This rendering of the new Ranson Elementary School shows the front of the school building with a canopy over the bus loading area.
Jefferson County Schools (JCS) staff presented five options for proceeding with the current construction bid and addressing the funding gap for the Ranson Elementary School project (see related article). A sixth option that would require redesign and rebidding was also presented, but the funding requirements of that option would remain speculative pending the outcome of another round of bidding (with the assumption that construction costs will continue to rise, so that there might not in fact be any cost savings from the reductions in project scope).
OPTION 1: No changes to project design & ask SBA to fund 100% of the gap. $11.5 million new state funds + zero additional JCS funds
OPTION 2: Reduce project costs by $2 million & ask SBA to fund 50% of the gap. $4.75 million new state funds + $4.75 million additional JCS funds
OPTION 3: Reduce project costs by $2 million & ask SBA to fund 40% of the gap (equivalent to additional 50% of original SBA grant). $3.75 million new state funds + $5.75 million additional JCS funds
OPTION 4: Reduce project costs by $2 million & ask SBA to fund 16% of the gap (equivalent to additional 40% of original SBA grant). $1.5 million new state funds + $8 million additional JCS funds
OPTION 5: Reduce project costs by $2 million & no additional funds from SBA. Zero new state funds + $9.5 million additional JCS funds
OPTION 6: Reduce projects costs by $3 million – Requires redesign & rebidding of project. Zero new state funds + $8.5 million additional JCS funds (estimate, pending re-bid results)
The potential sources of the additional JCS funds were identified as follows:
Bond interest/reserve: $1.25 million (option 2-3-4-5). These funds are from interest earned from the bond money held until it is expended on the project. These funds cannot be carried over after the completion of the project.
Board designated funds: $3 million (options 2-3-4-5). These are funds in the school system accounts that are not designated for any specific budget item or reserve requirement. JCS currently has $7 million in these funds.
Fiscal Year 2022 Carryover: $0.5 million (option 2), $1 million (option 3), $2 million (option 4), $3 million (option 5). These amounts would be drawn from funds budgeted, but unspent in the FY2022 operating year (July 2021 – June 2022). JCS currently has $9.5 million of carryover from FY2022. JCS guidelines call for it to budget for at carryover between 3 and 5 percent of the total budget.
Fiscal Year 2023 Carryover: zero (option 2), $0.5 million (option 3), $1.7 million (option 4), $2.2 million (option 5). These amounts would be drawn from funds budgeted, but unspent in the current FY2023 operating year (July 2022 – June 2023). The actual carryover from FY2023 is not yet known.
By Steve Pearson