Voter-approved ISD debt in Texas has soured to new heights. Exponential growth in the size of schools has not resulted in exponential new capacity. The taxpaying public is once again questioning the judgment of our temporary superintendents and their school board enablers.
Public school debt increased by $43 billion (215%) since 2000 while enrollment growth was 34%. Annual debt service obligations have increased by $3.294 billion. As of 8/31/2012, ISDs reported $63.1 billion in debt principal outstanding and $106 billion in total obligations. This fiscal year ISDs will pay $5.235 billion for debt service.
C.S.H.B 14 by Rep. Pitts attempts to place context to these bond measures by providing more accountability and transparency into the process requiring educational institutions to report information on facility usage and taxpayer value. Among other things, it will require educational institutions to report gross square footage, classroom square footage and cost per square foot when built. It’s about time!
Hays CISD is swimming in debt and has a $0.42 debt service tax (if we hit $0.50, no more debt can be issued); it has been forced to transfer millions from instruction in order to make debt payments because it promised no tax rate increase with the 2008 bonds!
The majority of the 2008 debt is not being repaid at all until 2030! That’s right, by paying interest only payments until 2030, were going to pay another $65 million in interest! To be fair, this debt will be refinanced before then so we can repeat this costly refinancing and debt deferral technique on a subsequent bond issue. This scheming costs future generations and impairs our ability to offer competitive wages today.
Why do we need extravagant facilities for 180 days out of the year? Why do we accept empty classrooms for duty free lunch and teacher planning periods? HCISD has spent over $80 million since 2000 with zero gain in capacity. We’ve even used bond proceeds to provide below market housing for sitting school board members!
If you want more transparency and accountability in the bond issuance process, hope C.S. H.B. 14 passes!
Bryce Bales
Manchaca
