Summer Building Improvements
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Along with the usual summer deep cleaning, additional projects are underway or soon to be started this summer in the Ed-Co School District. It's not noticeable from the outside but the bathroom remodel is well underway. Window and gutter repair/replacement scheduled to begin the last week of June. Work on expanding parking lots has also just started.
These projects are funded by the State Penny for School Infrastructure also referred to as SAVE. The following information is provided by Rural School Advocates of Iowa (http://www.rsaia.org )
The State Penny for School Infrastructure, established in 2008, expires on Dec. 31, 2029. The original 20-year timeframe matched the typical bonding period for property-tax backed construction projects. State penny has helped schools address the age-old problem of equity and adequacy for school facilities. Use of the local option tax from 1998-2008 and the state penny sales tax for school infrastructure since have together:
• Funded school safety improvements and technology to protect students and staff
• Funded technology expansions in districts (such as 1:1 initiatives, resources for computer programming courses, and integrated technology and instruction for teachers)
• Elevated student learning (science labs, STEM, CTE and the arts, to name a few)
• Upgraded fine arts performance areas to encourage student/community connection to school
• Resulted in fewer days lost due to extreme temperatures
• Returned saved energy dollars to the educational program
• Purchased items otherwise requiring PPEL levy increases or new Bond Issues
• Improved condition of otherwise aging bus fleet
• Reduced property taxes and provide additional property tax equity through dedication of use tax to property tax relief.
Current Reality: Ten years later, schools are feeling the pinch of a shortened bonding period:
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With only 11 years remaining, a shortened bonding stream has left approximately $700 million of borrowing capacity on the table, compared to a full 20-year period.
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With low interest rates and unmet needs, this is the wrong time to turn to property taxes rather than sales taxes to continue facilities repair and construction.
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The replacement cost of Iowa schools is estimated to be $16.4 billion (July 1, 2014). The state penny provides an annual investment of 2.55%, a reasonable amount to maintain and update Iowa schools, including funding for technology, equipment, buses and additional property tax relief.
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Fallback will always be property taxes. Inequity in valuations means that districts access to PPEL/Debt Service property taxes bears little relationship to enrollment or need. Iowa will return to the infrastructure mess that delivered inadequate school facilities and unequal student resources.
History of the number of bond issues approved by voters annually proves the point: fewer bond issues elections were held since the start of the state penny. That track record will continue if the penny can be bonded against for the full 20 years. Absent that action, as the time frame shortens, the number of bond issues backed by property taxes is growing.
RSAI calls on the Iowa Legislature to extend or repeal the sunset of the state penny for school infrastructure. Since voters in Iowa’s 99 counties approved the sales tax for public schools, any change in use of the revenue in the extension should be dedicated to educational purposes.
The following is an article about the State Penny from the Cedar Rapids Gazette.
Please take the time to reach out to your local legislators or candidates running for office to stress the importance of extending the State Penny.
