Facility improvements in schools are more than just aesthetic upgrades; they play a crucial role in fostering a strong relationship between educational institutions and their communities. Through capital improvement programs funded by bonds and sinking funds, schools can enhance the learning environment, uplift student morale, and instill a sense of pride within the community.
Plante Moran Realpoint’s Nicole Blocker and Paul Wills joined education expert Dr. Robert Livernois on AM 760 WJR’s “School Talks” to discuss the symbiotic relationship between schools and communities, different funding sources for capital improvement programs, and the importance of having a trusted advisor by your side. Listen to “School Talks” wherever you find your podcasts or visit www.wjr.com/school-talks.
Key takeaways
Districts in Michigan receive most of their general funding on a per-pupil basis, making student enrollment numbers a critical factor in their revenue. However, 80% to 85% of the general fund is allocated to programming and operations, not facility maintenance and improvements.
Bond and sinking fund dollars help offset the significant costs of capital improvements on Michigan’s school buildings, which cannot be covered by general fund dollars alone. That means bond elections are crucial for securing capital funding for a district, and failure to pass a bond can significantly hinder a district’s ability to maintain its facilities.
Implementing a capital plan is essential for balancing expenditures on classroom learning, programs, and facility maintenance. As districts expand into career-technical education to provide diverse pathways for students, their facilities must also change to accommodate these new pathways.
Successful bond programs depend on community trust and understanding of the district’s fiscal responsibility. At town hall meetings, districts may ask community members for input on how to spend bond dollars, what facilities can best support their children and the community, and other strategic topics. Transparent communication is crucial to successful capital improvement programs and community well-being.
Collaboration with financial advisors helps districts understand funding options and community support levels. Data-based decision-making through enrollment projections, facility utilization assessments, and equity considerations is critical for planning.
Want to learn more? Listen to the podcast
Nicole and Paul explored these and many more topics on the podcast. Listen in for more insights, and contact us for help thinking through your project funding strategies.
