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Youngkin Asks Legislature for $290M to Support School Construction

2024-12-10

Governor Glenn Youngkin has made a significant move by announcing an additional $290 million request to the legislature for school construction and modernization efforts across Virginia. This latest investment aims to bring the total funding for the current biennium to $700 million and raise the state's overall contribution under his administration to nearly $2 billion. The governor's proposed budget amendments, which he plans to present next week at a joint meeting of the General Assembly's money committees, include this crucial funding request.

Impact on School Facilities and Student Success

According to the governor's office, the state's financial commitments have spurred an estimated $3.4 billion in total funding for school construction. The additional $290 million in non-general funds will expand competitive grant opportunities for school divisions, particularly in high-need areas. It will also address critical infrastructure issues, supporting the construction and renovation of schools in urgent need of repair. State officials believe that this increased funding will provide K-12 students with safer and more conducive learning spaces.Educators and community leaders alike have welcomed this move. Local school divisions will be able to apply for grant support to fast-track modernization projects that may have been delayed due to funding shortfalls. The Youngkin administration has framed this initiative as part of a broader effort to support Virginia's educational system and improve outcomes for students. As schools across the state face aging infrastructure and capacity challenges, this investment aims to reduce disparities in facility quality, especially in underserved areas.

Secretary of Education's Perspective

Secretary of Education Aimee Guidera emphasized that providing safe, vibrant, and healthy learning environments for all students is one of the guiding principles of the Youngkin Administration. This investment in supporting new and refurbished school buildings makes it possible for every community in the commonwealth to provide a best-in-class education that prepares every student for success in the increasingly demanding knowledge- and skills-based economy.

Delegate Candi Mundon King's View

Delegate Candi Mundon King, a member of the Commission on School Construction and Modernization, welcomed Youngkin's proposal but emphasized the need for more information. She said, "We have been screaming from the rooftops about more money for school construction and ensuring that localities have what they need, so I'm glad to see that he's trying to get on board. It is clear that we need to put more money into school construction, but I can't say more without seeing a fully fleshed out plan. So I'm looking forward to his presentation next week with the joint money committees so we can fully evaluate what this proposal actually is, and not just some slick press release that doesn't go into detail."

2022 Legislative Session and Its Impact

In 2022, during Youngkin's first year in office, the General Assembly approved a historic $1.2 billion investment in school construction. This aimed to modernize aging facilities and reduce funding disparities among school divisions. The sweeping plan combined grants and loans to support renovations, new construction, and capacity expansion for K-12 schools across the commonwealth.Of the $1.2 billion, about $850 million was allocated for grants, including $400 million in formula-based grants and $266 million distributed based on the Local Composite Index. Another $450 million was funneled into the newly created School Construction Fund and Program, a competitive grant program for divisions with critical infrastructure needs. School systems with poor building conditions and limited financial capacity could apply for these funds.

Virginia's School Infrastructure Crisis

Virginia faces a mounting crisis with school infrastructure. Data from the Virginia Department of Education in 2022 revealed that nearly 1,000 school buildings across the state are at least 50 years old, and replacing them would cost more than $25 billion. Traditionally, local governments have shouldered the financial burden of school construction, but for economically distressed areas, this has become a difficult challenge due to population decline and economic hardship.In April, Youngkin vetoed a bill that would have allowed localities to implement a 1% sales tax to help cover school construction costs. He argued that Virginia has already taken substantial steps to address these costs and that citizens should not face additional taxes.

Revamping the Literary Fund

Prior to 2022, state assistance for school construction was limited, with much of it coming from the Literary Fund. Funded by unclaimed lottery winnings, criminal fines, and unclaimed property, the Literary Fund historically provided low-interest loans. However, in recent years, much of its revenue was redirected to cover teacher retirement costs, leaving fewer resources for school building projects.The 2022 legislative session retooled the Literary Fund's loan program, raising the maximum loan amount from $7.5 million to $25 million and capping the interest rate at 2%. These changes made it more feasible for school divisions to finance major construction projects at a lower cost.With the state's total contribution now approaching $2 billion, education advocates are hopeful that this increased funding will lead to long-term improvements in school facilities and better learning conditions for students throughout the commonwealth. Virginia Board of Education President Grace Creasey said that the panel will prioritize "those school divisions in greatest need that have missed out on prior grant opportunities," especially rural divisions. She also mentioned that school divisions are eager to adopt seat time flexibility and competency-based models, which requires different learning environments and spaces. This new investment will make this possible.

After years of deliberation, the Park Ridge City Council has shown a willingness to adopt a new development incentive plan. This plan involves using city resources, including money, to attract a development proposed for 1440 Higgins Road. The Dec. 2 City Council meeting did not result in a firm vote, but it did gain enough support to start drafting a formal economic incentive package for future consideration.

Key Features and Benefits

The proposed plan will cost the city approximately $4.6 million in shared tax money, tax abatements, fee waivers, and more. If the project fully develops, it will bring a Hilton-brand hotel with 112 rooms to the area, generating property, hotel, and sales tax revenues from visitors who will dine and shop locally. The project was initially delayed due to the COVID-19 pandemic. A previous hotel proposal marked the second planned development of the property, which was approved in June. However, the developers later presented a more expensive request that was rejected. Now, MDSA Properties has a new plan that requires less from the city and is eager to start work on a Tru by Hilton hotel.In addition to what the developer has asked of Park Ridge, they have also requested property tax relief from Cook County. Other incentive requests include hotel occupancy tax sharing for up to 12 years and waiving of permit fees for the project, as well as relief from stormwater detention requirements.Councilwoman Harmony Herrington expressed concerns about waiving permit fees, stating that it seemed overly generous. She believes that the abatement schedule should be specific to hotels and that providing advantages to certain developers is inequitable.According to Hotel Appraisers and Advisors, independent hotel advisors to Park Ridge, almost every hotel in the county receives some form of tax and local incentives to support their projects in the initial stages. The hope is that future hotel tax revenue and additional tourism spending will compensate for the initial costs.Hilton franchisee Amin Lakhani emphasized the need to finalize the tax abatement agreement as it is necessary to begin demolishing the current structure. According to his timeline, the tear-down will start next year in late winter, followed by construction the following spring.City Council members did not provide formal approval at the Monday night meeting but generally seemed receptive to the proposal. City staff is now tasked with drafting a formal economic incentive agreement for council consideration.City Manager Joe Gilmore supports the proposal, stating that it makes economic sense and that virtually every hotel in the county receives similar local benefits. He believes that without these incentives, many hotel projects would not be viable. Sharing the occupancy tax revenue means the city will have at least some new revenue, along with the additional spending from visitors.Even so, not all council members were in favor of all the conditions. Some wanted assurances that the developer could not obtain the incentive deals and then sell the land and development to another company for a different project and make more money. City Council attorney Michael Durkin will look into whether any of the development incentives can be transferred.Mayor Marty Maloney took an informal poll, and most on the council favored some form of development incentive plan. Although it was not an overwhelming majority, it showed a preference for moving forward.The council is expected to revisit the issue later for further consideration.

Sen. Martine Gulick, a prominent figure in Vermont's political scene, was recently seen explaining a literacy bill on the floor of the Senate at the Statehouse in Montpelier. This event sparked a significant discussion about the state's educational infrastructure and the need for construction aid.

Unraveling the Future of Vermont's School Construction

Background on Vermont's School Infrastructure

Vermont's schools stand as the second oldest in the nation, facing a substantial infrastructure challenge. According to the Agency of Education, an estimated $6 billion is required in the next two decades to address these issues. The current state of deteriorating school infrastructure is disrupting classrooms and putting a strain on the education system.Lawmakers are well aware of this problem and are planning to address Vermont's school funding system in the upcoming legislative session. The lack of a state-funded school construction program for over 15 years has shifted the financial burden onto local school budgets and property taxes.

The Proposed School Construction Aid Program

The proposed school construction aid program aims to provide much-needed support. It would cover 20% of a project's eligible cost, with the possibility of an additional 20% if certain criteria are met. The Agency of Education would take on the primary responsibility for implementing the program, with an advisory board providing consultation.Jill Briggs Campbell, the interim deputy secretary of education and a member of the construction aid working group, emphasized the need for at least three full-time positions within the agency to ensure the smooth operation of the program. The working group unanimously endorsed a draft piece of legislation last week, setting the stage for further discussions in legislative committees.

Challenges and Uncertainties

Despite the efforts of the working group, there are significant challenges and uncertainties. The uncertainty about state financial support for Vermont's schools remains a pressing issue as voters demand education property tax relief.Asked about the likelihood of the governor including an appropriation for school construction in his budget recommendations, Sen. Martine Gulick expressed hope. She emphasized the urgency of addressing the issue, stating that Vermont's school facilities portfolio is in a critical condition and requires immediate attention.Sen. David Weeks, a Republican senator on the construction aid working group and a member of the Senate Education Committee, noted that construction aid was not among the administration's legislative priorities. However, he praised the bipartisan collaboration within the working group and indicated his support for some form of school construction aid.Weeks predicted that the legislation would undergo significant changes when it reaches committees this session and that school construction aid would be a key part of the conversations about education finance.

The Importance of Fiscal Responsibility

In the context of fiscal responsibility, the need for transparent funding sources becomes crucial. Amanda Wheeler, a spokesperson for the governor, emphasized that any proposal with a cost must be transparent about how it will be funded.Sen. Martine Gulick also highlighted the importance of looking at the future when considering fiscal responsibility. She argued that failing to address the school construction issue would have long-term consequences for the state.Although there are challenges ahead, the efforts of the construction aid working group and the potential for state support for school construction offer hope for the future of Vermont's education system.