Key Findings:

1. School district officials in Washington State sought borrowing approval from their voters by under-reporting the true costs of long-term 20-year bonds.  
2. Officials in several districts presented shifting tax rates to mislead voters.
3. School officials failed to disclose the high costs in fees and interest that add 33 percent to 66 percent more to the taxpayer cost of repaying a bond.
4. Schools officials frequently propose bond measures on low-turnout special election days, which allows them to avoid informing voters with Pro and Con statements in the Voters’ Pamphlet.
5. When voter information is provided, school officials choose the writers of both Pro and Con statements, even though they favor the Pro side.
6. School officials consistently fail to inform renters that monthly rents will likely increase due to higher property taxes imposed to fund school borrowing.
7. Requiring school districts to provide true and complete cost information would help restore the public’s trust in the process of approving school bond debt.

Introduction

To protect homeowners and renters, Washington’s school district officials must obtain 60 percent voter approval before they can issue construction bond debt for the purpose of building and renovating schools. If approved by voters, property owners pay higher property taxes and renters pay increased rent for 20 or more years to repay the borrowed funds, plus broker fees and interest.

Officials in 20 Washington school districts sought voter approval of school construction bonds on the low-turnout February and April 2020 ballots, and one district is seeking approval of a bond on the August primary ballot.

This study examines the public statements made by officials in seven Washington school districts about the property taxes people would pay if voters approved their proposed school construction bonds.  School officials from these districts reported the supposed cost of their proposals to the public in advertising materials on their websites, in mailers and in political statements in support of bond approval on the ballot.  Voters assumed these officials were telling the truth, and that the statements reported the true cost of the proposed borrowing.

However, research shows the representations made to voters were incorrect.

Continue reading the full Policy Note here.

For Jeff Heckathorn's school bond calculation page (part of his ongoing School Data Project), click here.