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Education

City schools’ version of ARPA becomes a bailout for millage overruns

Last updated: 07/16/2024 at 2:01 PM
Mike Thompson Published July 16, 2024
Saginaw Board of Education Meeting held on July 10, 2024
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Unlike the City Council, Saginaw’s Board of Education has encountered no debate on how to spend a record-setting windfall of federal money. 

That’s because the lion’s share of the one-time special school aid is covering cost overruns for a 6-mill, $100 million buildings bond that voters approved in November 2000 for the new Saginaw United High and three other projects.

Inflation and supply chain troubles have pushed the price tag into the $140 million range. Instead of going back to taxpayers for even more money, school leaders are covering the excess by tapping most of their $60 million ESSER grant.

ESSER stands for Elementary and Secondary Schools Emergency Relief, companion to ARPA, the American Rescue Plan Act. Both were passed in D.C. to help local schools and communities cope with COVID-19’s  economic damage. Support in Washington was bipartisan during the worst of the pandemic, although many Republicans now are backtracking.

City Council members with ARPA used half of their $52 million to bolster the regular budget, and they still are going through the ins and outs of accepting outside proposals for the other half.

In the school board’s case, without the infrastructure projects, the ESSER funds could have been spent in the buildings, instead of on the buildings, for more teachers and programs.

Ramont Roberts

Superintendent Ramont Roberts told trustees at their July 10 session, “Things are getting pretty tight right now.” One example is spending nearly $100,000 to maintain the dilapidated southeast “science wing” at Saginaw High (left rear from the front), delaying the $500,000 demolition estimate. The first cost-cut was to refrain from HVAC updates at remaining buildings that lack air conditioning for the increased 90-degree school days that climate warming has wrought.

The district will consider suing contractors for alleged errors that led to some of the overruns, Roberts said. He did not identify the companies that are subject to potential litigation.

In addition to Saginaw United opening this fall on the riverfront, other projects include moving SASA to Arthur Hill, locating the new Handley Elementary behind Arthur Hill, and converting a portion of Saginaw High to a middle school. Another plan called for converting a portion of Saginaw High to a social services and recreation center, but the City Council and County Board both backed out of the proposal for collaboration.

Property owners annually are paying roughly $3 for each $1,000 of sales value, slated to close around calendar 2050, while this decade also finishing the 2004 millage for Thompson Middle and the new Loomis Elementary.

Roberts said some amenities, especially athletic facilities, won’t be ready in time for the Saginaw United opening, which means the Phoenix footballers — the sports moniker selected by students and approved by the board — probably will be playing another season at the Saginaw High and Arthur Hill stadia, rather than on North Niagara street at the old Bean Bunny site.

Regardless, the superintendent pledged to fulfill all promises from the 2020 millage campaign, which broke historic precedent with higher support on the West Side than on the East Side.

To view the discussion, click here.

Mike Thompson July 16, 2024
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