Indiana University of Pennsylvania s1

INDIANA UNIVERSITY OF PENNSYLVANIA Career & Technical Education Leadership Development Program

Competency Guide Sheet

Name: ______Date: ______

Competency Number: 827

Competency Title: Prepare a Capital Improvement Budget for a Career and Technical Education Facility Expansion or Construction

INTRODUCTION

Planning for a career and technical education facility expansion or construction requires the attention of the board of directors, the career and technical education director, specialists in school-plant design, and well organized craft and lay committees. Sound capital improvement programs require stringent adherence to the school laws of Pennsylvania as well as technical advice from competent individuals at both the local and state level.

As a career and technical education leader, you are chiefly responsible for preparing a capital improvement budget that considers both the educational needs and physical needs of the system. As a career and technical education leader, you are responsible for clear communication between the board of directors and the architect(s) in all matters pertaining to capital improvement of the career and technical education facility. Further, you hold primary responsibility for communication with and among craft committees, lay committees, state liaisons and all other parties interested or involved in the construction or expansion of the career and technical education facility.

Specifically, it is the purpose of this competency to develop your skill at assisting in preparing a capital improvement budget for a career and technical education facility expansion or construction.

GUIDE SHEET STRUCTURE AND USE

This guide sheet contains an introduction and four sequential learning experiences. Overviews, which precede each learning experience, contain the objective for that experience and a brief description of what that learning experience involves.

OBJECTIVES

Terminal Objective: While working in an actual career and technical education leadership situation, prepare a capital improvement budget for a career and technical education facility expansion or construction. Your performance will be assessed by your resource persons using "Leadership Performance Assessment Form," p. 14.

Enabling Objectives

1. After completing the required reading, demonstrate general knowledge of preparing a capital improvement budget for a career and technical education facility expansion or construction. 2. After completing the required reading demonstrate knowledge of Pennsylvania Department of Education requirements and specifications for preparing a capital improvement budget for a career and technical education facility expansion or construction. 3. Given a proposed plan for a career and technical education facility expansion or construction, analyze the proposed plan and from your analysis, prepare a summary report indicating overall cost, method of financing, specifications of completed facility, and alternatives to capital expansion.

RESOURCES

Learning Experience I

Required

1. For this competency, you may wish to read:  School Finance and School Construction Information on the Pennsylvania Department of Education Website, www.pde.state.pa.us 2. For this competency, you may wish to select an Internet site that addresses one of the following topics. Include the link as the final item on your documentation list. Include a copy of page one of the site with your completed competency.  School Finance  Administration of Public Education  School Business Management  School Design

Learning Experience II

Required

For this competency, you may wish to read information on school finance, school construction and relating school laws found on the Pennsylvania Department of Education website, www.pde.state.pa.us, especially information in the School Construction and Facilities section.

Learning Experience III

Required

1. For this competency, you may wish to read:  School Construction and Facilities Information (especially PlanCon, Planning and Construction Workbook) on the Pennsylvania Department of Education Website, www.pde.state.pa.us 2. An actual school district or career and technology center proposed plan for school building construction or renovation.

Learning Experience IV

Required

1. An actual school situation in which you can prepare a capital improvement budget for a career and technical education facility expansion or construction. 2. A School Leadership Resource Person (SLRP) to provide you an opportunity to develop your capital improvement budget and to assess your competency of preparing a capital improvement budget for a career and technical education facility expansion or construction. 3. A Field Resource Person (FRP) to assess your competency in preparing a capital improvement budget for a career and technical education facility expansion or construction.

LEARNING EXPERIENCE I

OVERVIEW

Enabling Objective

After completing the required reading, demonstrate general knowledge of preparing a capital improvement budget for a career and technical education facility expansion or construction.

Activity

For this competency, you may wish to read:

 School Finance and School Construction Information on the Pennsylvania Department of Education Website, www.pde.state.pa.us

For this competency, you may wish to select an Internet site that addresses one of the following topics. Include the link as the final item on your documentation list. Include a copy of page one of the site with your completed competency.

 School Finance  Administration of Public Education  School Business Management  School Design

Activity

You will demonstrate general knowledge of preparing a capital improvement budget for a career and technical education facility expansion or construction by completing the Self Check on pp. 4-6 of this guide sheet.

Feedback

You will be evaluating the extent of your knowledge by comparing your completed self check with the Model Answers, pp. 6-7 of this guide sheet.

Self Check

1. Educational specifications are always to be prepared in advance of the architectural design. What should the educational specifications include?

2. True or False: The lower the initial cost of a building, the greater the likelihood of early and continued high maintenance expenses during their lifetime of the structure.

3. In what ways can the cost of school construction be contained or reduced?

4. What is the typical role of the general contractor? Subcontractor?

5. Why is a full time building inspector generally a good investment for a school system undergoing construction?

6. Management of long-term debt, specifically bonds, requires the use of a professional financial consultant. What is the financial consultant's role?

Feedback

Compare your written responses to the Self Check with the Model Answers given below. Your responses need not exactly duplicate the model responses; however, you should have covered the same MAJOR points.

Model Answers

1. Statement of philosophy Grade levels to be accommodated Enrollment capacity expectations Curriculum programs and activities Specific utilization plans Instructional procedures Teaching special requirements Specialized instructional facilities Auxiliary areas Miscellaneous concerns Summary statements

2. True

3. Use repetitive structural units Use fewer and larger products Use faster structural construction techniques Use modular coordination to take advantage of standard shapes and sizes of building materials and to eliminate waste costs by cutting and fitting these materials on the construction job.

4. Contractor: All carpentry work and supervises and coordinates all construction Subcontractor: Electric work, plumbing, site grading, mechanical work

5. Prevents fraud and poor workmanship and thereby saves the district money and inconvenience.

6. The financial consultant's role includes:

(a) Surveying issuer's debt structure and financial resources to determine borrowing capacity for future capital financing requirements. (b) Gathering all pertinent financial statistics and economic data such as debt retirement schedule, tax rates, overlapping debt, etc., that would affect or reflect on the issuer's ability and willingness to repay its obligations. (c) Advising on the time and method of marketing: terms of bond issues, including maturity schedule, interest payment dates, call features, and bidding limitations. (d) Preparing an overall financing plan detailing the recommended approach and probable timetable. (e) Preparing, in cooperation with bond counsel, an official statement, notice of sale, and bid form and distributing same to all prospective underwriters and investors. (f) Assisting the issuer in getting local public assistance and support of the proposed financing. (g) Keeping in constant contact with the rating services to ensure that they have all the information and data they require to evaluate credit properly. (h) Being present when sealed bids are opened and standing ready to advise on the acceptability of bids. (i) Supervising the printing, signing, and delivery of the bonds. (j) Advising on investment of bond proceeds.

LEARNING EXPERIENCE II

OVERVIEW

Enabling Objective

After completing the required reading demonstrate knowledge of Pennsylvania Department of Education requirements and specifications for preparing a capital improvement budget for a career and technical education facility expansion or construction.

Activity

For this competency, you may wish to read information on school finance, school construction and relating school laws found on the Pennsylvania Department of Education website, www.pde.state.pa.us, especially information in the School Construction and Facilities section.

Activity

You will be demonstrating your knowledge of concepts contained in your reading by responding to the Self Check activities on p.p. 8-9 of this guide sheet. Please read each question carefully and write your answers to each in the space provided. You are reminded to be as brief, yet as complete as possible.

Feedback

You will be evaluating the extent of your knowledge by comparing your completed Self Check with the Model Answers on p.p. 9-10 of this guide sheet.

Self Check

1. What methods can Pennsylvania schools use for financing school construction projects?

2. What might long-term borrowing include?

3. State subsidies to school districts for financing capital construction projects include special purpose equalizing grants for what purposes?

4. What two factors are considered to determine a measure of a district’s wealth when calculating the net state subsidy for school construction reimbursement?

Feedback

Compare your written responses to the Self Check with the Model Answers given below. Your answers need not exactly duplicate the model answers; however, you should have covered the same MAJOR points.

Model Answers

1. Pay-as-you-go Reserve funds Long-term borrowing

2. General obligation bonds

State public school building authority Municipal authority Local school authority

3. School construction Acquisition and renovation of existing buildings Acquisition and development of sites for school use Annual rental payments for facilities leased by school districts

4. Either the Market Value Aid Ratio (MVAR) or the Capital Account Reimbursement Fraction (CARF), whichever is greater, is used.

LEARNING EXPERIENCE III

OVERVIEW

Enabling Objective

Given a proposed plan for a career and technical education facility expansion or construction, analyze the proposed plan and from your analysis, prepare a summary report indicating overall cost, method of financing, specifications of completed facility, and alternatives to capital expansion.

Activity

You will be reviewing Parts A-H of PlanCon, Pennsylvania Department of Education.

Activity

You will be analyzing a proposed plan for career and technical education facility expansion or construction in relation to PlanCon and the other readings from Learning Experiences I and II. You will use the following Checklist in this guide sheet to guide your analysis.

Checklist

_____ The proposed plan conforms to Part A of PlanCon.

_____ The proposed plan conforms to Part B of PlanCon.

_____ The proposed plan conforms to Part C of PlanCon.

_____ The proposed plan conforms to Part D of PlanCon.

_____ The proposed plan conforms to Part E of PlanCon.

_____ The proposed plan conforms to Part F of PlanCon.

_____ The proposed plan conforms to Part G of PlanCon.

_____ The proposed plan conforms to Part H of PlanCon.

_____ If there are variances in the proposed plan, those variances have been noted and approved by PDE.

Feedback

Below you will find a checklist against which you are to compare your analysis of a proposed plan for career and technical education facility expansion or construction as it relates to PlanCon. Your analysis will be presented to your FRP in the form of a written report and will be evaluated, in part, on the basis of the following questions in this guide sheet.

CHECKLIST Career and Technical Education Facility Expansion or Construction

_____ Is the report clearly presented?

_____ Is the purpose of the report stated at the beginning of the report?

_____ Does the report explain the process the school went through in planning for construction or renovation?

_____ Does the report indicate PDE approval for each area as outlined by PlanCon?

_____ Does the report describe variances from PlanCon by the school system?

_____ Are the variances known to PDE?

_____ Is a summary statement given regarding cost of construction or renovation?

_____ Other

LEARNING EXPERIENCE IV

OVERVIEW

Enabling Objective

While working in an actual leadership situation, prepare a capital improvement budget for a career and technical education facility expansion or construction.

Activity

As you fulfill your leadership duties, prepare a capital improvement budget for a career and technical facility expansion or construction. This will include following PlanCon, Parts A-H.

As you complete the above activities, document them (using videotape, log or in writing) for assessment purposes. This documentation should include:

 A copy of all required forms from PlanCon  A copy of necessary budget forms  A copy of any correspondence relevant to the capital improvement project

NOTE: Arrange to have your resource persons review any or all products developed under your leadership as well as the documentation (above) of your activities.

Your total competency will be assessed both by your SLRP and FRP using the "Leadership Performance Assessment Form (LPAF)" pp. 14. Based upon the criteria specified in the LPAF, your resource person will determine whether you are at Guided Application Level (3) in preparing a capital improvement budget for a career and technical education facility expansion or construction.

COMPETENCY #827

LEADERSHIP PERFORMANCE ASSESSMENT FORM

Competency: Prepare a Capital Improvement Budget for a Career and Technical Education Facility Expansion or Construction

LEVEL OF PERFORMANCE t d A o / e N N n i d a e t t n i A a t t A Criteria: In determining capital improvement needs, the supervisor: 1. requested that the board establish a building committee 2. considered the educational specifications for the proposed program 3. obtained architectural services to translate educational specifications into spatial needs 4. sought the advice of state consultants 5. incorporated the advice of advisory committees in the planning process 6. obtained optional preliminary plans which could house the proposed program 7. worked with all advisors and the Board of Education to select two or three viable preliminary plans

In meeting the capital improvement needs, the supervisor: 8. obtained cost estimates on the various proposals being considered 9. worked with the building committee and the governing school board to prioritize the proposed alternatives 10. determined the effect that each building program would exert on the local tax structure 11. received feedback from the Board of Education regarding feasibility of the capital improvement plan 12. proposed alternative methods of funding the proposed construction 13. included all categories of expense, as well as, the cost of financing in the proposed budget

______Intern’s Initials Date SLRP’s Initials Date Facilitator’s Initials Date