Image: Flushing money down the toilet is an apt illustration for the business model for Conroe Independent School District’s $677.3 Million Bond, which provides no improvements in educational outcomes while adding 50% to the school district’s debt and a massive tax increase.
The Golden Hammer Staff Reports
Conroe, October 30 – Conroe Independent School District (CISD) had made clear that the school district’s $677.3 Million bond package, set for voter referendum on Tuesday, November 5, 2019, with Early Voting underway through November 1, will provide no improvements whatsoever in educational outcomes for any of the enrolled children. Adding more than 50% to the total debt of over $1.3 Billion, by glomming on $677.3 Million more, seems extraordinarily wasteful under those circumstances.
No positive results from potential passage of the gargantuan bond
CISD has repeatedly admitted that there will be no improvements in educational outcomes from the $677.3 Million bond package. At the same time, the school district’s own commissioner demographic study reveals that there is no need for additional school construction in the district until 2026 at the very earliest.
While adding nothing to the education of children, CISD’s proposed bond package will, indeed, accomplish:
- $206.135 Million in profits to lawyers, architects, engineers, and contractors;
- Spending $144.247 Million for the unpopular refurbishment of Conroe High School, which will literally add no additional enrollment capacity to the school district;
- Spending $39.415 Million on construction of the most expensive elementary school in the history of CISD in a neighborhood, under development by a Las Vegas Casino Magnate, where there are literally zero (0) homes at present.
Conroe ISD Trustee Dale Inman and the Children’s Hope PAC both have recommended smaller bond packages of approximately $322 Million, but the greedy school district’s administration and Board have ignored those recommendations and refused even to discuss them.
Largest tax increase in Conroe Independent School District history
Despite continual misrepresentations to the contrary from the school district, CISD’s own super-secret internal documents reveal that passage of the school district’s $677.3 Million Bond package will bring the biggest tax increase in the history of CISD, a 63.35% tax increase!!! Voters will have an opportunity to defeat the terrible tax increase, with Early Voting beginning tomorrow, October 21, and continuing through November 1, while Election Day is November 5, 2019.
CISD has hidden its financial projections for its $677.3 Million bond package, since the school district suffered substantial criticism when it published the financial projections for the $807 Million bond package, which voters rejected on May 4, 2019. The Texas Patriots PAC repeatedly asked for the financial projections from CISD. After several weeks of delays, CISD finally produced the financial projections for the $677.3 Million Bond package showing immediately below.
CISD’s financial projections, also available to the public (in more readable form) on the Texas Patriots PAC’s website, reveal two points at first blush about the massive $677.3 Million “Zombie” Bond:
- First, CISD has already raised the TAX RATE 18.9% from 22 cents per $100 valuation to 26 cents per $100 valuation in order to pay debt service on the $677.3 Million Bond, which voters haven’t even approved yet!
- Second, the $677.3 Million Bond will result in a 63.35% tax increase, with the increase in the tax rate and the increase in property tax appraisals which CISD will push the Montgomery Central Appraisal District (MCAD) to adopt, in order to service the massive debt increase of more than 50% total, which the bond would represent. (It’s important to remember that CISD controls the elections of MCAD Board members who set the property tax reappraisals.)
A comparison of CISD’s financial projections for its failed $807 Million Bond package tells voters a lot about the duplicity of the CISD Board of Trustees and the school district’s administration.
The $807 Million Bond financial projection are immediately below.
The critical comparison of the two sets of financial projects appear in the following table, which The Golden Hammer’s statistical team prepared.
THE 16.45% GREED CONUNDRUM CHART
Here’s what The 16.45% Greed Conundrum Chart reveals:
- CISD’s Tax Rate Increase is higher under the $677.3 Million Bond package during 2020 and 2021 than it would have been under the rejected $807 Million Bond package.
- CISD’s $677.3 Million Bond package should have reduced the debt service by 19.15% ($807 million divided by $677.3 million = 1.195.) Instead, from 2022 to 2028, CISD’s $677.3 Million Bond has debt service which is only 2.7% than the failed $807 million bond, or a differential of 16.45%. The Greed Conundrum Chart reveals that CISD’s enormous greed is so completely out-of-control that the school district intends to raise taxes to collect only 2.7% less under the $677.3 Million than what the greedy administrators intended to collect under the failed $807 Million bond.
- If voters approve the $677.3 Million bond, they will yolk themselves with the largest tax increase in history, 63.35%!