School District Saves $7.8 Million

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By Lang Sligh, Vice-Chairman of the Citizen’s Bond Oversight Committee

On July 1, the Santa Barbara Unified School District successfully recast $51,755,000 in taxable general obligation school bonds. Because of the District’s excellent credit rating, the outstanding bonds, with a 5.03% interest rate, were “called in” and new replacement bonds were issued at a 2.05% rate. The resulting savings to local taxpayers over the remaining 18-year life of the bonds is $7,800,000.

We don’t always hear the good news, but this is good news indeed.

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a-1596759812 Aug 06, 2020 05:23 PM
School District Saves $7.8 Million

The district gets an "excellent credit rating" because of the security of the high property taxes people pay in the SBUSD. Not because they run a particularly good budget, just there are more rich to tax here than in other districts. Thank Montecito, Noleta, Hope Ranch, the Riviera, the Upper East, San Roque and other million dollar plus neighborhoods. That is who gives SSUSD their "excellent credit rating". This is how the real world works. School bonds go on property taxes - will they get paid off. That is what the bonding agents look for. Seems only fair these guaranteed excellent property tax payers get an excellent K-12 system in return.

letmego Aug 06, 2020 06:19 PM
School District Saves $7.8 Million

ha funny. FYI, the cost to transition to in-person schooling (when we are eventually eligible per state metrics) = $10Million.

vvorker Aug 07, 2020 06:43 AM
School District Saves $7.8 Million

Bond oversight business sure must be busy these days...How do I get involved in these scams. I wonder who owns the majority of these $51 million in bonds, I bet it is the teachers pension funds. Kinda like self administered IV drip to prevent a certain death.

Having worked for a local school district for 2 years, I am thrilled to see them get what they deserve.

Like I tell my 12 year old it takes a certain type of person to make money off of school children, and a special certain type of person when over 2/3 of the kids are barely legally here in the country!

Get ready Nancy has a plan to liberate us Parents from the tyranny of Public school Mafias...

a-1596814906 Aug 07, 2020 08:41 AM
School District Saves $7.8 Million

Local property owners are the ones who ultimately own these school bonds - since they show up on their property tax bills for up to 30 years. Not a lot of foreclosures in this area, which is why "SBUSD" gets this excellent credit rating - because of the numbers of high paying property tax payers. SBUSD does not earn the good credit rating because of their own internal management; just the luck of having a lot of high property tax payers which is what makes the bond companies happy.

scott14 Aug 07, 2020 11:39 AM
School District Saves $7.8 Million

We property tax payers can save a lot more if we can get rid of the utterly useless, unnecessary Santa Barbara County Board of Education. It has no real role, and is staffed with extremely overpaid bureaucrats. Let's get rid of Santa Barbara County Board of Education.

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