New Tool Helps Measuring Public School Construction Debt

BY CORY CHANDLER, Texas Comptroller Staff Writer

The days are becoming cooler, the nights longer, leaves are starting to turn — yep, bond season will be here before you know it.

Texans in those areas can expect the typical flurry of campaign materials, making the case for millions in new bond debt to build or upgrade school campuses.On Nov. 4, at least 36 Texas public school districts will seek voter approval for bonds to finance facility construction.

But how do they really know what would be done with the borrowing they’re being asked to authorize — and how new debt would fit into the schools’ financial picture?

Between October 2013 and February 2014, the Comptroller’s office submitted a public information request to every Texas public school district and charter operator, gathering data on schools built from 2007 through 2013.

District responses were compiled into a report on new school construction expenditures as well as a school construction lookup table.

For comparative purposes, all construction costs are adjusted for inflation to 2013 dollars and indexed to account for regional differences in materials and labor costs.

“This lookup table gives taxpayers a way to locate public school construction costs for their own community, and compare the costs against other schools in the area or of similar size,” says Sarah Tomlinson, project manager for Comptroller transparency initiatives.

Districts reported construction costs ranging from $76 per square foot to $260 per square foot, after adjustment for inflation and regional cost variations.

Cost variations

The report provides analysis of “outliers,” projects falling significantly above or below average.

Port Arthur ISD, for instance, had some of the most costly construction projects in the survey period, due largely to the fact that the coastal district has to protect its facilities against wind and flood damage.

“We have to build with hurricanes in mind,” says Assistant Superintendent Reid Rashard.

United ISD in Laredo, by contrast, came in with the least expensive project by negotiating a favorable guaranteed price to build multiple schools using a common architectural model. Killam Elementary School was the last of six schools built from a contract signed in 2003.

“We got one price from the contractor and locked the price in,” says Ed Ramirez Jr., former chairman of United’s Bond Oversight Committee. “If we hadn’t locked in the price, the last couple of elementary schools would have been a lot more expensive.”

Ultimately, MacCrossan says, local school districts and taxpayers have the opportunity to build the schools that suit their communities.

“Taxpayers can see that there is not a one-size-fits-all approach to school construction in Texas,” MacCrossan says. “This report provides comparative data so readers can learn lessons from other districts and ask the questions that will wisely guide their design and spending decisions, ensuring that students get good facilities at a price their community is willing and able to afford.”