Summary
There is currently no ongoing, dedicated
money to maintain and preserve the new,
renovated or refurbished public school
buildings in Orleans Parish.
The December 6th proposition provides an
opportunity to fund long-term public school
facility preservation
without a tax rate increase.
There are currently 4.97 mills of property
tax (currently generating approximately
$15.5 million per year) used to pay school
facility bond debt. This debt will be fully
paid off in 2021. On Dec 6th, a ballot
proposition will ask voters to extend the
4.97 mills of property tax for 10 years
(2025) for the proceeds to be used for bond
debt repayment and facility preservation.
If the voters do not approve this
proposition, the amount collected from the
property tax will begin decreasing, as
assessed property values increase, and the
entire tax will go away when the debt is
paid off in 2021. Schools will lose
approximately $15.5 million annually that
would help preserve public school buildings.
If voters approve the millage proposition,
New Orleans will, for the first time, have
the funding necessary to preserve public
school facilities for current and future
generations of students. Beginning in 2016,
money will be available for emergency
repairs to public school facilities, and in
2021, additional money will be available for
planned capital repairs as well.
FAQs:
School Facilities Preservation
Ballot Proposition
Why are funds needed for school
facilities preservation?
New Orleans has never had the appropriate
dedicated funding to maintain and preserve
its public school facilities. Pre-Hurricane
Katrina, this resulted in children having to
go to school in crumbling and inadequate
buildings, as monies were not available to
replace aging roofs, boilers, electrical
systems and other components as they wore
out. Worsening conditions jeopardized the
health, safety and learning of our children.
Post-Hurricane Katrina, New Orleans public
school facilities are being upgraded using
one-time FEMA
funding.
The FEMA funds are being used to rebuild,
renovate and refurbish New Orleans public
school facilities across the city. The 2011
School Facilities Master Plan calls for a
total of 35 new schools, 18 renovations, and
27 refurbishments.
Money will be needed to maintain these new,
renovated and refurbished school buildings,
as well as buildings that have not received
any improvements through the School Facility
Master Plan. There will be needed emergency
repairs as well as planned replacement of
aging roofs, cooling and heating systems,
etc. Without funding, the school buildings
will deteriorate back into the state of
disrepair that existed pre-Katrina.
Will this proposition increase the
property tax rate?
No. If voters approve the measure in
December 2014, this
will not
increase the tax rate.
The proposition would simply extend a
current tax of 4.97 mills being used by the
school board to pay bond debt for past
facility work.
This proposition would allow the 4.97 mills
to continue to be levied for 10 years
(through 2025) to repay the bond debt, and
in addition, use remaining funds to be
dedicated for school facility preservation.
How much revenue will the
proposition generate for public school
facilities preservation?
Currently, the existing 4.97 mills of
property tax generate an estimated $15.5
million annually. This amount will
increase/decrease over time based upon
assessed property values.
What happens if voters don't approve
this proposition?
If the voters do not approve this
proposition, the amount of property tax
collected for bond debt repayment (currently
4.97 mills) will begin decreasing, as
assessed property values increase, and the
entire amount collected will go away when
the debt is paid off in 2021. This would be
a loss of approximately $15.5 million in tax
revenues each year that could be dedicated
to preserving school facilities (based on
current tax collections).
What will the funds from the 4.97
mills be used for?
In addition to completing full repayment of
the school facility bond debt, the purpose
of these funds is to preserve all public
school buildings serving students in New
Orleans. Specifically, these funds will be
used for emergency and planned capital
repairs and replacements, and to fund the
Orleans Parish
School Board (OPSB) and Recovery School
District (RSD) facility offices in
administering the school facility
preservation program.
Emergency Capital
Repairs and Replacements:
- The
definition of emergency capital repairs
and replacements will be determined
through RSD/OPSB policies, but generally
speaking, an emergency capital
repair/replacement is an unplanned,
urgent capital repair or replacement
that is necessary to sustain the health
and safety of students.
- Examples of
emergency capital repairs/replacements:
boiler and chiller repair or
replacements over $10,000; roof repairs
or replacements over $10,000; structural
repairs over $10,000; installation of
new or refurbished fire panels,
sprinkler systems or security systems;
repair of water main breaks; and
installation or repair of failed
electrical breakers
Planned
Capital Replacements:
- Replacing
major building systems according to a
planned schedule once the systems have
come to the end of their expected useful
lives, and before they fail and disrupt
the learning processes.
- Examples:
scheduled roof replacement; scheduled
HVAC equipment replacement; scheduled
exterior envelope replacement such as
windows or exterior seal; and
reinstallation of flooring
Funds from the property and sales tax for
school facilities preservation will be
allocated to the RSD and OPSB based on their
respective student enrollment counts in
school board owned facilities.
School Facilities Preservation
Program
Act 543 of the 2014 Regular Legislative
Session established a School Facilities
Preservation Program for Orleans Parish.
This legislation governs how the sales and
property tax will be used to preserve school
facilities in Orleans Parish.
Who will administer the School
Facilities Preservation Program?
The Orleans Parish School Board and the
Recovery School District will administer the
School Facilities Preservation Program.
OPSB and RSD currently have respective
facility offices that provide and oversee
maintenance and repair of school buildings.
These offices will expand their roles to
administer the School Facility Preservation
Program in the coming years before the bond
debt is fully paid off.
Since 2005, state law has made clear that
the Orleans Parish School Board has
responsibility for maintaining and repairing
OPSB-controlled school buildings, and the
RSD the responsibility for maintaining and
repairing RSD-controlled school buildings.
RSD and OPSB have provided or overseen the
maintenance and repair of schools buildings
in Orleans Parish in this way since 2005.
Under Act 543 and pre-existing law, when an
RSD school returns to the Orleans Parish
School Board, the responsibility for
maintaining and repairing that school
building, along with funds for that school,
are transferred to the Orleans Parish School
Board.
Will the School Facility
Preservation Program have different rules
for OPSB and RSD schools?
No. The OPSB and RSD Superintendents have
committed in writing to work together to
develop uniform policies and procedures so
the same rules will apply to all public
school facilities under the School Facility
Preservation Program.
How will this money be used to make
emergency and planned capital repairs and
replacements?
The School Facilities Preservation Program
has two phases:
Phase 1: 2015 until the bond debt is
paid off (2021)
After the bond debt payment is made each
year, the remaining money will be used for:
- Emergency
building repairs (performed by RSD and
OPSB facility offices)
- Supporting
RSD and OPSB facility offices in
administering the school facility
preservation program (the offices will
be funded at a maximum level of
$15/student, for a total of
approximately $600,000 per year for both
offices combined)
Phase 2: 2021 onward:
Once the bond debt is fully repaid, there
will be more revenue available for school
facilities preservation. In addition to
emergency repairs, schools will be able to
start making planned capital
repairs to ensure that outdated and weak
infrastructure is replaced prior to needing
an emergency repair.
During this phase, the school facility
preservation program funds will be:
- Used to
continue to support the RSD and OPSB
facility offices in administering the
school facility preservation program
- Deposited
into individual school facilities
accounts to be used for needed and
approved repairs for each facility.
There will be specific requirements and
accountability measures for the use of
these funds by schools. Older school
buildings needing more extensive repairs
and replacements will receive more funds
than newer buildings that need fewer
repairs:
- A school
in a renovated or new building will
receive +/-$500 per student
- A school
in a refurbished building or a
building built before 2005 that has
not been renovated will receive +/-
$650 per student
- Used to fund
an OPSB revolving facility loan fund and
an RSD revolving facility loan fund:
- Schools
can apply for interest-free loans to
help finance expensive emergency or
capital repairs and replacements
when they do not have adequate funds
in their school facilities accounts
to do so
- State law
lays out requirements for the amount
of money put into the loan fund, how
it can be used, how it must be paid
back, and how use of the loan funds
must be publicly reported
What will the RSD and OPSB facility
offices do?
Both the RSD and OPSB will need to inspect
the buildings under their control,
administer a revolving loan fund, help
schools with emergency repairs and long-term
capital planning, and monitor schools to
make sure they are meeting lease
requirements in routine maintenance and
inspection.
The facility offices will also be
responsible for emergency repairs until
2021, when this responsibility will transfer
to the individual schools.
Will the School Facility
Preservation Program affect Disadvantaged
Business Enterprises (DBEs)?
All projects under the School Facility
Preservation Program will be required to
follow RSD and OPSB DBE policies. This
means that all schools throughout the city
performing any emergency or planned capital
repairs to public school facilities will
need to do so according to
RSD and
OPSB DBE goals, policies,
and processes. The school facility accounts
will be audited annually for compliance with
law and policy, including adherence to DBE
requirements.
How will routine building
maintenance and repair be funded?
Just as they do now, schools will continue
to perform general and preventative
maintenance themselves and pay for this
maintenance out of general operational
funding.
Examples of routine repair/maintenance:
annual roof and termite inspections;
maintaining the grass and school grounds;
manufacturer provided preventative
maintenance schedules for all equipment and
systems; and individual repairs that do not
sustain or transform a building system such
as broken doors, broken/cracked windows,
broken motors or fans, flooring repairs,
wall repairs, repair of individual fixtures
or furnishings (light fixtures, baseboards,
trim, gutters, door hardware, railings,
etc.), plumbing repairs, electrical repairs,
minor roof repairs, replacing A/C filers,
etc.
How will RSD, OPSB, and charter
schools be held accountable for these funds?
Act 543 provides numerous accountability
measures for school buildings that would be
receiving funds from the millage proposition
for preservation of the school building,
including:
RSD/OPSB Facility Offices
- The offices
will inspect and monitor all public
school facilities to ensure that they
are being maintained properly and are in
compliance with inspection requirements
- The offices
will evaluate school building long-term
capital plans to ensure they meet
minimum requirements
- The offices
will monitor and review annual audits of
all school facilities accounts
- The offices
may suspend or terminate school
facilities accounts for account policy
violations, or if a building is not
being maintained and inspected properly
School Facility Accounts
- Account must
be segregated, and may not be commingled
with other school funds
- Long-term
capital plans must be developed for each
campus to detail necessary planned
capital repairs/replacements
- Long-term
capital plan must meet requirements
established by RSD/OPSB policy
- Accounts must
be audited annually
- RSD/OPSB may
suspend or terminate school facilities
accounts for noncompliance with account
policies
- Account funds
remain with the campus even if the
charter organization leaves that campus
- Account funds
may only be used for emergency or
planned capital repairs/replacements at
the particular campus the account is
designated for
- Non-emergency
expenditures must reflect long-term
capital plan and be approved by charter
board and RSD/OPSB
- Emergency
expenditures must be made according to
RSD/OPSB policy
Revolving Loan Funds
- Charter board
approval required for a charter school
to apply for loan
- RSD/OPSB must
annually report to the public on the
revolving loan funds and all loans made
to schools
What about future new construction?
New construction (renovations, additions,
etc.) that is not being paid for through
School Facility Master Plan funds will need
to be funded through new tax or bond
initiatives approved by Orleans Parish
voters, or public/private philanthropy or
financing.
Does Act 543 make the Recovery
School District permanent?
No, Act 543 does not make the RSD permanent.
The Recovery School District was given the
responsibility of maintaining and repairing
RSD-controlled school buildings by Act 35 in
November 2005 (codified in La. R.S. 17:1990
B(4)(b)(i)). Act 543 of 2014 does not
change this. Act 543 affirms preexisting
law that gives the Orleans Parish School
Board the responsibility for maintaining and
repairing OPSB-controlled school buildings,
and gives the RSD the responsibility for
maintaining and repairing RSD-controlled
school buildings. RSD and OPSB have
provided or overseen the maintenance and
repair of schools buildings in Orleans
Parish in this way since 2005.
Under preexisting law and Act 543, when an
RSD school returns to the Orleans Parish
School Board, the responsibility for
maintaining and repairing that school
building, along with funds for that school,
are transferred to the Orleans Parish School
Board.
* All Public School Buildings
* All Money Dedicated
* Not A Tax Increase
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