Remember that state school bond referendum we approved in November? Most of the articles did advise taxpayers to proceed with caution when casting their ballots for the $500
million state bond issue.
But, as usual, the feel-good approach to our school funding problem (read: throw more money at it) won out, and New Jersey residents voted themselves another tax increase.
However, none of the articles referencing the referendum raised a red flag that approvals of such bond issues at the state, county and local levels presented a triple whammy in tax increases.
One article did pose the question: “Will You Pay More Now for School Projects?” Why, of course you will. Just wait until it hits your pocketbook at the state, county and local levels.
The state question did read that the principal amount was $500 million, but the interpretative statement did not make it clear the grants would be given for yearly debt service obligation only, giving the impression the state is picking up 40 percent of the cost of an eligible project.
Towns and counties receiving these relatively small grants have, can, and probably will leverage them into bonded indebtedness of millions of dollars in principal.
So, when you read the more recent articles on these school referendums, you should be aware that, for example, to say the state is funding 32 percent, or $47.2 million of eligible items contained in a referendum costing $147 million, is misleading. It is funding 32 percent of the debt service obligation on an interest-bearing bond obligation.
New Jersey taxpayers currently paying down a whopping $4 billion a year debt service obligation on a bonded indebtedness of $46 billion are now slammed with an additional yearly debt service obligation for $500 million; local taxpayers will be slammed with tax increases for increased yearly debt service obligations at the local level; and county taxpayers will be slammed with increased yearly debt service obligations at that level.
Or is there someone out there who can prove me wrong?
Rose Ann Scotti
Colts Neck
