Why stop at real estate?

The financial meltdown is apparently not just providing all sorts of fun for property owners, but school districts appear to be in on the mix.

"...The value of district investments has declined by $120 million - or 60% - since the transactions were undertaken within the last two years, according to a news release from a public relations firm for the attorneys who examined the deals...

The five districts made the investments in 2006 using borrowed money and, in some cases, district assets to help seed trusts they established to borrow more money to funnel into the CDOs. According to Wednesday's news release, the deals also involved a credit default swap, another fairly recent financial vehicle designed to transfer risk from one investing party to another...."

You can find an earlier report on this here.

There seem to be statutes expressly covering investments that can be made by the school boards with bond moneys, but, after a (non-exhaustive) reading, I could find no similar language on retirement funds.

The districts were not the only ones misled in this fiasco, so they are not the only ones demanding compensation. This will surely shrink the size of the pie available for public instruction.

School busing cuts

Transportation cuts can help balance budgets, but at a cost to parents:

"A plan to reduce busing at the high school level stalled in a meeting of the Milwaukee School Board’s finance committee Tuesday...the version presented Tuesday was the first to reduce transportation to citywide schools offering specialty programs such as International Baccalaureate, language immersion and art...

Students who opt for a school outside their attendance area would have to pay to get themselves there on county transit.

Morales said she anticipated Milwaukee residents who lacked reliable private transportation and those with children in multiple schools would struggle as a result of the change.

The change would save MPS roughly $1 million by its full implementation in the 2011-12 academic year."

Madison looks to permanently exceed revenue limits

Today the Wisconsin State Journal ran the article, Vote on tax for Madison schools considered, in which Andy Hall explains the referendum that will appear on the November 4 ballot for Madison voters. The Madison School District could gain a permanent $13 million if voters support the referendum. Hall suggests this will cost taxpayers with an assessed property value of $250,000 about $27.50 more per year. Madison Superintendent Daniel Nerad, is proposing that this referendum come with "accounting measures". Does that mean accountability?

Just by reading the comments on the forum, it is clear that this is a very heated debate.

The School Board will vote on the proposed referendum Monday August 25 at 5:00 PM - 545 W. Dayton St. Comments will be heard.

Comments can also be e-mailed to the board at comments@madison.k12.wi.us.

For up-to-date information, check the district's Web site, www.mmsd.org.

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