There are best practices, and there is reality. Unfortunately, many schools fall short when it comes to their facilities. In March, a report called “State of Our Schools: America’s K–12 Facilities” provided a sobering comparison between building industry best-practice standards and actual public school spending from 1994 through 2013. Researchers found that the amount spent by states and school districts—even at $99 billion a year—is 32 percent below what it should be “to maintain, operate and renew facilities so that they provide healthy and safe 21st century learning environments for all children.” To meet best-practice standards, public schools would need to spend about 7 percent of total replacement cost annually on maintenance and renovations.
What about independent schools? We know, anecdotally and through NBOA research, that annual PPRRSM funding for independent schools averages 2 to 3 percent. Are we adequately funding our facilities—or are we destined to follow the same path as our public K–12 counterparts? I pose this question at a time when competitors in the booming education technology industry are operating out of bare-boned storefronts and office spaces. With these providers claiming to provide “personalized learning” at a lower cost, I understand the temptation of school leaders and trustees to scale back investments in building maintenance and renovations, let alone new construction. It reminds me of an incident early in my tenure at NBOA, when a business officer asked me, only half joking, “If I don’t balance my budget from facilities, how do I balance my budget?”
Years ago, a widely disseminated study investigated where investments should go during market downturns or in very competitive marketplaces. It noted that businesses typically slash costs, reduce prices and postpone new investment across the board—but concluded “such indiscriminate cost-cutting is a mistake.”
I would argue that for most independent schools, there is no better marketing expenditure than investing in facilities. No good can come from underfunding facilities and allowing them to deteriorate.
Moreover, keep in mind that a school’s physical plant (and not its endowment) is usually the largest asset on its balance sheet. In prosperous and challenging times alike, I call on independent school leaders to not simply manage your facilities, but to invest in them.
In the meantime, keep an eye on your mailbox to learn how your peer schools are investing in their facilities. NBOA will soon be releasing the results of the first-ever survey of facilities budgeting and staffing among independent schools.
