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Building schools now helps economy, board says


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Rutherford County could save millions and create local jobs by building two new middle schools now, the school board said Tuesday night.

Rutherford County’s Board of Education met last night to review bids submitted to build a middle school near Oakland High School on Dejarnette Lane.

The lowest and best bid came from R.G. Anderson at a cost of $16,374,000, which is more than $3.1 million less than what it took to build Rockvale Middle School and more than $500,000 less than bids received last week to build a new school near Buchanan Elementary.

“It came in substantially lower than I thought it would,” Director of Schools Harry Gill Jr. said.

The school board then made a case for building the schools now, despite the Rutherford County Commission’s decision last week to postpone the projects.

The debate in the commission hinged on moving more than 3,000 county students out of 144 portable into the new schools next year with a 9-cent hike to the property tax in 2010 or delaying to see if the budget improves, along with the economy over the next year.

The county is facing a $10 million shortfall for the next fiscal year and possibly another property tax raise this year, County Mayor Ernest Burgess said.

In the end the commission decided in a close vote to delay the projects for at least a year.

“By delaying these projects by one or two years, the costs may increase by $8 million- $15 million,” Director Gill said. “There will not be a better or more cost effective time to build these new schools than now. Historically, a period of rapid inflation follows a recession, which could significantly impact building costs and interest rates.”

The school board will take the issue back to the commission next month with the new bid. But first it must pass the Health and Education Committee on March 24 and Budget and Finance Committee on April 9.

“Other than the kids benefiting, there are other reason to build these now,” Gill said.

Gill cited low interest rates on borrowed money.

Gill also said the contractors chosen could employ up to 200 local people per site, employ local subcontractors and will buy construction materials locally. All contributing to the local economy and county coffers through the sales tax.

“These projects will help the economy of Rutherford County by increasing employment …” Gary Clardy, RCS assistant superintendent of Engineering and Construction. “Not only can the school board and county save money by building now, they can also contribute to the local economy.”

The board then discussed the need for additional portables in the coming years if the middle schools are not built.

The system currently uses 144 portables at 24 schools out of 43. If the middles schools are not built, 14 additional schools will need a total of 23 portables to house students.

The additional portables will cost the $660,000, not including the cost to move and set them up, said Jeff Sandvig, RCS assistant superintendent of accounting and finance.

Clardy also gave a presentation to refute County Mayor Ernest Burgess’s contention the school system has 9,000 unused seats.

Clardy said Burgess just took the total capacity for schools and portables and subtracted the total number of students in the system, which gave him a figure around 9,000 unfilled seats in local schools.

But in reality, Clardy said, state and federal regulations for class size and specialty classes must be considered. When it’s all take into account, then system is actually 40 seats short.

“If you take our schools and put them against national standards, this is what you get,” Clardy said.

Michelle Willard can be contacted at 615-869-0816 or mwillard@murfreesboropost.com.
 
 
 
Tagged under  Middle Schools, RCS, RuCo


Member Opinions:
By: TimeforJustice on 3/18/09
I think the Commission needs to reconsider. It has been improper planning that has gotten us into this mess. If they want us as citizens to invest in the community to keep the economy strong, then this is their chance to set the example. While I know it may be uncomfortable in the short term, in the long run it is what is best for Rutherford County.

By: Macgyver on 3/18/09
Wow, wow, wow! Harry Gill needs to get his facts straight.

"The lowest and best bid came from R.G. Anderson at a cost of $16,374,000, which is more than $3.1 million less than what it took to build Rockvale Middle School and more than $500,000 less than bids received last week to build a new school near Buchanan Elementary."

“By delaying these projects by one or two years, the costs may increase by $8 million- $15 million,” Director Gill said. “There will not be a better or more cost effective time to build these new schools than now. Historically, a period of rapid inflation follows a recession, which could significantly impact building costs and interest rates.”

So you're telling me that if we wait "one or two years" the new school will cost 16.3 million + 8 to 15 million. A 24 to 31 million dollar school!!!. Hopefully you were misquoted.

Then its all summed up with this statement;
The county is facing a $10 million shortfall for the next fiscal year and possibly another property tax raise this year, County Mayor Ernest Burgess said.

WE HAVE NO MONEY! Where do you people think its going to come from? Stop using credit like it doesn't need to be paid back.

By: Trvlace on 3/18/09
They think they is Barack Obama! Spend like it is no tomorrow, gets me my stimulus package! :)

By: Who_Cares on 3/18/09
Maybe the county needs to buy some powerball tickets...

By: barrettbear on 3/18/09
And you are helping how Trvlace? Reasons like this are why we live in a society such as we do today. Then we ask ourselves why our chidren act in a manner that we can not imagine. You are indeed entitled to your own opinion, the wording is, well, I will move on.

By: Macgyver on 3/18/09
Haha BB, you kill me!

By: Curious on 3/18/09
What I kept hearing during this meeting regarding the figures quoted, was that these were the "pure building costs".

If I'm not mistaken, what the commissioners always seem to want to know and what the taxpayers need to know is what the "turn key" figure is ... you know, you turn the key of the finished building, walk in and it's all furnished, the library is full, all the computers are there, the offices are furnished, there are brooms and floor waxers in the janitor's closet, the cafeteria is fully equipped, the stage has curtains and the gym has seating and equipment, and on and on and on. Oh yeah, and those little ongoing cost like staffing and utilities and adding more buses and ... How many more millions to open the doors and get to work?

...and yes, all you have to do is give up a couple Big Macs a month to pay your share.

Cynicism aside, these schools are needed and the educational experience would benefit a lot of kids. It's just too unsure a time right now to take on this amount of debt. The County's debt load is staggering as it is.


By: hat4rack on 3/19/09
"Too unsure" - nail on the head! It might be a better 'deal' to build now rather than wait, but we need to wait. If the economy improves then we'll have the money later to pay the higher costs. If the economy continues to decline, we don't want to have to look back and say - "sure wish we hadn't committed to those costs"!

Holding off will not be as convenient for the kids and it will not be as 'optimal' an environment for them to learn, but we ALL need to prepare for some inconveniences and 'less-than-optimal' circumstances until our jobs/income and cost of living is more certain. Wait to build.

By: Steveo on 3/19/09
Macgyver, you are the one that needs to get the facts straight. Mr Gill was talking about the savings from two schools, not just the one. The bids came in 3 million lower on each school, bricks and mortar only, that's 6 million right there. Then you add savings on interest, and savings on all the items it takes to make the building turnkey, as described by curious, and you get to the 8 million dollar savings figure easily.

By: Macgyver on 3/19/09
Steveo, if you had read further down my post I asked if he was misquoted. “Projects” could be just the building or it could also be a “turn-key” school, vague to me and seems to be out of context. If he’s referring to a building alone and we need to build 2 schools at approximately 16.3 million for a total of 32.6 million. That’s just the construction cost, not turnkey and when Harry Gill states we can save 8 to 15 million for both projects, it’s still not reason enough to add more debt. That only makes it a worst case scenario with a 10 million dollar shortfall on the horizon. Who is going to pay for all of this? Should we just raise taxes, which in the current recession will take money out of the taxpayers pockets when we need it most to pay the interest on the debt this county will be building on? We as people gain nothing when we pay interest. What a way to manage money.

Curious you're so right when it comes to the "turn key" truth. Approval for these schools now is like giving a blank check for all the necessities people don’t think about. What was the turn-key price for Rockvale Middle School?

By: enoughisenough on 3/19/09
In September of 2008 the Budget and Finance Committee voted overwhelmingly to approve over $47 million for construction of two Middle Schools. The bids now coming in total around $35 million. That looks like a saving of around $12 million in my eyes. Where is this math they are talking about coming from??


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