The Marion County School Board faces tough decisions as the district contends with a growing population, aging school infrastructure and broader economic pressures.
To keep pace with these challenges, the board is considering alternative financing options to fund immediate school projects. It met on Thursday to discuss a variety of agenda items, most notably an overview of debt financing to fund construction projects across the district.
“The question is not whether we have facility needs. We know we do. The question is whether addressing these needs today provides better value to our taxpayers and students than waiting several more years while costs continue to rise,” Superintendent Dr. Danielle Brewer said. “Whatever direction we pursue, our goal remains the same: providing safe, functional and efficient facilities for students while being responsible stewards of public dollars.”
The debt service overview was presented by Robert Rios-Welsh, chief financial officer of Marion County Public
Schools, and Laura Howe, a director at PFM Financial Advisors LLC.
The district has identified $278 million in deferred maintenance needs over the next five years, including $143 million in immediate needs without an identified funding source, according to PFM Financial Advisors LLC.
Over the past 10 years, Marion County has seen an average 4.9% growth in median income. Accounting for inflation, the county experienced an annual gross domestic product growth rate of 5.6% between 2019 and 2024, 3.2 percentage points higher than the national rate, according to PFM Financial Advisors LLC. One possible explanation is the county’s significant population growth since 2020.
As the county continues to grow, the school board is considering issuing sales tax revenue bonds to fund construction projects.
The remaining projects for the district include a new district office and the possibility of a new campus for Bridgeway Academy. The board remains undecided on separate building replacements for Dunnellon Middle and Dunnellon High Schools or building a combined middle/high school campus in that area. Additionally, a new wing is being considered at Maplewood Elementary. More schools in the district could be added to the list based on funding.
Faced with rising construction costs and projected changes in inflation, the presentation recommended that the board consider a financing structure to bond between $160 million and $250 million. District officials said the approach could achieve significant savings over time by allowing major projects to be completed before construction costs increase further.
“We absolutely have the borrowing power and the ability to borrow up to $250 million,” district 1 representative Dr. Allison Campbell said. “However, that doesn’t mean we should.”
The approach is based on a projection from PFM Financial Advisors LLC that a 3.5% interest cost on sales tax revenue bonds would ultimately be less expensive than a pay-as-you-go strategy amid rising construction costs and projected changes in interest rates and inflation.
The board agreed to hear additional financing proposals in the weeks ahead for the booster stadium and immediate school projects through sales tax revenue bonds.
Board members expressed their concerns about any official votes on bonding prior to the Nov. 3 election.