Supplemental Severance Tax Bonds for School Capital Outlay School Capital Outlay Presentation to the Legislative Finance Committee Wednesday, August 22, 2012 Robert Gorrell, Director Public School Facilities Authority Public School Facilities Authority PSFA presentation to LFC 08/22/12
PSCOC authorization of SSTBs • Section 7-27-12.2 – A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental severance tax bonds are needed for expenditure relating to public school capital outlay projects pursuant to the Public School Capital Outlay Act [22-24-1 NMSA 1978] or for the state distribution for public school capital improvements pursuant to the Public School Capital Improvements Act [22-25-1 NMSA 1978] h bli h l i l • The proceeds from the sale of the bonds are appropriated as follows: • (1) the amount certified by the secretary of public education as necessary to make the distribution pursuant to Section 22 25 9 NMSA 1978 is to make the distribution pursuant to Section 22-25-9 NMSA 1978 is appropriated to the public school capital improvements fund for the purpose of carrying out the provisions of the Public School Capital Improvements Act; and and • (2) the remainder of the proceeds is appropriated to the public school capital outlay fund for the purpose of carrying out the provisions of the Public School Capital Outlay Act. p y PSFA presentation to LFC 08/22/12
PSCOC Funding History PSFA presentation to LFC 08/22/12
NEW MEXICO AVERAGE FACILITIES CONDITION INDEX (FCI) FOR SCHOOL BUILDINGS 80% 70% 70% 67% 65% 60% 57% 55% 50% 50% 38% FCI 40% 37% Lower 36% 34% is 30% Better F 20% 10% 0% 03 ‐ 04 04 ‐ 05 05 ‐ 06 06 ‐ 07 07 ‐ 08 08 ‐ 09 09 ‐ 10 10 ‐ 11 11 ‐ 12 12 ‐ 13 200 200 200 200 200 200 200 201 201 201 A key performance measure for public school building condition is the average facility A key performance measure for public school building condition is the average facility condition index (FCI). FCI has improved 37% since 2003 but the rate of improvement has slowed. PSFA presentation to LFC 08/22/12
AVERAGE WEIGHTED NEW MEXICO CONDITIONS INDEX (wNMCI) TOP 30 SCHOO S TOP 30 SCHOOLS 180% 163% 160% NMCI 140% 129% 115% 120% 100% 88% 88% Lower 80% wN is 80% 72% 72% 67% 66% Better Better 60% 40% 20% 0% 04 05 06 07 08 09 10 11 12 13 2003 ‐ 0 2004 ‐ 0 2005 ‐ 0 2006 ‐ 0 2007 ‐ 0 2008 ‐ 0 2009 ‐ 1 2010 ‐ 1 2011 ‐ 1 2012 ‐ 1 The wNMCI average of top 30 schools has improved over the past four years. Seven The wNMCI average of top 30 schools has improved over the past four years. Seven schools have been in the top 30, and without applying for assistance, for over four years. At 60%, a facility should probably be replaced. PSFA presentation to LFC 08/22/12
The wNMCI measures functional adequacy of a school adequacy of a school. FCI measures only facility condition. FCI is a leading indicator for schools the will become dysfunctional. become dysfunctional. PSFA presentation to LFC 08/22/12
STATE AND LOCAL FUNDS REQUIRED TO MAINTAIN THE CURRENT FCI $110,766,926 2011 $284,017,759 State Share Only Combined State & Local $125,786,977 2012 2012 $322,530,711 Year $139,616,917 2013 $357,992,096 Y $135,432,397 2014 $347,262,557 $172,095,122 2015 $441,269,544 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 To maintain an FCI of 34%, an average of $343 million ($134M state, $210M district) annually would need to be invested in school facilities. At lower levels, degradation exceeds renovation/repair and facilities decline. PSFA presentation to LFC 08/22/12
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