Schools are organizations that produce the world’s most essential product: educated and productive individuals. And just as corporate America’s CEOs are identifying new ways to structure, finance, and gain stakeholder approval of their businesses, so are school superintendents across the state of Michigan faced with solving serious business problems. Michigan’s school districts face issues of financial shortfalls, changing enrollment patterns, and potential restructuring under an added pressure. In addition, there is approximately a 30 percent superintendent turnover rate in the last year which means that more than one out of three districts has leaders who are still learning the ropes of the district.

In many districts hit hard by decreases in state funding and changing enrollment, superintendents have to consider capital bond projects – either new construction or renovation projects funded by voter-approved bonds – that will support maintenance, improve the learning environments, and reduce operating expenses. Regardless of whether a superintendent has been seated for 12 months or 12 years, the challenge of passing a capital bond project is a significant one. Although it’s a complex political endeavor, there are two key factors in the process, data and community input:

• The collection of data is a critical starting point, one which may lead to proceeding with a capital project or identifying other cost-saving alternatives. Key data points that should inform a capital project include facilities utilization, enrollment and demographic projections, and financial outcomes. Because the integrity of this data is pivotal to the decision-making process, it is recommended that districts seek the expertise of an independent, certified bond planning consultant.
• The most successful capital bond projects are those that are not driven by the district, but by the community. It is ideal to form a committee comprised of members of the community to respond to the project data and play a role in plan development and presentation. Childless voters should be represented in this committee so the district has an opportunity to directly address how school spending has a “greater good” impact on the community.

Architectural and construction planning and bond campaigning follow and – if the project is managed by a reputable partner firm – can result in a bond passage that the entire community feels good about.

However, proper consulting on a capital project may help a district uncover other means to reduce costs and increase efficiencies. For example, facility utilization and enrollment studies – both data inputs in the initial bond planning process – may reveal that a district can consolidate properties, infrastructure, and staff without compromising the educational environment or programs for students. These evaluations can enable a district to tighten operations and reinvest the savings, thereby eliminating the need for a bond project.

Bond planning, if performed correctly, is a meticulous but rewarding process – a process we believe requires a third party with no financial interest in the project’s architecture or construction to objectively facilitate. We also believe that a district that collaborates with a firm that brings a holistic set of services to the project, including real estate, financial, technology, and operational expertise, will pass a bond that meets its needs most strategically and comprehensively. Like any effective CEO, superintendents must understand when to enlist the expertise of an outside, independent consultant to manage issues – like a capital project’s financial, political, and operational considerations — that can distract them from their missions.