Education Funding

School Building Projects Face Fiscal Uncertainty

By Joetta L. Sack — January 15, 2003 4 min read
  • Save to favorites
  • Print

Arizona’s school construction problems may get worse before they get better. The state faces a looming court-ordered deadline to repair or replace hundreds of schools identified as structurally inadequate for student learning. But shrinking revenues have left the agency charged with doing that work almost broke.

The Arizona School Facilities Board is hoping the cash-strapped legislature will allow the board to raise enough money through bonds to help it complete the job. Meanwhile, the board is also hoping for state money to sue contractors who left districts with shoddy work and materials.

To finish the repairs ordered by a state superior court as part of a school finance case, the board needs some $330 million. That includes $280 million to finish work on more than 6,000 repair projects, a task that will cost a total of $1.3 billion, about $100 million more than expected. Unrelated to the court order, the board is overseeing 88 new schools to house the state’s fast-growing student population, and may need another $50 million to finish that job.

Created by the legislature nearly five years ago, the facilities board oversees school construction and repairs that are paid for with state funding, including revenue from sales taxes that were increased for the facilities initiative.

Now, the board proposes that the state issue school construction bonds to finish the work, which under the 1998 settlement approved by the court must be contracted for by this June, and then completed by June 2004. The board’s executive director, Edward E. Boot, said he was “95 percent confident” that the legislature would allow the board to authorize the bonds. If not, he acknowledged, the work likely will be halted—and another lawsuit filed.

The board has not been without controversy. Some say it has made great improvements to a school construction system with many flaws. At the local level, though, some district leaders have expressed qualms about giving up so much control over their projects. Others say that the effort was not needed and contend that it has been too expensive.

“We couldn’t afford it” in 1998, said Randall Gnant, a Republican and the outgoing Senate president, who argued for a cheaper way to meet the court order.

In the midst of the current fiscal crisis, which includes a projected budget deficit of about $1 billion for fiscal 2004, the legislature will have an even tougher time finding the funds for the board’s projects.

Building Pressure

But Timothy M. Hogan, the executive director of the Phoenix- based Arizona Center for Law in the Public Interest, who represented the districts that won the original settlement, said the legislature must find a solution, or risk another lawsuit.

“This program is required under the state constitution, and they can’t just decide when they don’t have the money that they’re not going to comply with the state constitution,” Mr. Hogan said. “We’ve got a first lien on the state treasury.”

And those districts that were unable to raise enough property-tax revenue to build and remodel schools appreciate the board’s work.

“We’re happy with what’s going on,” said Gary Knox, superintendent of the 5,800-student Crane Elementary district in Yuma, Ariz., where the board is rebuilding one school, building additions to others, and putting new roofs on its eight facilities.

At the same time, the facilities board is also trying to locate communities in which shoddy work has been performed on schools, and wants the legislature to give it money to hire a lawyer to sue the contractors responsible for the faulty work.

Mr. Boot said the number of targeted construction sites is relatively small—fewer than two dozen out of the more than 6,000 projects—and the repairs mainly deal with leaky roofs, air conditioning and duct problems, and other mechanical issues.

Still, he added, “there are numerous cases where school districts received work that was inferior, and we’re going to try to collect on that.”

All of those jobs were finished five to eight years ago, before the facilities board was formed to oversee such projects. The board does not have an estimate for how much money might be recouped. “We’re asking that the legislature address the issue of funding for the purpose of hiring counsel to bring action against contractors,” said Kathleen English, the board’s spokeswoman.

Some districts have routinely looked to the state to come back and repair contractors’ poor work, rather than take action against the contractors, she said.

The board could run into problems getting districts to cooperate with its proposed lawsuits, Ms. English acknowledged, because many rural districts had only one or two contractors to choose from for their renovation projects. Also, in small towns, school officials are reluctant to bring lawsuits against people they know.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Letter to the Editor Expired Funds, Unreliability Harm Rural Schools
Responsible planning requires predictable funding, says a school district superintendent.
1 min read
Education Week opinion letters submissions
Gwen Keraval for Education Week
Education Funding Federal Tax Credits for K-12 Scholarships: What We Know (and Don't)
The Trump administration is preparing to issue rules for its new, ambitious school choice program.
11 min read
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump s Education Freedom Tax Credit on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich.
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump's tax-credit scholarship program on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich., where she urged Michigan Gov. Gretchen Whitmer to opt her state in. The Trump administration, through the Department of the Treasury, is expected to release regulations for the program in the coming days. Several governors have said they're awaiting those regulations before deciding whether their states participate.
Katy Kildee/The Detroit News via TNS
Education Funding Trump's Education Funding Maneuvers Were Illegal, Judges Rule
Judges ruled in suits about teacher-training grant cancellations and withheld education research money.
4 min read
Collage of Trump signing an executive order, money, desks, torn paper, legal pad.
Collage by Laura Baker/Education Week with Getty + Evan Vucci/AP
Education Funding What 'Returning Ed. to the States' Looks Like as the Ed. Dept. Awards Grants
State leaders face requests for letters of endorsement from grant applicants under new priorities.
TahSoGhay Collah, right, teaches a third-grade English learners class at the 700-student intermediate school that serves grades 3 through 5, in Worthington, Minn., on Oct. 22, 2024.
TahSoGhay Collah, right, teaches a 3rd grade English learners class in Worthington, Minn., on Oct. 22, 2024. Researchers seeking federal grant funding to train more teachers to work with English learners requested letters of support from state leaders to submit competitive applications this year.
Jessie Wardarski/AP