Travis County Taxpayers Union announces August 13th Moneybomb!!!

The ongoing saga of the Austin ISD lawsuit continues:

If we can take this case to the third Court of Appeal, we can win. The law is on our side. If we win we will, at a minimum, save taxpayers $500 million; this lawsuit, however, could restrict financial shenanigans that local governments can pull across the state of Texas.

Unfortunately, lawyers cost money; we need to raise $6000 to keep our guy out of the poorhouse as the appeal works through the system.

Normally, in politics, you need large sums of money to make things happen. Not this time. This $6000 investment on the front end could save taxpayers in Austin Hundreds of Millions of Dollars and (in a best case scenario) could save BILLIONS across the state.

 Pledge your support here.

Join the Facebook event here.

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Judge Tim Sulak Demands $15 Million Taxpayer Ransom

"Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted."
Eighth Amendment, United States Constitution

Cahnman's Musings spent the morning at the 353rd District Court of Travis County, Judge Tim Sulak presiding.  We were there to observe the Travis County Taxpayers Union's (TCTU) lawsuit against Austin Independent School district (AISD) we've discussed previously.  To quote Wendy Davis, we witnessed a raw abuse of power.

Judge Sulak ruled in favor of the district.  That wasn't surprising.  The outrageous part was the shackles Judge Sulak put on a potential appeal.

Judge Sulak ruled TCTU must post a $15 million bond ($15,000,000) to protect the district before an appeal could proceed.  Obviously, TCTU doesn't have that kind of money.  In other words, a Democrat judge made it prohibitively expensive for a citizens group to petition their government for redress of grievances.

On one level, this isn't surprising.  Judge Sulak and AISD are part of the Travis County's progressive mafia (Sidenote: This is the same progressive mafia that is protecting Rosemary Lehmberg).  On the other hand, demanding a fifteen million dollar ransom to allow a citizens lawsuit against a governmental entity to continue is (to our knowledge) unprecedented.

In announcing his ruling, Judge Sulak admitted that, even if he disagreed with it, TCTU made a reasonable case against the district.  Judge Sulak's ruling was designed to protect AISD from having the case heard in front of judges who aren't in the pocket of big education.  This isn't over....

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Readers can contact Judge Sulak via his campaign Facebook page.

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Update: More from Fox 7 Austin:

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Austin ISD backs down on 'Domestic Partner' benefits

An interesting development:

Highlights:

• On Thursday, AISD announced to staff home on summer break that it would not offer domestic partnership benefits as promised since March. Open enrollment is set for July first. 

• Domestic partnership doesn't just affect those in the LGBT community, but heterosexual couples who live together.

• In a letter sent to staff, district official sites the Attorney General's opinion issued back on April 29 that "a school district would violate the Texas constitution if the health plan is determined to create or recognize a legal status that is similar to marriage.

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URGENT: Update on the Austin School Bond Lawsuit

Shortly before last month's bond election Travis County Taxpayers Union sued the district over illegal ballot language.  The short version of the lawsuit is that the District lied about the magnitude of potential tax increases.  Last week, the Austin-American Statesman reported that the lawsuit may yet neuter the two bonds that passed; money quote:

The district hopes to hire architects as early as this fall to get project planning underway, but the taxpayer group’s lawsuit could prevent the district from issuing the bonds. The district needs approval from the Attorney General’s office, which typically doesn’t give the green light until any legal challenges of the bonds have been resolved, according to the petition filed by the district.

 Last night, we spoke with Don Zimmerman, Founder and Treasurer of TCTU.  Don thinks there's a respectable chance this lawsuit could prevail.  If it does, it would prevent the district from ever issuing the bonds that passed.

Right now, TCTU needs to raise a little bit of money to move the suit forward.  We're not talking large sums, 2 to 5 grand would go a long way.  Whatever small amount you contribute could help save taxpayer half a Billion dollars.

Cahnman's Musings has never asked readers for money before, but this is a special circumstance where your small contribution could make an outsized impact; donate here.

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The Next Step: #AuditAISD

"I won." 
President Barack Obama
January 23, 2009

Several people have written to ask what comes next following conservatives' upset victory over Austin's progressive establishment Saturday night.  That the pro-bond campaign outspent us 45:1 and could only manage a draw illustrates voters unease with the district's stewardship of the people's money.  The citizens of Austin have spoken, and they gave a clear mandate to get to the bottom of the district's finances.

#AuditAISD.

Austin Independent School District needs a financial proctology exam.  This election raised a lot of questions about the district's finances.  It's now time for answers.

#AuditAISD

From questions about administrative bloat, to basic maintenance, to the cozy relationship between the district and special interest cronies, to countless others, the time has come to answer citizens' questions.  Obviously, the district lacks the credibility to examine its own finances.  An independent audit, with subpoena power, is the appropriate next step.

#AuditAISD

Once Austinites get to the bottom of the district's finances, then we can consider major policy changes.  For now, however, discussing its premature.  We need more information.  Let's get it.  #AUDITAISD.

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Conservatives win; educarats lose; Austin Children bat .500 (AISD Audit needed)

It looks like taxpayers went 2 for 4 in Austin's bond election.

We'll take it.

When the incumbent outspends you 45:1 and you battle them to a draw, you don't argue.

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Austin Bond Result: We Need Your Prayers

Folks have written in asking how the bond election went.

We need prayers.

I hope this helps.

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VOTE TODAY: AGAINST AISD Bond Props 1 - 4

Today is the big day; vote against all four Austin ISD bonds:



Read our endorsement AGAINST the bonds here.

Find your polling place here.

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Turnout Up for AISD Props. 1 - 4

According to the Burnt Orange Report, 16,551 people voted in all elections across Travis County during early voting.

In 2010, by contrast, the May AISD trustee election saw fewer than 10,000 people show up.

Caution is in order, because the sixteen thousand number is for Travis County as a whole (not just AISD), but turnout is clearly up.

Election Day voting locations can be found here.

Let's slow this process down; vote AGAINST AISD props. 1 - 4.

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AFP-Texas: The Ugly Numbers on AISD debt and spending

Americans for Prosperity -- Texas breaks down the numbers on the AISD bond election:

Teachers comprise only 52% of the ISD staff

And only 49% of the ISD revenue is spent on instruction

And the Superintendent – as of TEA’s last listing – is making base salary of over $285,000

AISD debt is currently just over $1.1 billion

• Approximately $751 million in principal and
• $372 million in interest

AISD student enrollment has grown 8.9% at under 1% a year over the past 10 years according to TEA:

• In 2001, enrollment was 77,816;
• In 2011, enrollment was 85,273

Yet spending almost doubled – 71.12% increaseFrom $547 million to $936 million
And the ISD fund balance grew an astounding 117.647% in 10 years.

• $68 million in 2001 to $148 million in 2001-10

The bond package proposed would more than double AISD debt.
Let’s remember the current principal is $750.5 million; This bond package is for over $892 million.

Read more: http://americansforprosperity.org/texas/legislativealerts/aisd-bond-election-loving-our-kids-to-debt/#ixzz2SZ8bxieq

 This is lot of debt to burden ourselves and our children with over the next thirty years.  A low turnout May election that maximizes the special interest vote is not an appropriate forum.  Let's slow this process down;  Vote AGAINST AISD Bonds 1 - 4.

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STOP THE PRESSES: Austin-American Statesman comes out AGAINST AISD Props. 1-4

Oh. My. Gosh.

Vote for Mia's future; say 'no' to the rushed bond package; money quote:

The district’s board and administration is asking for permission to borrow $892 million — the largest in the district’s 132-year history. The four bond propositions on the ballot are the results of many hours of hard work by the district’s volunteer bond advisory committee and by district staff. And while we appreciate the commitment of time and effort, the American-Statesman cannot recommend passage of any of the four items presented to district voters.

The newspaper is a strong supporter of public education, and that support makes this decision difficult. But we cannot in good conscience recommend approval of a package that is riddled with questionable cost estimates and expenditures and rushed for inclusion on the May ballot.

....

Had the propositions not been structured to bundle needed projects with costly wishful thinking, voters could have separated mere want from true need. Bundling the projects was a political choice — not an academic one. The same goes for ignoring or overlooking the potential for full use of existing buildings before rushing to build new ones.

Trustees seek permission to build new schools when vacancies exist at facilities — mostly east of the interstate.

....

Waiting for a spot on the November ballot after a more thorough vetting of the items would have made the bond requests more affordable as well as supportable.

To reiterate, it is a departure for the American-Statesman not to support a school bond issue, and we did not reach this decision easily.

Consider that Mia, the cute little girl on the flyer, will grow up and be into her 30s paying back millions in unnecessary debt the bond propositions would impose on her.

 Cahnman's Musings is pleasantly shocked by this development, but we'll take it.

Let's slow this process down; vote AGAINST AISD Props. 1-4.

Early voting runs through tomorrow, find early voting locations here.

Election day proper is Saturday, May 11th, find election day polling locations here.

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AISD Bond Props 1-4: Frequently Asked Questions

Austin ISD 2013 SCHOOL BOND ELECTION – Bond Basics

Frequently Asked Questions on $892 Million Bond

Haven’t debt and taxes already grown much faster than student enrollment in AISD and other Texas Districts?

Data compiled by the Texas Comptroller (chart on the right) illustrates the growth of spending vs. growth of student enrollment for Texas School Districts for the most recent decade such data is available.  AISD follows state trends.  AISD employment is also consistent with state trends:  only 49.4% of employees are teachers.

Didn’t voters just approve a 63% tax rate increase for the Travis Healthcare District, along with over $306 Million of new Austin Bonds, in November?

A Citizens’ Bond Advisory Committee (CBAC) was established and charged by AISD employees with making a recommendation on the scope and timing of the bond, and a pro-Bond PAC raised over $30,000 months before the Bond vote was approved.

Why is the Bond election being proposed in the middle of another lawsuit on Texas School Finance?  Can’t the Bond wait?

The District has $230 million of “authorized but unissued debt” that could be utilized more quickly than the new proposed debt, while waiting for a Texas Supreme Court decision on potential new school financing model that might relieve property taxpayers.  The current AISD outstanding debt (not including interest owed), as of the last official audit in Aug, 2012, is $878 million.

Why is the election being held in May, instead of a later date with higher voter turnout?

Last November Austin voters approved moving the traditional May city council election date to November; Austin City turnout at that November election was over 60%.  Last May, the Austin city turnout was just over 10%.  Because the AISD Bonds are the most significant items on this May ballot, the estimated turnout could drop below 5%.  The District chose the May election date.

Are there other alternatives to handle student enrollment growth besides increasing debt and increasing property taxes?

Charter schools, as well as private and home schools, educate Austin school children without adding Bond debt and higher property taxes.  The Austin KIPP charter school alone has 1,500 students on a waiting list; statewide over 100,000 students are on charter school waiting lists.  Senate Bill 2 (if passed in the current legislature) eliminates the arbitrary cap of 215 charter schools, which provides more Charter opportunities, while numerous other bills propose additional student choices not requiring more debt and taxes.  These bills won’t be decided until after the May Bond election.  The Austin ISD Board, with three recently elected trustees, just canceled an existing contract with a local Charter School (IDEA).

If economic growth and taxpayer income doesn’t increase as the District predicts, and if interest rates rise, could the district raise taxes high enough to cover the new Bond debt payments plus interest?

The Texas Education Code (45.003) could permit the District to raise property taxes that are “sufficient, without limit as to rate or amount, to pay the principal of and interest on the bonds”.  While AISD estimates an initial tax increase of $70 on a $200,000 home, there is legally no limit as to how high property taxes may be raised to repay Bonds, with unknown future interest rates.

Early Voting is APRIL 29^th – May 7;  election day is May 11^th(2013).  For more info in favor of Bonds, see www.austinisd.org/bond, opposed, see www.tctunion.com 

Citations can be viewed at: http://www.tctunion.com/?page_id=80

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KVUE Succeeds where KXAN Fails

KVUE news continues to distinguish itself with, by far, the best coverage of the ongoing AISD bond election; here's their report from last night:

In this report, you will notice that KVUE's Kris Betts, unlike KXAN's Erin Cargile, mentions that AISD is already sitting on a substantial pile of cash; while Betts, regrettably, does not use the $229 million figure (p. 105), at least she discusses how facts belie AISD claims of poverty.

Two and a half cheers for KVUE news; Austin voters would benefit if the rest of the media followed their lead.

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Austin Chronicle Mischaracterizes Travis County Taxpayers Union

Those also who seek my life lay snares for me;
Those who seek my hurt speak of destruction,
And plan deception all the day long.

Psalm 38:12 

Perusing this story in the Austin Chronicle, by Richard Whittaker, about the strange timing of certain AISD personnel moves, Cahnman's Musings noticed this paragraph:

But opposition to the school bond cannot be written off solely to posturing by Repub­lican front groups. [Emphasis Mine] Last November's board elections became a community referendum on Carstarphen, and the 2013 bond election is shaping up the same way. If voters have too little faith in her ability to manage their funds, that could endanger dollars for essential investments.

 The antecedent to which the phrase "Republican front groups" refers is the Travis County Taxpayers Union, a local watchdog group (Full disclosure: Cahnman's Musings is loosely working with TCTU on the bond issue).  While Whittaker doesn't explain this designation, our educated guess is that is that Whittaker based his claim on the fact that TCTU president Don Zimmerman is a former member of the Texas State Republican Executive Committee.  Unfortunately, for Richard Whittaker, recent history belies the "Republican Front Group" allegation.

Last fall, the Travis County Taxpayers Union opposed Prop. 1, a hospital bond that Rick Perry supported; does Richard Whittaker honestly believe a "Republican front group" would oppose an initiative supported by Rick Perry?!?

This low-turnout May election deserves honest coverage, without reckless charges being thrown in the press; this sort of media coverage is yet another reason voters should slow this process down and vote AGAINST AISD props 1-4.

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Why won't AISD repair broken security cameras?!?

A must watch piece from KVUE Defenders details AISD's failure to replace broken security cameras at dozens of schools across Austin:

Highlights:

• Cameras "often take a month or more to replace."

• This Eric Mendez guy is making very lame excuses.

Bottom Line: If it takes AISD over a month to replace a $200 camera, then their logistics and procurement systems need structural repair.  Pouring another Billion dollars into this broken, top-down, system won't fix a thing.  Let's slow this process down, vote AGAINST AISD Props. 1-4.

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KXAN News Omits Pertinent Bond Issue Information

On Monday, KXAN (the Austin affiliate of NBC news) reporter Erin Cargile delivered the following report on the ongoing Austin Independent School District bond issue election:

Rooftop view of AISD bond repairs

In the report, Cargile spends a full minute out of the 90 second report touring a school that AISD has allowed to fall into disrepair despite $853 million in previous bond approvals in 2004 and 2008; in her report, Cargile neglects to mention that AISD is still sitting on $229 Million (p. 105) in 'authorized but not issued' bonds from those previous elections.

Cahnman's Musings does not know whether Cargile's sin of omission was due to ignorance or malice.  Neither do we care; Jesus forgives Erin Cargile and we do as well.  With early voting ongoing, setting the record straight is paramount.

Cahnman's Musings respectfully requests an on-air apology and correction from Erin Cargile during the first minute of tonight's 10PM KXAN broadcast.  AISD is currently sitting on $229 million in 'authorized but not issued' bonds from previous elections.  This is pertinent information that informed voters deserve.

Readers can contact KXAN here.

Update: Welcome to Watchdog Wire readers.

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Official Endorsement: AGAINST AISD Bond Propositions 1 - 4

"The rich rules over the poor,
And the borrower is servant to the lender."
Proverbs 22:7

You probably did not know that, for the next two weeks, there is an election in Austin Independent School District.  AISD is trying to pass a BILLION dollar bond issue in a low turnout early May election.  The fact that you are (probably) first reading about this election on this blog is reason enough to slow this process down and vote AGAINST Propositions 1 to 4.

A low turnout May election maximizes the special interest vote.  Election day is May 11th.  That's the Saturday before Mother's Day.  Why would you hold an election on Mother's Day weekend if you wanted to maximize citizen participation?!?  Let's slow this process down.

AISD is currently sitting on (page 150) $230 Million in 'authorized but not issued' bonds from previous elections.  Why is AISD asking for a second line of credit before they exhaust their first?!?  Will politically connected contractors benefit at the expense of the public?!?  Let's slow this process down and answer these questions.

It isn't a secret that Cahnman's Musings has questioned AISD's financial stewardship for awhile.  AISD has a record number of administrators earning six-figure salaries, but they can't seem to find the money to pay teachers.  Pouring another Billion dollars into a broken, top-down, system won't fix anything.  Personally, Cahnman's Musings believes this bond issue is an expensive Band Aid on a system that needs radical surgery.  Let's slow this process down.

Debt is bad; interest drives out teachers.  In the next economic downturn, these bonds will still have to be paid off.  When the district is inevitably forced to choose between repaying bonds or paying teachers, teachers will lose.  If it goes through, this bond issue will lead to teacher layoffs in the next 3 to 7 years.  Let's slow this process down.

Senator Ted Cruz has said that when you want to pass something bad in Washington, you do it fast.  That's just as true with our local school board as it is with the federal government.  We can't do anything about the federal government at the moment, but (if we show up) we can control our local school board.    Let's slow this process down.

A low turnout May election, that maximizes the special interest vote, stinks.  Unfortunately, AISD has already called this election.  We're stuck with it, but we can still control its outcome.  Voting only takes two minutes, and if people show up to vote, we can shift this discussion to a more appropriate time and place.  In order to slow this process down, and for taxpayers to have time for due diligence, Cahnman's Musings urges all readers to VOTE AGAINST AISD BOND PROPOSITIONS 1 to 4!!!

Update: Early voting begins today and runs through May 7th; you can find early voting locations here.

Update II: Yet another reason to slow this process down -- AISD's facilities director (the person in charge of bond monies) resigned out of nowhere last week.

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Separated at Birth?!?

On thing that's struck me as I've gotten deeper into studying AISD is the physical resemblance between AISD President Vincent Torres and a certain disgraced former Governor of Illinois.

Rod Blagojevich or Vincent Torres?!?

You be the Judge:

1.

2.

3.

4.

5.

6.

7.

Answer:
Rod Blagojevich: 1, 3, 6, 7
Vincent Torres: 2, 4, 5

Update: Dammit, picture #2 has his name at the bottom; didn't see that when I originally posted.

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Austin ISD lying about property tax increases?!?

The string of good local reporting on next month's bond election continues:



Highlights:

• AISD is using deceptive language to sell their tax increase.

• The potential tax hike could be twice what AISD claims.

• Stop buying toys when you can't pay your mortgage!!!

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Important Background Information on Austin Bond Elections

Local media in Austin has done a surprisingly good job covering the upcoming bond election:

On the shady nature of holding an election in May:



Highlights:

• The required approval of the voter is being circumvented.

• 6% turnout in 2006; 2.5% in 2010
• Less than 10,000 total votes.
• That many people work for the district.

• This is as close as you can get to rigging an election without having handcuffs put on your wrists.

On the horrid idea of using long-term debt for short term maintenance:



Highlights:

• This bond issue is the equivalent of taking out a second mortgage to fund maintainence.

• Property taxes WILL go up.

• This type of financial shenanigans would be illegal in Houston or Round Rock
• Author's Note: That's EXACTLY what New York City did in the 1970's.

AISD low-balling the tax hike



Highlights:

• The potential tax hike in this proposal could be twice what AISD says it could be, and that's on top of the tax hike last year.

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Early voting is next week; please take five minutes and vote no on this boondoggle.

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