As an experienced person in the finance field, I have discovered a flaw in the Peninsula School District’s plan for running a capital project as a levy in lieu of a bond measure.
The levy is a bad deal for teachers and kids. Running it as a levy places a tremendous burden on taxpayers.
To pay for this in four years, the portion of property tax rates that goes to schools would increase by almost 60 percent, according to The Peninsula Gateway. Running this as a levy and at such a high rate places the passage of a future replacement maintenance and operations levy in jeopardy.
If the taxpayers’ threshold of taxation and generosity is reached with this capital levy, it could cause the next M&O levy to have a high probability of failure. The result could be draconian layoffs of teachers, staff and program cuts.
That is why buildings are built with bonds, not levies. Levies are for the teachers, staff and programs for the kids. Bonds are for buildings. Let’s look at alternative sources of funding.