News Release
July 11, 2007
East and West Granite Districts Both Feasible
Granite Small School District Study Concludes
The final feasibility study for the proposed Granite School District split was released today. It concludes that both a new eastern district and also the remaining western district would be operationally feasible.
After the preliminary report was issued several months ago, the Granite School District and members of the public submitted a range of questions and feedback leading to some revised assumptions, improved methodology and updated conclusions.
The feasibility study starts with several base assumptions:
· Teacher salaries and benefits will remain at least as high as today
· No schools will be closed
· All existing programs will continue in both districts, including special education programs
· Existing levels of funding will continue
The study also makes several assumptions which, though contrary to current practices, are used in the report to help to define a 'worst case' funding scenario:
· Busing of students between the districts would not continue
· 2.5% annual growth in enrollment
· No portable classrooms in any school (existing portables eliminated)
· All new classroom requirements will be provided by new construction and funded in an annual or bi-annual capital bonding process to begin immediately
From these assumptions, the study projects that in the remaining district the proposed district split could require $5 to $33 of increased property tax to fund operations and $10 to $15 to fund capital costs (per $100,000 in residential market value). Different, more historically-based assumptions and a fair distribution of district assets could bring the operational impact to near zero. As is, the study projects that per pupil property tax revenues in the remaining West district would be higher than in the Alpine and Davis school districts.
We respectfully note that the Granite School District disagrees with the projected amount and rate of enrollment growth, and the need for capital bonding. Granite School District asserts that current build-as-you-go funding will be sufficient for future needs. Regardless, the study group supports legislative efforts currently underway to consider ways to equalize capital costs.
Prior to deciding whether to put the school district split to a vote on this November's ballot, the following hearings have been scheduled for the public to give its input:
|
|
Date/Time |
Location |
|
Murray City* |
July 17 at 6:30pm |
5025 South State Street, Suite 112 Murray |
|
Holladay City |
July 19 at 6pm |
4580 South, 2300 East Holladay |
|
City of South Salt Lake |
July 25 at 7:30pm |
220 East Morris Ave, 2nd Floor South Salt Lake |
|
Salt Lake County |
July 31 at 4:30pm |
2001 S. State Street Salt Lake City |
*If the Murray City Council decides not to participate and the new district is created, then residents of East Murray would automatically become part of the Murray School District.
The final report is available at www.wepc.biz. An executive summary of the report is attached to this release.
Contacts
Mark Crockett: 801-550-5343, mcrockett@slco.org
Lynn Pace: 801-573-7421; lpace@cityofholladay.com
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GRANITE SCHOOL DISTRICT FINAL FEASIBILITY STUDY
EXECUTIVE REPORT AND SUMMARY FINDINGS
PROVIDED BY
FEASIBILITY STUDY STEERING COMMITTEE
July 2007
INTRODUCTION:
The Granite School District Feasibility Study considered;
Is a New School District compromised of all areas of Granite School District (GSD) located east of the Jordan River financially feasible?
What fiscal impacts would creation of a new district have on the Remaining Granite School District?
The results of the Granite School District Final Feasibility Study dated June 2007 clearly identify that "the New District is financially feasible", and that "the remaining Granite District can be funded at the existing west side level of funding, but at property taxes that will be higher that if the district were to remain intact." (Final Report, page 7).
A summary of the major findings of the Granite School District Feasibility Study are as follows:
EXISTING GRANITE SCHOOL DISTRICT (NO DIVISION):
· GSD has approximately 70,000 student and is expected to grow to 85,000 Students by 2020 (Final Report, pages 4 and 7).
· Operational costs of GSD can continue to be funded at or near current tax rates. (Final Report, p. 7).
· In order to accommodate this increasing number of students, GSD "will need to build 23 additional schools by 2020." (Final Report, pages 7 and 43) and a number of existing GSD schools need remodeling or "substantial rehabilitation" (Final Report, page 5).
· Because of the need for new school construction and the remodeling or rehabilitation of existing schools, there will be property tax increases, even if GSD remains intact. These increases are not related to the possible division of the district" (Final Report, page 5).
· In order to pay capital costs, even without any division of the district, GSD would need to increase property taxes by approximately 22% or approximately $305 per $100,000 assessed property valuation. (Final Report, p. 27).
PROPOSED NEW EAST SCHOOL DISTRICT:
1. "The New District is financially feasible." (Final Report, page 7).
2. Student enrollment in the New District would be
approximately 16,000 and is projected to remain at or near current levels
through 2020.
(Final Report, pp. 6-7).
3. For operating costs, at the existing level of funding, in 2007 the New District would need to reduce expenses by "just over one percent of the total budget." In all other years, "property taxes [in the New District] would be less than or equal to the current rate levied by GSD." (Final Report, p. 41).
4. For capital costs, no new school buildings will be needed, and the repair or replacement of existing facilities could be funded on a "pay as you go" basis. (Final Report, p. 7).
5. At the current level of funding, which assumes no school closures, by 2020 the total level of property taxes (for both operations and capital) in the New District would decrease by approximately $37 (for residential properties) or $67 (for commercial properties) for each $100,000 of market value.
(Final Report, p. 45).
REMAINING WEST GRANITE SCHOOL DISTRICT:
1. "The Remaining Granite District can be funded at the existing west-side level of funding, but at property taxes that will be higher than if the district were to remain intact." (Final Report, p. 7).
2. Student enrollment in the Remaining District is projected to grow at an annual rate of 2.5%, from approximately 49,000 today to approximately 69,000 in 2020. (Final Report, pp. 6 and 8).
3. "At the current level of funding, the operating budget is at or below the statutory maximums." (Final Report, p. 42). In order to fund operations in the Remaining District, by 2020 property taxes would increase by approximately $33 (for residential properties) and $59 (for commercial properties) for each $100,000 of market value. (Final Report, p. 43).
4. At the existing level of funding, by 2020 the Remaining District will need to fund the construction of 21 new schools, as well as the cost of remodeling or rebuilding existing school buildings. (Final Report, p.43).
5. For the Remaining District, "it is likely that bonding will be required to spread capital costs over time." (Final Report, p. 44). If the Remaining District were to bond for capital costs, by 2020 property taxes would increase by approximately $15 (for residential properties) and $27 (for commercial properties) for each $100,000 of market value, over the costs if the district remained undivided. (Final Report, p.45).
6. At the current level of funding, and assuming that the Remaining District were to bond for capital costs, by 2020 the total property tax (for both operations and capital) in the Remaining District would increase by $48 (for residential properties) and $86 (for commercial properties) for each $100,000 of market value over the costs if the district remained undivided.
The final report is available at www.wepc.biz. An executive summary of the report is attached to this release.
Contacts
Mark Crockett: 801-550-5343, mcrockett@slco.org
Lynn Pace: 801-573-7421; lpace@cityofholladay.com