Trends and Opportunities in K-12 Capital Improvement Funding: 2018-2020 & Beyond

by Jim Norwood

K-12 Solution Providers need to track school funding closely to be successful in a highly competitive business environment. Capital improvement funding for schools, however, continues to be difficult and contentious. SchoolBondFinder has found that as daunting as the funding challenges are, the good news is that educational construction spending has almost recovered from the great recession, and is on track in 2019 to finally meet or exceed levels not seen since 2009. As an election year, 2020 is poised to be a particularly large year for capital improvement dollars. The last decade has been difficult, but school districts have been scratching and clawing to find improvement funding, driven by both population growth trends and increasingly aging facilities in need of replacement, renovation, and upkeep.

SchoolBondFinder believes it is more important than ever for companies who serve schools to have timely knowledge of where “actionable” dollars will be available. Traditionally, public schools pay for ongoing operating expenses through funds raised primarily from local 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 renovate 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, SchoolBondFinder believes there are still significant opportunities for companies supplying construction and renovation 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expenditures are driven by two main factors, tempered by local, state, and national political pressures: 1) Aging, outdated facilities and 2) Growth and shifts in population.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 renovation 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 maintenance, particularly after the Great Recession 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 maintenance 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 nationwide 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 recession 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 percentage. Utah, Arizona, Florida, and Washington also continue to see strong growth. On the other hand, New York and Illinois saw a decline in population.

All data SchoolBondFinder tracks includes links to NCES (National Center for Education Statistics) demographic information, as well as to online news sources describing in greater detail how bond issues and needs are being presented to the local public. Bond opportunities are also presented on an interactive map, giving site users the ability to select “favorite” bonds for easy access and tracking, as well as finely filter search results. Data results can be listed directly from the site, or exported in a comma separated value format (CSV) for import into spreadsheets or customer relationship management system, or exported as alerts to a user’s email or SalesForce installation.         

Public education is in the midst of a daunting shift in where state dollars may potentially flow. This shift will present many challenges but also opportunities to companies who provide services in construction, renovation, school safety, technology, and transportation. The opportunities will come from the ability to track where aging facilities, deferred maintenance, and population shifts have led to public support for construction and updating.

As more states begin to supply funding for educational choice initiatives, there may also be more bond dollars available for private and charter school construction and renovation as well.  SchoolBondFinder will continue monitoring these trends and tracking where actionable dollars will be available as capital projects move through our system, from being on our watch list, to being proposed for an actual vote, and then to eventual passage or failure.

It is important to note that “failed” opportunities almost always come back as future opportunities on our watch list. From watch list, proposed, passed or failed, the SchoolBondFinder platform provides companies with an agile tool set for staying tuned to real-time information, shifting trends, and business opportunities. Early, accurate, information is critical, now more than ever.

Jim Norwood is the Director of Innovation for The Amos Group. He performs research, development and design for both SchoolBondFinder and SchoolBondNetwork. For more information on this new EDmarket member service, please visit http://www.edmarket.org/school-bond-finder/.

The Game Changer Classroom by RATIO | OnPoint

An Interview with with Mallory Hyde and Emily Dunneisen

Design Team: Emily Dunneisen, IIDA, RATIO; Mallory Hyde, Assoc IIDA, LEED AP ID+C, RATIO; Kristen Ambrose, AIA, CSI, LEED AP BD+C, RATIO

Vendor partners: Mien Company, Muzo, Mannington Commercial, Boxlight, Lightspeed

What was your concept in designing this classroom?

The Game Changer classroom creates a central focal point that fosters engagement and inclusivity at the core. The arena-style classroom is divided into three groupings that are reinforced by the floor pattern and collaborative style furniture.

What role does technology play in the space?

By integrating multiple presentation displays at the center, each zone engages content in multiple modes: the speaker and the visual display in lecture mode, the individual zones in a collaborative mode, and a combination of the two in competition mode when the zones are matched against each other in an inquiry-based activity.

How does the design and technology plan encourage attendee interaction?

Our approach to this classroom’s technology provides attendees a view of the content and each other with ample opportunity to engage with the speaker throughout their presentation. With no true “front of classroom”, it creates a level playing field for communication and collaboration between “teacher” and “learner”. 

How does the choice of furniture impact the space?

The furniture selections feature a diverse range of soft, lounge seating in-between tiered, collaborative style desks/tables and chairs meant to accommodate different vantage points and learning preferences. The layout spurs learners to engage content and appeal to the competitive spirit.

What do the flooring choices say about your classroom?

By using one pattern in three different color-ways, we have created a bold but uniform experience that is visually separate without creating physical barriers.

How will this space work for presenters?

This classroom offers a unique opportunity to push the presenters out of the comfort zone of a standard, front-of-room teaching style. Unlike classrooms of the past that feature rows of traditional desks and chairs all facing forward, this design allows presenters to have free reign to walk about the classroom engaging individuals more personally.

What do you see as the largest benefit of being chosen as a design team winner?

RATIO takes a special interest in creating K-12 educational spaces that encourage life-long learning and cultivate future generations of leaders.  We believe that schools are beacons of diversity, culture and identity for communities and are humbled by the opportunity to share our passion for learning environments at EDspaces.

Learning from the Best

by Max McCloskey, AIA

Last summer my wife and I boarded a Lufthansa 777 at Denver International Airport bound for Helsinki.  It was the beginning of a formative three-week research trip to Finland, Sweden, and Denmark to study cutting-edge schools throughout Scandinavia. The trip was made possible through the support of my firm, Humphries Poli Architects (HPA), now part of RATIO Design, and a scholarship from the Colorado chapter of the American Institute of Architects (AIA). 

The classroom we grew up in is dead.

It has been replaced with flexible spaces that honor individual learning, embrace collaboration, and foster inclusion. The question I sought to answer was how does the design of contemporary learning environments support the academic success of the student? As I researched trends in educational design Scandinavia emerged as the ideal region to focus on based on the long-standing cultural commitment to design excellence and the academic achievement of its students. Over the last ten years these Scandinavian countries have produced math, reading, science, and problem solving test scores that consistently rank within the top 25 countries in the world.

Our itinerary included visits to six schools, one University Campus, and three community centers while immersing ourselves in world class urban environments. The study of the buildings visited was concentrated into three “lenses” of focus: connection to the community, innovation in learning environments, and integration of sustainability: environmental, social, or psychological. All the buildings visited were included for their exemplary modern design. The following buildings represent standouts within each lens:

Connection to the Community: Maunula House

The first stop on the trip was Maunula House, a community learning center designed by K2S Architects located in a suburban neighborhood on the North side of Helsinki. Maunula House is physically connected to a grocery store anchoring the building to the core of the neighborhood and the daily patterns of the community. A pair of glass doors open from the library right into the produce section, makes a lot of sense! The building is comprised of a public library, adult education center, and youth center. 

In a literal sense Manaula House is a building for the community. K2S architects held a year’s worth of community charrettes to design the facility, a key to the overall success of the project. Three seats on the board of trustees are held specifically for neighborhood residents. With brick masonry street facing elevations that match the adjacent commercial buildings and a double height curtain wall that reflects the surrounding town, Manaula House truly reflects the community it serves. To turn the corner from the bus stop is breathtaking.

Natural light is a precious resource in Scandinavia. The interior of Manaula House is organized around a voluminous atrium featuring a north facing clerestory window that brings light deep into all levels of the building. The design is successful in the intent to support the wellness of the user as the facility sees its highest patronage during the winter months.  

The star of the show is undoubtedly the expansive curtain wall that visually connects the building to the neighborhood…it is a pure design statement articulated through technical precision and elegant engineering. One enters the Manaula House at the upper level. As the site drops away the architecture works with the site design to create the double height library on the lower floor looking out onto the landscape and surrounding neighborhood.

Innovation in learning environments: Saunalahti School

The second building we visited was the Saunalahti School designed by Verstas Architects in 2012, located Espoo, a 40-minute metro ride away from Helsinki. We met up with the Vice Principal, Minna to tour the building. Saunalahti School embodies much of what I traveled to study; an architecture that is designed specifically to bring education out of the traditional classroom and create innovative environments that accommodate a variety of teaching methods.

The heart of the school is the Auditorium. Centrally located, this area can function as the theater, cafeteria, or assembly space. Aligned to a large curtain wall, the room is flooded with natural light allowing for minimal use of artificial light. The administrative offices are located above the auditorium providing direct sightlines down to the space. Felt on the bottom side of tables and the perforated wood ceiling make the large volume fell acoustically intimate.

The corridor connecting the auditorium to the main entrance is a learning environment made up of small seating groups centered around a massive concrete fireplace looking out onto the playground.  The architect activated this space turning a simple hallway into one of the most unique experiences in the building. Minna identified this as her favorite area of the school.  She often sits with students in the “green chairs” to have one on one conversations, and she observes the kids utilizing the space in the same way.

This space also represents an overlap in the building between public and private use. Portions of the Saunalahti School are open to the community after hours. At the main entrance there is a public library that accesses the fireplace seating. Minna describes this as another opportunity to enhance the security of the building: by opening the doors to the residents the administration is able to get to know the public and bring them into the school’s community. As we toured residents were coming and going from the green chairs, reading magazines and working on tablets. There is no scenario I could imagine this openness being accepted in a U.S. School. 

Where traditional classrooms occur they are grouped together around a small communal space and teacher work room. This provides teachers with a variety of spaces to support all types of learners.  All classrooms have sightlines into adjacent teaching spaces. Minna tells us this feature both enhances security and allows younger students to observe the classroom behavior of their older classmates.

Sustainability: The Kolla School

The Kolla School, designed by Kjellgren Kaminsky Architecture is located in Kungsbacka a suburb outside of Gothenburg, Sweden. This was a key building for the trip based on the remarkable achievement of being the first Passive House certified school in Sweden, but I found that the culture of inclusion and respect for the individual student were just as compelling. One of the greatest moments of the trip was the discovery of student made glazed brick installations on the schools street façade letting everyone know this building is special.

The Head Master spent hours with us describing every inch of the school and explained how the design of each space was curated to the specific needs of their pedagogy.  He attributes the overall success of the project to the critical component of trust as the guiding principle of the team. The building was completed on time on schedule, and Passive House certification was achieved the summer before they opened for the first school year making it the largest Passive House school in Sweden at the time. As you enter the building the commitment to sustainability is reinforced with a digital display showing real time energy consumption data.

The lobby opens onto a double height atrium space which serves as a central-hub linking three educational wings to community spaces and connecting to the playground through large colorful windows.  The fundamental ingredients that make a memorable building interior; light, color, acoustics, texture are elegantly combined in school to demonstrate how architecture can enhance the student’s relationship to education. As we walked Mats said it best; “A well designed school will make the students feel good.  When students feel good they will perform better academically.”

Inclusion of special needs students is the design focus of the educational wings. Kolla School has a high percentage of special needs students and the educational wings are designed to integrate these students with their peers while providing the sense of security they need to be successful. A typical grouping of classrooms or “village” features large windows at varying heights, interior glazing that allows visual connections between classrooms, a group work area with built-in furniture, mobile workstations for individual instruction and an adjustable height smart board to accommodate students in wheelchairs.

Different but the Same

Designers and educators can make large impacts on the experience of students with minor interventions. In the United States today we face very different hurdles than our European colleagues in securing our schools but we are all seeking the same goal of providing the best educational environment possible for our students. Innovative design thinking and collaboration with educators will provide the revolutionary solutions necessary to benefit the next generation of great thinkers. The classroom we grew up in is dead.

For a full account of the trip and detailed analysis of all the schools visited please check out Max’s travel blog at: https://maxgoes2school.tumblr.com/

Be Part of the Conversation about the Future of Educational Environments

The best place to find out about future-focused design and purchasing trends that are shaping today’s cutting-edge learning environments is EDspaces, October 23-25 in Milwaukee, Wisconsin. EDspaces is the education industry’s only conference and expo focused the convergence of technology, space and pedagogy, and its impact on student outcomes.

EDspaces brings together professionals who design, equip and manage innovative learning environments and the manufacturers, service providers and dealers who offer the essential solutions. Two important audiences for EDspaces are personnel from school districts and colleges who are stakeholders in the building or renovating of educational facilities and the architects and designers working on those projects. EDspaces has been ranked one of the 50 fastest growing events by Trade Show Executive Magazine for the last three years with more than 160 exhibiting companies in over 600 exhibit spaces.

Once again, the American Institute of Architects Committee on Architecture for Education (AIA CAE) is co-locating its Fall Conference with EDspaces and serving as a valued Knowledge Partner. Other partners include the American Society of Interior Designers (ASID), the Association of Technology Leaders in Independent Schools (ATLIS), the Independent Office Products and Furniture Distributors Association (IOPFDA), the U.S. Green Building Council’s Center for Green Schools, and, new this year, AVIXA, the Audiovisual and Integrated Experience Association and DHI - Door Security + Safety Foundation.

The pre-conference Educational Distribution Symposium & Reception, sponsored by School Planning & Management and College Planning & Management, will be held on Tuesday, October 22. This education program is ideal to inspire top management and sales professionals to reach new levels of service to the educational products marketplace and to work in partnership with their vendors.

On Wednesday morning, Tony Wagner will share his thoughts on “Creating Innovators for the Future of Learning” at the Opening Plenary, sponsored by Grantells. During the conference, attendees can choose from 54 education sessions certified by AIA, GBCI and IDCEC for continuing education credit.

EDspaces has earned a reputation for “walking the talk” when it comes to educational environments with education sessions taking place in classrooms designed by leading vendor and architectural firms. These six, unique learning environments provide an immersive experience allowing participants to experience firsthand cutting-edge educational spaces.

New for 2019 are designed cafeteria spaces as well. Every school and college campus have a designated food service area. At EDspaces over 2,000 participants will be served lunch in the exhibit hall during the event and will have Cafe seating areas designed and furnished to reflect the possibilities available when planning for a new cafeteria or dining hall.

Sustainability of facilities and wellness of students and faculty are the focus of the new education experience and lounge on the exhibit floor. The Sustainability and Wellness Learning Zone will house a series of 30-minute professional development sessions to highlight these important aspects of educational design. It will also have a gallery of ideas from Knowledge Partners USGBC and sponsor Interface to highlight concepts and examples of wellness and sustainability.

Attendees can take part in experiential learning and see and experience recently built learning environments in the area through EDfacility Tours. A wide range of K-12 and higher ed tours were planned by the local, volunteer team of architects and school officials in and around Milwaukee. New for 2019 is a pre-conference STEM Innovation Tour with an education component and tour of three Makerspace and FabLabs. At each school participants will learn from administrators and architects who worked on the project as they discuss the planning, design, build and upkeep process as well as the impact the project has on the students the schools serve.

Register today at www.ed-spaces.com