Operations

School Funding  |  Bond/Capital Override Elections

Contact:
   Glendale Union High School District #205
   7650 North 43rd Avenue
   Glendale, Arizona  85301
   623-435-6070
   E-mail Operations

School Funding

Students FIRST

In 1998, the approved Students FIRST legislation established a centralized school capital finance system by placing primary responsibility for school capital funding with the State. From this legislation, the State Facilities Board (SFB) was created and was given the responsibility to:

• Develop Building Adequacy Guidelines
• Conduct a Statewide Assessment of all School Buildings
• Coordinate the Correction of Identified School Deficiencies
• Administer Building Renewal Funding and a Preventative Maintenance Program
• Approve and Coordinate New School Construction
  

SFB Deficiency Corrections
The statewide assessment of all school facilities was completed in May of 2001. Correctly, this process was project scope driven rather than budget driven.

Identified in the Glendale Union High School District was approximately $7 million dollars of correction projects. After architectural planning, engineer review, SFB approval and the contractor bidding process, the cost of our projects doubled to $15 million dollars. In helping to balance the 2003 State budget, the SFB has delayed $11.1 million dollars of deficiency funding until July of 2005.

Building Renewal
The Students FIRST legislation established this fund for the purpose of maintaining the adequacy of existing school facilities. These monies can be used for renovations and repairs of a building, upgrades to building systems (heating, cooling, plumbing, etc.) that will extend the useful life of a building, and for infrastructure costs. Monies from this fund may not be used for new construction, remodeling interior space for aesthetic purposes, exterior beautification, demolition, soft capital items or routine maintenance.

The SFB should distribute building renewal funding twice a year in November and May. Due to State budget problems, allocation of this funding has been inconsistent. In 2001-2002 the Glendale Union High School District received 51% of our allocation No school district has received any Building Renewal funding since June of 2002.

Bonds and Capital Overrides
The majority of school capital funding should come from the state system. However, the law does provide for limited bonding, called Class B Bonds. With Students FIRST, Class B Bonds are limited to 5% of a district's net assessed value. Students FIRST also allows districts to obtain voter approval for Capital Overrides. The intent is to allow local control of decisions to exceed the state standards. The maximum life of the override is 7 years but they can be for unlimited amounts of funding.

Elections

Bond Election  |  Capital Override Election

Bond Election

Arizona school district finance and budget law does not enable school districts to accumulate a large amount of cash to complete major capital improvement programs within their District on a pay as you go basis. As a result, after careful and deliberate consideration by the community, administration and governing board, Districts can request from their local voters approval to issue general obligation bonds ("G.O. Bonds"). Such funds will finance projects which the State of Arizona under the current Students FIRST legislation will not.

School Districts can only hold an election in November of each year and the Governing Board is required to formally call the election June. The District electorate must approve the election by a 51% majority. The bond funds must be spent on the specific projects outlined in the Voter Information Pamphlet which is mailed to all registered voters.

If the election is successful, the District will sell bonds based on the construction time-lines established. G.O. Bonds simply represent a promissory note between the Glendale Union High School District and the investors of such bonds who purchase them. The interest received by investors is exempt from State and Federal taxation resulting in reduced interest cost to the District. Principal and interest on the bonds are repaid from a secondary property tax levied on the taxable property within the District. As a result, G.O. Bonds are considered to generally be the safest form of bonds next to U.S. Treasury Bonds resulting in very attractive tax-exempt interest rates to the District.
 

Capital Override Election

Arizona Revised Statutes allow for a voter-authorized increase to a school district's capital budget for a period of seven years. The increase is for an annual amount and is paid from a secondary property tax. The funds may be used for any authorized capital outlay purpose. Capital Outlay expenditures include building improvements, furniture and equipment (including computer technology and software), textbooks and transportation equipment.

What facility needs would be addressed with funding from these elections?

Infrastructure

• Electrical, Plumbing and Gas Line upgrade
• Blinds / Curtains
• Parking Lots
• Carpet / Tile
• Roofs
• Drinking Fountains
• Sprinkler Systems
• Paint
• Restrooms/Locker Rooms
• Sidewalks & Concrete
• Intercom / Sound Systems
• Air Conditioning

Safety

• Stadium Bleachers
• Drainage
• Fire Alarm Systems
• Doors / Windows
• Parking Lot Lighting
• Code Requirements
• Fencing

Technology
Computer and Technology upgrades to meet district standards:

• Student access to technology
• Communication to parents
• Online curriculum support for teachers and students
• Implementation of state technology standards
• Instructional Technology Training Center
• Standardize computer systems
• Information / Data Support Center

Equity

• All-Weather Tracks
• Media Centers

Student Growth

• Additional classroom space