With less money and fewer students, schools slash construction plans - Orlando Business Journal:

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“The program list is going to haveto change,” said Scotf Stegall, director of capital outlahy for , which now faces delayinyg projects such as a planned new elementary school in Sanford for which it had earmarkexd $5 million to buy land in the upcomingv fiscal year. Seminole is among several Central Florida school districts discussing changes totheier five-year capital plans, after the Florida Legislature approved a budget this month based on redirecting part of the loca two-millage capital improvement tax to cover operatinh expenses. Millage is the amount per $1,00 0 used to calculate property taxes and localschool taxes. Gov. Charli Crist signed the budgetMay 27.
Last year, state lawmakersz approved moving 0.25 millage of the two-millaged tax to fund school districts’ operatinbg costs. The new statew budget, approved by the Legislaturee earlierthis month, includes another 0.25 millage moved to coverf operating expenses. And that 0.5 millage redirec means substantially less money for CentralFloridw districts’ school construction and maintenance plans. “That’a been the biggest impact” to the capitalo outlay budget, said Stegall. Studenf enrollment declines may reduce the demand for new schoolsz in theshort term, Stegalll said, but districts must account for future which is calculated by the state.
Schoolo districts can move the 0.25 millage back into the capitaol pot, if they don’t need the money for operatinb costs. But Wayne Blanton, executive director of the , expects most districts probably will use the moneuy for operating expenses due to previoufunding cuts. The budget also includes a newadditionalk 0.25 millage tax for operations or capital expenses that can be leviedx by a supermajority vote of a school board and voter approval — but that might be a toughj sell in a recession. rolled its millage back to 1.5 millages in 2004, said Rick Collins, the district’ds chief financial officer, so there’s no direct impacf on the district’s capital revenue.
But he said, “The potential impact is in our ability to borrow mone if the statewide reductio in capital millage results in an adjustmentg by the bond markets to reduces access to the market orincreasw costs.” Still, the districy likely will scale back its capital plans significantly due to a reductiobn in its tax base, less sales tax revenued and impact fees and a reduced abilitgy to borrow money. Collins said the district’s 10-yeatr total revenue will be reduced byabout $1 billion. Osceolq County’s five-year capital plan is beinvg cutfrom $804 milliom to $316 million, so some projects will have to be said district spokeswoman Martha Mann.
Lake County Schoopl District hasn’t seen an enrollmenft decline, but it likely will reduce its $777 milliobn five-year capital improvement plan to $490 million due to fundinf reductions, said Harry Fix, the district’s director of growtj planning. ’ five-year capital improvement prograj likely will be cutfrom $724 million to $472 causing it to delay and downsize some capital projects, said Sarale e L. Morrissey, the district’s director of site acquisitiobn andintergovernmental coordination.
“The Legislature’s actions, combined with the declinre in property valuations andsales taxes, create a dismall picture for school construction, renovations and