Voting on Bonds vs Tax increase for School Repairs
The school district I live in is having a referrendum for new funds for school repairs and restoration. In the past funds have come from tax increases or (municipal?) bonds. This time they did a phone poll and determined 1) people are in favor of the repairs but 2) people are not in favor of raising taxes in this economy. I know very little about bonds, but it is my understanding that regular municipal bonds start paying out immediately for a period of time, 20 years for example.
So they have determined they want to issue bonds again. But not the same kind. These bonds will not start paying for 20 years. At which time, I can only presume, taxes would have to be increased. Issuing these bonds would also max out the district's credit line for the next 17 years. (There are other bonds expiring prior to these which would release some of the credit.)
I think people will vote yes on this because it is a 'free' school upgrade with no tax increase. I do not think most people realize the impact of the type of bonds that are being suggested.
Am I missing something here or is this just a way to put off today's debt until tomorrow? Which, isn't that HOW we got into this awful situation this country is in right now? Of course none of this is being pointed out in the propaganda being distributed.