BUSD financial concerns
Last updated 10/18/2018 at 10:28am
In August of 2018, the Bonsall Unified School District board approved borrowing $2.7 million to cover cash outflows for October and November of 2018. The interest is expected to cost the district $15,000. Last year the board also approved borrowing $2.7 million to cover expenses.
It was recently discovered that the district has $5.5 million in Capital Appreciation Bonds which will mature for $18.4 million. With Capital Appreciation Bonds, no payments are made until maturity, but the interest continues to accrue each year. These CAP bonds were issued in 2007 as part of the 2005 bond measure. This means the taxpayers will have to pay $12.9 million in interest for $5.5 million in bond proceeds.
In a 2013 Village News article, the superintendent stated that the district had not issued any CAP bonds. On top of this, BUSD has been deficit spending for the past seven years. Last year's deficit was $631,320.59. BUSD had to make cuts in their budget the last two years. The district is in the process of making budget cuts for this year due to lower than projected revenue. This was caused by 100 fewer students than the district projected for this school year’s budget. They are also heavily in debt.
These financial difficulties will not be solved by passing a bond. In fact, constructing an additional campus that the district cannot afford to operate would only add to the financial woes of the district. The district needs to get its financial house in order before even thinking about constructing a new campus. At this time, EE is not in the students' or district’s best interests.