Category Archives: Uncategorized

Small Rural School Districts and Disadvantaged Communities Face Unfair Levies and School Bonds

The Wahkiakum school district in southwest Washington argues that the levying system leaves rural school children with crumbling, outdated buildings. The small community of about 2,000 residents has appealed to the states Supreme Court and is waiting for the attorney general’s office to respond.

In 2012, the state Supreme Court favored the McLeary case, in which Washington state was found to be underfunding K-12 schools. After years of litigation, the state’s highest court ruled that Washington needed to pay nearly $2 billion to fund teacher salaries rather than rely on local levies.

Today, the same argument is applied to school bonds. School bonds provide funding for building new schools, attaining property, and renovating and repairing facilities and systems within buildings. In contrast, levy dollars pay for educational programs and day-to-day operations such as teachers, support staff, classroom supplies, technology, extracurricular activities, transportation, utilities, and insurance. 

Washington School Superintendent of Public Instruction, Chris Reykdal, thinks the way schools are funded needs to change. Bigger, wealthier school districts usually don’t have difficulty in passing a bond vote as school construction bonds in property-rich communities cost minimally on every $1,000 of assessed property value for each taxpayer. However, in rural areas with less valuable property, bonds are much more expensive for individual households, making them harder to pass.

Reykdal further explains that without bond approval, districts can’t qualify for state match funding. Like most other states throughout the U.S., school districts are initially funded by property taxes based on the local tax base. Constituents vote on the applied tax rate, and the money ultimately comes in levies. That money is then supplemented by state aid.

Experts said that property tax has historically been used for school budgets because they are stable and less likely to fluctuate with the economy, unlike other revenue, like income and sales taxes. Additionally, voters usually like holding local control over neighborhood institutions.

Washington is not the only state suffering from an unbalanced levying and construction bonding system. While every state varies within its specific guidelines for school funding, more than half of states have per-pupil funding levels below the national average. Sometimes, even within the same district, students face a disparity.

Luckily, a lot of attention is being drawn to closing America’s education disparity gaps. The Century Foundation (TCF) has created a report that estimates what is needed to provide each child in America the opportunity to succeed.

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At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover surety solutions for all types of cases ranging from ordinary to challenging. Call us at 248-349-6227 to learn more.

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/

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Contract Bonds

The construction season is fast approaching, so those bidding on new jobs will need to make sure they have the appropriate contract bonds lined up to qualify for review. The process can be confusing, and unfortunately, some requests for proposal (RFP) contain vague language regarding the bond specifics. Those vying for government construction work and maintenance, often privatized jobs, will need a contract bond (or surety bond.)

Surety bonds are contracts between three parties: the principal, surety, and oblige. They provide a financial guarantee that one party will fulfill their legal, contractual obligations to another. A surety bond is more like a line of credit than insurance. Usually, construction contracts are completed to the satisfaction of all, where work expectations are met, and wages are paid out – the surety doesn’t need to get involved. If a disagreement occurs and the principal and the client (generally the oblige) can’t settle on a compromise, they can file a claim with the surety for financial compensation. The surety will investigate the claim, and if found legitimate, the surety will pay the claim in an amount up to the bond penalty.

A contract bond refers to several surety bond types. Below are the three most common contract bonds:

Bid Bonds: A bid bond is a prequalification indicating that the contractor is bondable for the performance and payment bond should they be read low or chosen by an Owner/GC/CM to enter into the contract and provide a Performance and Payment Bond.

Performance Bonds: Performance Bonds offer assurance that the bonded contractor will perform according to all contract documents.

Payment Bonds: Payment bonds assure that the bonded contractor pays for all materials and labor associated with the documents related to the contract.

Need help obtaining a contract bond? CBS will help you determine the RFP bond requirements in order to submit a bid and consequently win the contract. Contact us today for assistance.

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At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover surety solutions for all types of cases ranging from ordinary to challenging. Call us at 248-349-6227 or visit us at www.bondingspecialist.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

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Happy Holidays!

To all our Construction Bonding Specialists friends and family,

Wishing you peace, love, and joy this holiday season and throughout 2022. We are so thankful for our wonderful clients, and we want you to know that we genuinely appreciate you!
Warmly, The Construction Bonding Specialists, LLC family

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Happy Thanksgiving to all our Construction Bonding Specialists friends and family!

Whether you will be spending your holiday with family/friends or planning a quick getaway to decompress, we at Construction Bonding Specialists, LLC wish you and your loved ones a safe and enjoyable Thanksgiving.   This year, we are thankful for our wonderful clients and want you to know we genuinely appreciate all of you!  

Warmly,
The Construction Bonding Specialists, LLC family
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Class Is Back in Session – Get Your School Bid, Performance, & Payment Bonds Today!

To bid on construction work within a school district, those in the industry depend on obtaining a School Bid Bond to submit their application. Bidding on capital improvement projects for schools and municipalities is a well-known requirement. Payment, performance, and bid bonds are a core necessity of the surety bonds required by school districts.   

At CBS, our specialty is to help you get the construction bonds you need. We’ll decipher the paperwork and make recommendations to place you on top!

Surety bonds are required for school districts to protect themselves and the taxpayers, ensuring the project’s successful completion and protection against claims. School bonds vary and have certain conditions that need to be met to secure them. Construction Bonding Specialists, LLC knows what is required to expedite the process. We have years of experience in the industry, giving us an advantage you can count on. Whether you need a simple bond or something more complex, our experts are ready to assist you today.

BONDS ARE ALL WE DO!

For more information about our bonds

visit our website or call 248-349-6227

At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover bond solutions for all types of bond cases ranging from ordinary to challenging. Call us at 248-349-6227 or visit us at www.bondingspecialist.com today.

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Mortgage Broker Bonds

Spring season is upon us – get your mortgage broker bond today!

All mortgage brokers must obtain a mortgage broker bond before they can get a license. They must post a surety bond to ensure compliance with state regulations governing mortgages. Companies that service loans or are loan originators are also required to secure a bond.

States are beginning to require that all mortgage broker bonds be electronically filed through the Nationwide Multi-State Licensing System (NMLS). Construction Bonding Specialists, LLC is a member of NMLS and can file these and many other financial institution bonds electronically for you! The process to get a Mortgage Broker bond starts with a simple application – once approved by the surety – we can create the bond within the NMLS system for you to sign electronically.

BONDS ARE ALL WE DO!

For more information about our bonds

visit our website or call 248-349-6227

Construction Bonding Specialists, LLC works with new and experienced contractors to find and solidify the most appropriate bond needed. We are a distinct surety-bond-only agency with decades of bonding experience. We’ll work with you to discover all the bonding solutions for any case, ranging from ordinary to challenging. 

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