There has already been consideration of an alternative to issuing bonds to fund the construction of “BMS”, but it was dropped, quietly, a couple years ago. Since then nothing more was heard about it until the County Council voiced concern, due to the humongous cost of the proposed facility, which would require upwards of $50 Million, or more, as the County’s share. The Council has decided not to borrow more money for that purpose in the near future because of the cost and the County’s precarious financial situation. Now, despite those facts, Frederickson and Pollitt are pushing alternative financing of the school.
Alternative financing is a cutesy phrase for having a private investor fund the cost, which is repaid – with a substantial incentive kicker, as rent under a lease or some other arrangement. After a lengthy period of paying rent, the County gets to buy the then aged school for a small price (sometimes just $1). While there can be a public benefit in certain situations, there are substantial burdens as well with alternative financing. Because the investor is looking for a healthy and guaranteed return, the rent/purchase option usually costs considerably more than financing by issuing bonds.
According to an official publication, in early 2009 the Board of Education formed an “Alternative Finance Committee” composed of a variety of financial, political and school facility stakeholders to investigate alternative financing options.” Apparently these gurus produced nothing of significance, and nothing further was heard about it until the dynamic duo – Freddy and Ricky – resurrected it from the dustbin as their plan to have the school proceed without any significant review to eliminate unnecessary and exorbitant cost of construction.
Alternative financing has nothing to do with the design and specification of the facility or its cost. But, because the cost of financing is typically much greater with alternative financing (rather than issuing bonds), it may make the total cost of the school to the taxpayers even greater than that being touted now. It seems that the County’s poor fiscal picture is being completely disregarded by the officials named above, not to mention the cost of the facility as currently planned.
Wicomico County: you’ve been warned, again!
24 comments:
You can't have it both ways Wicomico. Complain about bonds and now complain because there is an alternative option.
I want to know...if it is private, does the Council have a voice or vote? If not, screw em and move forward.
The Council showed that they could care less about the kids already. Quit complaining about the tax costs and support our kids.
I say "way to go" Dr. Fredericksen and Mr. Pollitt.
Slick Rick finds a way to go further in debt? Without the support of our representitives? Is it low tide? Or, this that smells?
Why is everyone so scared to have technology in schools. Some things cost money and our children are worth it.
The council needs to stop playing games with Rick and think what is best for this county. Who is going to want to move to this court with such poor schools and roads. The council keeps over stepping it's line of authority when it gets involved in thinks they do not have any power over.
It is interesting how people in this community think. The public has no support for public education and the Council will continue to vote down anything the BOE brings across their desk.
They again will not provide Maintenance of Effort and who will suffer...our kids. I read the new proposed budget last night on the BOE website and it is apparent that they are trying to cut the budget.
The county is funding education at 1990's levels which is absurd. The BOE is doing their job in cutting costs so it is now time for the Council to step up and do their job and give them the money.
I say this with respect, "Slick Rick and Freddie Mac, shut up, drop it and move on!" We don't need your spending put on our backs to repay after one is voted out and the other goes back to where he came from.
We should try and get away from having mega schools. With all the technology most students could probably telecommute and learn online. Less travel less expense save money on busing.
Anonymous 2:48pm That is a brilliant idea. I think it could work however the only draw back is the parents who use the schools to raise their children.
Five members of the Council seem to think they are authorities on building schools. Yet those 5 have never built one.
1:52p I can't believe you think that way. The council is the "checks and balances" on this form of government. That's why I supported changing to this form. The council is the appropriating authority of my tax dollars. I don't believe for one second there are games being played by them. And I don't believe they don't care about our children. What I do believe is they are being fiscally conservative with our money and realize the bigger picture here. Everyone is hurting for money--even our own government.
If the Council won't support education now, how bad will it be if we get an elected school board. Talk about a political nightmare.
Keep politics out of education!!!
1:52 - No one is scared to ave technology in our schools, most people can't find any reason for spending money on more resources for a school system that can't even effectively use the resources available. After the elected BOE goes to work reversing to education process that continues to fall behind other districts as well as established standards, and is able to establish goals that reach beyond available resources then new facilities can be better discussed.
for those of you who continue to whine and complain about the hard choices our council has to make regarding our tax dollars, please educate yourselfs as to what it means to balance a budget.
our entire nation is going through a fiscal nightmare and we don't have money to spare.
yes, the students are very important but when you don't have money and can't make it grow on trees you must STOP spending.
if any of you can find a way to fund this project without raising taxes and adding fees (more taxes) to an already strained community; have at it.
problem is you can't so you just complain and whine. what do you do with your household budgets? have you any clue as to how many people have lost their homes in this wretched economy? do you understand how many people are unemployed or underemployed? do you realize the number of people who have had their hours cut or their benefits cut? you can't get blood out of a turnip...need i say more, because i certainly can.
we need leaders who understand how to get the economy up and running with lower taxes, less government regulations, and incentives for businesses to expand and come here to open shop. once this is done, then we can consider spending more money to improve our community. let's look for better leaders.
again our council is doing a great job in holding the line on spending in a very bad economy. unfortunately rick pollitt doesn't have the expertise or forthought to do what is needed and even more concerning those who continue to vote for him don't get it either.
scarey isn't it???
4:54
I believe that the BOE is looking for ways to fund this project by using private funds and not tax dollars.
Also, we are dumping tons of money into BMS for poor heating, etc. where we could be using green resources like geothermal that will cost us less overall.
How can you say that Rick does not have the expertise but then support a council that has no clue about how to build a building. We can't keep putting projects back and loose State money. All it does is put our educational system behind the bigger counties.
3:21, I am suprised to hear anyone admit that they voted for this form of government. In case you haven't noticed, it sucks. The council has basically no power. They are legislative in function only. All you have to do is look to last budget year when the Executive presented a budget. The council voted against it and what happened? The Executive budget goes through by default. So, those of you that voted for this added layer of beuracracy that is costing us over 1 million dollars a year, and cost the county employees a one million dollar unfunded liability in their pension plan thanks to adding Ed Baker as a full time employee and a backroom sweetheart deal, I TOLD YOU SO. Most of you are the same that voted for the revenue cap, and look what that has got. Taxes could have been held with no increases and the new growth would at least to been able to pay for new growth, but with the cap, the tax rate had to be reduced. So in essence, growth couldn't pay for growth. Now you have more services to provide in education, roads, ems./fire, etc. with less money to do it. You all can say that the revenue cap was great, but if you do, you must not realize what it truly is.
5:56 Amen brother/sister!!!
Here we go again, "apparently...., it seems...., it May make the cost more." Are there any facts to put forward? Is there an alternative financing committee report anywhere? I'd really like to see some facts before everyone starts getting in a tizzy. I, for one, am glad to hear there is a Plan B. Now let's see what it actually says.
Why don't you comment on that stupid comment that Matt Holloway made at the council meeting. If he spoke the sentiments of the majority party, Wicomico County is doomed.
Several writers have accused the five Council members who voted against the proposed plan for the new BMS as being anti-education or anti-child.For example, 4:51 says that the Council does not suppport education What an inane comment! It's like saying to a parent who is presently having financial problems and whose child "just has to have" the latest IPAD or laptop or $150 sports shoes that, if he doesn't give the child what he wants, he hates his child. I would like to have a $500,000 house, but I can only afford one for a fraction of that. Poor me! Give me some whine with that cheese.
2:16 tells the Council to just give the BOE the money for the school. What money? Where is it coming from? The Council IS doing its job, 2:16, by responding to the will of the people and by watching the county's pursestrings. We simply don't have the money for this school at this price at this time. You can blame it on the revenue cap, the present economic crisis in the country and in the county, or, if you insist, on the kid-hating Council. Whatever, as the line in the movie went, "Show me the money."
As far as the BOE's insisting on keeping the BMS project in its budget despite the Council's vote and then trying to make an end run around the Council by finding "alternative financing" is despicable. Conventional or "alternative" financing--the taxpayers still get the bill.
4:51 PM
Well that makes no sense at all. You just trying to grind an axe?
2:53 we could go back to the one room neighborhood school house for kids of all ages.One teacher to over see them. Sit down at your computer and do your days lesson plan.
Hey I believe the joke is on all of us here. If I remember correctly, Bennett High School was finished a year early which means Bennett Middle School was originally scheduled to begin construction next year. If all is true then what is the beef with the council? Thanks to the five members for doing their job and looking out for us.
There are many people that agree that a new school is needed. I think what many have a problem with is the cost of this new school. After all the money that was WASTED on the high school and all the things that were sold at auction that could have been used, people are sick of the wasteful spending. They do NOT need such an extravagant school.
Education needs to get back to basics, reading, writing and arthmetic. What the BOE is producing is a poor excuse for education.
rick is supposed to present a balanced budget plan that is healty for our county each year. he has yet to do this correctly and in a timely manner.
the council is supposed to be the watchdog and oversee how our tax dollars are allocated. they are trying to do a very good job and i believe this last vote on bms was correct.
the school system and all that goes with it is not the only population to consider in this county, so get over it. there are many citizens in this county who would like to see ALL things new but this is not possible expecially in this economic climate. again, get over it.
it's a great political ploy to "stand up for the children", but that's just what is it, political. we as citizens want what's best for the children but at this time it must be postponed until the finances come back in line and are again available to this community for this purpose.
always follow the money, look at intent and motives. ask questions, weigh this out and ponder the whys and wherefores and maybe you will see this in a different light.
truth - what a concept......
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