posted by Joe Polk at 10:56 AM /
The economic recovery legislation to be voted on in Congress this week would provide billions in new money for local education, including scores of millions of dollars for school districts throughout Western Pennsylvania.
Pittsburgh Public Schools would be by far the largest beneficiary in the region under the measure being considered in the House. The city schools would receive a total of more than $55 million over the next two years, according to a Congressional Research Service analysis released by U.S. Rep. Jason Altmire, D-McCandless.
Examples of other proposed federal funding increases include Fox Chapel Area School District, $1,991,100; Mt. Lebanon, $1,427,100; North Allegheny, $2,151,900; North Hills, $1,972,900; Shaler Area, $2,625,800; Wilkinsburg, $3,526,600; Aliquippa, $2,775,000; and Ambridge, $2,049,800.
Link: www.post-gazette.com/pg/09027/944704-298.stm
Pittsburgh Public Schools would be by far the largest beneficiary in the region under the measure being considered in the House. The city schools would receive a total of more than $55 million over the next two years, according to a Congressional Research Service analysis released by U.S. Rep. Jason Altmire, D-McCandless.
Examples of other proposed federal funding increases include Fox Chapel Area School District, $1,991,100; Mt. Lebanon, $1,427,100; North Allegheny, $2,151,900; North Hills, $1,972,900; Shaler Area, $2,625,800; Wilkinsburg, $3,526,600; Aliquippa, $2,775,000; and Ambridge, $2,049,800.
Link: www.post-gazette.com/pg/09027/944704-298.stm
Labels: school district
1 Comments:
Speaking of the schools ...
The Board is boarding the New (or Mostly New) High School Express and we may soon hear ‘All Aboard from Horsman Drive – in the form of a Community referendum.
Yet there remains much work to be done before we know: the physical specs of the project, how much it will cost, how it will be financed and how many lattes a month it will cost each taxpayer. Not to worry, there will be ample information to assimilate, some good, some bad and no doubt, some misleading (both for and against).
Take the financing option described by the administration at the 01/14/09 Community forum. On its face the program laid out by the finance director and financial advisor did not hang together. One could not understand how the modest millage increases could support such substantial debt options.
Subsequently, Mr. Allison had the finance folks provide some of the assumptions on the district’s renovation webpage. Good work Big Guy!
It turns out, this financing proposal adopts the cowardly and fiscally irresponsible scheme of minimizing millage, while MAXIMIZING interest expense -- by “wrapping” the bonds.
Bond Wrapping pushes substantial principal payments into the future when expiring debt service on older bond issues is freed up to satisfy the new debt. Despite the fact this heaps a generous helping of interest onto the project; the contention is that this method is desirable because the funds do not “all” come from a tax “increase” -- the Community is already paying it. In Eveready Bunny style - we just keep paying, and paying, and paying.
Besides, if the district did not wrap the bonds, when the old debt expired we would face the conundrum of using the funds for education or (say it softly) lowering taxes.
The financial folks’ proposal has about $10,000,000 of superfluous interest in the plan compared to financing the issue with simple, more traditional bonds.
Obviously, there are other means to finance the issue, however when you are singularly focused on minimizing millage, you do dumb things. As an alternative, one additional latte a month on a $200,000 property, could wipe out this $10,000,000 waste of interest expense.
NOTE: this isn’t the first time MTLSD has socked us for pointless interest. The 2003 (refinanced in 2005) bonds were wrapped such that we are paying only $5,000 per year in principal and a TON of interest until 2018. Coincidentally, the extra interest is also about $10,000,000 over the life of the $50,000,000+ issue.
DOUBLE NOTE: The municipality has shared some of the same wacky weed.
Stay tuned …
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