YOU WILL SEE ON THE BALLOT WHEN YOU CAST YOUR VOTE NEXT. >> SCHOOL BOND PROPOSALS ON THE
BALLOT THIS ELECTION DAY AND
THEY COME WITH BIG MONEY
ATTACHED. HUNDREDS OF MILLIONS
OF DOLLARS IN SOME CASES.
BUT HOW ARE THESE BOMB PROJECTS
PAID FOR? THAT’S WHAT WE’RE
BREAKING DOWN IN. THIS KSAT
EXPLAINS. PLUS, WHAT YOU NEED
TO KNOW ABOUT THE WORDING THAT
YOU’LL SEE ON THE BALLOT THAT
HAS TO DO WITH YOUR PROPERTY
TAXES. NOW WE’RE AT 28,000
STUDENTS. AND IF YOU LOOK
FORWARD.
>> AND 5 YEARS ARE GOING TO BE
HITTING THAT. 35,000 STUDENT
MARK IN COMAL ISD A BIG BOND
HOPES TO ACCOMMODATE SOME BIG
GROWTH. 3 BOND PROPOSALS IN THE
DISTRICT TOTAL 634 MILLION
DOLLARS JUST ON THE NORTH SIDE
OF OUR DISTRICT.
>> ON I-35 A 6,000 NEW HOMES
ARE 70 ACTUALLY DEVELOPMENTS IN
COMAL ISD RIGHT NOW. NEW
SCHOOLS IMPROVED ATHLETIC
FACILITIES. TECHNOLOGY
UPGRADES, SAFETY AND SECURITY.
IT’S ALL INCLUDED. WE’RE GOING
TO PUT IN AN EMERGENCY
OPERATION CENTER THAT WILL
ALLOW US TO MONITOR THOSE DOOR
SENSORS, ALLOW US TO MONITOR
CAMERAS FROM A CENTRAL
LOCATION. RAPID GROWTH IS THE
CHALLENGE. INCOME ALLY. ST
WHILE AGE IS THE ISSUE. WHEN
ALAMO HEIGHTS ISD BALL THAT
MONEY THAT WE RAISE TERM ON
STAGE WITH ANIMAL HIDES.
AND WE PUT IT TO USE AS FAR AS
OUR BUILDINGS CO THIS
DISTRICT’S 371 MILLION DOLLAR
BOND PACKAGE ALSO COMES IN 3
PARTS.
>> IT INCLUDES RENOVATIONS TO
EVERY CAMPUS, MOST OF WHICH
DATE BACK TO THE 1950’S PLUS
UPGRADES TO ATHLETIC
FACILITIES, TECHNOLOGY AND
SECURITY.
THINK OF THE SCHOOL BOND LIKE A
HOME LOAN. YOU LOOK AT IT
YOU’RE BUYING A GET PREAPPROVED
SUPPORT SO MUCH.
>> MONEY TO BUY HOUSE AND
VOTERS LIKE YOU DECIDE WHETHER
TO GIVE A SCHOOL DISTRICT THAT
PRE APPROVAL TO TAKE OUT A
LOAN. MOST OF US.
>> IF WE WERE JUST TO WRITE A
CHECK OUT OVER A CHECK OUT, WE
DON’T HAVE THE MONEY TO BUY
A HOUSE.
>> JUST BY SIMPLY WRITING A
CHECK, IT’S SOMETHING THAT WE
HAVE THE FINANCE AND SCHOOL
DISTRICTS. WE ARE IN THE SAME
POSITION. TEXAS PUBLIC SCHOOLS
ARE FUNDED BY STATE AND LOCAL
DOLLARS. LOCAL FUNDING COMES
FROM PROPERTY TAXES ON YOUR
TAX BILL. YOU’LL SEE THE TAX
RATE FOR THE DISTRICT YOU LIVE
IN.
>> THAT RATE IS MADE UP OF 2
PARTS THAT GET POURED INTO 2
BUCKETS. ONE IS MAINTENANCE AND
OPERATIONS THINK DAY-TO-DAY
EXPENSES, NOT UNLIKE YOUR OWN
BUDGET MONEY FOR THINGS LIKE
UTILITIES, FUEL AND PEOPLE.
81% OF OUR BUDGET IS FOR
SALARIES. THE OTHER BUCKET IS
WHAT’S CALLED INTEREST AND
SINKING.
>> I PROMISE THIS IS NOT A
FINANCE SEMINAR. NOBODY HAS TO
UNDERSTAND INTEREST AND
SINKING. ALL YOU HAVE TO
UNDERSTAND IS THAT’S THE FUNDS
YEARS.
>> TO PAY OFF DEAD WHEN VOTERS
APPROVED A SCHOOL BOND. THAT’S
WHAT THEY’RE SIGNING OFF ON
ALLOWING THE DISTRICT TO TAKE
ON THAT DEBT TO MAKE BIG
PROJECTS HAPPEN.
>> ONCE VOTERS SAY YES TO A
SCHOOL DISTRICT’S PLAN, THE
DISTRICT’S SELLS BONDS TO GET
THE MONEY. YOU BASICALLY HIRE
A BANKER WHO GOES OUT TO THE
THEY USUALLY THE INSTITUTIONAL
MARKET. THE BIG MUTUAL FUND
COMPANIES, BANK GUARD AND
FIDELITY. YOU’VE GOT OTHER
INSTITUTIONAL INVESTORS WHO WHO
ARE INTERESTED IN SCHOOL
DISTRICT BONDS.
>> BECAUSE IT’S IT’S TREATED
UNDER THE TAX LAWS OF AS A
MUNICIPAL BOND LIKE A CITY OR A
COUNTY BOND. AND THERE ARE
THERE ARE VERY CLEARLY TAX
ADVANTAGES TO OWNING THAT KIND
OF ON THE DISTRICT’S SELLS THE
BONDS, INVESTORS PAY THEM FOR
THOSE BONDS. AND THEN THIS
BUCKET OF MONEY IS USED TO PAY
OFF THE INTEREST THAT’S PAY
OFF THE INTEREST AND THE
PRINCIPAL THAT INCURRED JUST
EXACTLY LIKE A MORTGAGE.
IF YOU WENT OUT TODAY AND GOT A
MORTGAGE, YOU GET ONE IT WHAT,
6 AND A QUARTER PERCENT, 6 AND
A HALF. SOMETHING LIKE THAT.
>> PRETTY HIGH COMPARED TO WHAT
WE’RE USED TO. BUT IN 3 YEARS,
IF THAT IS FOR 4 AND A HALF,
THEN AS A HOMEOWNER, YOU BE
BETTER OFF OR REFINANCING THAT
MORTGAGE REIT, THE EXACT SAME
THING CAN HAPPEN WITH BONDS.
THE STATE HAS A TOOL TO HELP
SCHOOL DISTRICTS GET BETTER
INTEREST RATES, WHICH KEEPS
MORE MONEY IN THAT BUCKET.
>> IT’S CALLED THE TEXAS
PERMANENT SCHOOL FUND AND IT’S
BEEN AROUND A LONG TIME SINCE
18. 45 THE PERMANENT SCHOOL
FUND WAS AND DOWN WITH LAND TO
THE 18. 76 TEXAS CONSTITUTION
TO THIS DAY, MINERAL RIGHTS
FROM MILLIONS OF ACRES OF LAND
IN TEXAS AND 10 MILES OUT INTO
THE GULF OF MEXICO POUR MONEY
INTO THIS SPOT. ONE PURPOSE
OF THE MONEY IS TO GUARANTEE
SCHOOL BONDS BECAUSE THE FUND
IS SO MASSIVE. HUNDREDS OF
BILLIONS OF DOLLARS.
>> THAT YOU WOULD GET AS A
SCHOOL THE A TRIPLE A RATING,
RIGHT, THAT OPERATING WHEN YOU
GO OUT TO TO SELL. THAT MEANS A
LOWER INTEREST RATE. THE
DISTRICTS HAVE TO PAY. BUT
THERE’S A PROBLEM.
>> THAT FUND IS ABOUT TO HIT
ITS LIMIT. THE IRS SAYS TEXAS
CAN GUARANTEE ROUGHLY
117 BILLION DOLLARS IN BONDS.
TEXAS SCHOOLS HAVE ALREADY
APPLIED FOR ABOUT 111 BILLION
IN VOTER
APPROVED BONDS. THAT DOES NOT
INCLUDE WHAT’S ON THE MAY
BALLOT. THOSE BONDS TOTAL.
24 BILLION DOLLARS. SO WHAT
GETS APPROVED IN MAY OR MAY
NOT BE BACKED BY THE STATE IF
THE IRS DOESN’T RAISE THAT
LIMIT. SO WHAT WILL HAPPEN VERY
SOON IS THAT FOLKS WHO ARE
GOING OUT TO THE MARKET TO SELL
BONDS WILL SELL THEM AT THE
DISTRICT OR THAT.
>> CHARTER THERE AND THERE ARE
UNDERLYING RATING.
>> WHICH IN VERY FEW CASES OF
TRIPLE A RATING AND THE LOWER
IT IS THE HIGHER THE RATE THAT
THAT DISTRICTS GOING TO PAY.
>> AND THAT’S GOING TO
TRANSLATE TO LOCAL TAXPAYERS.
SPEAKING OF TRANSLATION,
THERE’S A BIT OF TRANSLATION
WHEN IT COMES TO THE WORDING
ON THE BALLOT, ESPECIALLY THIS
LAST LINE THAT SAYS.
>> THIS IS A PROPERTY TAX
INCREASE. SOUNDS
STRAIGHTFORWARD, BUT IT’S NOT.
THE STATE RECENTLY BEGAN
REQUIRING THAT LINE, WHETHER
WHAT YOU PAY ACTUALLY INCREASES
OR NOT. HERE’S WHY. REMEMBER
THOSE 2 BUCKETS BONDS CAN MAKE
THIS PORTION OF THE DISTRICT’S
TAX RATE GO UP. BUT THIS RATE
FLUCTUATES TO AND COULD GO
DOWN. SO THAT MAY NOT ACTUALLY
INCREASE THE TOTAL TAX RATE AND
WHICH CASE, CONCERNED, YOU NEED
TO CALL YOUR ELECTED OFFICIALS.
IT’S WHAT’S HAPPENING IN CALL
NOW AND ALAMO HEIGHTS. ISD IS
THIS ELECTION. THE BALLOT SAYS
EACH OF ITS PROPOSALS IS A
PROPERTY TAX INCREASE, BUT ASK
ALAMO HEIGHTS. SO WE ACTUALLY
PROJECT OUR TOTAL TAX RATE WILL
BE LAST.
>> AND IT IS TODAY. BUT THE
YES, RIGHT, LITTLE BIT MORE.
THAT IS TODAY.
>> BECAUSE THE RATE FOR THAT
MAINTENANCE AND OPERATIONS
BUCKET IS PROJECTED TO GO DOWN.
FOLLOWING THE MONEY CAN BE
COMPLICATED. BUT WITHOUT BONDS,
THESE MAJOR SCHOOL PROJECTS
THEY WOULD BE IMPOSSIBLE.
WE WOULD NOT HAVE THE FUNDS IN
OUR MAINTENANCE OPERATION
BUDGET TO BE ABLE TO DO THESE
PROJECTS ESSENTIALLY WOULDN’T
BE ABLE TO OPERATE. YOU BE
BANKRUPT.
>> EARLY VOTING FOR THE
ELECTIONS IS HAPPENING RIGHT
NOW. AND ELECTION DAY IS THIS
SATURDAY. MAY 6TH KSAT EXPLAINS
COVERS A DIFFERENT TOPIC FROM