Education City Examples: School Funding

Akron, Ohio
(population 217,074)

After a failed attempt at passing a countywide sales tax, Mayor Don Plusquellic sought advice on other ways to raise local revenue in order to qualify for a state matching capital grant.  To receive funds from the Ohio School Facilities Commission, local school districts had to raise between 40 and 60 percent of the state grant in matching revenue. 

Determined to bring in the additional funding, the mayor, superintendent, city council, and community leaders launched a campaign to raise city income tax from 2 percent to 2.25 percent.  The mayor’s tenacity, along with support from all members of the community, secured the approval of the tax.  The measure is helping to fund a 15-year plan to rebuild schools and turn them into community learning centers and leverage state funding for capital improvements. 

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Columbus, Ohio
(population 711,470)

Mayor Coleman and the superintendent of Columbus Public Schools (CPS) worked closely together to secure a $392 million bond issue in 2002.  The bond package will be used to modernize 38 CPS buildings, including 26 new schools, and provide necessary repairs to over 50 other school buildings.  School construction projects are being overseen by a Neighborhood School Development Partnerships, a volunteer community board created by the Columbus Board of Education and appointed by the mayor, city council, and school board.   

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Huntsville, Alabama
(population 158,216)

Huntsville Mayor Loretta Spencer has made support for education a main priority of her administration.  The city has consistently provided local funding to aid the Huntsville City School District.  Beginning in 2000, the city implemented a series of Tax Increment Financing (TIF) districts as a means to generate additional revenue for city development.  

Tax increment financing allows a municipality to designate certain blighted or economically distressed areas as TIF districts.  Cities can then fund public improvements by capturing increased property tax revenue that may result when redevelopment and other private investment occurs in the district.  The increased revenue—the “tax increment”—is paid to the city for reimbursement of its costs in funding public improvements.

Although funds raised from TIF districts are typically used for traditional public improvements, the mayor ensured that part of the revenue would go towards enhancing the school system’s facilities.  The district implementations have attracted new business and enabled three new schools to be built and eight others to receive necessary renovations.  In 2006, an additional TIF district for school improvement was introduced by Mayor Spencer and approved by the city council and the Madison County Commission.

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New Haven, Connecticut
(population 124,001)

In cooperation with the school district, the mayor developed a major initiative to help fund new school construction and renovation projects.  The city's Board of Aldermen approved a School Construction Trust Fund, which holds $17 million in city tax lien sale proceeds.  These proceeds, along with the city’s own capital projects bond funds, are used to generate the 20 percent local share for the new construction and substantial renovation of the city's public schools.  The State Department of Education School Construction Grant program matches the remaining 80 percent. 

A citywide school building committee, composed of representatives from the board of education, board of aldermen, the city administration, parents and others, manages the volume of projects funded under this initiative.  The Committee oversees and coordinates the planning, selection, funding and timing of projects, and makes recommendations regarding the selection of architects and other professional services.

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Phoenix, Arizona
(population 1,321,045)

In 2006, city leaders led an effort to pass a $6.8 million bond to provide seed money for the construction of four to five small high schools across the city.  The nine school districts with high schools within the city limits are eligible to apply for the money.  Each school is expected to have between 300 and 500 students and reflect the city’s growing population of Hispanic youth and families in poverty.  The schools will also target local high-need occupations such as nursing, engineering, medical technology, or teaching.   

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Seattle, Washington
(population 563,374)

The Families and Education Levy, first passed by voters in 1990 and most recently renewed in 2004, produces around $17 million a year in revenue for the city.  In 2004, Mayor Greg Nickels and the city council expanded the levy by increasing property taxes for $350,000 houses from $37 to $65 a year. 

The Levy supports early childhood development, school-based student and family services, afterschool activities and middle school support, student health services, and high risk youth.  Seattle Public Schools is represented on the Levy Oversight Committee and is directly involved in developing and implementing the evaluation plan. 

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