Legislative
Committee on
Education
Capital Funding Needs
July 15, 2014
Capital Funding Matters
• Public schools are a community investment paid for
with taxpayer dollars.
• To protect the community’s investment,
school buildings need to be maintained
and equipped to provide a safe and
effective learning environment
in which children can focus on
preparing for the 21st century
workplace.
2
Recent History of
Capital Funding in WCSD
• Washoe County voters approved a rollover bond in
2002 to fund:
– Desperately needed new schools to keep up with
rapid population growth
– Older school revitalizations
– Crucial capital renewal needs
– Technology infrastructure
3
Recent History of
Capital Funding in WCSD
• 2002 Rollover Bond
– Generated approximately
$551 million to fund important
capital projects at all of the
District’s schools
– All funds have been allocated to
essential capital projects across
WCSD
Category
Funds
Student Housing
$193,245,620
Older School
Revitalizations
$81,426,321
Older School
Capital Renewal
$64,215,640
Technology
$51,457,714
Program
Administration
$21,433,686
In progress
$139,704,201
Total
$551,483,182
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Recent History of
Capital Funding in WCSD
• 2002 rollover bond
expired in November 2012
– This is WCSD’s only
major source of
revenue
– Property tax revenue
will not support
additional bonding
until 2018-2020
5
Recent History of
Capital Funding in WCSD
Unlike other
districts in
Nevada, the
2002 rollover
bond was
WCSD’s major
source of funding
for capital
projects.
6
Current Situation: Funding Issue
Upon the expiration of the 2002
rollover bond, WCSD was left with
no way to generate substantive
capital funding to maintain the
community’s investment in its
schools.
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Current Situation: Capital Needs
• WCSD schools have approximately
$308 million in unfunded capital
renewal needs.
• Every school has identified needs.
• The majority of the projects are
for necessary maintenance and
repairs.
• 93 schools in WCSD
• 60 percent are more than
30 years old
• 25 percent are more than
50 years old
• More than 7 million square
feet of building space to
maintain
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Capital Funds Ten Year Renewal Needs
9
Current Situation: Projected Growth
• Need at least two new schools today
– High schools at 99% capacity, including use of
portables
• Currently 30,000 units have been approved by
local governments, not including new
proposed developments
• Potential growth implications project 10 new
schools based on growth
10
Current Situation: Upgrade needs
• School safety upgrades are a priority
• Technology infrastructure lacking to keep pace with
demands
– Necessary improvements to bandwidth, hardware,
software to be successful for new assessments
– Doesn’t include operating costs to train teachers and
students on new technology
11
Current Situation: Impacts to Schools
• Potential impacts if no solution is put in place:
– WCSD schools will go without much needed repairs and
improvements. Costs will increase over time as needed
repairs are not made.
– District will be faced with decision to use general fund
money to pay for critical building needs.
– Overcrowding options will be considered like multi-track,
dual schedules, increased class size, relocation of special
programs, limited rezoning opportunities
– Academic outcomes may be compromised if facility needs
aren’t addressed
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Limited Options for Solutions
• Primary source of funding is Property Tax with voter
approval
– Other revenue sources are imposed by county commission or
legislature – not by school district. None available to WCSD
• Cap on overlapping tax rates limits tax rate access
– Washoe is at statutorily imposed property tax cap
– Districts can only propose property tax based ballot questions,
so this isn’t an option in Washoe
– State law does not provide any alternative avenues for districts
to generate additional funding if they are at the tax cap
– Abatement caps limit revenue increases
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Who can help?
Voters via ballot
questions
• Can’t ask a property tax question if at the cap.
• Can’t use district resources to support ballot question efforts
Legislature
• Historically, state hasn’t played a role in financing school capital.
• Enabling legislation hasn’t achieved desired outcomes.
Local
Government
• Governance concerns over county commissions having funding
authority or responsibility for over similarly elected school board
issues.
• School boards don’t have taxing or ballot authority
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Conclusion
• Focus on improving academic outcomes
• Without safe and adequate school buildings,
academic outcomes may be compromised.
• Districts need some viable options to find
solutions to our capital needs crisis
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