It’s important for voters to know that San Diego County Taxpayers Association (SDCTPA) passed on Prop E for here very good reasons.
That’s very, very bad.
And . . . SDCTPA stated in several parts of their analysis that CUSD failed to supply requested information to SDCTPA.
In other words, CUSD withheld information from SDCTPA just like CUSD is withholding information from Coronado voters.
Why? Because if voters knew the truth about Prop E, they would NEVER vote for it!
You can read the full, thirteen-page SDCTPA analysis of Prop E by clicking here.
15 Problems with Prop E
Here are the 15 problems as discussed in the text of SDCTPA’s analysis. The problems are described in SDCPTA’s appendix on pages 9-10, too:
(1) Bond program is listed within 3 parts: (a) School maintenance, renovation, repair and upgrade projects; (b) School health and safety and energy efficiency projects; and (c) District-wide instructional technology and wiring projects, and
(2) Project list within proposed ballot resolution is not site specific,
(3) Total needs of each site are outlined in District Long Range Facilities Maintenance Management Plan,
(4) No site acquisition is required, and
(5) Portion of bond funds will be used to pay off approximately $10 million in outstanding Certificates of Participation. — This is the School Pool fiasco. CUSD plans to “kick the can” on the School Pool Certificates of Participation (COP) debt and re-finance it with another tax hike on Coronado property owners! SDCTPA knows CUSD is wrong to do this sneaky trick with Prop E because Prop E is supposed to pay for capital costs, not re-financing
CUSD did NOT meet Prop E Bond Program Budget & Funding criteria:
(7) Annual maintenance cost estimates are broken down by campus site,
(8) Bond authorization would total $29 million — CUSD’s numbers don’t add up,
(9) Tax rate would increase by projected $40 per $100,000 assessed valuation — CUSD’s numbers don’t add up,
(10) District proposing to use maturities of less than 5 years for bonds — CUSD’s numbers don’t add up, and
(11) Unclear what annual expenditures will be aside from maintenance costs — CUSD’s numbers don’t add up.
CUSD did NOT meet Prop E Bond Program Execution Plan criteria:
(13) Draft project bond issuance schedule has not been provided — CUSD’s numbers don’t add up . . . if CUSD provided the bond issuance schedule, then the fact that CUSD’s numbers don’t add up would be glaringly obvious to voters . . . that’s why CUSD is withholding this information.
(14) District estimates 3 bond issuances –– CUSD’s numbers don’t add up, and
(15) Measure states less than $13.2 million in bonds will be outstanding at any given time — CUSD’s numbers don’t add up.
Here is the information cusd withheld from SDCTPA.
Naturally, CUSD is withholding the information from Coronado voters, too. In the SDCTPA analysis of Prop E:
- Page 1: “The District has not provided future costs estimates from bond proceeds aside from annual maintenance costs and COPs payments.”
- Page 6: “SDCTA requested information pertaining to the actual costs of the projects but the information has not been provided.”
- Page 8: “The District [CUSD] has not provided future costs estimates from bond proceeds aside from annual maintenance costs and COPs payments.”
CUSD Created its Budget Crisis through the School Pool Fiasco & Redevelopment Debt
In case you’re still under the spell of the urban legend spewed by CUSD and Coronado city officials, it’s time to snap out of it. The off-balance-sheet Redevelopment Debt is negatively affecting CUSD’s budget.
Along with CUSD’s financial mismanagement through Certificates of Participation (COPs) for the School Pool fiasco, CUSD created their budget problems with Redevelopment.
From the SDCTPA Analysis of Prop E, Page 4:
District Annual Maintenance Costs/Fund 40 In 1986 the District entered into an agreement with the Coronado Redevelopment Agency (CDA) in which 2 percent of the increase in assessed value of property within the CDA is transferred to the District each year. Those dollars from the “2 percent pass-through” are placed in the District’s Fund 40 account. These funds are currently used to pay off the annual debt associated with the District’s issuance of Certificates of Participation as well as a portion of the District’s annual maintenance costs [school pool has high maintenance costs of around $500,000 annual operating costs]. In FY 2014, the District is expected to receive approximately $2 million from the pass- through, increasing slightly each year until reaching a projected $4.7 million in FY 2036, the last year the CDA may collect tax increment. For FY 2014, the District is expending a total of $2.6 million toward maintenance, with $841,000 coming from the General Fund. The remaining amount is being used from Fund 40 revenues. These expenses do not include the COPs payments made by the Fund 40 account. A further breakdown of the expenses under each category can be found in Appendix C.
Coronado taxpayers are already paying through the nose for Redevelopment Debt that was incurred WITHOUT VOTER APPROVAL.
Another property tax hike with Prop E to doubly punish Coronado taxpayers isn’t the answer.
The answer is to vote NO on Prop E on June 3. It’s the only way to force CUSD to get its financial house in order, make reasonable budget cuts, and live within its means.