Virus slows tax collections, but Hillsborough school AC projects still on track

TAMPA — Early revenue reports reflecting the COVID-19 pandemic show Hillsborough County tax collections are down at least 20 percent, which translates into about $2 million monthly that is not available for air conditioners in public schools.

Addressing an oversight committee meeting for the Hillsborough County School District on Friday, chief of operations Chris Farkas said he was almost relieved that the damage wasn’t worse.

“It’s going to be tight, but we’re definitely going to have enough money for the projects planned in summer 2020,” he said.

Beyond this year, the district might spend roughly $75 million instead of $100 million a year. That means an ambitious program of air conditioning replacements, which sought to complete most of the work in the first five years of the 10-year tax, could stretch into the later years.

It depends on the level of collections, and “we’re kind of on pins and needles every month that it comes out,” Farkas said.

Voters approved a half-cent sales surtax in a referendum in late 2018, long before anyone could anticipate the shattering effect COVID-19 would have on the state’s economy. About half the $1.3 billion in total collections were earmarked for air conditioning. But because that was the most pressing need, the district scheduled air conditioning jobs ahead of most other projects, which include security, technology and playground equipment.

The earliest revenue figures since the coronavirus shuttered many businesses showed sales tax receipts were down between 24 percent and 28 percent statewide.

However, the half-cent surtax does not correspond completely with the state tax. On high-priced items, for example, it applies only to the first $5,000.

When the March numbers were worked out for Hillsborough schools, they reflected a drop from $10.3 million in 2019 to $8.37 million for the comparable month this year.

Farkas and senior project administrator Chuck Plante said that, for the most part, this year’s work is on or ahead of schedule despite manufacturing shut-downs that held up some equipment.

At Young Middle School, for example, an air conditioning overhaul in the gymnasium will happen during the winter break instead of this summer.

And there were hiccups for other kinds of projects. Auditorium seats will be late to arrive at the new Sumner High School in Riverview. However, the seats should be at the school by late July, making it possible to open on time, officials said. Belmont Elementary, also under construction nearby, should be ready on time as well.

The bigger picture concerns modifications that the state might require to prevent students from spreading the disease when they return in August. By law, the referendum proceeds can be used only for permanent capital purchases, meaning items that will last more than five years. The money cannot be used for deep-cleaning or for smaller items such as sneeze guards or extra art supplies so the students will not have to share.

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District leaders say they are awaiting instructions from the state and the Centers for Disease Control and Prevention before they move ahead with any reopening plans.

At the same time, Farkas said they are constructing a variety of scenarios and calculating their costs. “With an update every day from the CDC, it’s like you get a whole new playbook,” he said.