Schools have cushion if $800M bond runs out

Despite rapidly rising costs, there’s no need to panic about whether Broward schools can pay for all of the projects in the $800 million bond, a district administrator said Wednesday.

Judith Marte, chief financial officer, told School Board members in July they might have to make “tough decisions” because money could run out. But on Wednesday, she painted a more upbeat outlook, saying the district has several potential unbudgeted sources of money that could provide an extra $172 million.

Her comments made the School Board feel more comfortable approving $25 million in new security expenses, including cameras, radios and an upgraded intercom. These were investments made at the request of a security consultant in the wake of the Feb. 14 massacre at Marjory Stoneman Douglas High.

The security expenses were approved as part of the district’s capital budget, which also funds school buses, technology, and renovation and new construction projects that were approved by voters in 2014 as part of the $800 million bond referendum.

It’s the bond projects that are causing the public the most anxiety, as numerous projects are years behind schedule. Some projects are coming in at two or three times their original budgets, leading to fears that schools on the back end of the five-year program could get cut.

“I’ve heard some concerns about what happens if we need additional money,” Marte said. “There are options.”

Marte outlined those options:

The district could get $57 million in additional property tax dollars over the next five years. That’s money state law requires the district to share with charter schools. But this year, the state gave charter schools construction money from a different funding source. Marte said she’s optimistic the state will continue that.

A pending sale of two pieces of land could net $31 million for the district.

An additional $84 million may be available in the 2021-22 year to pay for projects on the tail end. The current budget only projects using money through 2020-21. The district says it wants to finish all bond projects by December 2021, although many construction experts are skeptical.

That $172 million is in addition to the $188 million the district already has in reserves for the bond program.

A January 2017 letter from a consultant warned the district that project costs would increase by as much as $450 million. District officials have yet to provide updated estimates.