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A closer look at the school bond referendum

Phase 1 emphasis on elementary schools
By KinstonPress.com

Posted: 1:15 AM EST Wednesday April 26, 2006
The most controversial question on Tuesday’s primary ballot is whether voters will approve borrowing almost $70 million to build and renovate schools in Lenoir County.

The bond would be repaid in 20 years through a tax increase of at least 5 cents per $100 of property valuation. The owner of a house valued at $100,000 would pay an additional $50 annually in taxes.

Critics of the bond say property owners cannot afford the increase, and the large expense is unnecessary. Supporters say good schools are critical to educating children and attracting new businesses and industries to this area.

The question on the ballot reads: “Shall the order authorizing up to $69,700,000 of Lenoir County general obligation bonds to pay capital costs of providing school facilities and paying related costs, as adopted by the County’s Board of Commissioners on March 8, 2006, be approved?”

School officials say two separate consulting firms estimated that schools need 21 repair and renovation projects, which would cost more than $200 million. The Board of Education decided the best way to update buildings would be a phased program accomplished over several years. This approach would minimize the effect on taxpayers, board members say.

If voters approve the bond, construction of the first projects would begin next spring. Completion would be expected in time for schools to open in 2008. Other projects would be phased in during the next couple of years, the board says.

More taxes to come? The cost of updating school buildings remains cloudy. While the school board is relying on lottery money to help foot the bill, several reliable sources, including Carolina Daily Journal, say the sale of lottery tickets is declining. This could mean receiving less money than the board is counting on.

The state Department of Public Instruction estimates Lenoir County will receive $1,462,690 from the lottery this year. But even in the district’s own information about the bond, board members admit further tax increases may be needed.

“If lottery revenues are not available in sufficient amounts to pay debt service on the remaining bonds, the County would consider additional property tax increases, as appropriate under the circumstances,” the district states. “The county will work to manage the process of issuing the bonds to phase in and minimize any tax increases, while continuing to review projections of taxable property values, debt service costs, sales tax revenues and the availability of lottery revenues. The county and Board of Education will work together to manage the process of carrying out projects to keep the impact on the County’s tax rate as low as possible, while still completing the projects in a timely and efficient manner.”

Another report from DPI, based on information provided by individual school districts, says Lenoir County needs to spend $62,900,325 on new schools, $20,711,499 on additions to existing schools, $1,830,834 on renovations, $7,413,961 on furniture and equipment and $371,492 on land. The DPI reports the district’s total needs add up to $93,228,111.

The district told DPI in 2001 that spending $50,009,837 could solve all Lenoir County school needs.

Who would go first?
The school board says it has prioritized projects in order of need. Elementary schools are the focus of the first phase of the building program. The six projects include:
  1. Build a new Contentnea Elementary/Savannah Middle School, combining grades K-8
  2. Build a new Pink Hill Elementary School
  3. Build a new school combining Bynum and Teachers Memorial elementary schools and undertake Phase 1 renovations and additions to Southeast Elementary School
  4. La Grange Elementary – Phase 1 additions
  5. Moss Hill Elementary – Phase 1 additions
  6. Banks Elementary – Phase 1 additions and renovations
The focus is on elementary schools, the district says, because: “It is typically less expensive to construct elementary schools than middle or high schools. With the facility needs being so great in Lenoir County, it was determined that there would be greater impact to more students by starting with the elementary projects. The middle and high school projects will comprise later phases of construction.”

Tomorrow: What problems in schools need correction? Does the condition of schools correlate with higher test scores? Will students be redistricted?

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