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In an official "Notice of Election," Texarkana ISD admitted that its $189 million bond issue is likely to saddle Texarkana, Texas taxpayers with more than $365 million of debt after calculating interest.
This information was filed with Bowie County election officials a few weeks ago and assumed an interest rate of 4.35% over 30 years. The highest bond election for any entity in Bowie County history was $39 million - making TISD's $189 million bond election an unusual outlier.
Indeed, TISD's spending spree is $150 million more expensive than any bond election for any public entity in our area's history - including the City of Texarkana, Texas, other school districts and municipal entities.
This has led to many citizens questioning the timing of such an outrageously expensive bond issue amid a deep recession that shows no signs of abating.
Over $60,000 in debt per student?
Since TISD filed the official notice with election officials, interest rates and the bond markets have been rocked. This means that the actual cost of the $189 million bond election could easily leave Texarkana, Texas taxpayers on the hook for tens of millions more in interest if both of the school district's propositions get the go-ahead from voters.
Also, TISD's last bond election for $29 million was in 2014. Surprisingly, the school district announced that it has old debts of about $32,000,000 - and over $56 million, including interest. So TISD's principal debt (not including interest) is more than the dollar amount of bonds it sold in the last election eight years ago - which helps illustrate that this new debt will be put on the shoulders of future generations of Texarkanians.
Adding everything up, Texarkana taxpayers will likely be on the hook for well over $420 million if the bond election gets approval from voters. Since TISD has roughly 7,000 students, the debt per student would be exactly $60,000, including interest.
Board can raise taxes more - without asking
Most taxpayers don't realize that a school board can raise taxes to service debt on bond packages that citizens approve - without asking for permission from voters.
The Federal Reserve raised interest rates by 0.75 percent point a few days ago. With the bond election on November 8 and possibly 45 days or more for bond sales, interest rates could spike even more before the start of 2023.
So in these unpredictable economic times, further property tax increases could undoubtedly happen if interest rates rise to service the enormous bond package.
TISD caught misleading voters
On its new bond election website, TISD is continuing to mislead voters by promising a list of safety and security improvements that have already been approved and funded. Click here to read more.
On June 29, 2022 - a month following the Uvalde school shooting - the Board of Trustees passed $1.95 million in appropriations for safety and security.
However, in August, the School Board decided it would like to be "paid back" for the spending by adding it to the bond election. This increased the bond package from $187 million to $189 million.
So TISD wants to put voters into further debt to pay the general fund back for securing kids and campuses. The cost of this high-priced stunt by Superintendent Doug Brubaker and the Board will be about $4 million - including interest.
The bond election for TISD will be put before voters in the November 8, 2022 election. Early voting begins on October 24, 2022.
Dig deeper:
Click here to read: The secret history of the TISD bond issue
Click here to read: "Not counting nickels and dimes? Texarkana ISD massive $200 million bond proposal hits the wall with some voters after comments surface"
Click here to read: "Texarkana ISD wants two property tax increases for $200 million spending spree - as more live paycheck to paycheck"
Click here to read: "Are Texarkana voters prepared for a $100 million-plus TISD bond issue? Does the public even want it?"
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