Agenda - 03-30-1995 - II - Laserfiche WebLink

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«inter 11)9� School Law Bulletin 11 Figure 11 Figure 12 Change in Debt Service Payments between 1984 Average State Aid for Capital Needs Per Student, and 1993, in 89 Counties with Some Outstanding 1984-93, by 1991 Per Capita Income School Debt during That Period 53.000 Infinite Increase (No Debt in 1984) +1.000 or more 6 u +500 to 999 9 52,000 c f y +300 to 499 711 3 +100 to 299 13 0. 1.000 0 to+99 7 Q 0 to-49 16 -50 to-100 t5 0 Less $12.000 $13.000 S14.000 $16.000 S18.000 520.000 than —13.999 —13.999 —15,999 —17.999 —19.999 ormore $12.000 Number of Counties Per Capita Income the average was $2,446. These differences, however, 3 of those counties spent more than 90 percent of state do not explain why they failed to meet their needs, be- aid. In fact, 15 of these 26 counties spent an amount cause the 10 poorest counties also received twice as equal to at least 150 percent of state aid, and 5 of them much aid per student as did the 10 highest-income spent more than twice the amount of state aid. counties. And for other low-income counties, the dif- Debt financing in the poorest counties. Did the ferences were not as great—the 50 lowest-income poorest counties make good use of debt to finance counties had average 1984 needs of$2,573 per student, school construction needs, or did they pay off existing compared with $2,203 per student for the others. debt? Remarkably, 9 of the 10 lowest-income counties Spending less than the state provided. Yet an- borrowed money for construction during the period other reason may explain why some of the 50 lowest- 1986 through 1993. Of those 9 counties, the amount income counties had low spending relative to reported borrowed at least equaled 1984 reported needs in 3 needs: many of them spent less than they received in counties and equaled more than 90 percent of needs in state aid. Twenty-six of those 50 counties spent less 1 other county. Most of that borrowing was in the five- than they received in state aid-16 spent an amount year period 1989-93, when 4 of the same 9 counties equal to less than 75 percent of state aid, and 6 spent an borrowed amounts equal to at least 50 percent of ten- amount equal to less than 50 percent. In comparison, year needs. Only 2 of the 10 poorest counties paid off only 10 of the 50 highest-income counties spent less debt—one reduced debt service substantially, and the than they received in state aid, and only 4 of those other eliminated its modest payments. counties spent less than 75 percent of state aid. However, many low-income counties made less Of the 24 low-income counties that met less than use of debt or paid down their debt, as indicated by 80 percent of 1984 reported needs, 10 of them spent debt service payments. While 9 of the 10 lowest- less than 65 percent of state aid and 6 spent less than income counties borrowed money, only 2 of the next half of state aid. Only 3 of them spent an amount at 10 lowest-income counties did so. Three of those 10 least equal to state aid. If all those 24 counties had counties used no debt at all, 2 paid off all debt, and 4 spent at least the amount of aid they received, 2 of counties reduced debt service payments by one-third them would have met 100 percent of reported needs, to two-thirds. and 5 other counties would have exceeded 80 percent The 50 lowest-income counties included 9 of the of reported needs. 11 counties that had no school indebtedness during the In contrast. of the 26 low-income counties that period 1984 to 1993 and 5 of the 8 counties that paid met 80 percent or more of 1984 reported needs, only 5 off their debt between 1984 and 1993. Fourteen other counties spent less than they received in state aid, and low-income counties had lower debt service payments