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

June 21, 2010 Steve Taynton, AIA School Planning, NCDPI

Gloom

The future looks dim for construction money

Doom

Approaching Mt. Doom

We have almost NO work

And Despair

No jobs, no money, no work

Some signs of improvement are showing up

Changes in the air

• Some improvement in housing sales and starts • Unemployment is slowly declining • Interest rates are good • Some states showing increase in architectural jobs • Qualified School Construction Bond Sales are increasing • Bid prices are wonderful • Note that government usually lags the private sector in recovery

Synopsis of 2009

• 372 projects in 2009, 882 review letters. • (163 – 44% of those projects are designed by the LEA - no AE) • 169 projects so far (6/18/2010) in 2010 • 30 (only 8%) New Schools in 2009, remainder additions/renovations/other (15 new schools in 2010) • Currently running about 60-80 projects in some phase of design/review (45% less than last year) • Strive for review within ten days

$160.00

$150.00

$146.22

$155.49

$148.10

$149.08

$149.28

$140.00

$130.00

$128.70

$120.00

$113.98

$110.00

$100.00

$90.00

$83.59$84.43

$87.28

$91.70$91.69$92.98

$95.59$96.57$96.23

$80.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Current Construction Costs

• 2009 costs ran $129/ square foot • About 13.7%

less

than $149 in 2008.

Current 2010 cost so far (only 5 projects) are much higher at $149 • We urge you to return our cost information requests it’s the only way we can share this valuable info everyone needs! Only + Half of you are responding.

• We are looking for Total Sq. Ft. & Bid Costs as

Awarded

• We urge you to take separate Site Work bids so buildings can be compared more easily

Capital Funds

• Two ways of looking at construction spending (2008/2009 Fiscal Year)

1.

Bonds, COPS, QSCBs, QZABs, Public School Building Capital Fund (Does not include any “Pay as you Go” money) • 2008/09 Local Bonds passed: Zilch • 2008/2009 COPS, QSCBs, QZABs

$214,373,895

• 2008/2009 PSBCF disbursements • ADM (09/10 Thru May)

:

$

17,809,040.

• Lottery (09/10 Thru May) : $

113,627,439

•

Total $ 345,810,374

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) –

Spent 2008/2009

Total

$1,278,958,164

PSBCF Redirection

• 2010 PSBCF Holdback/Redirection – All Corporate Income Tax redirected from PSBCF – Current Budget Bill: Lottery Fund earmarked for school construction can be used to pay teachers – 5/27 ADM Current Unallocated: $

44,781,183

– 5/27 Lottery Current Unallocated: $

193,509,800

– 5/27 CURRENT TOTAL

$238,290,983

2008/2009 Use of the PSBCF

Bldg Sys- Planning & Design 4.2% Multiple 2.6% Land 1.6% Enlarge-Renovate 9.3% Repairs--Roofing 3.5% Technology 4.0% General 0.4% Bldg Sys--HVAC 1.7% New Construction 8.4% Debt Service 64.4%

Portion for Debt Service has increased from 48% to 64.4% in one year

Literary Loan Fund

• Small revolving loan fund from monies received from sale of state owned swamp land, mineral rights, etc. Only one loan outstanding (about 480K balance) • Has been eliminated by legislature

• New items – Selected Laws (after session ends) – New Transmittal Form – Science Facilities Planner &

requirements

– Updated Facility Guidelines (very soon) – Updated hazardous materials prevention/remediation – Frequent Review Comments – Updated “The School Site” • Upcoming Items – High Performance Guidelines (based on LEED with differences) – Updated Exceptional Children Facility Planner – Updated Bus garage planner

2009 Passed Legislation

• H 42 Science Safety – Now “Approve” Science Labs. Requirements now State Board policy as well.

• High Schoolers in Community College/Universities - no building modifications • No class size maximums in grades 4-12 • Major reductions in funding for schools • H311 Sunset removed for earmarking of portions of two ½ cent sales tax for school const.

• LEAs must report Energy Savings Contracts and the terms of the contract to the Local Government Commission and the State Energy Office (Potential savings to be monitored) • Outdoor areas (playgrounds/fields) to be inspected by DCD for before/after school programs • H1471 Encourage sharing of facilities between counties and schools • H749 Allows use of rainwater cisterns for toilet flushing

2010 Potential Legislative Action

• Layoffs in teachers, administrators and DPI staff as well as educational programs • S386 Report future PSBCF uses • H1848/S1227 Increase Charters to 106 • H2030/S1407 Make video games legal with some funds to PSBCF • S1348 County (with Bd of Ed approval) can use lottery funds for any educational purpose • S897 Budget Bill • S1201/S1202 Would allow Public Charter Like schools without most regulations

Federal Stimulus Funding

• New 2010 QSCB Allocations – 88.2M direct by treasury to five large LEAs – 187M divided among 110 LEAs – $244,536,869 carried over from 2009 (only 7 bonds) • Any allocation not issued by Dec 31, 2010 will be re allocated (five large can roll over) • Re-allocation of surrendered funds in July/Aug – $69,793,197 Surrendered (June 18 2010) – $404,956,221 approved apps (June 18, 09 & 10) – $78,079,862 no response yet (half of LEAs)

Federal Stimulus Funding

(Cont.)

• Current QZAB Allocations from Feds: – 12.6M 2008 44.099M 2009, $44.454M 2010 – $65,516,700 still available – no limits on applications • Build America Bonds • Low interest bonds – no limits • Contact US Treasury

Other Rumblings

• Still a push to raise cap on Charter Schools and help fund their construction • Still a push to redistribute Lottery funds based upon straight ADM • Always a push for “cheaper” school construction, too small classrooms, modular construction, poorer quality • A move to redo the PSBCF

Student Population Growth

K-12 Growth 2000-2010

1,450,000 1,400,000 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 20 00 /0 1 20 01 /0 2 20 02 /0 3 20 03 /0 4 20 04 /0 5 20 05 /0 6 20 06 /0 7 20 07 /0 8 20 08 /0 9 20 09 /1 0

School Year

Student Percentage Growth

K-12 Growth 2000-2010

4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3.70% Percent Growth 1.52% 1.63% 1.34% 1.62% 0.64% 1.26% 0.64% Linear (Percent Growth ) 0.37%

School Year

High Growth Counties

MECK/UNION, WAKE/JOHNSTON

6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3.6% 20 01 /0 2 20 02 /0 3 3.5% 20 03 4.5% /0 4 4.6% 5.6% 5.5% 20 04 /0 5 20 05 /0 6 20 06 /0 7

SCHOOL YEAR

20 07 /0 8 4.2% 20 08 09 2.3% 0.7% 20 09 /1 0

Building Code Issues

• Elevators, ramps, etc.

required

for

all

press boxes – after Jan 2011 pressboxes less than 250 sf and more than 12 feet high will be exempt • Area of Refuge required again • Panic Bars/closers on classrooms 1,000 net sq ft & > • HVAC fresh air requirements not being met • Incorrect HVAC design temperatures

Plan Review Issues

• NO RESPONSE TO OUR REVIEW LETTERS!

– Even with reminder letter system • CLASSROOM SIZES BELOW MINIMUMS!

• Rooftop HVAC units – bad dog, bad dog • Inefficient HVAC systems – get engineers involved earlier! Cheaper systems are NOT better • Pedestrians crossing roads/parking to get to PE/athletic fields • No or poorly designed building expansion joints • Code violations • Send Mobiles/Mega-modulars in for review

Sustainability

•

PUBLIC UTILITY AND ENERGY SERVICES $285,986,476

spent (2008/2009)

114Kschool

• “LEED for Schools” “Collaborative for High Performance Schools” and Triangle “J” “High Performance Guidelines” are all good tools • School Planning exploring adapting LEED For Schools for North Carolina • Use “true” life cycle costing!

• Need to find way to use Operating Budget to pay for any increased initial cost • Must be automated controls - not over-ridden or misunderstood by users

Challenge

• Creative Financing – Must get money from numerous sources • Make sure your “design elements” aren’t just “decoration” or the material/style de jour • Remember that longevity and low maintenance are crucial – be careful with “experimentation” • True design is about function, learning and relationships not just “how quick can we do this.”

Questions ??