Mecklenburg County Government spending paid for by local taxes has more than doubled in 11 years, marking an average annual increase of 10.2 percent. Driving much of the spending binge are payments of principal and interest on debt issued for school construction. Just as a bigger car loan requires a greater monthly payment, government’s annual debt service cost grows as bond debt piles up. Since 1995, $1.5 billion of school construction debt has been approved. Yet today, despite a property tax burden 116 percent higher than in 1995, we still confront an overcrowding crisis in Charlotte-Mecklenburg Schools. What’s wrong? Priorities!
Tonight, the Board of Education is expected to request a total November bond referendum of $510 millionÂ$427 million for construction and renovation and $80 million for land acquisition. This proposed bond package is unaffordable and unfocused on the priority of providing every student a permanent seat in a school near home. It promises to repeat mistakes made since 1999 when serviceable schools were razed and replaced only to be half-filledÂincluding Lincoln Heights, Billingsville, Pinewood, Westerly Hills, Walter G. Byers, Thomasboro, Druid Hills and Ashley Park Schools. Reconstructed First Ward Elementary, for another example, has 49 classrooms for 639 studentsÂ13 students per room. Meanwhile, unaddressed suburban growth has produced huge trailer farms and students lunching outdoors on winter days. Mecklenburg taxpayers cannot afford continued spending without priorities and neither can students.
We Republican members of the Boards of Education and County Commissioners offer an alternative approach focused on CMS’s critical infrastructure needÂrelief of overcrowding. We favor $253.8 million of Commissioner-approved COPs financing over two years strictly for construction of new seats (i.e., new schools and seat additions to existing schools) and no bond referendum this fall, except for the planned land acquisition bonds. If the budget-busting $510 million package is submitted, voters should vote “no,â€? knowing that growth construction needs can be met through COPs. (Certificates of Participation (COPS) are bonds that have as collateral the property affected; the particular school or library. COPS do not require a vote of the public. The County Commission may issue these by a simple majority vote. General Obligation Bonds have as collateral everyone’s property, which is why they have to be voted on by the public. The difference in interest rates is about 1/4 point.
The Board’s $510 million bond request expected tonight is not sized to cover two years of spending, but rather to break a ten-year, $2 billion spending plan into chunks voters might swallow. By contrast, the Republican COPs proposal is targeted to spending anticipated in the coming biennium. $253.8 million of COPs will provide for all new seats proposed to be constructed under the Board’s expected package. Together with $291 million in already approved bonds and COPs, $253.8 million of additional funding will amply authorize the $170 million school bond/COPs sales each January that the County Manager currently plans.
To be sure, with new COPs of $253.8 million and already approved COPs of $103 million tasked for building new seats to relieve overcrowding, CMS will have to reexamine carefully its prioritization of renovation projects for the remaining $188 million of previously approved G.O. bonds available. Nice-to-have but unnecessary projects, such as the $18 million replacement of half-full Marie G. Davis Elementary, should be reconsidered.
In addition to covering two years of spending and redirecting capital spending toward the highest priority, the Republican proposal will avoid committing CMS prematurely to decisions best considered after completing student assignment plans this fall and recruiting a new superintendent in the coming year.
Here are the details of our plan:
* Issue COPs to fund all new schools and seat additions in the forthcoming Board of Education proposal:
Southeast High School
Belmeade Road Middle School
Ridge Road Middle School
Belmeade Road Elementary School
Bradley Elementary School
Dixie River Road Elementary School
Elon Park Elementary School
Hucks Road Elementary School
Idlewild Road Elementary School
Providence Road Elementary School
North Mecklenburg HS Addition (16 classrooms)
South Mecklenburg HS Addition (9 classrooms)
Alexander MS Addition (6 classrooms)
Alexander Graham MS Addition (17 classrooms)
Cochrane MS Addition (10 classrooms)
McClintock MS Addition (9 classrooms)
Idlewild ES Addition (2 classrooms)
Long Creek ES Addition (9 classrooms)
Even as to these projects, costs may be overstated. Elementary schools just completed cost $11 million; new ones are budgeted at $16 million. The COPs approval process before County Commissioners can provide for auditing of CMS cost estimates and identify cost escalators.
* Defer/reprioritize renovation and other projects identified in the Board’s proposal:
Satellite Maintenance Facility
Transportation Maintenance Facility
RENOVATIONS
Garinger HS (science labs)
Independence HS (gymnasium)
Myers Park ES (gymnasium)
North Mecklenburg HS (renovation & addition)
South Mecklenburg HS (renovation & addition)
Alexander MS (renovation & addition)
Alexander Graham MS (renovation & addition)
Cochrane MS (renovation & addition)
Davidson MS (renovation & addition)
McClintock MS (renovation & addition)
Sedgefield MS (renovation)
Idlewild ES (renovation & addition)
Long Creek ES (partial replacement)
Amay James Pre-K (renovation)
LIFECYCLE REPLACEMENTS
East Mecklenburg HS Auditorium (renovation)
Garinger HS Track
Olympic HS Canopy
Olympic HS Emergency Generator
Olympic HS Stadium (field house, restrooms, bleacher upgrades)
South Mecklenburg HS Canopy
West Charlotte HS Track
West Mecklenburg HS Stadium (field house, restrooms, bleacher upgrades)
Hawthorne MS HVAC
Hawthorne MS Plumbing
Ranson MS Gym Floor and Bleachers
Cornelius ES Bus Lot
Pineville ES HVAC
Pineville ES Plumbing
MANDATES AND INITIATIVES
ADA Compliance
Cooler/Freezer Updates (various schools)
Fire Alarm Upgrade (Various schools)
Instructional Technology
Intercom Integration
Kitchen Hot Water (various schools)
Modular Middle
O&Q/Asbestos
Performance Contracting
Structural Evaluation and Repair
We can meet community priorities for schools and have an affordable community. Let’s take a first step in the right direction.
Board of Education Members:
County Commissioners:
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Kaye McGarry
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Jim Puckett
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Larry Gauvreau
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Dan Bishop
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Bill James