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We’ve had more than enough misinformation coming from “The Committee” opposing the proposed $20 million bond. 

“The Committee” says that taxes will increase 33 percent over the next 5 years.  This figure is wrong in two ways.  First, the actual forecasted increase is 25 percent.  Second, implying that the increase is due solely to the proposed bond ignores the real spending drivers -- employee contracts and NYS-mandated costs.

Calculation of the 25 percent rate is shown in the following table.  [The District’s recently reported forecast increase of 23 percent omitted the compounding impact of multiple-year increases.]  While still problematic, the 25 percent figure is correct and significantly lower than “The Committee’s” inflammatory figure.

“The Committee” also wrongly implies that the forecasted increase is due to the bond proposal.  The actual expected increase in taxes due to the proposed bond is about 2 percent or $6,000 over 20 years for the “average” Rye homeowner.  While that sounds like a lot ($1.3million / lab classroom seems exorbitant to me), it is the real figure and what voters should use to determine if the proposed bond is affordable. 

“The Committee” also says enrollment has virtually leveled off.  The District’s published enrollment forecasts show a 9 percent increase over the next 5 years in the MS/HS.  I wish my income would “level off” in the same way, but I guess “The Committee’s” definition of leveling off is different from mine.  Clearly, additional classrooms are needed.

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Separately from “The Committee”, former Mayor Dunn has referred to a “former school board Trustee” having identified $15.9 million in District reserves.  Mr. Dunn says that the reserves could be used to pay for “some or all of the proposed improvements”. 

Following Mr. Dunn’s suggestion would be a financial disaster. Why? Because it would cost Rye taxpayers all NYS construction aid – by my estimate, that’s about $2 million.

If you trust my math, you can skip the following paragraph.

[NYS reimburses approved, bonded construction expenses at a rate of 14 percent.  NYS has not yet said what would be approved in the proposed bond so an exact calculation can’t yet be made.  But to drive the analysis further, I generously discount NYS’ 14 percent aid rate to 10 percent.  Ten percent of $20 million is $2 million.]

I have recommended that the District issue callable bonds so that they can be pre-paid from reserves.  Doing so would give Rye taxpayers both $2 million of NYS aid and avoid unnecessary interest expense lowering the effective cost to Rye tax payers versus what the District has reported.  Paying for the HS construction program directly out of reserves / cash flow would cost us $2 million and be fiscally irresponsible.

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Of course, a 25 percent increase in taxes over 5 years is unsustainable, even for “wealthy” Rye.  But that problem won’t be fixed by nixing the bond.  It will be fixed by the District using its reserves appropriately, tightening expenses (including employee contracts), and by NYS fixing unfunded mandates – including moving to a defined contribution retirement plan. 

But none of these areas will be affected by the $20 million bond vote.  Some will be affected by the next schools budget.  And if you want to make sure spending is kept “tight”, then speak up during budget preparation and be prepared to vote “No” on the budget. 

But the bond vote is a separate matter that is almost immaterial compared to other expense drivers in the Rye schools.  Let’s get the facts straight so that Rye can make a smart decision. 

Bob Zahm