The Milwaukee Post

8 • Milwaukee County Post • March 17, 2017 This column is about Wisconsin schools but must start with a digression. Many econ- omists believe we are headed toward anoth- er meltdown of the credit markets. Last time it was because of a housing bubble created by reckless lending and borrowing. This time, many believe the economy could be at risk because of irresponsible auto lending. So-called "subprime" loans have moved from housing to cars. The average loan term for a new car is now a stunning 6.7 years. That's the average! Eight-year car loans, once thought of as too absurd to even con- template, are now common. You see that near-destitute college student driving around in a brand-new Chevy Cruze? The naive kid will say, "Yeah, but my payment is only $87 a month!" The loan, however, may be for nine years. The problem with these loans is that the buyers are seri- ously "under water" and owe way more than the cars are worth until very late in the loan. If the economy slows, many of these people won't be able to afford their car payments, nor will they be able to sell the car to pay them off. It is exactly what happened in the housing collapse. Who's to blame? Is it the auto companies and lenders sucking gullible people into eight-year loans? Or is it the car buyers who want a car way too expensive for them so they extend the loan and pay a fortune in interest? That's the question: Who is to blame? Is it the school districts or the voters who keep passing the referendums? Wait a minute! I thought we were talking about cars. No, this column is about schools. The burgeoning car loan crisis is merely a metaphor for what is happening with school debt in Wisconsin. The Wisconsin Taxpayers Alliance just came out with a shocking report. Collectively, Wisconsin school districts added on an astonishing $1.3 billion in new long-term debt in 2016 alone. (That's about $250 in new debt for every man, woman and child in the state in just one year.) The reck- less borrowing shows no sign of ending. Another $700 million is on various statewide ballots in next month's election. This obscene borrowing will create a crisis in a few years that will force either an explosion in property taxes, a state bailout or drastic school cuts. Arrowhead, a school district where the voters ought to know better, is a perfect example. On next month's ballot is a $36 mil- lion referendum. From the outside, Arrowhead looks like the Ritz-Carlton but the school officials insist the place is a dump that's falling apart. To con voters into pass- ing the referendum, Arrowhead's school board is telling voters it will "only" raise their taxes $180 a year on a $400,000 house. In other words, just like the car guys, they are pushing the size of the payment. What they don't stress is that the bonds being used will be paid back over a staggering 21 years! Yup, Arrowhead is financing a $36 million loan over 21 years. The payback cost, count- ing all interest and principle, will be far higher than the $36 million. But that's not all. Given Arrowhead's refusal to tighten its operating budget belt and its residents' obsession with having spectacular facilities, it is certain they'll be back in about four years with another referendum. (This is going on all over the state.) The new debt passed in the next referendum will be added on to the debt from this year's referendum. Four years, later they'll have to triple down. And, in another four years? You see the pic- ture. School districts like Arrowhead are in the early stages of bankrupting themselves. To make matters even worse — if that's possible — Arrowhead's enrollment is declining. This, too, is happening all over the state. Millennials aren't having many babies. Declining enrollment means major cuts in state school aid. Arrowhead's debt payments will be going up at the same time their revenue from the state will plummet. This will force the local taxpayers to pay even larger chunks of the debt service in the future. Huge portions of the annual operat- ing budgets will go to paying off all the bonding. Either school operations will have to be cut or there will be an enormous tax increase. You can bet that these debt-laden districts will demand a bailout from state taxpayers. But why would voters in districts that aren't passing referendums, like New Berlin, Milwaukee and our heroes in Waterford, support a diversion of their money to irre- sponsible districts? This brings us back to the car loans. Who's to blame? The car dealer or the idiot bor- rower? Who's to blame here — the school boards or the idiot voters? Of course, not all voters are idiots. Arrowhead had a referen- dum on the ballot only a few months ago and it was defeated. Maybe the voters will show the same wisdom next month. But many dis- tricts, like Oconomowoc, Germantown, Menomonee Falls and many others, passed huge referendums last year. Menomonee Falls is already(!) back this spring asking for even more! There is an alternative. Act 10 gives dis- tricts the power to cut their operating expenses by making employees pay more for their benefits. But the districts are refusing to do that because the voters are willing to pass the referendums. You've heard of "sub- prime" mortgages and car loans? There are "subprime referendums." (Mark Belling is the host of a daily WISN radio talk show. His column appears weekly in the Milwaukee Post. Send your personal correspondences to Mark Belling at Clear Channel Communications, c/o WISN, 12100 W. Howard Ave., Greenfield, WI 53228). OPINION Last week's question What do you think about mandatory uniforms for public school students? I finally get to read about something sensible they did or will do for public schools and the kids. Being all uniform- ly dressed the same will stop a lot of bullies and outsiders from trying to steal clothing and boots, jackets or whatever a kid is wearing that they want. I think also that kids wearing the same clothing makes them feel equal in dress-wear. A lot of kids' parents can- not afford designer clothes and what- not. Being in the transportation busi- ness for many, many years and working in all areas of the city, I saw a lot of needy people in needy areas "dressed to kill" while their kids were dressed very poorly. Everyone wants to look good, but so did the children. I do know for a fact that money granted to many people was spent unwisely. Saying that, I also want to sug- gest that part of the cost for these uni- forms will come from the parents.Also, they will need at least two sets of these uniforms for each child. The weight of designer clothes will be lifted from parents' wallets and they should be willing and happy to con- tribute to the self-esteem of their chil- dren. Feeling good about themselves, I also believe, will help them to perform better and should show up in their grades. We see this happen in private schools where kids wear uniforms, and have been for many years now. Taking proper care of these uniforms will ben- efit all also as they will last longer. Non-working parents should be up in the mornings to help get their kids ready and off to school. Working par- ents should try to help get them ready the night before or a short time before their shift however they can work it out. Teach your kids responsibility for helping to care how they dress and feel. All school supplies and clothing is expensive but working with your kids will make it all worthwhile. A smile on a kid's face from feeling good about themselves is worth any cost. Bonnie Meyer Cudahy *** Uniforms are excellent ego trim- mers. They symbolize being part of something bigger than ourselves. In the public schools, uniforms could save par- ents money by ending the classroom fashion competition. They would also give schools a look of academic profes- sionalism instead of the ultra-casual styles now permitted. Student behavior may just follow the new look. Let's give it a try. — Sandy Sue Szanderek Bay View This week's question What do you think of President Donald Trump's claim Trump Tower was bugged? What should be done? Editor's note: When responding to the Question of the Week, please include your full name with spelling, phone number and city where you live. Phone numbers will not be published. Anonymous responses are no longer accepted by the publication. Call 744- 6370, Ext. 15 and leave a brief answer. Readers may also send an email with a brief answer to: dmuck@conleynet.com. Question of the week School districts act like sleazy mortgage and car lenders STANDING UP for MILWAUKEE Mortgaging the future on 'subprime' referendums

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