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CEFPI North Carolina REPORT ON THESTATE OF THE STATE OF SCHOOL FACILITIES

May 7, 2012Steve Taynton, AIA

School Planning, NCDPI

Slow but Steady Improvement

• Some improvement in housing sales and starts• Unemployment is slowly declining• Interest rates are still good• Some states showing increase in architectural jobs• Qualified School Construction Bonds are being

exhausted• Bid prices continue to increase• Note that government usually lags the private

sector in recovery• AIA shows increase in design activity

Modest Revenue [Architect Billing] Increases Continue Through Spring More than half of architecture firms surveyed plan to add architecture positions in 2012(AIA Architect 4-27-2012)

Synopsis of 2011

• 397 projects in 2011 (up by 70), 463 review letters.

• (141 – 36% of those projects are designed by the LEA - no AE) 88 projects so far (4/12/2012) this year

• Only 9 New Schools in 2011, remainder additions/renovations/other

• Currently running about 40 projects in some phase of design/review (also down from last year)

• Strive for review within ten days - staffing loss has caused delays in midst of hiring architect and electrical engineer

CONSTRUCTION COSTS

New School Construction Costs

• 2011 costs ran $153/ square foot– About 8.9% more than $140 in 2010.

Insignificant number to tabulate so far in 2012

• We urge you to return our cost information requests - it’s the only way we can share this valuable info everyone needs! It takes Lots of reminders from us to get info

• We are looking for Total Sq. Ft. & Bid Costs as Awarded

• Separate Site Work bids allow projects to be compared more easily and allow playfields to become established prior to occupancy

Capital Funds

Two ways of looking at construction spending (2010/2011 Fiscal Year)

• 1. Bonds, COPS, QSCBs, QZABs, Public School Building Capital Fund (Does not include any “Pay as you Go” money)

• 2010/11 Local General Obligation Bonds passed: Zilch past four years $ -0-

• 2010/11 COPS, QSCBs, QZABs $376,950,469

• 2011 PSBCF disbursements (No ADM Fund receipts past three years)

• (Lottery funds reduced by legislature last year)• ADM : $ $ 5,770,239• Lottery: $ $119,971,523

• Total $502,692,231

Capital Funds (Continued)

• 2. Total Capital Funds Spent from Accounting

Codes. – Includes only current expenses and may not include any

monies paid by the county on behalf of the LEA (like COPS, xfers for Sales Tax refunds). Figures do not include debt payments for prior construction. Figures do not include any 2009/2010 expenditures but may include administration,

maintenance, transportation and similar facilities)

State Federal Local Total

16,411,942 10,772,628 632,330,965 659,515,535

Total is $143 M less than last year

PSBCF Redirection & Available

• PSBCF Holdback/Redirection– All Corporate Income Tax redirected from

PSBCF past three years– Appx. $70M lottery funds for construction re-

directed (a 41% reduction from original law)– 4/12 ADM Current Unallocated: $22,731,637– 4/12 Lottery Current Unallocated: $147,599,871– 4/12 CURRENT TOTAL $170,331,508

(Up $7.5 M from last year)

2011 Use of the PSBCF

Portion for Debt Service has increased from 48% to 74.8% in three years

Federal Stimulus Funding

• ALL QSCB Money allocated

• QZAB Money (interest free (or almost) loans) still available: $53,632,000 - apply anytime any amount– 35% or greater free/reduced lunch– Renovations only

– 10% match with local business (can be in-kind)

New Stuff and Concerns

• High Performance Guidelines– 30% better than ASHRAE 90.1 – 2004

(20% better for renovations)

– Relatively easily attainable– Includes HVAC, envelope, daylighting, water, etc– Projects will be recognized

• Science Safety Requirements– Concerns about high cost

• Costly “Isimet” controls not required or needed

• Are you really concerned about sinks in Science???

• Basic safety features – mostly from Nat’l Science Teachers Assn.

New Potential/Actual Legislative Action

• The Legislature Returns on May 16th

• ADM fund (From Corporate Income Tax) may be eliminated

• Change Lottery distribution (less or more for Construction

• Eliminated Cap on Charters

• We now manage Deaf & Blind Residential Schools – they need $$ and repairs/renovations

• Who Knows What they will do….

Other Rumblings/Bills

• Tax credit for private schools or Vouchers

• Lower Corporate Tax Rate - eliminate portion to PSBCF (school construction)

• All or most Lottery Money to school construction - distribution by ADM only Or

• Less money for School Construction

Plan Review Issues

• Small, non A/E designed projects cause the most problems– Often Booster Clubs, PTA– Good intentions– Not knowledgeable about building codes or

bidding laws– Poor structural, HAC, building details– Designed to be “cheap” not long lasting or

energy efficient– Do schools really want a “Maintenance

Nightmare?”

Challenge

• It’s time to begin thinking about General Obligation Bonds again!

• Creative Financing – Must get money from numerous sources

• Get the most for your buck – quality construction, vanilla materials

• Remember that longevity and low, simple maintenance are crucial – be careful with “experimentation”

• True design is about function, design for learning and spatial relationships not just “how quick can we do this” or geometry games.

Lets Take Care of What We’ve Got!!Questions ??