Saline schools bond Q&A: Opponents say 'we can't afford it'
Voters in the Saline school district will decide Tuesday whether to approve a $22 million bond issue.
The bond would add $22 million in new debt to the current $124 million bond by extending repayment from 2025 to 2031. Property owners would continue to pay the 7-mill tax rate they pay for the current bond. The tax costs the owner of a home with a $200,000 market value and a $100,000 taxable value a total of $700 per year.
The bond request is a retooling of a bond request that was defeated in August by 153 votes.
AnnArbor.com conducted the following Q&A with Judy McCoy, the leader of a committee dubbed "We Can't Afford It," which was formed to oppose the bond request.
- Read the Q&A from the other side: Saline schools bond Q&A: Supporters say it would protect and secure district's facilities
Q: Why do you oppose this bond extension?
A: I oppose the bond because the people of this school district really cannot afford more debt. We have a fairly small school district. … Right now our property values, which is the collateral for any debt that the district takes on, the homes and the businesses, all of those values are going down. Student population is declining. Now is not the time to go into more debt when your ability to pay is decreasing. We all hope that this will stop soon and our property values will go back up, but there’s no sign of that happening yet. …
The state of Michigan is in a very tough spot. Right now we're reading and hearing what the governor is trying to do. The state is going to cut back on their funding for K-12 schools. If we take on more debt than we can repay, we are about to go off a cliff. …
The taxpayers are trying to hold onto their property. Right now is not the time to load them up with more tax.
Q: The district says the money is needed for critical infrastructure work at schools, to improve traffic safety issues at some schools, including the high school, and to replace aging buses. Do you think the money is not needed or that the district can do without it?
A: We don’t dispute that they have needs. They absolutely do, but there is no more money available. They need to live within their means. …
I think what the schools may have done is that they have robbed Peter to pay Paul. Now Peter is going without, so they need to reallocate. …
They're proposing to take out long-term debt to meet short-term needs … It's like taking out a loan for 25 years to pay for a flat-screen TV. That’s not good financial management in any kind of economy.
They should have sufficient money to meet their most critical needs. But when you put 80 percent of your budget in salaries or personnel, you haven't left yourself very much money for paving or technology.
Q: How would you suggest the district address those needs?
A: I really would leave that to them. The public entity of school district is coming to us and saying 'may we please have some more money?' They've asked us ... before, and we said 'no, we can’t afford it. Please don't push us off this cliff.' You've got money. ... They haven’t asked me how to use what they have … I have to trust them to take the financial steps that they need to.
Q: Voters are currently paying 7 mills to pay off the current bond issue. The new request would not increase the current millage rate. So why not just keep paying it and let the schools have the money they say they need?
A: Because they’re going to require your children to pay it. They're saying you’re going to pay six years more. ... It's never a good idea to take on more now and pay it back later when you don’t know if you’re going to have the money to pay it back.
(Proponents) say it’s for the kids, but I'll tell you what’s really for the kids is the repayment of the debt. It’s going to be on them. I have a son in middle school. I want him to understand that you have to live within your means. Sometimes you have to say no.
Q: How would you address the contention that if the schools don’t address their needs, the reputation of the schools will suffer, and that could affect Saline's ability to attract and retain businesses and residents, and ultimately impact the overall quality of life in the district?
A: The worst thing that we could do is to allow the schools or the district to become insolvent. There are 44 school districts (in Michigan) in receivership. If that doesn't send a chill down the spine of people who want to spend more money, I don't know what will. There is nothing that is going to save Saline from insolvency except for our being disciplined and showing some financial restraint.
Comments
TIGERS68
Tue, Feb 22, 2011 : 11:03 p.m.
I agree that robbing Peter to pay Paul mentality has to stop. I have no sympathy for a school district that puts in athletic facilities that match some small universities and then comes back to taxpayers stating we need new buses. Not buying that horse manure. By the way, why doesn't someone contact the politicians in Lansing and ask them whose pocket(s) did all that lottery money end up in. Obviously the school systems never got it because the public schools in Michigan are in much worse shape now then they were before the lottery was started for the sole purpose of funding them. I lose about $5k a year on the lottery and I imagine there's thousands of folks out there that lose that much a year as well and yet the school systems keep getting less and less from the state. Call me stupid, but them numbers just don't add up to me!!!!
Tom Bower
Tue, Feb 22, 2011 : 4:52 a.m.
It's time to renew our investment. Vote YES.
snoopdog
Wed, Feb 23, 2011 : 12:47 a.m.
Sorry Tom, the wife and I voted NO today. Here's hoping this went down like the Bismark in WW2.
DB Holden
Tue, Feb 22, 2011 : 2:24 a.m.
While I hold Mr. Graden in high regard he has erred in bringing this ill conceived bond proposal forward at this time. 1. This proposal merely kicks the can down the road for another generation to pay for short term expenses today. It is essential we develop a pay as we go mentality at all levels of the public sector. We are hamstringing the future by piling up more and more debt. 2. The elephant in the room remains the Saline Education Association. 80% of the school budget is wrapped up in salaries and benefits. It is disheartening that the SEA leadership flat refused to renegotiate at a time when parents have burdened additional costs in educating their children in increases in "pay for play", activity fees, and endless fund raisers. It is best to vote NO and get serious with the SEA.
WaldenPond
Mon, Feb 21, 2011 : 7:58 p.m.
Whether you like it or not, Saline voters voted for all those nice buildings years ago that we now have to maintain. You can vote no, see your school district go into disrepair, and your property values decrease. Or you can vote yes, and take care of what are all of our assets. Come on people, I know you are all angry, but the kids of Saline didn't do anything to you. Do you really think that they won't suffer and the teachers will if this doesn't pass? And receivership??? Look at the numbers, Saline isn't even close to that. So if what you are proposing is the politics of fear, Mrs Mccoy, congratulations, that's what this is. We have received those calls too. Vote yes to protest these people butting into what should definitely be an issue of local control.
miscribe
Mon, Feb 21, 2011 : 7:42 p.m.
I have lived in Saline all my life and am very glad to be a part of this very special community. I just received a phone call from a Scott H. asking me to vote no on Saline Public School's bond proposal. He asked that we "stop the insanity now". I do not appreciate unsolicited phone calls full of fear rhetoric and called Mr. H. back and asked not to be called again. I noted that Mr. H. represents the Michigan branch of the Americans for Prosperity, a Tea Party umbrella group and that he was calling me from a 517 area code. When I returned his call I asked him where he lives and was he a member of the Saline community. I wonder if he will reveal that information to me.
iamwrite
Mon, Feb 21, 2011 : 3:06 p.m.
"Sounds like short term, self-centered gain and long term loss for school children." Just like building a new highschool which SAS cannot afford to heat and cool. If they designed the schools better initially, the infrastructure and maintenance costs would be lower. Where was the oversight when times were good?
Jonny Spirit
Tue, Feb 22, 2011 : 12:03 a.m.
Where does it say anywhere in this bond or article that the high school can not afford to heat the building. Stop making up stupid rumors. The money will be used to update 30 - 50 year old buildings heaters to be more efficient.
miscribe
Mon, Feb 21, 2011 : 1:43 p.m.
Those opposed to the bond issue simply do not want to share the expense of maintaining a first class, 21st century school system. Sounds like short term, self-centered gain and long term loss for school children. We're seniors living on social security and still making house payments on our Saline home. Money is tight, but, for us, it would be unconscionable not to support this bond issue. It's how we give back to the schools that did so well in educating our children.
SMAIVE
Mon, Feb 21, 2011 : 1:34 p.m.
Yep, I guess we just follow the rest of the lemmings. Curious, any reason I can't locate the 2009-2010 Audit report on the Saline Area Schools website? One would think eight months would be sufficient time to review and post. <a href="http://www.salineschools.com/index.php/departments/business-services#financial" rel='nofollow'>http://www.salineschools.com/index.php/departments/business-services#financial</a>
onlinejoey
Mon, Feb 21, 2011 : 12:35 p.m.
@Smaive By other districts that "found means" do you mean the ones who passed bond extensions and increases in the last few years like Chelsea, Dexter, Lincoln, Manchester, and Milan? I agree, those communities did figure it out!
SMAIVE
Mon, Feb 21, 2011 : 12:22 p.m.
"the reputation of the schools will suffer, and that could affect Saline's ability to attract and retain businesses and residents" Really? I always believe Saline's reputation was based on its academic achievements. SAS failed to address ongoing needs (replace buses,technology) while other districts somehow found a means. Who decided the district needed a bowl stadium and a rope course, let alone one of the largest high schools in the state. In the past the city managed to do quite well with what it had. Now it seems if we don't keep up with the Joneses, all is lost.
OLDTIMER3
Mon, Feb 21, 2011 : 12:08 p.m.
The proposed extension of the millage is silly to say the least.I am sure if they look hard enough they can find areas where they can save money without extending the millage.
DonBee
Mon, Feb 21, 2011 : 11:46 a.m.
Buying buses that will be paid for between 2025 and 2031? Does anyone really believe that these buses will still be on the road in 2031? With current interest rates for bonds of this length, it means that the district will spend between 2 and 2-1/2 times what the buses cost to pay them back. State law needs to change on the restrictions on money, but until it does, this is a silly way to spend money.
PaperTigerSophie
Mon, Feb 21, 2011 : 11:34 a.m.
Why do they always say "it's for the kids", when it is REALLY about preserving the status quo. Let's try to pull on the heart strings, so that we can get what we want, and we don't have to even THINK about negotiating with the SEA to pay a portion of their healthcare, so that we can have approx. a MILLION dollars in reserve to take care of these types of things? It's so much easier to just go to the taxpayers. It IS like one of your children, asking for an advance on their allowance, then when allowance comes around, asking you for their allowance, forgetting that they already had an "advance". Sorry, but I'm voting "NO" AGAIN, so please quit asking. By the way, if you're so "broke", then where did you come up with the close to $20,000 to pay for the election???? See, you could find the money if you would only start really looking . . . . . . .
Jonny Spirit
Mon, Feb 21, 2011 : 11:58 p.m.
Teachers contract once again has nothing to do with the bond. Not one penny will be going to a teacher, admin, para-pro, or help staff. The cost to put this on the ballot is $15,000 and why wouldn't t you try to get $20 million with $15,000. Plus you can't by a $300,000 bus with $15 grand. SEA will not cave in if you pass this or not. They have every right to fight to better there lives just like you have for your job. Somebody's Jealous!
Macabre Sunset
Mon, Feb 21, 2011 : 11:03 a.m.
It's good to know someone out there understands why it's a bad idea to extend the bond issue. It's definitely like a child obtaining and spending a 20-year advance on his allowance.