In a nutshell
To combat shortfalls due to the administration's failure to adjust 2023 bond project estimates for inflation, trustees voted in October to defer several projects from the $1.26 billion bond and discussed using contingency funds for remaining projects.
Now, after accounting for cost estimates of all bond projects, the board of trustees will determine how to spend almost $38.85 million in contingency funds, Chief Financial Officer Bryan Guinn said during the April 7 work study meeting.
However, this amount isn’t enough to bring back deferred projects such as turf repairs and Elementary School No. 55 in Harvest Green without land sales or another bond election, Guinn said.
Board President Kristin Tassin said higher-cost projects may have to be put on hold in favor of more immediate needs, such as the $13 million for Madden Elementary School slab repairs, and asked district leaders to present a prioritized list.
“I think those are the big-ticket items that we just can't afford unless we're cutting everything else out,” Tassin said. “I would very much like to see [a] priority list.”
The update
FBISD administrators now estimate the remaining projects from the bond are about $29.9 million over their approved budgets, and the district will need to dip into contingency funds, Guinn said.
Since contingency money is set aside for the project’s specific proposition, the $23.7 million needed to finish Proposition A’s new schools and renovation projects can be covered by its own contingency funds, Guinn said. These projects include renovations to Bush, Hightower and Willowridge high schools, according to the presentation.
But since there isn’t contingency money in Proposition C to fund a natatorium, the $6.2 million needed to finish the project will need to use leftover funds from the district’s 2014 or 2018 bonds, Guinn said. Contingency funds in bonds approved prior to 2019 aren’t restricted to be used only within their own propositions.
Administration will recommend using 2014 bond contingency since it is the oldest, Guinn said.
Guinn presented $119.78 million in projects that the district determined as high need, some which were delayed from Proposition A following shortfalls in November. He said there is not yet a formal prioritization of these items.
“These [projects] are not indicative of a deficit,” Guinn said. “These are projects that have been identified that need funding for which there's no current funding source.”
Guinn added land sales would require board approval and it would take at least one year for the district to receive offers. Meanwhile, the bond would be immediate and require that construction begin within 18 months of the election.
What they’re saying
Trustee David Hamilton said he believes Elementary School No. 55, which was removed from the bond plan in November, should take priority due to the overcapacity at neighboring schools in the Harvest Green community.
However, Guinn said trustees should consider the staffing cost of about $1.7 million that would come with opening a new school and the fact that there aren’t enough new students to fund operational costs based on the state’s current formula of funding.
“I’m not saying don't consider [Elementary School No. 55], but I do say ... we need to be cognizant of the fact that it will have an operational impact that we also have to address as well,” Guinn said.
Major maintenance items have failed and already been replaced through the district’s general fund, though administrators would like to replenish that money from the bond contingency, Guinn said.
Looking ahead
Several trustees said they believed FBISD should repair major maintenance projects to prevent worsening damage.
However, trustee Angie Hanan said multiple bills filed in the 89th Texas Legislature could restrict public school bonds.
“I'm not sure that folks have an appetite for calling a bond election,” Hanan said. “And anybody that's paying attention to the Legislature right now, they're going to make calling for bonds harder for public schools, not easier for public schools.”
House Bill 5035 proposes removing state-financial backing to issue bonds, resulting in higher interest rates, and Senate Bill 2842 would prohibit the district from using bond money to pay for deferred maintenance, according to drafted bills.
If voters don’t approve a bond, none of the projects could happen outside of the available $38.8 million in contingency funds, Guinn said.
“Before we go to the voters, I want us to be able to say we have gone above and beyond [to search for alternative funding],” trustee Sonya Jones said. “And it's on [the voters].”
Next steps
If the board approves using contingency funds for the remaining already-approved facility improvements and a natatorium project in the coming months, all 2023 bond projects will have received their allocation by February, Guinn said.
During the April 14 board meeting, trustees will discuss a list of properties recommended for sale during closed session, according to the board agenda. Community Impact couldn’t confirm when land sales would be discussed in an open forum by press time.
