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  El Cerrito   Schools   Regional   History   Lifestyle   Opinion   [Election]  

LETTER TO THE EDITOR: Use of funds projections for Measures E, M & D

Submitted by Jim Young:

The Projected Affects of WeCCUSD Actual Project Management and Policies on Bond Funded School Rehabilitation

IF THE WeCCUSD CONTINUES SPENDING MEASURE M & D FUNDS THE WAY IT HAS ACTUALLY SPEND MEASURE E FUNDS, (@ 225% OF VOTER PROMISE) AND SETS-ASIDE 23% FOR “PROGRAMS” AS IT HAS DONE WITH MEASURE M, 100%+ OF MEASURE D FUND WILL BE NEEDD TO COMPLETE THE REHAB PROMISED IN MEASURES E & M.

Is this a “worst case” scenario?

No, this is what will happen to West County Tax Dollars if the WeCCUSD continues the same management practices they have used on Measure E construction of the Richmond Middle School and the “Program” set aside they have announced for Measure M funds.  How much school rehab will actually be done is difficult to project, but the extrapolation of accomplishments to date could result in as little as 30 cents in rehab for every tax dollar “spent”.

The  WeCCUSD has solicited the support of local City Councils with the pitch that, “…your schools will be rehabbed”.  If the district does not substantially improve its actual performance on Measure M compared to Measure E, there will  be less than $200,000,000 in actual rehab value bought with $490,000,000.  With over $500,000,000 in identified rehab need, whose schools won’t get fixed, Hercules, Pinole, El Cerrito, San Pablo, unincorporated county?  In addition, the school district tax increment will be substantially used so that there will be little future opportunity to correct the waste until existing bonds are repaid.  Is this the future you want for your city?

Wouldn’t it be better to see how the WeCCUSD actually uses Measure M funds before another $300,000,000 in educational tax increment is given to the same people who spent 225% of Measure E “promise” on the Richmond Middle School without a second thought?

IT IS STRONGLY RECOMMENDED THAT  LOCAL CITIES SUPPORTING MEASURE D RECONSIDER THEIR STAND, UNLESS THEY CAN DEFEND <50¢ IN BENEFIT FOR EACH LOCAL TAX DOLLAR SPENT ON LOCAL SCHOOLS.  HOW LONG WOULD YOU BE ELECTED TO CITY OFFICE WITH A COMPARABLE RATE OF RETURN?

DO THE MATH

 

 

Conclusions From the Review of the WeCCUSD Actual Use of Bond Proceeds.

  1. As time passed from the date of a Bond approval election, the amount of bond funded benefit drops dramatically from what was promised to the electorate.
  2. The School board can do whatever it wants with bond proceeds, ie. The RMS project budget increasing from $16MM to $36MM.
  3. The WeCCUSD has not been accurate or truthful about the use of bond proceeds or school board authority over bond proceeds allocation.
  4. At least $20MM* of Measure E rehab (50% of Measure E) will be funded with Measure M funds.

Projected Consequences on Measure D Rehabilitation Based on Actual RMS/Measure E

Over Spending and WeCCUSD Stated Set-Asides of Measure M Funds.

  1. Because of actual over spending, unfounded projects must either be abandoned or carried forward to Measure M & D funding.
  2. The WeCCUSD has not been truthful about the actual use of Measure M funds which have been used for “studies and administration” (amount unknown) as well as a $35MM “program” set aside which was not disclosed to the voters.
  3. If the WeCCUSD continues  “project” over spending at 225%, like the RMS, and, if the 23.3% Measure M “program” set asides extended to Measure D, the net rehab value funded with $490MM in bond funded taxes will be less than $150MM., about 30¢ for each tax dollar “spent”.
  4. If the $300MM Measure D is added to the existing $190MM school tax, the established West County tax increment for education will be substantially wasted. precluding additional bond funded rehab for decades to come.

Are you sure your schools are really going to be fixed?

Is $300MM in new school bonds a good idea when the WeCCUSD hasn’t done any rehab with $150MM in 18 months?

* * * * *

(Stated In Millions of $$)

November 1998 Measure E

November 2000 Measure M

March 5, 2002 Measure D

       

Bond Issue Amount

40

150

300

WeCCUSD description

     

    RMS*/Elementary Rehab

16/24

   

   “Projects”/”Programs” Elementary Schs

 

115/35

 

   No Specific Description Secondary Schs

   

??/??

       

Proposed Net Rehab

40

115

??

       

Budgeted Costs January 2002

36*/4

0/??

??

       

% of Election Quoted Costs

225%*/16.6%

76.6%/Undescribed

??

       

Promised Unfunded Rehab

20

35

??

       

Measure E Affects on Measure M

     

Promised Bond Proceeds

 

150

 

   Measure M “Program” Setaside

 

(35)

 

   Net Rehab From Bond Proceeds

 

115

 

   Minus Unfounded Measure E Rehab x

        225% RMS overspending con’t.

 

(20) x 2.25 = 45

 

   Net After Funding Promised “E” Rehab

 

50

 

   Net Rehab Funded Assuming

   Continuation of RMS 225%

   Overspending

 

50/2.25 = 22.22

 

Promised Unfunded Measure M Rehab

 

150-22.2 = 127.8

 
       

Measure E & M Affects on Measure D

     

Promised Bond Proceeds

   

300

    23.3% “M” “Program” Setaside Con’t.

   

(69.9)

   Net After “Program” Setaside

   

230.1

   Cumulative E & M Unfounded Rehab,

   $127.8, times RMS 225% Overspending

   

287.55

       

Net Rehab Funded With Measure D

   

(57.55)

       
       

*Richmond Middle School is reported by WeCCUSD  to use $23.9MM in Measure E bond proceeds with the remaining $12.9MM to be contributed by the State from marching funds.  The problem is that there are no state matching funds and if funds become available from future State bond issues, there is serious political in fighting for the allocation of those funds to other power school district political subdivisions (LAUSD, SDUSD, SJUSD, etc.).  The writer believes the WeCCUSD will perform poorly in this intense funding environment, the net effect being that local bond funds will have to pay the bills.

 


Run dates: 2002-02-25 - 2002-03-05
 


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