David Cosby Makes Excellent Case Opposing Ed-SPLOST...a "Permanant Tax"

On Sunday Sept. 10, 2011, David Cosby presented a thought-provoking perspective on the ED-SPLOST in Cherokee County to the Woodstock Tea Party Patriots.  The following is posted with his permission. 

Scandalous School Board Debt

ED SPLOST a new name for a “PERMANENT TAX”

I have a question for you…How many people believe the 1 cent sales tax that everyone pays who shops in Cherokee County will pay for the projects within the 5 years of the SPLOST? Most of you! BUT it doesn’t! The dirty little secret of ED SPLOST is, AFTER 13 years of the initial ED SPLOST program, we owe $551 M. 

$457 M Original debt

- $ 89 M Paid on principle

$368M Balance due plus

+ $183M Deferred interest

$551M Total due NOW

WE OWE MORE TODAY THAN THE ORIGINAL $457 M THAT WAS BORROWED!!!

With annual collections of between $25 - $30M or more during the earlier years, approximately $350M has been collected in SPLOST sales taxes. But in those 13 years only $89M has been used to pay down the massive debt!

What has happened to all of the other money? Where has the money gone and what has it been used for? The school board did not pay down the debt, and the new schools were built with bond loans. It is time for the citizens of Cherokee County to demand answers!

And, the new “wish” list of the school board will throw the county into a never ending enormous debt cycle. This can has been kicked so far down the road that children that haven’t even been born yet will have to pay for it.

NEW SPLOST PROPOSAL

Proposed FY 2013-17 borrow an additional                                    $138 M

On existing SPLOST FY 2008-12 borrow an additional                    + $ 20 M

Proposed total new debt, if passed                                                 $158 M

If passed the debt to the county will be:

Total due NOW                                                                                  $551 M

New debt if passed                                                                            +$158 M

Grand total of debt                                                                           $709 M

The 2013 SPLOST income projections of $31 M per year are unrealistic. Presently about $25 M is coming in per year. In a down economy with all national financial numbers trending negatively, the school board is calculating on higher income levels than its present receipts. This kind of flawed financial planning can only be done by government with the power to raise taxes.

NO MATTER WHAT.

The $40M technology purchases proposed will be obsolete in 3 to 5 years. However, it is financed for the next 20 years. No responsible banker would approve a loan that extents beyond the life of the item financed by 15 years.

WHAT CAN BE DONE?

• Reject and vote NO to the proposed ED SPLOST on November 8th and require Dr. Petruzielo and the school board to return to the chalk board to prepare a realistic budget and a plan to retire this “snowballing” debt. THE SPLOST DOES NOT COME DUE UNTIL 2012, WE HAVE A YEAR TO COME UP WITH A BETTER PLAN.

• Establish a citizens’ oversight committee to conduct a full review of the school boards expenditures and to include the school boards debt service fund and, review the general fund, special revenue fund, SPLOST, and all sources of revenue.

• Support a new SPLOST that would be used ONLY to pay down the existing debt. Develop a new plan in three or four years with NECESSARY capital funding projects.

IRRESPONSIBLE EXPENSES

The school board could have delayed the election until the spring of 2012. This special Nov. 8^th SPLOST election is costing taxpayers approximately $50-60 thousand dollars.

FUTURE DEBT UNFAIR TO CHILDREN

The debts of a county are no different from the debts of an individual. The fact that the indebtedness is shared by the whole people of Cherokee county makes it no less ominous.

Passing on our debts to the next generation is forcing the children of the future to be born into a certain kind of bondage or involuntary servitude – something for which they had neither voted, nor subscribed. It would be, in a very literal sense, “taxation without representation.” Clearly it is a blatant violation of a fundamental principle of the America republic form of government.

All information can be found in the articles written by Kyle Dominy, Cherokee Tribune, 7-31-11, “Super: No SPLOST will mean higher property taxes,” and 8- 14-11 “SPLOST and a snowballing school debt,” and the Cherokee.k12.ga.us. Look under listings ED-SPLOST; Annual Report; Five year Facility and Strategic Plans. NOTE: The figures above as presented were correct as of August 2011according to the references cited.