School Funding Outlook
SchoolBondFinder believes it is
more important than ever for companies
who serve schools to have timely knowl-
edge of where “actionable” dollars will
be available. Traditionally, public schools
pay for ongoing operating expenses
through funds raised primarily from lo-
cal property taxes. Capital improvement
projects, on the other hand, are often
funded by the issuance of bonds to raise
the dollars to build new schools, to reno-
vate and improve existing buildings, and
to acquire new physical items. These
bonds are then paid back over time from
an increase in local tax revenues. Early
knowledge of bond dollars becoming
available (or disappearing) is crucial for
companies providing equipment and
services to K-12 schools, especially when
funding dollars may not be found where
they were in the past.
Public schools, often in struggling
areas, must compete for much-needed
funding. In this environment, School-
BondFinder believes there are still
significant opportunities for companies
supplying construction and renova-
tion services to K-12 districts, as well
as school safety, transportation, and
technology upgrades, but that now more
than ever companies need the most
accurate, up-to-date information in
order to accurately identify where those
business opportunities are.
SchoolBondFinder has found public
school capital expenditures are driven
by two main factors, tempered by local,
state, and national political pressures: 1)
Aging, outdated facilities and 2) Growth
and shifts in population. In the instances
where new construction and/or reno-
vation is being discussed or proposed,
SchoolBondFinder tracks the availability
of those “actionable” dollars and has
identified trends that are affecting where
those dollars will flow, in terms of both
funding areas and geographical location.
One such trend is that many states are
dealing with years of deferred mainte-
nance, particularly after the Great Re-
cession of 2008-2009. The average public
school building in the United States is
over 45 years old. In extreme cases, such
as Hawaii, 1 in 5 schools is more than 100
years old, and the average age of a school
building is 61. Thus, deferred main-
tenance issues are driving demand for
renovations and, in some cases, for new
construction to replace buildings that are
no longer viewed as viable.
During 2018, SchoolBondFinder
tracked over $80 billion in school bond
elections, of which almost $67 billion
passed. This is a passing rate of 84%,
a similar percentage to past years. In
short, most bond issues pass, but the
dollar amounts at stake vary from year to
year. For instance, Presidential general
election years are when the most dollars
are at stake. Mid-term election years
follow close behind, trailed by years in
which there are no statewide or nation-
wide elections. Overall, K-12 capital
improvement spending continues to
rise. If these trends continue, 2019 will
continue to be a strong year for capital
funding opportunities, and 2020 may
see school district capital funding greatly
surpass levels last seen before the reces-
sion of 2008-2009. SchoolBondFinder is
already tracking opportunities into 2021,
2022, and beyond.
Geographically, the population
growth trend in states in the West and
South continues, according to the U.S.
Census Bureau. This growth is driving
facilities needs in Texas, Florida, and
California especially, but it should
be noted that Nevada and Idaho are
currently the fastest growing states by
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