In 2014, the school board partnered with the county under the Penny for Projects sales surtax referendum, in order to establish a one cent sales surtax, 50% of which would have gone to the school district. The plan was to use a large part of the school district’s proceeds for tablets and technology: $62,395,000 out of roughly $87 million collected over the ten year time period. The school board had considered this to be an extension of the previous half cent sales surtax which was in place for ten years and expired on December 31, 2014. The purpose of the previous sales surtax was to help with the costs associated with new school construction.
In May of 2015, the School Board decided to “roll the dice” on a special election which is costing taxpayers $232,500. If it had been put on the presidential primary ballot on August 30th 2016, then there would have been no associated costs. However, the district did not wish to forgo a potential year of surtax revenue, approximately $8 million. Additionally, some feel that the school board is in a better position to win a special election, because there will be a lower voter turnout. Only people who feel strongly about the issue are likely to vote. On September 8th, voters will decide again whether they will initiate a half cent sales surtax, this time to cover the cost of capital expenses and facility improvements.
The District has provided the following statistics, “The School District’s total balance of ALL FUNDS has decreased more than $84 million since 2008. The School District has transferred more than $23 million from capital funds to maintain programs and services at schools since 2008. Significantly decreased capital funding has prevented proper maintenance and repair of school facilities. The District needs more than $87 million to repair schools, including critical roof, air conditioner and fire alarm replacement projects.”
Instead of $62,395,000 in technology spending, the school district proposes to spend the majority of revenue from the sales surtax on HVAC systems costing $60,727,423 of the $87,244,818. Trailing behind is Roofing at $13 million, Building Maintenance at $2.4 million, and a variety of other projects including flooring and infrastructure at $10 million. According to the facilities projects list, the district plans to spend the $87,244,818 by the year 2020, although the tax will be levied for 10 years. Much of the HVAC spending will occur in FY 2019-2020, $38,082,299. Most likely the $38 million will be spread out in the next five year plan.
Although the projects list includes $60 million in HVAC funding, it does not necessarily mean that the district has to stick with that. The School District must spend the revenue according to Florida Statute 212.055(6) which allows spending on “fixed capital expenditures or fixed capital costs associated with the reconstruction or improvement of school facilities and campuses…” The projects list provided with Resolution No. 2015-012 for the sales surtax referendum is a list of potential projects. Surtax revenues may also be used to service debt, accrued from capital projects.
Florida Statute 212.055(6)c is written almost verbatim into the county resolution for the half cent sales tax under Exhibit A of the resolution, but Exhibit A excludes the following statement that is part of the Florida Statute: “Additionally, the plan shall include the costs of retrofitting and providing for technology implementation, including hardware and software, for the various sites within the school district.” Being that the technology needs of the school district are so great, it is interesting that the resolution specifically avoids mentioning it.
In the resolution, the following is stated on establishing the scope and priority of projects, ”The scope of the Projects will be driven by a thorough, detailed assessment of facility condition and education program requirements. Prioritization of the repair/replacement projects will be determined by application of objective criteria, including the age of the schools, the number of students affected, overcrowding and growth of population, critical needs, legislative requirements, the facility condition index and recent dollars expended at the school. ”
After the sales surtax is collected, it becomes part of the capital projects fund. This fund also includes the capital outlay tax revenue which accounts for 1.5 mills of your property taxes for the school district. For FY 2015-2016 the capital outlay tax, if it remains at 1.5 mills, will bring in $12,380,347. The entire capital projects fund is budgeted to have $35,573,355 available in FY 2015-2016.
Without the half cent sales tax and Public Education Capital Outlay (PECO) funds, the capital projects fund revenues have decreased $14 million. However, General Fund revenues increased $5.8 million, which is a result of increased Florida Education Finance Program (FEFP) funding.
Property taxes for the School District will be increasing for FY 2015-2016. In order to receive $83,787,804 in state education grants, the District must raise the Required Local Effort millage rate, which is part of your total property tax rate millage for the school district . The District explains, “On July 16, 2015, the Commissioner of Education certified the Required Local Effort (RLE) millage rate of 4.948 that must be levied by the School Board to generate the required local share. The School Board must impose the established millage rate in order to obtain the state share of funding for the District.” In 2014, the RLE millage rate was 4.919. Accounting for the increase in the RLE, the total millage rate will increase from 7.167 to 7.196. The district estimates an increase in total property tax revenue over FY 2014-2015 of $2,359,400. Final millage rates will be approved September 15th in the second public budget hearing.
In addition to the half cent sales tax the school board will also be requesting a .029 mill increase in the property tax. Voters will have a say on the school board’s request for a half cent sales tax in a special election on September 8th.