money this referendum would generate would be controlled locally through the creation of an independent oversight committee, which will have complete access to all the records necessary to ensure that the money is being spent as promised.