K-12 Investment in County Districts

K-12 Investment in Regional Districts

In 2011, Michael Walden, an economist at North Carolina State University, wrote an extensive report on the economic impact of public schools. He indicated one of the most important impacts of a school district on its local economy is from the “outputs” of schools such as the generation of successful graduates who will be more productive in the local economy and who impose fewer public costs by becoming less likely to engage in crime and drug use, and more likely to lead healthier, productive lifestyles.

Local Manistee community entities are working in collaboration with the Michigan Economic Development Corporation through the Rising Tide Initiative to identify how to improve the economic forecast of Manistee County by measuring which efforts will have the greatest long-term impact on economic concerns such as job stability, workforce development, and affordable housing. Manistee Area Public Schools works to ensure an educational foundation that is supportive of these efforts.

FOUNDATION FOR A STRONG COMMUNITY

A strong community foundation includes the following elements:

• Economic– Diverse, vital, and innovative business providing service and creating job opportunity.
• Education– High-quality educational resources for lifetime learning.
• Health & Wellness – Access to quality health care resources.
• Neighborhood & Community – Provide housing and basic needs of residents, while creating a sense of pride and shared purpose.
• Assets– Recreational, historic, and cultural assets for quality lifestyle.

EDUCATION FOR A STRONG COMMUNITY

Why education matters…

• Potential for stabilizing property values*
• Attracts and keeps families in our community
• Fosters economic development
• Provides work force for area businesses
• Develops students into productive citizens

Community Impact of Your School District

*According to the National Bureau of Economic Research, there is a clear connection between school expenditures and home values. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased by $20. These findings indicate that additional school expenditures may benefit everyone in the community, whether or not those residents actually have children in the local public-school system.

Insulating Property Values

*In a 2009 study at Georgia Tech, the effects of the recession on housing values were studied to identify changes in the demand for certain characteristics of residential properties as the market was falling.

They analyzed home buying influencing characteristics such as bedrooms, bathrooms, square footage, age, stories, garage, basement, general interior and exterior, school district, crime stats, median income, etc.  The research discovered that a quality school district can have a profound insulating effect on the housing values in the surrounding community.

Although we are in full support of the Ludington Area School District Safe & Modern Schools Plan, we are also keenly aware of the potential impact the district’s improvements could make on the Ludington community that neighbors our county. Educational resources are important to the economic strength of a community. Quality educational resources are a critical component in community selection for those considering future business and development opportunities.

Foundational Factors for a Strong Community

• Economic – Diverse, vital, and innovative business providing service and creating job opportunity.
• Education – High-quality educational resources for lifetime learning.
• Health & Wellness – Access to quality health care resources.
• Neighborhood & Community – Provide housing and basic needs of residents, while creating a sense of pride and shared purpose.
• Assets – Recreational, historic, and cultural assets for quality lifestyle.

Additional consideration of neighboring educational assets is also a concern. According to a National Bureau of Economic Research report, it was found that the degree of external competition that a school district faces from neighboring districts may also affect the efficiency of school spending and therefore housing values. This speaks to a more expansive concern to school districts and their surrounding communities regarding student retention in the face of the School of Choice option.

With the introduction of School of Choice in 1996, school districts were placed in the position of having to consider marketability for the first time. Over the last few years, MAPS SOC population is showing an upward trend in SOC transfers. Proving a margin exists for improvement.

In a competitive market, it becomes critical for school districts to identify what impacts decision making. Parents are measuring 21^st Century learning amenities, test scores, academic offerings, extracurricular diversity, fiscal responsibility, social and behavioral supports, community pride, and more.

Manistee is compared with neighboring communities based upon development opportunities, as well as our educational, housing, and workforce assets.  In order to retain students and grow business and manufacturing in our county, we need to envision and invest in a future for our community that supports Manistee as a great place to live, work and raise a family.

Why education matters to a community…

• Potential for stabilizing property values*
• Attracts and keeps families in our community
• Fosters economic development
• Provides work force for area businesses
• Develops students into productive citizens

Community Impact of Your School District

*According to the National Bureau of Economic Research, there is a clear connection between school expenditures and home values. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased by $20. These findings indicate that additional school expenditures may benefit everyone in the community, whether or not those residents actually have children in the local public-school system.

Insulating Property Values

*In a 2009 study at Georgia Tech, the effects of the recession on housing values were studied to identify changes in the demand for certain characteristics of residential properties as the market was falling.

They analyzed home buying influencing characteristics such as bedrooms, bathrooms, square footage, age, stories, garage, basement, general interior and exterior, school district, crime stats, median income, etc.  The research discovered that a quality school district can have a profound insulating effect on the housing values in the surrounding community.

Safety of our students and staff is, and always has been, the focus of our attention. We have addressed safety in a multitude of ways and will continue to allocate resources to build upon these efforts. MAPS administration, staff, Board of Education, and our Student Safety Advisory Committee have worked hard to formulate solutions for addressing safety concerns. The following is a summary of some of our recent progress in the area of safety:

Communication

• • Communication Matrix Developed and Implemented
  • Safety Communication and Resources Presented on Safety Page of Website
  • Efforts to Improve Communication Between District and Parents
  • Manistee Community Safety Committee Developed for Countywide Communication of Safety Standards

Buildings

• • Building Tours Completed/Identified Safety Improvement Opportunities
  • Grant Obtained for Safety Film at MMHS
  • Bus Protocols Implemented
  • Door Sensor Installation
  • Fingerprinting Standards Identified
  • Emergency Operation Procedures Reviewed and Revised

Education & Training

• • Social Emotional Learning Curriculums Reviewed
  • OK 2 Say Training
  • Stewards of Children Training
  • QPR Training
  • Student & Staff Opportunities
    • Opioid Symposium
    • Vaping Assembly
    • Homeland Security

Ongoing Initiatives

• • • MMHS Safety Improvements to Entry – Budgeting for 2019/20 Project
      • Working with contractors to design improvements for front entrance and office areas
      • Create separation between student population and adults visiting the building
    • Door Sensor Installations
    • Bus Route Improvement
      • Schedules are being revised to accomplish 10-minute drop-off windows
    • Manistee Community Safety Committee – EOP Alignment
      • 763-page EOP document was presented for review
      • Standards are being finalized
    • CentraWellness at Madison
      • Madison will be the new location for the CentraWellness Autism & ADD Therapist
    • Jefferson Parent Visit to Ludington – Locked All Day Policy
      • Access & Entry procedure monitored at each building
      • Met with parent advisors to discuss in-building safety concerns
      • Visited Ludington to review Locked All Day procedures
      • Developing policy and procedure for keeping building locked at all times
      • Reviewed and discussed revised drop-off & pick-up procedures that will be implemented for 2019/20
    • MMHS Pick-Up & Drop-Off/Bus Route Improvement
      • Discussed opportunities for improving the transportation procedures at MMHS
      • Solutions implemented with Transportation Director

Although the scope has not changed, our thinking about the project priorities has been altered.  The circumstances of the last several months has redefined the meaning of “Safe Schools”.  In addition to features such as secure entrances, learning corridor lockdowns, and improved transportation routes, we are also mindful of the importance of modern air quality standards, flexible and adequate learning spaces, and surfaces that can be easily sanitized. 

The scope includes modernized mechanical assets to improve energy efficiency and air quality for the renovated Kennedy Elementary building. Additionally, an assessment of air quality at the MMHS building was completed determining that the current mechanicals meet current air exchange standards not requiring any change in scope.

Manistee Middle High School was placed into service in 2003

Kennedy Elementary was placed into service in 1967

Madison Elementary was placed into service in 1964

Jefferson Elementary was placed into service in 1954

As much as we would like to be able to meet all of the district need with one bond, through our facilities assessment and planning, including community feedback, we were able to determine a scope for the bond that addresses our greatest needs currently.  The scope was designed to address efficiencies, while also considering sensitivity to the financial tolerance of our community.

It is possible in the future that we may consider a consolidation of our transportation resources to the location of our Madison Community Learning Center.  The lot size of that property may prove to be able to accommodate those assets.

This is an option that has been discussed with our community. There is concern amongst neighboring properties regarding the scale and quality of the development that could occur on this plot of land if the district were to sell the Jefferson property for residential purposes.

Community members have expressed far greater interest in having the Jefferson property be maintained as a community green space potentially offering a playground, walking paths, pickleball and/or tennis courts, community garden, and a pavilion. Addition of these amenities to the proposed green space could potentially be funded through efforts supported by the district along with community recreation agencies. However, funding for these amenities is not included in the current bond proposal.

*Maintenance cost come from MAPS General Fund Budget
** Capital Need based on Facility Assessment

Investing in our elementary with the best infrastructure allows the district to save $21.16 million over the next 20 years.

*Maintenance cost come from MAPS General Fund Budget

Through the process of facilities visioning, we have considered many options. Madison is an aging building, however the space available there has been put to great use. The former Madison Elementary School has undergone a repurposing plan which began after the building consolidation in 2017 and was recently renamed: Madison Community Learning Center. Madison currently houses, MAPS Preschool, Great Start Readiness Program, MAPS After School Care, Face to Face Homeschool Program, Michigan Great Lakes Virtual Academy, is a resource for Manistee Intermediate School District, and most recently became the new location for the CentraWellness Autism & ADD Therapist.

In the proposed plan, with a reasonable investment to renovate space and mechanical services, the Madison Community Learning Center would be used as a community hub offering practical resources and innovative programs to meet the educational, health, social, and behavioral needs of students throughout our community as well as the location of our administrative offices.

The move of our administrative offices to Madison allows for the space needed at Kennedy to house all lower grades, Pre-K through 5 in one location.

Through the further development of collaborative community partnerships, we will endeavor to assist Manistee families with centralized, diverse resources to help them thrive and grow.

Over the years we have been able to maintain basic operations and maintenance of our buildings through our operations budget and alternative funding opportunities.  This bond scope addresses consolidation and efficiency projects that extend well beyond what our funding would allow to be addressed. 

Financial Considerations:

• The current bond drops off in 9 years in 2029.
• The 2017 facilities assessment identified infrastructure, maintenance, and furnishings needs in excess of $48 million over the next 10 years.
• With all 4 buildings remaining in service, in 20 years that number jumps to $63+ million.
• Consolidating our elementary infrastructure, as outlined in the bond scope, would allow the district to save and estimated $21.16 million over the next 20 years, based upon projected maintenance and capital need of all existing elementary buildings.
• Construction costs grow each year that we wait.
• With current budgetary allocation at 9% to cover expenses such as general repairs, utilities, plowing, etc., in addition to capital improvements, our facility needs are very quickly outpacing our budget.
• Right now we are in a position to borrow money at a relatively low cost due to current market conditions.

The MAPS district holds a fund balance (sometimes referred to as a rainy-day fund), which is set aside to cover district operations for emergencies and times when state or local revenues may be delayed or not available.

The Mackinaw Center for Public Policy Reports:

The Michigan School Business Officials organization recommends that districts maintain a fund balance of at least 15% of a district’s general fund expenditures. Based on data from Bulletin 1011 for fiscal 2006, the general fund balance after reserves and designations of conventional school districts and charter schools statewide was about 10.8% of total current operating expenditures, showing that many districts struggle to meet the recommendation.MAPS fund balance for the 2017-18 school year was approximately 20% of the total budget.

State Funding

Prior to Proposal A, schools were financed primarily through local property taxes. In 1993-94, Michigan home and business owners were paying on average 33 operational mills assessed on the State Equalized Value (50% of market value) of their properties. At that time, local taxation accounted for roughly 69% of the State/local split of school finance, with State funding making up the other 31%.

In July of 1993, the Michigan Legislature approved, and the Governor signed into law, P.A. 145 of 1993. This law exempted all real and personal property taxes for school operating purposes beginning in 1994. This law eliminated approximately 64% or $6.4 billion of $10.0 billion of total K-12 school funding beginning in FY 1994-95, requiring the Legislature to create a new funding structure.

Proposal A passed in March 1994:

• Sales Tax Increased from 4% to 6%, with 100% of the Revenue from the Additional 2% Dedicated to the School Aid Fund (SAF);
• Use Tax – All Revenue from the 2% Increase –SAF;
• State Education Tax Assessed on the Taxable Value of all Property at 6 mills;
• New Real Estate Transfer Tax – 0.75% applied to the selling price of the property;
• Cigarette Tax – increase from 25 to 75 cents per pack, with 63.4% of the increase dedicated to the School Aid Fund. (August 1, 2002 saw a 50 cent increase, 20 cents of which was dedicated to the SAF. This tax increased again on July 1, 2004, to $2.00/pack; none of the 75 cent increase was dedicated to the School Aid Fund.)

Unfortunately, we do not have the luxury of waiting until 2029 when the current bond drops off. The facilities assessment that was conducted in 2018 has identified facilities infrastructure, maintenance and furnishings needs in excess of $48 million dollars over the next 10 years, if no changes are made to the current 4-building facilities configuration. With all 4 buildings remaining in service, that number jumps to $63+ million in 20 years.

With each year that passes, our buildings age and require additional maintenance. Approximately 91% of our annual budget is allocated to expenses directly related to educating our students, this leaves us with 9% of our budget for building operations and maintenance. In addition to covering everyday expenses such as general repairs, utilities, plowing, etc., from this budget we must also allocate for capital improvements for things like roof or window replacement, and furnishings upgrades. The budgetary allocation for the 2018/19 schools year provided approximately $1.3 million for operations and maintenance plus $328,000 to service debt from the 7 million dollars in improvement work completed without incurring additional tax burden on our community. As you can see, our facilities needs are very quickly outpacing our budget.

According to a National Bureau of Economic Research report, it was found that the degree of external competition that a school district faces from neighboring districts may also affect the efficiency of school spending and therefore housing values. This speaks to a more expansive concern to school districts and their surrounding communities regarding student retention in the face of the School of Choice option.

With the introduction of School of Choice in 1996, school districts were placed in the position of having to consider marketability for the first time. Over the last few years, MAPS SOC population is showing an upward trend in SOC transfers. Proving a margin exists for improvement.

In a competitive market, it becomes critical for school districts to identify what impacts decision making. When selecting a school district, parents may consider measuring 21^st Century learning amenities, test scores, academic offerings, extracurricular diversity, fiscal responsibility, social and behavioral supports, community pride, and more.

Manistee is compared with neighboring communities based upon development opportunities, as well as our educational, housing, and workforce assets.  In order to retain students and grow business and manufacturing in our county, MAPS needs to envision and invest in a future for our community that supports Manistee as a great place to live, work and raise a family.

On September 23, 2020 the MAPS Board of Education accepted a bid for bond issuance refunding allowing the District to refinance the balance of the 1999 bond ($7,970,000) at an interest rate of .98% (from 4%) which results in a savings over the remainder of the bond life of $1,275,538.

No. The Paine Aquatic Center was built through the generous donation of private funds from the Paine Family.  Bill Paine, a local Manistee citizen, presented to a joint meeting of the City of Manistee and Manistee Area Public School Boards a proposal to build a community pool for the Manistee area. The City of Manistee and Manistee Area Public Schools both agreed to accept the proposed project and entered into an Interlocal Services Agreement on the operation and maintenance costs for the building. The proposal called for the pool to be attached to the Manistee High School facilities. The pool opened in July of 2009.

Maintenance is provided in conjunction with our community partners:

• City of Manistee
• Munson Healthcare
• Charter Township of Filer

Using an assessment of the current physical structures of district, we have evaluated our facilities needs over the next 20 years. Comparing operational expenses to facility need, we have developed a plan for efficient use and maintenance of our physical assets, ensuring sustainable and supportive learning environments for future Chippewas.

Additionally, we have taken into account how changes in enrollment may impact our district capacity and financial future. In the MAPS 2020 Vision, consideration has been given to the capacity of individual buildings, maintenance requirements of those buildings over the next 20 years, and student enrollment projections. The MAPS 2020 Vision aligns our facilities assessment findings with historic and projected enrollment figures to reconfigure current district assets.

Although the MAPS 2020 Vision bond scope cannot completely encapsulate all needs for all facilities for the next 20 years, we are confident that we have developed a plan that provides appropriately scaled learning environments for our student population, while also delivering efficient and affordable facilities the district can maintain well into the future, saving the district millions in maintenance and operational costs.

Potential Benefits include:

• Operational efficiency
• Buildings scaled to enrollment projections
• Shared resources
• Transportation efficiency
• Improved financial stability
• Reduced maintenance costs

Click this link for a chart showing district revenues and spending:

MAPS SchoolFunding 2018 19 Update FINAL

Based upon a third-party facility assessment, the funds needed to maintain and improve all buildings over the next 20 years would be more than 60 million dollars. Through traditional school funding, this far exceeds the district budget for building maintenance and improvement. On average the district is currently able to allocate approximately $1.4 million dollars per year on building maintenance and improvement.

Based upon the current school funding structure, maintaining and improving all buildings over the next 20 years without community support would not be possible. Therefore, the district would need to ask the community for additional funds through another bond proposal, which would likely exceed the amount asked for in the current proposal.

The MAPS 2020 bond proposal, asking for $29,825,000, has taken into consideration the enrollment projections for the next 10 years and has carefully considered how current buildings can be adapted to meet the needs of our students for years to come. The intention in developing this plan was to ensure supportive and safe learning environments for all students, while also considering financial stewardship of the district for the next 20 years. We estimate that the proposed configuration outlined in the bond proposal would save the district approximately $21 million dollars over the next 20 years.

A portion of the revenue sharing money generously contributed annually from the LRBOI is allocated to debt retirement by the Board. Since the inception of the PILT payments, the MAPS Board of Education has transferred in excess of $1,756,000 of Payment in Lieu of Taxes (PILT) money from the general fund to the debt service fund, which has reduced taxpayer burden.  As a measure of impact, last year’s transfer covered 6.85% of the same periods levied debt service payments. The additional funds are generally allocated to capital expenditures and building maintenance needs, expenditures which currently amount to approximately 1.4 million dollars per year.

The MAPS 2020 Vision includes programmatic elements that reach beyond the bond scope and our physical environments. Our Social Emotional Learning (SEL) curriculum provides social and emotional programming within the academic curriculum to help our students learn about self-awareness, self-management, relationship building and other basic life skills. The intention is to address emotional and behavioral issues through a comprehensive, consistent approach at all grade levels, while also providing them with critical thinking, problem solving, and communication skills needed to be successful on any life path they choose.

Through a carefully considered balance of academic curriculum, technology, social and emotional programming, and well-planned and supportive learning environments we will enable our students to excel, while also providing a stable educational foundation within our community.

The Full MAPS 2020 Vision includes plans for:

• Flexible & Collaborative Learning Spaces
• Secure & Accessible Buildings
• Educational Excellence through Professional and Curriculum Development
• Supportive Culture for Students and Staff
• Community Stability through Support of Economic Development Efforts
• Operational Efficiency through Long-Term Facilities Planning
• Expansion of Extracurricular Assets
• Community Collaboration of Shared Resources

In order to continue to meet the needs of these students, our Career Technical Education (CTE) program offers MAPS students the opportunity to earn articulated college credit through partnerships the district has with WSCC, as well as Ferris State, and other higher learning institutions. CTE opportunities provide our students with the academic and technical skills, knowledge and training necessary to succeed in their chosen career field.

Advanced Placement Classes

Advanced Placement is a program run by the College Board (the makers of the SAT) that allows students to take courses at MAPS, for which they can earn college credit and/or qualify students for more advanced classes when they begin college.

The AP courses are designed to give the student the experience of an intro-level college class while still in high school, providing the challenge advanced students desire. They may even earn college credit for the class if they pass the AP exam with a qualifying score. Current AP courses offered at MAPS:

• English (Composition)
• Environmental Science
• US History
• Psychology
• Calculus I
• Computer Science
• Chemistry

Dual Enrollment

Through a partnership with West Shore Community College, MAPS Students are able to apply for Dual Enrollment. This program allows high school students to enroll in college courses for credit while still in high school.

Learn More

Technology has been shown to transform learning by introducing in a new model of connected teaching. Technology links teachers to their students and provides expanded access to content, resources, and systems to help them improve instruction and personalize learning for the way a student learns.

Today’s world requires students to have strong technological skills regardless of their path for the future. As the job market evolves, so must our curriculum in order to provide relevant skills for advanced education and entering the workforce.

The process of establishing a future vision for the Manistee Area Public School district began in the fall of 2016, with an effort to understand both an internal and external perspectives on the needs of our district. From this, it was determined that the district needed a scaled facilities plan that would better meet the physical and financial needs of our district over the next 20 years.

• Over 120 one-on-one interviews were conducted with community members
• Community input forums were held
• Surveys were administered
• Facility assessment was completed
• Current enrollment and future projections were assessed

Academics

• Recruited a dedicated Curriculum Director in 2019.
• Developed a professional learning community, which engages a group of educators to share expertise and works collaboratively to improve teaching skills and the academic performance of students.
• Continued efforts are being made in assessing student progress through work with the NWEA and incorporating data gathered into the creation of student focused solutions for optimizing instruction.

Safety

• Created the Student Safety Advisory Committee (SSAC) a community-based safety initiative team to research, devise, and inform the Board of Education regarding initiatives to improve safety.
• Identified, applied for, and was awarded grant dollars to improve safety features of district assets. Additional opportunities are being continually sought.
• Participating regularly in collaborative safety efforts with local law enforcement and neighboring districts to streamline response procedures
• Leading student group initiatives focused on improved internal culture and positive decision making.
• Ongoing participation of administration, staff, and students in local efforts and training for safety awareness initiatives.

Communication

• Implemented outreach effort with internal and external stakeholders to better understand the perception, concerns, and desires of our community.
• Assembled a staff leadership committee to lead internal culture development and proliferation.
• Launched a new website focused on improvement of communication and robust and easily accessible resources.

Facilities Stewardship

• Engaging in discussion with internal and external stakeholders to identify a 20-year vision for district facilities plan.
• Identifying potential bond initiative to fund highest priority facilities needs.
• Outlining 20-year strategy for maintaining existing district assets.
• Maintaining the integrity of the operating budget while making infrastructure improvements for creatingsafe, secure, healthy and energy-efficient school in partnership with Honeywell Initiatives.

• Improved Indoor & Outdoor Lighting
• Upgraded Fire Alarm Systems
• Installed Playground at Kennedy Elementary
• Purchased New Busses
• Boilers & Controls
• Roofed all buildings
• Added Security Cameras and Installed Door Monitoring Systems
• Updated Classroom Technology
• Upgraded Baseball, Softball, and Football Fields
• Built Restroom & Concessions Building at Football Fields
• Repaired & Expanded Parking Lots
• Built Community Track
• Built Paine Aquatic Center

Perhaps the greatest concern when considering this question is the long-range cost to maintain our facilities and how the current configuration will serve our population as it declines. Enrollment is projected to decrease by more than 30% over the next 20 years. As enrollment declines, so will school funding. The impact of maintaining numerous aging buildings, not operating at capacity, would create a significant financial burden on the district.

Bear Lake 25:1
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