Allen Eagles set to unveil $60 million dollar stadium (buy, high school)

[Texan2008]

The Allen Eagles are set to unveil their $60 million dollar high school football stadium on Thursday August 23rd.

http://www.allenisd.org//site/Defaul...ntDateID=62624

[Walter Benjamin]

So many colleges (e.g. TCU) say that a high-profile football program is a huge draw for applications from students who want to study there...

Is this going to encourage people to move to Allen, so their kids can be a part of something in the same way?

[BigDGeek]

I think it's scandalous regardless of who paid for it. Just my 2 cents, YMMV.

[DoneWithDallas]

For a high school that's rediculous. Invest In education, not the sports.

[rantanamo]

the people of Allen voted for it and new fine arts and vocational stuff. Nothing scandalous or ridiculous if that's what they wanted.

[EDS_]

Originally Posted by rantanamo

the people of Allen voted for it and new fine arts and vocational stuff. Nothing scandalous or ridiculous if that's what they wanted.

Agreed.

A.) The people did vote fair and square.

2.) It's bond money not property tax money - ergo there is no negative impact to the pool of "education" funds in Allen. Not to mention the significant spillover benefits to band, cheer, drama, art, and several other worthy efforts.

D.) The place really is awesome and it looks like utilization rates will be very high.


As an aside from an economics point of view and simplifying current year tax monies should be spent on salaries, books, paper etc. bond monies only on long term capital investment projects. Using long term debt instruments to pay for short term obligations is failed bit as proved by many countries most spectacularly Argentina a couple of busts ago.

[biafra4life]

Originally Posted by EDS_

Agreed.

A.) The people did vote fair and square.

2.) It's bond money not property tax money - ergo there is no negative impact to the pool of "education" funds in Allen. Not to mention the significant spillover benefits to band, cheer, drama, art, and several other worthy efforts.

D.) The place really is awesome and it looks like utilization rates will be very high.


As an aside from an economics point of view and simplifying current year tax monies should be spent on salaries, books, paper etc. bond monies only on long term capital investment projects. Using long term debt instruments to pay for short term obligations is failed bit as proved by many countries most spectacularly Argentina a couple of busts ago.

While I do agree that at the end of the day, it's Allen's money so if they choose to spend it on a football stadium then more power to them, but I dont like the excuse "well it's bond money so it doesnt affect education"...that bond money didnt just fall from the sky, SOMEONE in Allen had to fork over the cash...and I agree with others who feel that maybe, just maybe spending 60 million on a football stadium in today's tough economic times wasnt the best use of the money. I just hope we are not reading about Allen ISD being in serious economic strife 3 years from now. But again, it's their money...

[TX75007]

The tech sector is the driver for growth in Allen yet they spend the fruits of that labor on sports. Way to go Allen - this just proves that you are not serious about academics. And Taxes will be used to pay off those bonds. The $$ can go into operations, ie hiring teachers and putting in elite academic programs, or can go to pay bonds. I have no doubt that Allen could have gotten private donations to build that stadium.

A good friend was a walk-on I baseball starter. He has gobs of athletic talent. His kids are very talented athletically. All are on select teams. But He spends his money on tutors. He makes fun of all the families that waste $20K a year on sports and their kids have little prospects beyond high school. His kids will be highly trained professionals with a future. He has a pretty effective speech he gives to parents on the teams he coaches. "Sports are fun, but school is more important."

[TX75007]

Originally Posted by EDS_

2.) It's bond money not property tax money - ergo there is no negative impact to the pool of "education" funds in Allen. Not to mention the significant spillover benefits to band, cheer, drama, art, and several other worthy efforts.


As an aside from an economics point of view and simplifying current year tax monies should be spent on salaries, books, paper etc. bond monies only on long term capital investment projects. Using long term debt instruments to pay for short term obligations is failed bit as proved by many countries most spectacularly Argentina a couple of busts ago.

Taxes pay the bond service. I do not know the terms or all the fees, but given 8% over 20 years, that's a lot of money.

Money can go into operations or into servicing debt. I do not see how the debt in this case will improve education in Allen. I would say its a net negative as it will be a greater distraction to the academic mission in Allen. Fridays will be all about the game at the new stadium.

Its not a wise investment by any means.

[EDS_]

Originally Posted by TX75007

The tech sector is the driver for growth in Allen yet they spend the fruits of that labor on sports. Way to go Allen - this just proves that you are not serious about academics. And Taxes will be used to pay off those bonds. The $$ can go into operations, ie hiring teachers and putting in elite academic programs, or can go to pay bonds. I have no doubt that Allen could have gotten private donations to build that stadium.

A good friend was a walk-on I baseball starter. He has gobs of athletic talent. His kids are very talented athletically. All are on select teams. But He spends his money on tutors. He makes fun of all the families that waste $20K a year on sports and their kids have little prospects beyond high school. His kids will be highly trained professionals with a future. He has a pretty effective speech he gives to parents on the teams he coaches. "Sports are fun, but school is more important."

It's first world municipal public finance holy writ, going back to Keynes, that bond monies not be spent on current obligations like salaries. The substitution argument, opportunity cost if you prefer, that the same money could/would be spent on education if the bond election had never happened is weak for several reasons. Most notably because history shows that the same folks who will vote yes for a bond election in order to build physical plant will vote/lobby/fight hard to keep the same amount from becoming a net current use tax increase.

It does not matter much if we like it or not that's how it most always works.



And who says kids can't be good athletes and good students?


ETA - Another huge problem using bond monies for current obligations is that under all circumstances the people who actually buy the bonds would require significantly higher stated interest rates or the bond sale(s) would simply fail.