The school board has presented three major options for the school facilities (with seven sub-options). There is a lot of information to digest in the Master Plan Options but here are some quick first impressions.
Board doesn’t care about state borrowing limits
Six of the seven options are asking for more bonds that the state will allow by law.
How is it possible to borrow more than the state of Ohio allows? Some net research shows that it is possible to ask the state for a waiver of the rules, and if a general funds levy is set high enough (and passed by voters) to cover the difference in cost between the state bond limit and the construction cost, it is allowed.
Just like a homeowner might dig themselves into a deep hole by finagling a mortgage that he can’t really afford, and risks defaulting on the loan if the person is hit with a financial crisis, a district can dig itself into a hole that could cause catastrophic problems if a recession hits the economy. And what is the chances of that happening – who even remembers 2008?
Will the state allow Grandview to go over the legal bond limit? Remember, the state republican party, lead by Kasich, has singled out Grandview for the largest cuts in state funding. They want small schools to merge with larger ones, in order to be more efficient. What is stopping the state from saying “no, Grandview, you may not exceed the state limit”?
No mention of mills in report
The millions of dollars needed to build new schools (up to $70 million in the most expensive plan) has to be paid by the voters with increases in the property tax millage. There was no mention of mills – because the board knows that they would be calling the squad and wheeling homeowners out of the Glenn suffering from heart attacks.
The board didn’t make it easy to find information on mills needed to fund the facility plans, but there is some clues posted on the schools Facility FAQ page. According to this page, “a 5.52 mill levy today would generate enough to finance a project of approximately $33 million.” So if the board wants the $70 million to build a new “campus”, they would be asking for over 12 mills. Remember, the state is cutting their funding, and the number of administrators and their salaries continues to grow, so operating levies will be needed too. We might be looking at a 15+ mill request from the school board.
What is the history in Grandview for passing high millage levies? In May 2002, voters rejected a ridiculous 9.8 + 4 + 4 incremental school levy (the additional mills would be added in later years). It wasn’t even close, the voters rejected the high levy request with a 70% no vote.
Grandview Heights currently has the highest Total property tax rate (school plus city, etc.) in the county.
May 12 update – from a TVN story:
If the district were to pursue a project costing its current bond-borrowing capacity of $45.3 million, an 8.2-mill bond levy would be needed, Collier said.
There is no backup plan
Any serious, professional planner has an option ready for any contingency. The school board will be expected to push for one of the expensive, “no contact with reality” plans for massive new schools. It will fail to get the votes. They will then attempt one of the cheaper options (if you call $35 million cheap). Depending on the general economy, and the mood of the voters, that plan might also fail. What happens then?
I asked Culp if the board has a contingency plan ready if it can’t get the votes for the least expensive plan. I asked what the board would do about facility repair during the 2 or more years the school might ask for levies to pay for the expensive option. He replied with the usual bureaucratic non-answer.
The options in the master plan – ranging from a no contact with reality $70 million, to a near the limit allowed by law $35 million, are all of the plans the board has made. They are so sure they will charm us, and if needed threaten us, that they have no alternate to their expensive plans.
The board will “manifest” the money
I wrote a posts called What’s wrong with the School Board’s optimism?, I think it is the best explanation for what is happening on the board. Please read that post, and watch the Barbara Ehrenreich video.
The board has been in a self-reinforcing, protected from outside comments bunker mode for a long time. The carefully selected facility task force, segregated by board rules that prevented any visitor from attend their meetings, has reinforced the wall the board put up to keep reality out.
I think the board thinks that there is no reason that the expensive new campus options can’t be built. They are probably telling each other, “we can do it, we just need to say the right words, and we will manifest the money to build new buildings. It is just a matter of how much will power we have”.
We will have to endure multiple public meetings, at which the board will drone on endlessly about the numbers, then they will plead, then they will threaten. They will say that new building are the only moral choice, and those who oppose their plans are bad people who want to hurt children.
You didn’t vote for this
We haven’t gotten to the finger pointing section of the debate yet, so let me direct the first arrow.
Grandview didn’t vote to have buildings that need expensive maintenance. The only levy that has been rejected in the last 30 years was in 2002. All of the fault for the condition of the school buildings are on the school board. The priorities of the school board are clear in the spending they have done on a overloaded, high salary administration.
I’m sure that the present school board will claim they are heroic visionaries for proposing new school buildings. I think they are like the car dealer that notices a small patch of rust on your old car, and tries to convince you that the only solution that makes sense is to buy a $100K luxury car – because your kids deserve the best!
We do have an opportunity to vote for board members in the fall. Let’s send a clear message by rejecting all of the current members.
(Later) I should have added “spend a lot of money on experts in public relations” on my list of things the board is telling each other they need to do to get their new buildings. I have heard there is a PR firm that is paying Grandview residents to attend focus groups at which they are “asked about their opinions”. Push polling is a standard practice for PR firms, they slant the questions in ways that make doing what they want to be signaled as a virtuous act, and resistance is subtly associated with ignorance, close mindedness, and anti-social acts.
A message to the PR firm – Hi! I’m sure you are reading my blog, I have a offer for you. Want to get a look into the mind of a person who is going to be a vocal opponent of the construction of new schools? Pay me! Use the links in the About section to send me a message. Lets make a deal!