“Now more than ever”: WEEK 1979

I ran across this on (where else?) YouTube:

Now, wasn’t that a fun trip down memory lane? The times certainly have changed, but one thing hasn’t: “Getting the news is like fighting a battle.” Ain’t that the truth! And can you believe Tom McIntyre has been doing the news for the same channel for 30 years? Amazing.

These clips were put together by Paul Daniel — he wrote this about his time in Peoria:

What were you doing in 1979? I had my second job in TV at WEEK-TV in Peoria, IL. I was initially hired to do Saturday sports and shoot news during the week. Later I did both weekend shows and also did promotions for the station. What was it like? Did you ever see the movie “Anchorman”? It wasn’t too far off that. Cameras weighed about 15 pounds and you had to carry a recorder with it that weighed another 10. Back then news was shot and edited on 3/4 inch tape. This was actually good because we had just transitioned from film. We had big hair and drove Chevy Citations for news cars! Here’s a series of promos that I put together. As I look at them and remember how they were put together back them, the editor I use now, iMovie blows the effects away. Keep in mind that there were no computers then or they were even bigger than the cameras we carried. I worked with a company called Tuesday Productions to compose the music. It was cutting edge then as were the spots. Of course I got to fly in the chopper. You will even see me in the promos, Paul Daniel. I live in Pewaukee, WI now and am in marketing having left the TV world about 20 years ago but they are sure fun to look at and think “Did we really do that?” Enjoy!

Thanks for sharing, Paul.

Working cash bonds will raise property taxes 25¢ per $100 EAV

I recently spoke with District 150 interim comptroller Brock Butts about the $38,000,000 in working cash bonds the District wants to issue. He said the plan is to issue 15-year bonds, but hopefully pay them off early — possibly as quickly as five years. The bonds would be paid for by putting an additional levy on property taxes. Property taxes within the District would increase 25¢ per $100 of equalized assessed valuation (EAV). That means the owner of a $150,000 house would pay an additional $125 in property taxes.

Public notice of the District’s intent to issue the bonds was given in the Journal Star on April 7. Voters have 30 days from that date to either do nothing, in which case the district will go forward with the bond issuance in May, or gather at least 6,355 signatures to force the bond issuance to a binding referendum. The soonest a vote could be taken is February 2010, unless a special election were held earlier.

I asked what would happen if the voters did, in fact, succeed in petitioning for a referendum. Butts said that unless the District receives categorical funding from the State, the District will run out of money mid-May. At that point, the district could borrow money under something called “teacher’s orders” to pay certified staff salaries, but that’s about all they could do until October when they could issue tax anticipation warrants again. In short, it would keep them in a perpetual cash flow crisis.

Some explanation may be helpful here. Tax anticipation warrants are kind of like payday loans. As the name implies, money is borrowed in anticipation of receiving future tax revenue. The loan is paid off when the future tax revenue is collected. Basically, they’re using next year’s tax money to pay this year’s bills, just like you can use next month’s paycheck to pay this month’s bills if you get a payday loan. Companies like Investors Choice Lending do this and the District has been doing this for years, allowing people to try Investors Choice Lending.

That comes with a cost: interest. Tax anticipation warrants don’t raise your property tax bill, so guess from where the money for interest comes. According to Dr. Butts, it comes out of the education fund. Not good.

This is why the comptroller (and others) have recommended that the district issue $38 million in working cash fund bonds. It will give the district money to build up their reserves so they no longer have to issue tax anticipation warrants. That, coupled with efforts to balance the budget, will get the District back on sound financial footing. While it will cost a little extra in property taxes now, it will save money in the long run. It will also keep the interest costs from coming out of the education fund. Once the working cash fund bonds are paid off, property taxes will be abated.

This plan sounds reasonable and fiscally responsible to me, and I can support it. In fact, I’ve decided I’m not going to be a part of any effort to force this issue to a referendum.

However, I still have one really big reservation about this plan, and that is my lack of confidence in the school administration’s commitment to stick to it. As has been stated before, Blaine-Sumner was closed, then remodeled for use as offices, squandering the savings there. White School was closed and sold, but the Social Security Administration building was acquired and remodeled for more than the sale price of White. More squandered savings. And need we mention the money wasted on multiple superintendents and other questionable administrative/consultant positions?

What assurance can the District 150 Board of Education give the citizens of Peoria that they will not squander the savings of the recently-decided school closures, or the additional revenue from working cash fund bonds? That’s not a rhetorical question; I really think the constituents of District 150 deserve an answer.

D150 votes to close schools

The District 150 Board of Education voted Monday to close four schools — Kingman, Tyng, Irving, and a high school to be named later — and increase class sizes.

Combined, the operational savings by the end of the 2011 school year would mount to well more than $11 million.

Yep, and we were supposed to be enjoying $9 million in savings this year due to the closing of Blaine-Sumner and White schools. Who wants to bet me this new $11 million figure will similarly evaporate and a new crisis will emerge in 2011?