Although one might think a downgraded bond rating and a whopping $2.7 billion in debt, the caretakers of the Leander ISD might be doing the Dave Ramsey thing and trying to exercise some measure of fiscal restraint. Alas, four of the seven school board members decided that $2.7 billion is no big deal, and last week voted to double-down on that debt burden for future generations.
In voting to sell even more bonds, the ISD will use the funds to build a 6th high school at a cost of $106 million, but that's only the initial cost. By utilizing even more of the highly controversial Capital Appreciation Bonds, LISD will defer payments for 15 years (Merry Christmas, Kids!) so that even with a 5.85% rate, the total cost of the high school will rise to $614 million.
The move is certainly shocking, especially considering the devastating impact of Capital Appreciation Bonds. "CAB"s have been banned elsewhere and were nearly banned by the 2013 Texas Legislative session. The 2015 session will certainly re-engage on this issue and hope to reform this dangerous borrowing procedure, but in the interim some folks are willing to continue to spend like drunken sailors.
Debt apologists on the LISD Board, along with the oft-fined and censured
Here's who voted to
Board members who voted against (and for fiscal restraint):
The Board graciously allows you to contact them through this page: http://www.leanderisd.org/default.aspx?name=abt.board.communicate