At the Monument Academy forum last week, the question was asked about how we would approach district finances to get off the cut-and-replace train. What that great phrase means is that in lean times school districts tend to cut teachers and in fat times they hire them back. This is balancing the budget on the backs of teachers and I am very much opposed to it.
One suggestion I made was to sell unused property. My opponent disagreed, dismissively saying the district would get only “pennies on the dollar” for the sale.
He was wrong on several levels. Here’s why selling unused assets, such as the property on the southeast corner of Hwy 83 & 105 (pictured), is the right answer:
- First, while property values in the district have declined about 25% from their peak in 2006, the remaining 75% is hardly “pennies on the dollar.” Furthermore, the property was purchased before that peak bubble–chances are a sale could recoup most or all of the original purchase price.
- Second, while the district pays no property taxes on the land, they are paying interest on debt. Maybe the property itself is fully paid for, but the district is carrying a heavy debt load that must be serviced. Sell the property, pay down the debt. (That was my original point.)
- Third, in private hands there would be property taxes being paid. If the property were developed, even greater property taxes would accrue.
Apparently the current board is unaware of these financial calculations. One board member even said that it was important to retain that property so they could use it to advertise the district. Seriously?
Time to elect a board with better financial knowledge.
