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ED 846 Gardiner PA Financing School Construction

Presentation for ED 846 about financing a school construction project in PA, including Act 1, school bonds, and PlanCon

Sean Gardiner

on 26 July 2010

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Transcript of ED 846 Gardiner PA Financing School Construction

Widener University
ED 846
Financing a School Construction
Project in Pennsylvania
Sean Gardiner New Construction? Maintenance? School Bonds Similar to a Mortgage
borrow a lot!
% interest rate
time to pay it back
70% of operating budget = salaries/benefits
very little money left for construction
(Marajian, 2002)
(Rohricht, 2009) Act 1 PlanCon SunnySide District Can I buy a bond? Vote? Referendum? municipal bonds
used for a specific purpose
often construction
can be technology $5,000,000 bond
computers in all schools
all it can be used for
(Vandergriff, 2002) have to raise taxes
try to keep it under the index
taxpayers pay for it over time Can be tax exempt!!! 100% of borrowing base is allowed
anything over 100% must be voted on
but...can take up to 100% additional in lease rental
but...emergency...can borrow additional 50%
= up to 250% without voter approval What is allowed? construction
machinery (must have lifespan of 5 years)
project done jointly with local govt.
PA max % taxes
2009 - 2010 = 4.9%
2010 - 2011 = 2.9%
exceptions? Note: Philly, Pittsburgh & Scranton are exempt from Act 1 Planning & Construction Workbook
Reimbursement Program What does PlanCon do? document planning process
justify project to the public
comply with state & local regs
determine reimbursement
20-year rule So....how do we... Superintendent & School Board
must know about Act 1
must know about PlanCon
must know how they work
Referendum?????? Really = 58.53% reimbursed
Not 90.05%!!!!! Two Exceptions
2.9% --> 9.9%
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