CUSD maxed out all their credit cards and ran up enormous debts they can’t pay without making reasonable budget cuts.
But CUSD refuses to make the hard choices and impose reasonable budget cuts.
Like an unrepentant teenager, CUSD wants Coronado homeowners to take out a new credit card to pay off CUSD’s old debt. It’s called the Proposition E School Bond measure. It has a face value of nearly $30 million.
But the cost of the debt service — bond costs plus interest — could be around $60-90 million at legal interest rates of up to 12%! And the legal term of Prop E bonds can go up to 40 years!
How do we know this? When you receive your ballot pamphlet in the mail soon, you’ll read these facts in the Impartial Analysis of the County Counsel:
- Up to 12% legal interest rate on school bond debt
- Up to 25-40 years legal duration of school bond debt.
Be forewarned. CUSD’s Prop E promises sound too good to be true . . . because they are false.
CUSD desires to go into the bond market to get three or four series of 5-10 year bonds at around 1% interest.
Surrounding school districts haven’t been able to pull that off.
Do you think CUSD will really be able to get such cheap and easy bond financing in the bond market? We don’t.
We think the best CUSD could ever do is to get the first series of bonds at 2-3% rates of interest. But the interest rates will climb with each staggered series of bond issues. Yes, CUSD can and likely will stagger their bond issues. And CUSD’s less-than-perfect credit rating will raise its expected interest rate, which is the cost of borrowing public money. And CUSD could roll over their bonds for up to 25-40 years because of their demonstrated financial mismanagement in the past. So in reality, it’s going to cost Coronado homeowners and renters MUCH MORE THAN CUSD is trying to lead us to believe!
As a result of the realities of the bond market, Prop E will put future generations at risk for paying off the debt CUSD seeks now through property tax hikes on homeowners.
Also, since CUSD has told us in their Prop E materials that they intend to pay off the Certificates of Participation (COPs) for the School Pool fiasco with Prop E bond proceeds, that means the CUSD plans to pay off its old debt (COPs) with new debt (Prop E bonds proceeds). What’s to stop CUSD from coming back to Coronado voters in the future for yet another school bond proposition in order to pay off CUSD’s Prop E debts with new school bond proposition debt? Absolutely nothing.
So vote NO on Prop E and protect future generations!
Don’t be bamboozled by CUSD’s empty promise of cheap and easy public money through short-term Prop E school bonds at low interest rates. CUSD’s Prop E promises are empty because CUSD isn’t in control of the bond market. The bond market will not tolerate the bond issuances CUSD promises with Prop E.
And CUSD is wrong, wrong, wrong now with their Prop E propaganda.
We, the Coronado taxpayers, are responsible to pay off all of the Redevelopment Debt that CUSD racked up without voter approval! As economists say, there is no such thing as a free lunch. There is no such thing as “free money”!
Coronado taxpayers will always be responsible for the poor financial choices of CUSD . . . unless we put a STOP to their financial mismanagement and VOTE NO ON PROPOSITION E on June 3!
Kicking the Can Down the Road
In reality, Prop E is too expensive. Prop E is too risky. Prop E won’t help the students. It won’t save the teachers.
So don’t allow CUSD to “kick the can” down the road. VOTE NO ON PROP E on June 3.
Only fiscal discipline by CUSD will help the students and save the teachers. Making the hard choices and reasonable budget cuts is CUSD’s answer — not imposing another property tax hike on Coronado homeowners through Prop E.
Vote NO on Prop E on June 3
In reality, Prop E will impose yet another expensive property tax hike on Coronado homeowners that we can’t afford.