Nyack School District's Truthiness Problem
The District's bond slide show is slick. It's filled with lots of numbers and images that have been put together to sell its $27 million bond, including $7 million for an artificial turf stadium at the high school. Here's the problem. The numbers don't tell the real story.
They are “truthiness” or communications characterized as facts but not based on logic, or evidence or truth.
The District already has more than $5 million in its coffers to deal with pressing problems like boilers, air conditioning, roofs and fire safety. In fact, if we spend that money on capital improvements, the state will kick about an additional $1.8 million. We would not have to borrow a penny, or extend our payments, or pass a bond. We already have the money. Because of its problem with truthiness, the District does not like to be clear that the $5 million is being held hostage to the artificial turf stadium and the rest of the bond. They want you to believe that the only way we can spend the money we already have is if you agree to borrow an additional $21.5 million dollars.
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The District says it will borrow $21.5 million with no tax impact. Truthiness alert. Without the new bond, the District will be debt-free in three years. Only three years of payments of about $2 million dollars per year and our debt will be retired. The District wants us to continue these $2 million dollar annual payments for another 15 years. In the District's view, since we are already paying $2 million per year in interest and principal, continuing it for 15 more years won't matter to anyone – so they call that a tax neutral event. But, come on, the truth is if they don't float a bond, we'd have $2 million per year to spend on teachers, programs, technology, etc. or maybe even catch a break on our taxes. Additional debt means additional taxes.
Borrowing $21 million for 15 years at a 4.5% tax rate will cost $30 million. That assumes the borrowing would take place right now. Truthiness alert: The District says the borrowings for projects would be spaced over several years. You don't have to be Paul Krugman to know that interest rates are on the rise. For every additional 1% on interest, the District debt increases by almost $2 million dollars.
Find out what's happening in Nyack-Piermontfor free with the latest updates from Patch.
The District says it costs $50,000 to maintain a grass field. In 2011/2012, the District budgeted $45,000 to maintain the fields and spent less than $7,000. Seems like a case of truthiness when they say these fields can't be maintained. It's more about the will to maintain grass, not the ability to do so.
Please get the word out. Show the District that we are not ignorant. Clear your calendar and come to the October 2 meeting at the high school and be heard.
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