Deck 16: Financing School Facilities

Question 1

Nationally, state governments have assumed primary responsibility for financing the capital facility requirements of public elementary and secondary education.

Answer 1

False

Question 2

Overtime, the expenditures for capital outlay and interest on long term debt is approximately 23 percent of total expenditures for public elementary and secondary education.

Answer 2

False

Question 3

Capital Outlay is an expenditure that results in the acquisition of fixed assets or additions to fixed assets which are presumed to have benefits for more than one year.

Answer 3

True

Question 4

In order to analyze the total investment costs for acquisition and renovation of school facilities, it is proper to withdraw repayment of bond/loan principal from total debt service expenditures.

Question 5

The Center for Green Schools has estimated (2013) that it will take approximately $540 billion to meet the capital facility needs of the nation, including acquisition, renovation, and modernization of existing facilities.

Question 6

When converted to constant dollars, public school expenditures for capital outlay and debt service have experienced solid growth during the recent decade ending in FY 2013.

Question 7

The decision to provide state funds for private and charter schools has diverted state funds from public schools in several states.

Question 8

Most school facilities have been financed from state sources.

Question 9

Often referred to as pay-as-you-go financing, the ability to finance the construction of school facilities from current revenues is an alternative available only to the large and/or very affluent school districts.

Question 10

Some states permit school districts to accumulate building reserve funds for the purpose of funding the construction of future school facilities.

Question 11

The vast majority of public school facilities are constructed through the sale of revenue bonds by local school districts.

Question 12

Pursuant to the Federal Code, state governments are required to conform to the 10 percent debt limitation based upon real and public service property assessment.

Question 13

The number of years over which a bond issue matures should not exceed the life of the facility for which the bond was issued.

Question 14

Nationally, state governments have assumed primary responsibility for financing the capital facility requirements of public elementary and secondary education.

Question 15

Overtime, the expenditures for capital outlay and interest on long term debt is approximately 23 percent of total expenditures for public elementary and secondary education.

Question 16

Capital Outlay is an expenditure that results in the acquisition of fixed assets or additions to fixed assets which are presumed to have benefits for more than one year.

Question 17

In order to analyze the total investment costs for acquisition and renovation of school facilities, it is proper to withdraw repayment of bond/loan principal from total debt service expenditures.

Question 18

The Center for Green Schools has estimated (2013) that it will take approximately $540 billion to meet the capital facility needs of the nation, including acquisition, renovation, and modernization of existing facilities.

Question 19

When converted to constant dollars, public school expenditures for capital outlay and debt service have experienced solid growth during the recent decade ending in FY 2013.

Question 20

Public school facilities are financed primarily from:

A) private sources
B) state grants
C) municipal bonds
D) none of the above

Question 21

Public school facilities are financed through:

A) state grants
B) local current revenue
C) municipal bonds
D) all of the above

Question 22

School building reserve funds:

A) are usually ineffective
B) provide the majority of the funds for capital construction
C) are authorized by all states
D) none of the above

Question 23

General obligation bonds provide:

A) little revenue for capital construction
B) most of the revenue for capital construction
C) current revenue for capital construction
D) none of the above

Question 24

School bonds are:

A) considered to be a secure investment
B) usually issued in serial form
C) rated by a national rating company
D) all of the above

Question 25

A barrier(s) to the acquisition of adequate resources for public school capital facilities include:

A) restrictive debt limitation
B) super majority requirement for validation of bonding referenda
C) competition for resources with charter schools
D) all of the above