Cascade School District (CSD) is celebrating a double win for its students and taxpayers. Not only did voters overwhelmingly approve two crucial replacement levies on February 11, but the district also recently refinanced its bonds, saving an estimated $1.54 million over the next decade.
Voters demonstrated strong support for local schools by passing both the four-year replacement Educational Programs and Operations (EP&O) levy (with a 65.94% approval) and the four-year replacement capital levy for safety, security, technology, and facility improvements (with a 64.58% approval).
The bond restructuring combined with the successful levy passage positions CSD to continue providing a high-quality education for the remainder of the decade while being mindful of the community’s financial resources.
“We remain grateful to our communities for their consistent support of our students and programs,” remarked Superintendent Tracey Edou after the vote.
The victories came despite facing organized opposition and misinformation campaigns, including a county-wide political mailer filled with inaccuracies criticizing public school academic performance and diversity, equity, and inclusion policies. And at least one local public official - Director of Chelan County Community Development Deana Long Walter – even campaigned against school levies on social media.
Nonetheless, despite these unethical, and possibly illegal, tactics, the value of the levies to not only the school districts but the larger community was understood by voters.
In Washington state, school districts rely on a combination of state funding and local levies to operate. While the state funds “basic education,” this often falls short of covering the actual costs of running a comprehensive school system. Levies bridge this gap, funding essential programs and services not fully funded by the state.
Levies are short-term, local property taxes approved by voters, typically lasting four years. They fund day-to-day operating expenses, including:
educational programs: arts, music, STEM, special education;
technology: upgrading of computers, software, and internet access;
staffing: additional teachers, counselors, nurses, and support staff; and
extracurricular activities: sports, clubs, and other student activities.
Failure of the levies would have resulted in significant CSD budget cuts, impacting essential programs, services, and staff. Their approval, however, ensures that CSD students continue to have access to the resources and opportunities they need to thrive.
Beyond the levy successes, the district also announced significant savings through a strategic bond refinancing.
Bonds are long-term funding mechanisms used for major capital projects, such as purchasing land, constructing new schools, or modernizing existing facilities. Bonds are akin to taking out a loan; the district sells bonds to investors, who are then repaid with interest over time through property tax collections (typically over 10 to 25 years). They require a supermajority vote (60%) to pass.
By capitalizing on favorable market conditions and the district’s strong financial standing (recently receiving an “A1” credit rating from Moody’s), the district secured, on February 4, a lower average interest rate (from 4.68% to 3.15%) on its 2015 bonds, which funded the building of Alpine Lakes Elementary, and the renovations of Cascade High School and Peshastin-Dryden Elementary. The interest rate reduction translates to an estimated $1.54 million in savings for taxpayers over the next decade.
“Cascade’s School Board and administration have worked diligently to secure all the pieces necessary to make this a successful bond sale. Success as measured by the ultimate borrowing cost for the bonds. The lower the cost, the lower the tax burden incurred by our community. All our efforts strive to provide a result that truly honors the community’s support,” stated Edou in a press release.
The bond restructuring combined with the successful levy passage positions CSD to continue providing a high-quality education for the remainder of the decade while being mindful of the community's financial resources.
Comentários