Opinion: Our school districts are habitual bad budgeters; don't reward them with (more) bonds
If your homeowners' association wrote you saying, “Please pay 20% more next month. We spent all our money, so now we can't repair the elevator”—would you feel inclined to give? In CPC, John Moorlach remarks that local school districts do this every election: beg voters for help in funding essential services (now SJUSD needs $1.15 *billion* for Measure R's “facility repairs”?), instead of spending more judiciously.
Californians tend to be credit card debt-laden and don’t seem to mind adding more debt to their monthly financial commitments. That may be why they, as voters, do not flinch when Sacramento legislators put bond measures on the ballot. These propositions usually receive enough votes to succeed and permit the state to borrow more money.
For those homeowners who reside in an association requiring monthly dues payments, a portion of each installment is dedicated to building reserves for a future anticipated improvement on structures owned by all the residents. If the private roads need a slurry coat every seven years, then the cost is estimated, and the amount is divided by 84 months and by the number of residences in the project and included in the monthly dues.
The president of the homeowners association (HOA) should not be calling you saying the roads are falling apart, no funds were set aside, a lender needs to be found, and your monthly dues will increase by 20 percent to cover the loan payments. Yet this is how government agencies run. Remember the gas tax increase? Sacramento failed to prudently manage its roads and highways and stiffed combustion engine vehicle owners with the bill. And the gas tax increases continue to be imposed.
Why did Sacramento fail to set aside funds just like it requires HOAs to do? Because it spent funds on increased salaries and pension benefits instead, as requested by public employee unions.
The same can be said for California’s some 944 school and 72 community college districts. They do not set funds aside for infrastructure improvements, replacements, and additions. And for the very same reasons.
Read the whole thing here.
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