Pros & Cons Of School Bonds (Coppell: mortgages, school districts, contractors)

[UnfairPark]

School districts always show shiny side of the school bond coins. Is there any downside to this debt?

[tcualum]

I agree that some school bonds are for unnecessary things. The ones I hate most are the ones with tons of disparate things bundled together so that you're left with a quandary if you agree with some things and not others. I had that dilemma a few years ago when a huge bond package bundled together necessary things like major school maintenance and new schools on land the ISD already owned (saved a lot of money) to relieve overcrowding at other schools with things not needed like an AgriLife program at a purpose built building. I especially hated that one because the location was pretty terrible.

[GoldenHair]

Originally Posted by UnfairPark

School districts always show shiny side of the school bond coins. Is there any downside to this debt?

The downside to this debt is that it DEBT! It must be paid back with interest. This increases future taxes. Bonds pass because people do not know this simple fact. When they vote they see only the "free" money the district will get immediately now that will be used to make Johnny read and play football. The average voter's notion of the future is at best about a week ahead, and so the voter does not see the longer term consequences of the debt being taken on.

Recently, voters in Coppell ISD voted for a quarter of a billion bond. This in a town of only around 45,000. Most in Coppell are well off, but not that well off.

Once upon a long time ago, the very thought of going into debt was shameful. IMO, we need to go back to those days.

[UnfairPark]

Originally Posted by GoldenHair

The downside to this debt is that it DEBT! It must be paid back with interest. This increases future taxes. Bonds pass because people do not know this simple fact. When they vote they see only the "free" money the district will get immediately now that will be used to make Johnny read and play football. The average voter's notion of the future is at best about a week ahead, and so the voter does not see the longer term consequences of the debt being taken on.

Recently, voters in Coppell ISD voted for a quarter of a billion bond. This in a town of only around 45,000. Most in Coppell are well off, but not that well off.

Once upon a long time ago, the very thought of going into debt was shameful. IMO, we need to go back to those days.

That is correct and unfortunately district officials and city officials don’t stay forever, they come spend and move on but districts and towns get stuck with unnecessary debt.

[Bolanders]

Apparently you guys don't do your due diligence. The reason schools bonds are used is to avoid the Robin Hood tax.

https://www.texasobserver.org/how-bo...ool-districts/

[Nodpete]

In our area school districts put bond issues in minor elections that are held in February when it's cold and snowy and voter turn out is very small. Then they close the schools for election day and get all the teachers & facilty to vote for the bonds. That trick worked pretty well for them. Whenever they put the issue in a general election 90% of the bond issues fail.

[UnfairPark]

No one is against bonds, just overuse or abuse of bonds for unaffordable athletic luxuries, waste and benefit of contractors. Same way people don’t want to go into mortgages beyond their means.

[HP48G]

So, how do you finance public infrastructure with a voting base that ideologically hates paying taxes?

[cordata]

Originally Posted by HP48G

So, how do you finance public infrastructure with a voting base that ideologically hates paying taxes?

You make it seem like the taxes will somehow benefit the electorate on a personal basis in proportion to the amount paid.

[UnfairPark]

If tax payers see impact of their taxes by improved quality of life and raised housing values in their area, they are more willing to pay but if money is being wasted on frivolous projects, administrative costs or kickbacks or being sent to other areas then they object.