Monday, November 18, 2013
Leander ISD Truly A Poster Child for Bad CAB Debt
Sometimes a picture is worth a thousand words, and this chart from the Texas Permanent School Fund certainly tells a horror story. The PSF, which included this slide in a presentation to the State Board of Education earlier this year, does try to downplay the danger of school debt, but it's really hard to spin a chart like this.
Not only does Leander have over $2.7 billion, repeat BILLION, in debt, school district officials continue to exploit controversial Capital Appreciation Bonds which defer payments for anywhere from 15 to 40 years while massively increasing total payback. Irresponsible CAB borrowing has been banned in other states, and by certain local governments including the City of Cedar Park and Williamson County.
Furthermore, while LISD officials keep whining that 'everyone is doing it,' the chart above shows that no one is 'doing it' like Leander.
For those of you on Facebook, check out the "On Board With Leander ISD - Information and Analysis" page. The administrators are working to educate the community on the problem and have been posting relevant information.
More media outlets are beginning to notice the Leander ISD problem, and Mark Lisheron at Watchdog.org has written a great piece here. I've been trying to raise awareness for years, but Mark's article is excellent- a must read not only for Leander residents, but every citizen in the State of Texas.