The Wichita Public Schools $370 Million Bond Issue
Estimated Tax Impact on Wichita Citizens

Seltzer, which opened in 2000, had to add portable classrooms in 2007 because of continuous growth in southeast Wichita.

The decision to seek additional support from Wichita taxpayers is not a matter taken lightly by the Wichita Board of Education. The citizens committee and district financial advisors recommended a 20-year financing plan for the $370 million bond issue. The 2008 financing plan wraps itself around the balance of the 2000 bond issue. With responsible financial management, the total cost to taxpayers for bond and interest payments will only be slightly more than what voters approved in 2000, and substantially less than most other public school districts in Sedgwick County.

$370 million bond issue - financed over 20 years at 4.75% interest, 25% state support, and a conservative annual assessed valuation growth of 2%

State Will Pay 25%
Wichita taxpayers contribute tax dollars each year to help school districts throughout the state build and remodel their schools. Each year, Wichita tax dollars have been used by districts across the state to renovate and expand facilities. This bond issue plan will allow Wichitans to benefit, as the state will pay 25% of the total cost - $92.5 million plus corresponding interest. Some call it a “buy three schools get one free” incentive. Average Wichita homeowners are being asked to invest about $1 per week to fund the remaining 75%.

In addition to the 25% of state support, the $370 million bond issue triggers additional investment:

• $171 million in capital outlay
   Capital outlay funds are part of the district’s budget. The bond issue would free up funds to be used on other facility improvement projects. If the bond issue isn’t approved, the priorities currently slated for funding out of capital will likely not occur since that money would be redirected to more critical needs.
• $18 million in FEMA grants for safe rooms
   The additional FEMA funds will reinforce instructional space as storm shelters.
• $40 million (est.) in new facilities weighting 
   The state provides additional funding support for 2 years to districts which construct new spaces

Using Other Funds To Make These Improvements
Available capital funding each year is approximately $24 million. At this rate, it would take 15 years or more to address these critical needs, and would divert all resources away from on-going maintenance. Inadequate resources to support on-going maintenance is a significant reason why many of the district's facilities are now experience significant maintenance concerns.

Bond issue funding is the manner in which Kansas school districts typically fund facility improvements. Since Wichita's last bond issue in April 2000, 112 bond issues valued at more than $2.5 billion dollars have been passed by voters in Kansas, including 10 in the Wichita area valued at $325.8 million.

Sales Tax Not An Option
State law does not allow school districts to levy a sales tax.




The Wichita Public Schools 2008 Bond Issue