West Bend Thinks About Postponing Referendum
Looks like somebody actually read my column.
The West Bend School Board is “strongly considering” postponing November’s two-question, $68 million referendum due to the recent historic economic tumble.
The board will discuss moving the referendum to either the February primary or the April election at a special meeting Wednesday night, which leaves enough time for the county clerk to deactivate the computer chip counting the referendum votes. That deadline is Friday, and ballots are already printed with the referendum on them.
The board is considering the option “because of what’s going on in the economy, the uncertainty, people’s anxiety,” said Joe Carlson, board president. People are afraid for their 401K plans, he said.
Since the referendum was put on the ballot in August, the country’s banking industry and thus the stock market have tanked, leading Congress to pass a $700 billion bailout and triggering investors to hit the panic button.
I have two thoughts on this… first, I’m glad that the school board is acknowledging that this is not a good time to ask for more money. Second, I don’t think that February or April will be a better time. Many people have lost a quarter or more of their net worth in the bast few weeks. It’s doubtful that those losses will be recouped by Spring. Furthermore, the effects of an economic downturn take a while to manifest. Companies that will have to cut employees or take other measures to weather the storm will be doing so for months, if not years. These measures will be impacting West Bend’s folks well past next Spring.
At this point, given the economic situation, West Bend’s school board should cancel the referendum and find a way to make it through the likely coming recession (and federal tax increases) without more money from the struggling taxpayers.
A final thought… turnout for the November election will be large because of the presidential election. There’s a chance that the school board is cynically thinking about postponing the election to a low-turnout election to help the teachers’ union and such have a greater impact. I don’t think this is the case, but it’s not outside the realm of possibilities.
Well, how ‘bout that? We’ve been articulating these same thoughts, but, hey, let them think it’s THEIR idea.
As for paying to print new ballots out of District money? ABSOLUTELY NOT! I have already had to contribute to the crummy survey and ridiculous promo video. I do NOT want to pay for this, as well.
Posted by on October 07, 2008 at 1744 hrsI’m probably even more cynical. I believe they’re considering postponing the vote because with all the bad economic news, they realize that most are in no mood for more taxes. Knowing our short attention span, they figure by spring, the MSM, and thus the sheep, will have moved on to some other crisis of the month, and the sheep will be sheared.
Posted by on October 07, 2008 at 1829 hrsThis is what I said here on 9/11/08:
Don’t want to push any panic buttons here, but believe me, no one is going to be in the mood for any tax increase, even if there is merit to it. When people start getting their winter heating bills or get their September investment statements, all bets are off. The DOW dumped 450 today.
Last year I was pro-West Bend referendum, I’m trying to be this year, but it is getting harder. Probably should have been addressed a long time ago, but as far as I am concerned, out of respect for the average property owner, all the school boards should call off the referenda questions until people can figure out where the heck they stand financially - if people feel like someone has poked a stick in one eye, they aren’t going to consent to having someone poke a stick in the other eye.
It is nice that the school board is taking this message to heart, but maybe if they would have started thinking (or acting) at the beginning of September, they could have called it off in time to prevent these ballot expenses.
Now, before we get all gooey that the school board is finally considering the property tax payers, give me some time to look up what impact the market meltdown is having on the issuance of municipal debt (bonds) - I did see a blurb earlier today that the White House plans to discuss with the states the issues that have arisen because the financial firms that used to underwrite municipal debt (like Lehman Brothers) are unable to do that right now.
Posted by on October 07, 2008 at 1841 hrsHere is the blurb I referenced above:
http://www.bloomberg.com/apps/news?pid=20601015&sid;=ac g4El0e.cjs&refer;=munibonds
Posted by on October 07, 2008 at 1901 hrsWhite House Talking to States on Finance Difficulties
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Municipal borrowers also have had to pay investors more. The Long Island Power Authority in New York offered $605 million of 25-year bonds today at yields as high as 6.25 percent, 2.25 percentage points more than 30-year U.S. bonds.
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The collapse of the auction-rate municipal bond market, where interest rates are reset in the open market, has pushed Jefferson County, Alabama, toward bankruptcy as interest rates on some of its sewer bonds tripled to 10 percent.
``States are facing the same problem faced by millions of businesses across the country—tightening credit markets,’’ Nick Johnson, director of state budget and tax system reform at the Washington, D.C.-based Center on Budget and Policy Priorities, wrote in a report today. ``The Treasury or Federal Reserve may have to serve as the lender of last resort.’’
I agree - this isn’t the time to be looking for a loan. I’m sure they would get one - but the interest rate will be higher.
Now if we can just get the Germantown Board to learn how to read....
Posted by on October 07, 2008 at 2358 hrsNot so sure about that, Bill. I can’t help but wonder if we would experience difficulty in obtaining a loan for a potential $108K. Maybe there is more to this than “compassion for the taxpayers”......
Posted by on October 08, 2008 at 0738 hrsMaybe there is more to this than “compassion for the taxpayers”......
Read comments #3 & #4
Posted by on October 08, 2008 at 0748 hrsAgreed, mht.
Bill stated “I’m sure they would get one - but the interest rate will be higher.”
I was confirming your statements, and also am skeptical that the district will even be ABLE to obtain a loan of that magnitude; thus, the REAL reasoning behind the withdrawal.
Posted by on October 08, 2008 at 0753 hrsGAMazy - if you get to the meeting, listen carefully to hear if the financing uncertainty is the real motivation for pulling the pin on this referendum - then again, maybe they’ve already gotten memos on this & it won’t be discussed publicly.
Bill - in today’s Daily News there is a comment by Germantown School District administrator:
Germantown, with a two-question, $23 million referendum on the November ballot, has not discussed the possibility of postponing its plan.
“It is a go at this point. Now that West Bend has brought it up maybe we will,” said Superintendent Ken Rogers.
Germantown is asking for $22.5 million to build a new elementary school and upgrade safety and technology across the district. Another $500,000 above the state-imposed revenue caps would operate the new school.
Rogers calls the referendum “fiscally responsible,” especially given a possible low impact on local taxes due to some district debt retiring and the impact of state aid, given the district’s fulltime enrollment.
Rogers said while the economy is bad, unemployment isn’t as bad as it could be, especially in the Germantown area.
“I know unemployment is high. We’ve seen it much higher,” he said.Then there is this:
http://www.jsonline.com/watch/?watch=1&date;=10/8/2008&id; =47265
Germantown facing budget shortfall
The Village of Germantown is facing a “very dire” budget deficit of $938,000 that likely will require budget cuts, possible layoffs and fee increases to be met, Village Administrator David Schornack said today.
I would have to say that Germantown’s superintendent is more clueless than West Bend’s. Consider some “basics”
a) Your average citizen has sufferred a major downsizing of home value & retirement/investment funds.
b) Village of Germantown is projecting major budget deficit.
c) As discussed above, there is a great amount of uncertainty in the market that provides the bond proceeds to finance school construction.
d) The Washington County administrator when proposing the budget for 2009, noted that as of end of August, delinquent taxes are 29% higher than last year.
e) Some people might be incurring loss of income due to layoffs. Although Germantown super says unemployment has been worse, so it’s nothing to consider.
f) I think in a previous post about Germantown, it was wondered out loud if future enrollment projections are going to keep trending upward. I see a real possibility of new construction slowing down.Anyway, it’s sort of like reading the gauges on your dashboard (a-f), or waiting for the “idiot lights” to come on, at which point your engine is toast.
Posted by on October 08, 2008 at 1340 hrsOf course I’m not an expert in economy but a wise advice is: Wait until you see that waters have settled, then consider either investments or loans.
Posted by ray ban 3310 on October 09, 2008 at 0814 hrs
Ol' Army
