Kent Smith

The Case for Issue 105 

By Kent Smith –Euclid School Board Member and PhD Candidate in Economic Development at Cleveland State University

 

The City of Euclid has a unique opportunity to change the way its children are educated, while creating local jobs and strengthening Euclid businesses.  Issue 105 will allow the Euclid City School District to build four new elementary schools at a 41% discount.  This essay will explain five things; 1.  What the cost will be.  2.  The State of Ohio’s offer of 41% Support  3.  The Community Inclusion Plan which will support Euclid businesses and guarantee construction jobs to Euclid residents.   4.  Why it is critical that we pass Issue 105 now.  And 5.  Some of the other details like the timetable of the project.

 

1. What will the cost be?

 

It is important to know that this is a BOND levy not an operating levy.  If Issue 105 passes the money raised from this measure can ONLY be used for the construction related expenses of building these four new elementary schools.  What that means is, by law, none of  the Issue 105 revenues will be used for teacher salaries or busses or any other daily operation type of school district expense. 

This is a 3.4 mil bond issue which will cost $7 a month for a Euclid house valued at $100,000.  Issue 105 is a 28-year bond issue – which is the standard length for a school construction project.  However, it is important to know that in 2011 an earlier bond issue valued at 1.8 mils will expire.  So while it is a $7 a month issue – on average – it will be closer to a $4 a month expense over the 28-year life of the Bond issue.  In summary, the first two years Issue 105 will be an increase of $7 a month, but for the 26 years following, it will only feel like $4 a month in new money.

 

2.  Explain the 41% State of Ohio Support

 

The State of Ohio used its Tobacco Settlement Lawsuit money to finance its ongoing school facilities construction program.  Quiet simply, it is Euclid’s time to get a share of the State’s school construction dollars.  The State of Ohio has agreed to pay 41% of Euclid School District’s new school construction costs which amounts to $24,735,683 of the $60 million dollar project.   These dollars are set aside and if Euclid residents pass Issue 105 – those earmarked dollars are guaranteed for our Elementary School Construction Project. 

In addition to the State money, the Euclid School Board has received a pledge from the federal government that our elementary building project has qualified for $3.2 million dollars in 0% construction bonds which are a part of the Federal Economic Stimulus package.  Like the State of Ohio’s $24.7 million, Euclid will only receive those dollars if we pass Issue 105.

 

3.  What about this Community Inclusion Plan which will support Euclid Businesses and guarantee jobs for Euclid Residents?

 

This might be the most exciting and creative part of Issue 105.  At our September 14, 2009 School Board meeting, the Euclid School Board passed a Community Inclusion Plan related to the elementary school building project.  The Community Inclusion Plan aims to promote business opportunities for local businesses and guarantee construction jobs for Euclid residents if Issue 105 passes.  Specifically, it ensures that local businesses will participate in the building project at a minimum level of 20% for all contracts issued over $100,000.  There are “good faith provisions” in this agreement which will ensure that Euclid businesses do not exceed normal pricing levels for their products and services. 

The Community Inclusion Plan will also guarantee that a minimum of 25% of the construction hours will be worked by Euclid residents.  We can establish this guarantee by signing a Project Labor Agreement with the Cleveland Building Trades Council.  These unions have members who live in Euclid and those Euclid members will get a chance to work on the project that builds four new elementary schools in their home city. 

The purpose of the Community Inclusion Plan is to circulate the money from this project across all sectors of the city from its businesses, to its employees.  The Community Inclusion Plan allows us to give our children four new schools while we build smart, stretch our dollars, support Euclid working families and help sustain Euclid businesses.  This plan can truly help grow Euclid’s economy.

 

4. Why it is critical that we pass Issue 105 now

 

Frankly there are two major reasons why it is critical to pass Issue 105 in November 2009.  The first is – the need for new elementary school buildings is pressing and critical.  The second reason is the State and Federal support for this project will simply not be available in the future.  I will discuss these points separately.

First the need.  Simply put – our elementary buildings are in desperate need of replacing.  Roosevelt Elementary School was built in 1919.  It is named after Theodore Roosevelt.  When FDR first took the oath of office, Roosevelt Elementary School had already been open for 14 years.  And most critically, Roosevelt is a wood-frame building.  One well-placed lighting bolt and we have a major problem on our hands.

Upson Elementary School was opened six years after Roosevelt in 1925.  My grandmother taught Kindergarten at Upson back in the 1940’s.  Like Roosevelt, Upson is becoming a financial liability to the district due to its ongoing repair and upkeep costs.  This summer we spent $10,000 to fix drainage problems at Upson.

Also remember all of these schools were constructed during a time when elementary school-aged children went home for lunch.  All of our current elementary school buildings have retro-fitted cafeterias.  These are not rooms which were designed to serve food to hundreds of children. 

One final – yet very important item – before I move to my second point.  These four new buildings will be a more economical use of education dollars than our current seven elementary buildings.  These building will not just be better – they will also be more cost-effective.  We have estimated that the district will save approximately one million dollars a year due to efficiencies of scale created by these new schools. 

The second reason why Now is the right time to pass Issue 105 is the State And Federal support for this building project are simply not going to be available in the future.  There is absolutely no guarantee that the 41% State support – which totals almost $25 million dollars – will be offered to Euclid again.  

Remember this project creates a $60 million dollar value in our community that Euclid will get for $35.5 million.  If we do not pass Issue 105 now, the construction costs will increase, the condition of our building will continue to diminish and the offer State and Federal support will disappear.  Quiet simply, we spend $35 million now – or we spend twice that in a few years.  Time is of the essence and the time to do this is now.

 

5.  Some of the other details like the timetable of the project

 

What’s the timetable? – If Issue 105 passes the planning / design of the four new buildings will begin immediately and construction will begin in 2010.  The buildings will be ready for the beginning of the 2011 – 2012 school year.

Which sites were chosen for the new schools? – The four new buildings will be built on the properties that currently are home to Roosevelt, Upson, Thomas Jefferson and Glenbrook Elementary Schools.

Why those four sites? – Those sites are our largest elementary school parcels of land.  This will allow the District to build the new school right next to the existing building.  For example the new Roosevelt will be built behind the existing building.  The new Thomas Jefferson will be built to the North of the current elementary school. 

This is important for a few reasons, one is that we do not want to have to move any of our elementary school students during the construction process.  Also we will not have to acquire any additional land to build the new building.  The State of Ohio will not provide support for the purchase of property to build these buildings.  Therefore it is most efficient to build these buildings on land which is currently owned by the School District.

In Summary

The time is right and the deal can’t be beat.  Issue 105 is good for Euclid, its children, its business and its residents.  If we don’t take advantage of this offer now – it will cost millions more in the future.