Our total DSISD debt exceeds assets. The school district’s preferred accounting graphs and charts, like the brochure that was mailed last week, omits all debt-related figures
Send your comments and questions to Val Asensio at PropertyTaxAbuse@stopthehaystaxincrease.com or click on the "comments" at the bottom of the story
GUEST COMMENTARY
By Val Asensio
Stop the Hays Tax Increase
There's a new bond issuance measure on the Nov. 8, 2011 ballot. Early voting is under way. Election Day is Tuesday Nov. 8.
I was curious what the total outstanding bond debt is for DSISD. I tracked down the official independent Annual Auditor’s Report and found something unexpected. DSISD has almost maxed out the bonds they can issue under limits set in the Texas Education Code.
The limit is .50 per $100 assessed value; DSISD is at .45 as of the end of 2010.
From the auditor’s report 2009-10 (2010-11 is not yet published)
For the general obligation bonds, the District has pledged as collateral the proceeds of a continuing, direct annual tax levied against taxable property within the District without limitation as to rate. The Texas Education Code generally limits issuance of additional ad valorem tax bonds if the tax rate needed to pay aggregate principal and interest amounts of the District’s tax bond indebtedness exceeds $0.50 per $100 of assessed valuation of taxable property within the District. The District currently has a debt service tax rate of $0.45.
The complete auditor's report is here in pdf (pages 39 – 40 cover bond indebtedness).
A fiscal snapshot for DSISD at the end of 2010, according to the independent auditor:
- $2,705,146,498 “Assessed Property Value” [total appraised value of DSISD tax base]
- $144,357,096 “Total long-term debt payable”
- $133,228,206 “Capital Assets”
Our total DSISD debt exceeds assets. The school district’s preferred accounting graphs and charts, like the brochure that was mailed last week, omits all debt-related figures. But it’s clear these numbers are not only significant, but they lie at the heart of our taxation problem.
4 comments:
Since DSISD owes more than its assets are valued at, can DSISD declare bankruptcy? Hardy har har...
When you consider one of the assets is an ever-increasing accounts receivable for "assessments" due to perpetual tax liens on your property that can never be paid off....the assets are understated. The district is always willing to get money to spend today by borrowing against YOUR property and several more generations of property owners who will be faced both with this debt and additional debt if the DSISD is allowed to continue along this path.
The problem isn't just "local". Look at the constitutional amendments proposed for this election. With the arguable exception of one, they were directed to borrowing more money and empowering government to do so without the consent of property owners (those that will be paying) or residents.
How do you suggest DSISD fix its money problems while still providing a good education?
Anonymous asks "How do you suggest DSISD fix its money problems while still providing a good education?"
I hear you, but here's the thing: The DSISD 2011-12 budget shows instruction spending dropping from $4,498 in 2010-11 to $3953 per student in 2011-12, a 12% reduction at the same they're asking for a tax rate increase.
So they get both a tax increase, retroactive to Jan 1. 2011, and they cut classroom spending. It's mind blowing.
We in DSISD pay some of the highest tax rates in Texas, right now, before the increase. We can't continue to throw money at DSISD when they apply such a small, and getting smaller, percentage to instruction.
There are families on the other end of those tax dollars, who need them for luxuries like food and mortgage payments. DSISD must get its financial house in order. We can't afford to keep up the spending of the boom-boom days. It's just not possible.
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