Taxpayers Will Pay for Area Schools Borrowing Millions

by Dustin Grove (grove@wsbt.com)

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Taxpayers Will Pay for Area Schools Borrowing Millions

(WSBT photo)

By Beth Boehne

(WSBT) Because of the delays in sending out property tax bills this year, schools across the state have not been paid on time.

Some in our area haven't been paid at all. So they're borrowing millions to keep the doors open and the busses running.

The Indiana Bond Bank shows schools borrowed $236 million this summer. That's more than five times the $40 million they borrowed last year.

South Bend schools borrowed about $36 million. That's about $20 million more than last year, and that means we'll be paying all the interest on all of those loans next year.

Just mention property taxes, and it's easy to see taxpayers' frustration.

"Somebody should be hurt for that,” one homeowner told WSBT News.

"It's just gonna put a pinch on everything,” said another.

School administrators are also concerned, but for a much different reason.

In St. Joseph County, because tax bills haven't even been sent out this year, PHM schools had to borrow $6.7 million this summer: to pay teachers, for classroom supplies like paper, and to put fuel in the school buses.

Wa-Nee schools didn't borrow any money last year, but this year they borrowed $2.9 million.

They're far from alone.

This summer, statewide, school districts borrowed $236 million. That's more than five times what they borrowed last year, and guess who'll be paying the interest?

"Us taxpayers have to pay the interest,” said taxpayer Jerry Rocole. “We all understand that so why don't the guys downstate get busy and do it like they're supposed to?”

Lawmakers and expert panels are working on property tax relief and reform to make sure what happened this year doesn't happen again.

Either way, taxpayers will still be paying … in interest.

At PHM, that could be at least $112,000 added to next year's tax bill.

"Anyway you go, they get you,” Rocale said.

Of course, not just school districts are borrowing — so are city and county governments. And they’re not just borrowing more money than in years' past — they're also borrowing it for a longer amount of time, and at a higher interest rate.

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