1. Legislative Committee on Education Capital Funding Needs July 15, 2014

2. Capital Funding Matters Public schools are a community investment paid for with taxpayer dollars. To protect the community’s investment, school buildings need to be maintained and equipped to provide a safe and effective learning environment in which children can focus on preparing for the 21 st century workplace. 2

3. Recent History of Capital Funding in WCSD Washoe County voters approved a rollover bond in 2002 to fund: – Desperately needed new schools to keep up with rapid population growth – Older school revitalizations – Crucial capital renewal needs – Technology infrastructure 3

4. Recent History of Capital Funding in WCSD 2002 Rollover Bond – Generated approximately $551 million to fund important capital projects at all of the District’s schools – All funds have been allocated to essential capital projects across WCSD CategoryFunds Student Housing$193,245,620 Older School Revitalizations $81,426,321 Older School Capital Renewal $64,215,640 Technology $51,457,714 Program Administration $21,433,686 In progress $139,704,201 Total$551,483,182 4

5. Recent History of Capital Funding in WCSD 2002 rollover bond expired in November 2012 – This is WCSD’s only major source of revenue – Property tax revenue will not support additional bonding until 2018-2020 5

6. Unlike other districts in Nevada, the 2002 rollover bond was WCSD’s major source of funding for capital projects. Recent History of Capital Funding in WCSD 6

7. Current Situation: Funding Issue Upon the expiration of the 2002 rollover bond, WCSD was left with no way to generate substantive capital funding to maintain the community’s investment in its schools. 7

8. Current Situation: Capital Needs WCSD schools have approximately $308 million in unfunded capital renewal needs. Every school has identified needs. The majority of the projects are for necessary maintenance and repairs. 93 schools in WCSD 60 percent are more than 30 years old 25 percent are more than 50 years old More than 7 million square feet of building space to maintain 8

9. Capital Funds Ten Year Renewal Needs 9

10. Current Situation: Projected Growth Need at least two new schools today – High schools at 99% capacity, including use of portables Currently 30,000 units have been approved by local governments, not including new proposed developments Potential growth implications project 10 new schools based on growth 10

11. Current Situation: Upgrade needs School safety upgrades are a priority Technology infrastructure lacking to keep pace with demands – Necessary improvements to bandwidth, hardware, software to be successful for new assessments – Doesn’t include operating costs to train teachers and students on new technology 11

12. Potential impacts if no solution is put in place: – WCSD schools will go without much needed repairs and improvements. Costs will increase over time as needed repairs are not made. – District will be faced with decision to use general fund money to pay for critical building needs. – Overcrowding options will be considered like multi-track, dual schedules, increased class size, relocation of special programs, limited rezoning opportunities – Academic outcomes may be compromised if facility needs aren’t addressed Current Situation: Impacts to Schools 12

13. Limited Options for Solutions Primary source of funding is Property Tax with voter approval – Other revenue sources are imposed by county commission or legislature – not by school district. None available to WCSD Cap on overlapping tax rates limits tax rate access – Washoe is at statutorily imposed property tax cap – Districts can only propose property tax based ballot questions, so this isn’t an option in Washoe – State law does not provide any alternative avenues for districts to generate additional funding if they are at the tax cap – Abatement caps limit revenue increases 13

14. Who can help? Can’t ask a property tax question if at the cap. Can’t use district resources to support ballot question efforts Voters via ballot questions Historically, state hasn’t played a role in financing school capital. Enabling legislation hasn’t achieved desired outcomes. Legislature Governance concerns over county commissions having funding authority or responsibility for over similarly elected school board issues. School boards don’t have taxing or ballot authority Local Government 14

15. Conclusion Focus on improving academic outcomes Without safe and adequate school buildings, academic outcomes may be compromised. Districts need some viable options to find solutions to our capital needs crisis 15