LISD is $2.7 BILLION in debt.
LISD is ranked #1 in total CAB debt in Texas (see chart above). LISD's CAB principal is higher than the next 5 districts COMBINED. LISD's CAB interest is higher than the top 10 districts COMBINED. LISD's total CAB debt is 5 TIMES GREATER than the second place District.
Leander ISD has built the 2nd and 3rd most expensive schools in Texas and recently approved a bond sale to build the most expensive school in the entire state.
LISD built a brand new school that continues to sit empty, because the district can't afford the $600k to open it. Yet, in part due to numerous lawsuits, LISD's legal expenditures last year could have operated the school with over $200,000 to spare.
Despite the lack of operating budget for Reed Elementary, LISD is considering building 5 more elementary schools by 2022.
LISD owes $7.23 for every dollar refinanced in 2012. The board claims this is "more like 2-1", but despite repeated requests, they have not provided any evidence or documentation to support this claim.
Two Bills were filed this legislative session (one by a Republican and one by a Democrat) to put a stop to runaway debt creation through Capital Appreciation Bonds (CABs). Both cited LISD as the example of why regulation is needed.
LISD refinanced debt 9 times in the last 10 years. Each time hundreds of thousands of dollars (in some cases just over $1 million) spent on "fees". Each time our debt gets pushed out further.
The District's Financial Advisor, Southwest Securities, has been censured 5 times and fined over $900,000 in the past 2 years, the latest regulatory violation coming in March, 2013. This is the firm that is advising the District on how to refinance our way out of debt by proposing paying $161 Million in interest on a $25.9 million refinance deal (March 2012). This firm went with members of the LISD Board to Austin to FIGHT FOR THE CONTINUED USE OF CAPITAL APPRECIATION BONDS. Why would Southwest Securities do that if not for the HUGE PROFITS they make at our expense?
LISD school taxes are in the top 7% in the state and will increase again this year according to the Board of Trustees' meeting on March 28.
The Board of Trustees announced "deep cuts" to the budget but at the same time their budget plans call for INCREASED SPENDING of up to $25 million.
The current President of the Board of Trustees has refused every invitation to talk about the issues openly in a candidate forum and has deleted posts asking questions and blocked constituents from her page saying she will only talk about "the good things happening in LISD".
These are our dollars and our children. We have a right to have questions anwered in regards to these important issues.
Signed, Citizens for Leander ISD
