CCSD prepares for $500 million in school construction, repair
Construction crews soon could break ground on more than a dozen new and replacement schools to relieve the strain on crowded classrooms in the Clark County School District.
Thanks to legislation that Gov. Brian Sandoval recently signed, district trustees Thursday unanimously gave the initial green light for administrators to start the paperwork on issuing $500 million in new debt to pay for the construction of new schools and the repair or replacement of aging infrastructure.
The money, leveraged through a mix of local property and hotel occupancy taxes, wouldn’t arrive in district coffers until October — a timeline that offered some comfort to trustees worried about the possible breakup of the district.
“At this point, all we know is it’s up to lawmakers in Carson City,” District B Trustee Chris Garvey said.
If lawmakers approve Assembly Bill 394, which proposes chopping the district into smaller pieces, Garvey wondered which subdivision would have to repay the $500 million.
“Who would be responsible for getting those bonds repaid?” she asked. “Until we have more information, we think it’s advisable to have safeguards in place to withdraw or amend this (construction debt) plan — just in case.”
Senate Bill 207, which the governor signed in March, allows the district to extend its general obligation bonds — and generate up to $4 billion in debt — at existing property tax rates through 2025.
The initial $500 million in debt would fund 12 new campuses and two replacement schools, particularly in the booming neighborhoods in the southwest county, said Jim McIntosh, the district’s chief financial officer.
He estimated the administration would return to the School Board every one to three years to consider issuing new debt available within the $4 billion limit.
Still, “we have over $8 billion worth of need right now, so that’s not enough,” McIntosh added. “The district needs the capacity of approximately 32 schools today just to meet the enrollment overages that we have.
“If (enrollment) growth remains at 1 percent at the elementary level, we will need two new elementary school every year each year for the next 10 years.”
McIntosh also noted that the district previously employed more than 500 personnel — including project managers, designers and more — to handle construction and bond service.
He now may consider outsourcing much of that work to contractors if the debt allows the district to start breaking ground soon.
Perhaps a bigger problem, SB207 and another bill working its way through the Legislature do not address the growing maintenance needs in the district.
While the district recently added 18 positions to handle “preventative maintenance,” McIntosh compared that to a drop in the bucket.
Maintenance “competes with lots of other things, like programs and teachers,” he said.
“We’re waiting for the Legislature to determine what our funding is (but) instruction generally comes first.
“We would like to see dollars in the classroom as much as possible,” McIntosh added, “but that is a decision the board ultimately will have to make.”
Contact Neal Morton at nmorton@reviewjournal.com or 702-383-0279. Find him on Twitter: @nealtmorton
