School Board To Consider $42 Million Performance Contract

Over $42 million in capitol improvement projects that promise energy efficiency for won't increase your tax bill, but it won't decrease either.

According to a story in The Journal Times, the Racine Unified Board of Education will borrow money outside the revenue cap, something allowed under a new state law. The law also requires the district show there's a payback for making the upgrades. The district expects the energy and operational savings from the projects to cover the payments for the $42 million bond.

“(Johnson Controls and Trane) basically need to guarantee that (the savings) is going to happen; it’s part of the negotiations,” said David Hazen to the School Board last month.

The District also plans to continue a levy that is set to expire in the 2012-13 school year.

Unified has a backlog of deferred maintenance projects, which total about $90 million, and the projects will reduce this list by up to $39 million, according to a press release issued by the District.

Among the potential projects are: lighting upgrades, roofing and replacing windows.

State law allows school districts to spend over their revenue caps to make physical plant upgrades, Hazen said to the Board last month, provided the projects will not place an "undue burden on the taxpayer."

“The idea is that it’ll be paid for with operational and energy savings,” Hazen said.

However, the public has 30 days to petition against the borrowing. If the Board doesn't receive any petitions, the board will vote on whether to borrow the money.