By Gabrielle Isaac
LUMBERTON — The Robeson County Board of Education on Tuesday decided to halt all discussion on a school consolidation plan pending the outcome of a Senate bill that would allow the reallocation of state money needed to finance the project.
The 6-4 vote came after representatives from the state Treasurer’s Office and the Local Government Commission voiced strong opposition to Senate Bill 554 and the financing plan that would pay for the $1.4 billion schools plan.
“The best I can remember, we asked for a study. I don’t remember us asking for a plan, but on April 5 there was a plan thrown in front of us,” school board member Steve Martin said. “If SB 554 has to pass, we should wait to see what happens with that.”
Board members Loistine DeFreece, Peggy Wilkins-Chavis, Dwayne Smith, Martin, Randy Lawson and Jo Ann Lowery voted to halt discussion of the consolidation plan until legislators vote on Senate Bill 554.
SB 554 would allow state money to be put toward operating leases like the one proposed by Robbie Ferris, CEO of sfL+a Architects.
Although Ferris said the plan could be reworked should Senate Bill 554 not pass, Erica Setzer, financial officer for Robeson County schools, said the reallocation of state funds is the only way the system can afford the consolidation. The bill would also allow the school system to keep money that would have gone toward positions eliminated by consolidating schools. Ferris has said the county would owe sfL+a nothing if the bill does not pass.
Throughout the meeting, Ferris and state officials squabbled over the details of what sfL+a is proposing, which, according to Ferris, state officials had not asked to see before Tuesday’s meeting.
Tony Solari, director of government relations and senior policy advisor with the Office of the State Treasurer, and Tim Romocki, director of debt for the Local Government Commission, recommended that the state Treasurer’s Office work with the school board to craft a more traditional financing option. Solari said the Treasurer’s Office isn’t comfortable with diverting funds from the classroom to pay for capital projects.
Raleigh-based sfL+A Architects is proposing to close 30 Robeson schools and open 13 new K-8 schools as well as a technology high school under a 40-year lease-purchase agreement. Five existing schools would also be renovated as K-8 schools.
Solari cautioned against taking on construction of all 14 schools at once.
“We do see some risks in the plan,” Solari said. “I know there is a lot of need and there is pressure for you to make a decision. If you choose to go toward this approach, that is your decision. I also want to say to you that you need not necessarily do so.”
Solari said the per capita debt in the county would rise from $202 to almost $4,700 in order to finance the $1.4 billion plan.
“The money that is going to be used to build these 13 new schools and a new technical college has to be borrowed from somewhere,” said Romocki. “Mr. Ferris doesn’t have all that money. If he did, he’d be like Trump and would be able to throw money around. Whether you call it a lease, a loan or finance agreement, it is the obligation of the county to pay that back.”
In addition, Solari and Romocki said they saw several red flags in pre-development agreement with sfL+a. Robeson County commissioners have already signed off on the pre-development agreement, which would allow sfL+a to move forward with a demographics study.
Romocki said if the pre-agreement is broken, the system would have to pay $14 million. However, Grady Hunt, the school system’s attorney, said that money would only be due if the school board moved ahead with the project with another firm within 18 months.
Solari said some of the money to pay for the schools would come through teacher layoffs, which Mike Smith, chairman of the board, said was incorrect. Some money gained through attrition would be used to finance the schools, but Ferris has said no teaching positions would be lost.
Romocki also questioned the notion that savings from energy would largely pay for the schools, which would rely on solar energy and be more efficient than existing schools. He said he doubted that Ferris would agree to guarantee it, but Ferris said he would take on any power bills for the new schools if that were to happen.
“We don’t see ourselves as regulators, we see ourselves as counselors,” said Solari. “We’re not here to mislead you. We have 30 years of experience in government finance. We are experts in it. When you feel like you’re under pressure to make a decision, you shouldn’t make a decision.”
“I will say in general that I disagree with almost everything that was said,” Ferris told the school board. “I could go on, but I think what was told to you tonight was to mislead you.”
After presentations from the state Treasurer’s Office and Ferris, school board went back and forth over whether to move forward with the plan, which some members have criticized for moving too quickly.
“We’re in a serious situation. We’ve got to have some schools, we can all agree we have some dilapidated schools that are falling apart,” Dwayne Smith said. “It’s hard for me to support something like this because I’m tired of being property taxed to death. I am not going to support nothing that’s going to raise my property taxes period.”
County Manager Ricky Harris, who attended the meeting, said property taxes have been as high as 99 cents per $100 and that the county currently taxes property 77 cents per $100. Harris said property taxes may need be increased by 5 to 6 cents to pay for consolidation.
Brenda Fairley-Ferebee suggested that the board work with the Local Government Commission and Ferris to rethink and revise the plan, but other board members said there was no use in planning if SB 554 doesn’t pass.
“We’ve sat here and said we’ve got to do something,” said Gary Strickland. “But we haven’t done anything. We’ve got to do something.”
Gabrielle Isaac can be reached at 910-816-1989 or on Twitter @news_gabbie.
