Schools close construction-cost gap

Spokane Public Schools may be battling an enrollment decline, but things are looking up when it comes to paying for construction projects – including the current remodel of two high schools.

Because of an increase in state funds and projects costing less than anticipated, most of the capital improvements promised to taxpayers will be completed under the 2003 construction bond. District officials also expect to have about $3 million in the bank for the next round of facility improvements.

That’s much better than district officials expected. For two years, they’ve been saying that projects were coming in way over budget because of volatile construction markets. In July, school officials estimated a budget gap of $17 million for construction, and announced that some projects would likely be delayed until the next bond in 2009.

“It was mostly due to unheard-of inflation in materials and a shortage of labor,” said Mark Anderson, associate superintendent for school support services.

School officials at the time talked about reducing the annual projects budget, which includes money for emergencies such as the arson fire that destroyed the library at Sacajawea Middle School last fall. Other potential cuts included not replacing air systems at the last two elementary schools expected to receive the updates under the bond, and completing Shadle Park High School in two phases. The second phase of that Shadle Park remodel would have to wait for the second construction bond expected to go before voters in 2009, they said at the time.

Now, only a small number of annual capital projects will be delayed, as well as the ventilation systems at Garfield and Longfellow elementary schools.

When the initial bond was passed in 2003, district officials estimated the total cost for all projects – including three new elementary schools, remodeling two high schools, building a new gymnasium at Ferris High School, installing new security systems at all schools, and updating heating and ventilation systems at some schools – would be about $201 million. That figure has risen to more than $255 million, district officials said.

Costs associated with the remodel of Shadle Park – the last of the large projects to be completed under the current bond issue – have increased by 10 percent since 2006, when the project was budgeted at $69.9 million. The current estimate for the project that began this summer is $74 million.

Similarly, the $59 million remodel under way at Rogers High School came in $7 million over budget.

But there were also several projects completed in recent months that came in under budget, school officials said.

The replacement of heating and ventilation systems at six elementary schools cost $731,379 less than expected. More than $300,000 was shaved off the budgets for rebuilding Lidgerwood, Ridgeview and Lincoln Heights elementary schools. At North Central, $1.5 million was saved during the replacement of ventilation system, and a land deal cost $320,000 less than expected. The Ferris gymnasium was under budget by more than $600,000.

“It was really from prudent management of those projects,” said John Mannix, executive director of facilities and planning.

In addition, the Legislature approved more money for school construction projects, in recognition of rising costs.

Instead of the expected $32.8 million state match to complete all the projects, the Legislature approved $67.5 million, including $4 million more than expected this year alone.

“We had to have it to get these projects done,” Anderson said.

Funds for construction projects are separate from the general fund, which pays for basic school operations, such as staff and textbooks.

The district has also received rebates from Avista Utilities for building energy-efficient schools, Mannix said.

When the projects are finished, the district may receive as much as $1.1 million in rebates for the capital projects budget, he said.