Wake County, N.C., voters will be asked next year to borrow money to help pay for building and renovating schools, but it's uncertain whether the amount could be a record $1.1 billion.
Wake County commissioners will decide over the next few months whether to put a school construction bond referendum on the May 2018 or November 2018 ballot. Commissioners will also have to decide if they want to ask voters to approve a four-year bond plan of around $1.1 billion or go with two smaller bond referendums in 2018 and 2020.
"We're going to build these schools," Commissioner John Burns said during Monday's joint meeting between the commissioners and the Wake school board at the N.C. State McKimmon Center. "You can count on that. This question is about how we're going to fund it."
Wake leaders have historically shied away from putting a school construction bond of $1 billion or more on the ballot out of fear that voters would reject such a large amount. Voters approved a record $970 million school bond referendum in 2006 after commissioners and the school board got the amount under $1 billion.
The last Wake school bond referendum of $810 million was approved by voters in 2013.
County finance staff are working under a model that calls for raising the property tax rate between 3 cents and 3.5 cents to pay for the school system's seven-year, $2.3 billion school construction program. The program calls for at least 11 new schools and major renovations at existing schools.
Deputy County Manager Johnna Rogers said the tax increase would be the same if commissioners go with a two-year or four-year bond plan. Under a 3.5 cent increase, a family with a $300,000 home would pay about $105 more a year.
Under a four-year plan, a tax increase of up to 3.5 cents would fund a $1.1 billion bond referendum in 2018. If approved, voters wouldn't have to go to the polls for another school bond until 2022.
But commissioners could choose a two-year bond plan that would put a smaller amount on the 2018 ballot but would require asking voters for another referendum in 2020.
Sig Hutchinson, chairman of the commissioners, said in an interview that he prefers going with a two-year bond because it provides more transparency to the public about what's being done to keep up with school growth.
"People need to know what we've got and what we plan to do and we did what we said we'd do," he said. "The more contact we can have with the voters, I think it's the better."
The other question commissioners will need to decide on soon is the timing of the referendum.
Under state law, the school bond referendum can only be placed on the ballot for an election when all the polling places are open. In Wake County, that means referendums can only be held in even-numbered years for the primaries in May or the general election in November.
Voter turnout has historically been higher for school bond votes when they're held in the fall than in the spring.
School board member Jim Martin asked whether there would be less voter fatigue if the school bond is on the May ballot. He said the ballot would likely be more complicated in November.
But Burns said he's worried a large number of state constitutional amendments could be put on the May ballot.
"There could be a just vote no message and I would hate that message to be going out when we have a school bond referendum," he said.
A school bond referendum could also face competition provided by commissioners who may put on the 2018 ballot a proposal to either raise property taxes or sales taxes to fund more affordable housing.
Commissioners would need to begin taking action in January to get a school bond on the May ballot. They could wait until July to take action if they decide to put the school bond on the November 2018 ballot.
School board Chairwoman Monika Johnson-Hostler said she agreed that they need to make sure to put the school bond referendum on the ballot at the right time.
"I want to make sure we are very aware of the political landscape and what the community has the appetite for so we're actually putting forth a bond that will be successful," she said in an interview.
