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Cost to modernize every LAUSD school? Think $40 billion

LA School Report | December 11, 2014



Crumbling building* UPDATED

Members of an LA Unified board committee were told today that the district would need 10 times current funding to address the capital needs of all district schools.

The board’s Budget, Facilities and Audit Committee was shown a power point presentation that said the cost of capital improvements necessary to modernize every district school would exceed $40 billion.

Impossible, of course, leaving LAUSD officials an alternative approach, developing a priority list of needs. Those highest on the priority list would include schools with “failing” buildings systems and those that need improvements to insure earthquake safety.

The presentation — from Chief Facilities Executive Mark Hovatter and Krisztina Tokes, Director of Asset Management — showed that more than a quarter of the needed spending of $4.3 billion, 26 percent, would be earmarked for buildings in “critical condition” and 21 percent for those in need of earthquake upgrades.

In the first group, the problems in need of attention are anything from replacing air conditioning systems to upgrading fire safety equipment to constructing permanent buildings in place of portables.

Hovatter said the money for the upgrades would come from the $7.8 billion in bond authority the district has, based on the $7 billon Measure Q sale and the unsold bonds remaining from measures Y and R.

“It is not exactly ‘money in the bank’ because we have not sold the bond yet and we haven’t collected taxes from our tax base to pay off the bonds, but we do have voter authority to sell the bonds as long as we fall within our debt ceiling capacity,” he told LA School Report. “We are currently projecting it will take us 10 to 15 years to sell all of the bonds we are currently authorized to sell and still be within our debt capacity limits.”

Aging but operational buildings would likely not addressed under the plan, the committee was told.


* Corrects upgrade needs to $40 billion. A previous version said $80 billion.

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