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2007 Reference Guide

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2007 Reference Guide STATE OF NEW MEXICO PUBLIC SCHOOL CAPITAL OUTLAY COUNCIL PUBLIC SCHOOL FACILITIES AUTHORITY 2007 Reference Guide TABLE OF CONTENTS Section 1 Public School Capital Outlay Report by Paula Tackett & David Abbey Section 2 Regional Manager Territories / PSFA & District Directory Section 3 2008-09 NMCI Ranked List & 07-08 PSCOC Awards Section 4 Deficiencies Correction Program Projects Section 5 Lease Payment Assistance Awards Section 6 PSCOC Standards-based Project Status Reports Section 7 PSCOC Awards by District, 1998 - 2007 Section 8 Chronology of Events in 2007 Section 9 Local Match Percentages / District Bonding Capacities Section 10 Approved District Maintenance Plans, Year End 2007 Section 11 Status of District Master Plans, Year End 2007 Section 12 Legislation Related to Public School Capital Outlay Section 13 Public School Capital Outlay Council Rules Section 14 Public School Facilities Authority Rules Section 15 Application and Grant Procedure Rules Section 16 Post Grant Procedure Rules Section 17 Statewide Adequacy Standard Rules Section 18 Deficiency Correction Program Rules Section 19 History of Public School Capital Outlay in New Mexico SECTION 1 Public School Capital Outlay Council Public School Facilities Authority Award Year Highlights Presentation by PSCOC Chair Paula Tackett & Awards Subcommittee Chair David Abbey Overview of 2007 Public School Capital Outlay Awards Presentation by PSCOC Chair Paula Tackett & PSCOC Awards Subcommittee Chair David Abbey 8 September, 2007 Pg. 1 of 4 Award Summaries: • $135.3 million in state funds for Standards-Based awards to 19 projects in 18 school districts. • $6.5 million in state funds for lease assistance to 61 charters and 7 public schools in 21 districts. • $1.9 million in state funds for demolition of old/abandoned facilities to 16 districts. • $2 million in state funds for energy efficiency initiatives to 9 district applicants and a handful of pilot projects. • $1 million in state funds set aside for school district master planning assistance. • Since 8/7/2007, $65.5 million in additional state funds has gone to cost increases in projects from prior years. Financial Plan Highlights: • Target of $100 - $150 million. • Objective to stretch funding as far as possible, while retaining sufficient dollars for out- year expenditures. • Assisted by continuing high prices for oil and gas, and corresponding high severance tax revenues. • Projects have gotten costly: $100 million high schools. Awards Process: • District capital outlay applications submitted Feb - April • PSCOC/PSFA visits to applicant sites April - May • 2007 final project ranking results announced May • Applicant district hearings/presentations in June. • Awards subcommittee met four times to evaluate applications. • Awards subcommittee members: David Abbey, LFC (chair); Dr. Kurt Steinhaus, Governor’s Office; Katherine Miller, DFA and Vicki Smith, NSBA. Funding Criteria & Considerations: • Funding prioritized to projects from districts with current master plans and effective pre-planning measures in place—that is, projects ready to use funds expeditiously. Schools built expeditiously are less expensive since impacted less by construction inflation and the cost of capital. • District master planning and preventative maintenance key to safeguarding the state’s substantial capital investments. 8 September, 2007 Pg. 2 of 4 (1) dy to go were awarded design funds and mizing the use of existing public facilities, tion funding inbefore, later cycles.constructing new buildings. that are on schedule, behind schedule or d time extensions. intervals by the PSCOC for adherence to 23.6 134.9 suit w La Overview of 2007 Public School Capital Outlay Awards i n Zu r and were grante 1999 2007 on for projects needing more time. 2006 2005 Presentation by PSCOC Chair Paula Tackett & PSCOC Awards Subcommittee Chair David Abbey 2004 2003 completed by deadline. 2002 2001 Projects high on the ranked list but less rea 2000 kept their rank for construction/renova 1999 • Increasing priority re school districts maxi 1998 including municipal and county facilities • 1997 1996 High Priorty Project Project cycle times monitored at 30 day Advances 1995 PSCOC Project Monitoring Out of Cycle Awards project timelines. 1994 • Simple, color-coded report indicates projects DCP Award Funding 1993 ahead of schedule. Standards Based Awards 1992 • See attached project monitoring handout. 1991 • 1990 1989 700 DCP and 2E roof projects subject to a 2007 statutory deadline. 1988 DeficienciesThe Correction Legislature allowed Program an exempti Nearly Complete 1987 • 89 DCP and 2E roof projects applied fo 1986 • The remainder of projects were • 1985 • PSCOC Award$300.0 Funding Annually Since 1974 (in millions) 1984 1983 $250.0 1982 1981 $200.0 1980 1979 1978 $150.0 1977 1976 $100.0 1975 $50.0 1974 $0.0 Overview of 2007 Public School Capital Outlay Awards Presentation by PSCOC Chair Paula Tackett & PSCOC Awards Subcommittee Chair David Abbey 8 September, 2007 Pg. 3 of 4 • In 2007, the Public School Capital Outlay Council (PSCOC), working in tandem with school districts, continued to refine the Standards-Based Process for funding school facilities, a process which is now in its fourth year. This process intends to strike a fair balance between providing state funds for those districts which cannot raise sufficient funds locally for their facilities needs, and preserving community pride and responsibility associated with districts’ local autonomy and in covering the cost of their own facilities. This new funding process also provides the necessary safeguards to let taxpayers know that the public funds to which both the state and local districts have been entrusted are being spent in a prudent and effective manner. Most of all, this process is a means for providing funds for statewide school district infrastructure, based on an objective ranking of facilities according to greatest need. • In this cycle, the PSCOC awarded $135.3 million in state funds to 19 projects in 18 school districts under the Standards-Based Awards Program. This is in addition to $6.5 million in school facilities leasing assistance going to 61 charters and 7 public schools in 21 districts, just under 2 million in advances to 16 districts for demolition of old abandoned facilities, just over $2 million for energy efficiency initiatives going to 9 current applicants and a handful of pilot projects, and $1 million set aside for master planning assistance – for a total for this funding cycle of $146.4 million. • Since last year’s awards which were made on August 7, 2006, an additional $65.5 million has gone to cost increases in projects from prior years.1 • Funding was prioritized to projects from districts with current master plans and effective pre- planning measures in place, meaning to projects which were ready to go into construction without undue delay. Districts that were less prepared may have only received design funds for the project’s initial phase—such projects will retain their place in the queue for consideration in future funding cycles. Districts which do not have current master plans on file with PSFA cannot, by statute, receive capital outlay funds from the state. With limited resources and annual construction inflation that has been greater than 10 percent per year, it’s critical to build schools rapidly. The longer the delay, the greater the costs. The faster that New Mexico builds schools, the greater the portion of project budgets that goes to brick and mortar, rather than is lost to construction inflation. • In this cycle, the PSCOC allocated just under $2 million in this cycle for demolition of abandoned buildings. Council emphasized to districts that with the extra maintenance funds accruing to districts via increases in SB-9 ($10 increase per MIM over last year), the Legislature may expect that demolition costs be borne out of districts’ core maintenance budgets in future years. • As in prior years, the PSCOC continues to place great importance on district master planning and on maintenance as a means of safeguarding the state’s substantial capital investment, such that all these new facilities that the Legislature has funded will last well into the future. PSFA’s FIMS 1 The 35 year annual PSCOC funding bar chart that is appended below lists ANNUAL, not fiscal year data. The $65.5 million reported here includes funds awarded from 8/7/06 through 12/31/06 WHICH WERE INCLUDED IN THE 2006 BAR on the graph. 2007 ANNUAL YEAR TO DATE out of cycle awards are about $23.6 million. Overview of 2007 Public School Capital Outlay Awards Presentation by PSCOC Chair Paula Tackett & PSCOC Awards Subcommittee Chair David Abbey 8 September, 2007 Pg. 4 of 4 maintenance management system is delivering results to the districts which have embraced this resource, and Council has emphasized that it’s essential for all districts to make it a priority to get their data into FIMS. • Another priority for Council in this year’s funding cycle was to encourage school districts to maximize the use of existing facilities—in specific, municipal and county facilities and programs that may already exist and are underutilized—rather than construct new buildings. Outside of a few pockets of high population growth (such as Rio Rancho, ABQ’s west side, Los Lunas and Las Cruces), student populations are remaining fairly constant statewide. So it is simply prudent to first determine that no existing facility would be available for renovation before building something new. Likewise, the PSCOC wishes to caution districts against creating new types of programs that would require construction of new facilities, which may be unlikely to receive state funding assistance and may become a strain on the operating budget of the district. • Lease Payment Assistance Awards are to assist districts and charter schools with the cost of leasing classrooms. As the state defines a possible capital funding structure for charters, eventual full integration of charters into the ranked list via charter-specific adequacy standards is likely. Significantly, statute states that all charters must be housed in public buildings by 2010.
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