Dive Brief:

• To offset the cost of $94.5 million dollars needed for renovations, the Pinellas school district is considering taking out a borrowing plan.
• The upside, the Tampa Bay Times reports, is that the various construction projects could be completed more quickly, since the district would be required to spend bond profits within three years.
• Without a borrowing plan, the renovations are estimated to take 20 years to complete. 

Dive Insight:

The idea of borrowing money is meant as a workaround for the district, instead of allocating the money from annual budgets. Aimed at improving four high schools, two middle schools, and 10 elementary schools, the bond plan is slated to be formally considered in December or January 2016. A financial advisor will work closely with the district on the plan, and it’s as-yet unclear just how risky of an endeavor borrow funds directly from the debt market might be — or how much such financing might cost.  

For charter schools, Marketwatch reported that underwriters and investors aren’t sure how to assess the schools’ creditworthiness or risk profile. “So, they charge a premium for the rare school that does try to tap the bond market,” the story states, “much more than public school districts pay to borrow.”