Vigo County School Corp. preps for a possible referendum later in 2018

In September, the School Board agreed to hire the Winston-Terrell Group, a government and public affairs consulting firm, to assist with community relations and public outreach in preparation for a referendum.

At its December meeting, the board received a report related to the county's demographics and what it means for future enrollment in the school district. The presentation was made by Jerome McKibben, senior demographer with McKibben Demographic Research. 

According to an executive summary, total district enrollment is forecasted to decrease by 467 students, or minus 3.2 percent, between 2017-18 and 2022-23. Total enrollment will decrease by 443 students, or minus 3.2 percent, from 2022-23 to 2027-28.

"The primary factors causing the district's enrollment to decrease over the next 10 years are the level of out-migration of resident 18-to 24-year-olds; the increasing number of empty nest households; and a relatively low number of existing elderly households turning over," the summary stated.

But possibly the most eagerly-awaited information was related to estimated costs and tax impact; a presentation outlined preliminary numbers in September.

Those presenting were Bill Payne, chief executive officer of Fanning Howey, an architectural engineering firm, and Todd Samuelson of Umbaugh and Associates, a financial adviser to the school district.

The estimated construction and related soft costs for high school facilities range from a low of $191 million for addition/renovation, to a high of $372 million for an option that adds a new, eastside high school.

A so-called “reconstruction” option is tabbed at $270 million; replacement of North Vigo, South Vigo and West Vigo high school/middle school is estimated at $330 million; and an option consolidating/replacing North and South with one larger campus as well as rebuilding West Vigo high/middle school, was projected at $315 million.

“I presented what we would project to be conceptual construction costs” and related soft costs, Payne said after his presentation. “I think it frames the discussion from what is the minimum we might consider ... and what would be the maximum.”

Samuelson presented financing information and tax impact. He presented the same five options, but added in the cost to pay interest on bonds for the first three years of construction (capitalized interest) and costs of issuing bonds. That increased the cost of each option, raising total costs to $221 million for the renovation/addition option to a maximum of $430.6 million for Concept 4, which involves a fourth, eastside high school.

“These are reasonable estimates based on the information available today,” Samuelson said. But it’s important to remember that as the process continues, there will be more information that will cause those figures to be revised.

”We’re trying to be conservative on what the maximums would be and work down from there,” Samuelson said.

The projects would have to be financed using a building corporation and lease financing because of legal limits on how much debt a school district can issue, he said at the time.

Samuelson provided figures on how much each option would cost taxpayers.

Using a median home value in Vigo County of $91,200 — and net assessed value of $27,030 after deductions — the estimated monthly tax impact would range from $10.30 for Concept 1 (addition/renovation); $14.56 for Concept 2 (reconstruction); $17.79 for Concept 3 (replacement of existing schools); $20.05 for Concept 4 (four high schools including new eastside high school, smaller schools for North and South)]; and $16.98 for Concept 5 (includes one large high school to replace North/South and a new West Vigo High/Middle school.)

The tax rate impact ranges from 46 cents per $100 assessed value for Concept 1, to 89 cents per $100 assessed value for Concept 4.

Looking at the annual tax impact for a Vigo County home with a median value of $91,200, it ranges from $123.58 for Concept 1 to $240.65 for Concept 4.

Umbaugh used an interest rate of 4.25 percent, based on current market rates plus a cushion to allow for inflation.

In 2018, Superintendent Danny Tanoos said he hopes to form a committee and get a cross-section of the community involved to assist the district and board as it weighs the different options.

Can a referendum succeed?

While progress continued in the study of facilities, other developments raised questions about the ability to win taxpayer approval of a referendum.

A kickback scheme involving two former VCSC employees — Frank Shahadey and Franklin Fennell — resulted in two convictions, but an FBI agent at Fennell's trial in December said the FBI investigation is ongoing; no details were provided.

Some suggest a shadow continues to fall on the district and the current administration, which could impact a referendum.

The School Board issued a statement after Fennell's conviction by a federal jury in December: “In convicting Fennell, the jury rejected his attempt to blame others, including Superintendent Dr. Tanoos. The U.S. Attorney’s Office and FBI have confirmed that there is no evidence that Dr. Tanoos had knowledge of or was involved in Fennell and Shahadey’s scheme.

“Although the board is unaware of any continuing investigative activities, the school corporation will continue cooperating with our important law enforcement partners whenever there is any suspicion of wrongdoing.” 

Another factor that could impact approval of a school referendum relates to a likely county income tax increase to fund a new county jail.

In other VCSC 2017 news:

• In April, a caller’s threats of explosives and a rifleman at Terre Haute North Vigo High School proved unfounded. But the threats made in calls to Terre Haute police — which had to be taken seriously — caused some harrowing moments for North Vigo students, staff, parents — and the entire community.

Terre Haute police, including a special response team, rushed to the scene – as did many other law enforcement and emergency response agencies. Later, Indiana State Police bomb-sniffing dogs were brought in and each room checked.

In May, a juvenile was arrested in connection with the April 7 incident and an out-of-state person involved in the prank phone call was under investigation, police said.

• In August, the school district drew criticism for a new lunch policy calling for those who charge more than three meals to receive an alternative lunch. According to the district, the problem primarily involved children on paid lunches [not free or reduced price] whose families weren't paying.

In response, the district made some modifications and it also made plans to begin using a new system so that parents could set up online food service accounts to monitor children’s balances and pay for meals. Parents also could sign up for alerts to warn them when balances are running low.

• In May, the school district announced that it had raised more than $116,000 to benefit three organizations through district-wide fundraising efforts conducted by staff and students: $15,000 for Pink of Terre Haute; $85,000 for the Backpack program; and $16,222 for Riley Hospital for Children.

Other public school news:

•In April, the North Central Parke Community School Corp. board voted to consolidated Rockville and Turkey Run Junior/Senior high schools into one high school and one middle school, effective with the 2018-19 school year.

High school students in grades 9 through 12 will be housed in the Rockville Junior/Senior High School building, while middle school students in grades 6 through 8 will be located at what is now Turkey Run High School.

Various committees were formed to work through the transition and make recommendations. The school board has voted on the names Parke Heritage High School and Parke Heritage Middle School; also, the new mascot will be the Wolves and the new colors will be black, silver and white.