Lake Schools Spending Problem

According to the Lake County School District, the 2011-2012 budget is $567 million. With a starting student population of 41,207, that translates to $13,560 being spent on every student in the district.  Many argue they could educate students better for a heck of a lot less.  However, this column is not going to be a discussion on the quality of Lake County’s “B” grade education – even though for $567 million dollars, most taxpayers feel cheated. This column is about the school board and district administration pleading for more money while implying there will be educational Armageddon if no money is found.

Taxpayers in Lake County are beginning to hear about the budget woes of the district, and many of the school board members are beating their drums decrying future over-the-top austerity measures.  Well, it is correct – the district has major budget woes; and yes, there will have to be significant austerity measures implemented; but it isn’t because the district doesn’t get enough money from the taxpayers. They had, and continue to have, a huge spending problem.  The Lake County School District is our Greece.  Over the last decade, every bell and whistle was purchased, and new schools were built that rivaled the finest building at an Orlando resort.  Schools additions and remodels were not completed on needs assessments, but rather the politics of school board members who wanted to show their district they delivered the bacon.

The district has a $500 million dollar debt, and the debt service (interest) is literally choking them to death.  This is the spooky number: in the next five years, including the current one, the Lake County School District will spend $162.1 million in interest charges.

Instead of using impact fees as prescribed (pay for new student stations as you go), the Lake County School District created a financing corporation for the district, which issued Certificates of Participation (COPs).  Translated, it was a method in which the school district could put Lake County taxpayers on the hook for financing school construction and remodels without their approval.  These financial shenanigans worked as long as the district grew in student populations, and the money was rolling in from increased property values; everyone got rich, but oops, there was this Great Recession thing that brought the world back to value.

It doesn’t help that the district has about 10,000 more student stations than students, and it really doesn’t help that most of these student stations are in the wrong place because of horrible planning.  Every bad decision made by the school district over the last ten years is coming home, and the question is what to do?

Should the 1 cent sales tax be renewed in three years, which gives 1/3 cent to the schools, Lake County and the cities?  Should impact fees, which helped create the false home values of Lake County and exacerbated this real estate mess, be reinstated?  Should the taxpayers of Lake County pay more in property taxes?  These are all questions that must be answered very soon.

Should the 1 cent sales tax be renewed?  No because it has been mostly wasted and not served the people of Lake County.  Taxpayers in 2001 were promised better schools and county infrastructure, and all they got was un-Godly debt and millions of dollars squandered away.  Even worse, the schools and county buildings constructed, along with many of the associated services, were awarded to out-of-county contractors. So, the people who paid the tax didn’t even get the opportunity to do the work.  Lake County government and schools did not protect Lake County businesses or workers; why should this tax be renewed?

Should impact fees be re-instated?  No. The main reason home values have collapsed – more in Lake County than the rest of the nation – and people cannot sell their homes, is because impact fees, in the eyes of the banks and lending institutions, add no value to a home.  Impact fees have made Lake County’s housing woes much worse, and the monies from impact fees have not been managed properly.  Over 95 percent of the jurisdictions in America do not have impact fees because the land and building improvements increase the tax base for a lifetime.  The old anti-growth mantra that says growth doesn’t pay for itself has been totally debunked over the last four years, because there’s been no growth, and look at the dismal shape of our economy.  For the next decade, every job will be needed, and impact fees are nothing more than a job killer.

Should there be an increase in the property tax millage rate for schools?  Schools must be funded with a broad-based tax, but, in the case of Lake County, an increase in millage rates should only occur after all austerity measures have been implemented.  Just like Greece, until the cuts are made and the budgets brought in line, the district should not get a nickel more in taxes.

For the next few months, you are going to hear a lot about school cuts and possible ways to increase revenues schools, but just remember one thing: The problems were all created by the out-of-control spending of the school administration and school board.  Lake County Schools are our Greece, and it’s time they get their financial house in order.  No more iPads, resort-style schools and hotel stays at the Ritz. Needs instead of wants.

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