Kentucky School Facilities Construction Commission Overview
The School Facilities Construction Commission in Kentucky ensures equitable distribution of funds for school districts' capital construction and technology projects. Since its establishment in 1985, the SFCC has been involved in numerous school bond issues, helping address substantial facility needs. Eligible districts can receive assistance based on specific criteria, including approved facility plans, tax commitments, and unmet facility needs. The commission plays a vital role in supporting Kentucky's education infrastructure and addressing the state's significant school facility requirements.
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Presentation Transcript
BUDGET REVIEW SUBCOMMITTEE ON PRIMARY AND SECONDARY EDUCATION & WORKFORCE DEVELOPMENT Chelsey Bizzle, Executive Director School Facilities Construction Commission
SCHOOL FACILITIES CONSTRUCTION COMMISSION Provides Kentucky s 172 school districts with an equitable distribution of funds (1) for capital construction and renovation projects based upon unmet facility need and (2) to purchase new technology under the Kentucky Education Technology System (KETS) program. Funding for the KETS program is included in the Kentucky Department of Education s budget request, the SFCC only administers the program. 2
SCHOOL FACILITIES CONSTRUCTION COMMISSION Since inception in 1985, the SFCC has participated in nearly 2,500 school bond issues, totaling $12 billion. Of the total par amount, $3.8 billion was supported by SFCC debt service payments and $8.2 billion was supported by resources of the local school districts. 3
SFCC OFFERS OF ASSISTANCE To be eligible to receive an offer of assistance, districts must: (1) Have a Kentucky Board of Education approved facility plan on file with the Department of Education; (2) Commit at least an equivalent tax rate of $0.05 to debt service, new facilities, or major renovations of existing school facilities as defined by KRS 157.440; (3) On June 30 of odd-numbered years, the school board must restrict all available local revenue for school building construction, to be used in accordance with the district s approved facility plan; and (4) Have an unmet facility need 4
SFCC OFFERS OF ASSISTANCE A District s unmetneed is determined by: Total facility need - Local available revenues Unmet facility need For 2019, Kentucky s total unmet school facility need was $6.9 billion. This takes into account $7.8 billion of total facility needs and $858 million of total local available revenues. 5
UNMET NEED TOTAL AVAILABLE REVENUE 2,720,395 3,568,281 1,164,038 7,494,662 1,061,350 2,115,155 2019 UNMET NEED 48,558,855 26,357,212 16,659,514 45,839,669 14,335,196 DISTRICT PERCENTAGE DISTRICT NAME ADAIR CO. ALLEN CO. ANCHORAGE IND. ANDERSON CO. ASHLAND IND. AUGUSTA IND. BALLARD CO. 2019 NEED 51,279,250 26,468,386 1,695,388 17,823,553 53,334,331 15,396,547 0.69% 0.38% 0.00% 0.24% 0.66% 0.21% 0.00% 111,174 - - - 2015 Unmet Need - $5,277,363,013 2017 Unmet Need - $6,390,437,379 2019 Unmet Need - $6,990,898,706 6
NUMBER OF BOND ISSUES WITH SFCC PARTICIPATIONBY FISCAL YEAR 120 101 90 60 55 46 41 30 30 0 2016 2017 2018 2019 2020 (YTD) SFCC Appropriations 2020 Session $100,000,000 (Proposed) 2012 Session $100,000,000 2014 Session $100,000,000 2016 Session $91,000,000 2018 Session $58,000,000 7
OUTSTANDING SFCC DEBT Total debt on the books (SFCC Portion): $1,401,169,862 Total principal: $1,135,998,989 Total interest: $265,172,373 8
OUTSTANDING DEBT FY2021 & 2022 Debt on the books for FY 2021: $398,970,398 Total SFCC Payments: $119,395,343 Total Local Payments: $279,575,055 Debt on the books for FY 2022: $392,897,569 Total SFCC Payments: $115,400,064 Total Local Payments: $277,497,505 General Government School Facilities Construction Commission Requested Recommended Requested Recommended FY 2021 FY 2021 FY 2022 FY 2022 Debt Service $123,116,300 $123,833,100 $126,131,200 $128,833,100 9
EMERGENCY & TARGETED INVESTMENT FUND The ETIF receives its funding allocation from the SFCC s lapsed debt service at the end of each budget year. The ETIF has granted 5 allocations to school districts that have applied for and shown that they have an emergency in their district. The SFCC has also rejected 3 requests for funding from the ETIF. There have been no allocations granted since FY17. ETIF Current Balance - $4,711,264 10
