Argument Against the Oak Grove Elementary School District $89,800,000 Bond Issue: Measure P_
School bonds such as Measure P saddle school districts with new debtundefineddebt which must be serviced. To do that, plus pay back the principal, the district must either divert existing revenues from education services, or force homeowners and landlords in the district to pay even more property tax.
Servicing debt is REALLY expensive.
A 3% interest rate on $89,800,000 means paying $2,694,000 per yearundefinedfor 25-30 years. This bond’s total cost: $157,150,000 (principal + interest), if paid in 25 years. It’d be even worse, if it takes the maximum period of 30 years.
We taxpayers must ask whether Oak Grove Elementary School District put its existing debt to good use. Do they really need this new loan? Let's look back:
Just 6 years ago, voters approved a $125,000,000 bond to “add solar power” to schools. Where did those utility savings go?
Answer: Teachers’ salaries increased by $349,926 and administrators’ salaries increased by $490,508, from school years 2011-12 to 2012-13. (Latest figures available.)
So, when proponents of more debt say, “No monies from bond issues go to administration,” now you know the truth: it can and it does!
Remember, school bonds are like home mortgages: they must be paid back in full, plus interestundefinedlots of interest. Which means, lots of tax dollars that won’t go to teachers, library books, computers, or maintenance. Interest payments go to lenders. If this addiction to bonds continues, eventually our districts’ revenue could all be needed for servicing bonds, and none will be left to educate kids!
Making big payments to lenders, for over two decadesundefinedis this the best use of our local tax dollars?
If your answer is NO, please vote NO on Measure P.
Enough is enough!
Like us, you can be for schools, for students, for teachers, and against Measure P.