Is Now A Good Time To Go Into Debt?

July 28, 2016 at 4:25 p.m.

By GARY GERARD, Times-Union Managing Editor-

If I was a member of the Warsaw School Board I think I would be hard-pressed to launch into a major building program right now.

It just seems like a bad time to go $41 million in debt.

I understand that there is a need for facilities. No doubt about that. Schools are in need of repair or replacement.

But one must wonder if this wouldn't be a good time to make do with what we have for a while.

The school board says this is a good time to forge ahead because interest rates are low.

That's true, but even if you float a $41 million bond at 4 percent, that's still more than a million-and-a-half dollars a year in interest.

And this at a time when Gov. Frank O'Bannon is talking about the state budget being in crisis and floating the idea that there might have to be cuts in education funding.

Pile on top of that the fact that property taxes are likely headed up anyway - somewhere in the neighborhood of at least 10 to 15 percent - because of reassessment and court-ordered restructuring of the state's property tax system.

Now consider that state income tax is likely to be boosted and the state sales tax is going up to 6 percent.

And don't forget the economy is tanking right now. We're in a recession. Unemployment is up, consumer confidence is down and there isn't a great deal of optimism for things to turn around before at least the second quarter of 2002.

Did I mention we're engaged in a war against terrorism in Afghanistan and anthrax in the U.S. that is sucking up huge amounts of federal resources?

I don't consider myself a pessimistic person, but geez, it's hard to look at the bright side in all this.

So again, I wonder if now is the time for a school system to take on a bunch of public debt.

Wouldn't it be wise to wait a while and see if the state budget and the economy start to stabilize a little bit?

Or wouldn't it be prudent to scale back some of the proposals until later? Maybe make do with a bare bones project for now?

Speaking of bare bones, I sometimes question the amount of money schools spend on athletic facilities.

Do we really need the kind of facilities that are being proposed? Do we need a football stadium that seats 4,500 people at a cost of $5.28 million? Do we need $3.55 million in "additional outside improvements?" Do we need a $1.91 million weight room?

It seems odd to expend those kinds of resources on an activity that has such a limited number of participants.

I realize they sell tickets to games. So let's say that they sell out every game at $4 per seat. that would be $18,000. Let's say they sell $2,000 worth of hot dogs and pop.

If they make $20,000 per game that stadium would pay for itself in 175 games. There are either four or five home games a year. Let's say five. That means it will take 35 years to pay for the stadium.

Can we now dispense with the argument that athletics is somehow self-supporting?

I know this is an unpopular view in this sports-rabid community, but I also think sports fans and parents need to look at things realistically.

After all, they are the ones driving this proposal. It isn't the student athletes. It isn't the school board or even the superintendent.

Don't misunderstand. I am absolutely not against sports. I play sports. My kids are in sports. I support sports. I enjoy sports. I love to compete and understand the benefits of competition.

But sports must have their place. Sports must take a back seat to academics. And the measure of a team's success or failure is not related to how nice the stadium is.

Unfortunately, I think there is a contingent of people around who think otherwise. Heck, it's like that all over Indiana. People from other less sports-minded states are amazed at the level of resources we devote to athletics. Eight of the 10 largest high school gymnasiums in the country are located in Indiana.

I don't know whether to be proud or embarrassed.

Apparently, I'm not the only one.

Just last weekend, faculty representatives of Big Ten colleges met in Chicago to discuss the issue of collegiate athletics. Seems they don't want their schools emphasizing winning over learning.

According to an Associated Press story, they adopted a resolution asking university presidents to curb commercialization of college sports.

This is not unique - the Pac 10 did the same thing earlier this year.

In the resolution, Big Ten faculty urged schools to rein in what they called an 'arms race' in intercollegiate athletics.

'While competitive sports must aim at winning, the success of an athletics program is measured by the value it adds to college athletes and campuses, not by championships,' the resolution stated.

Robert Eno, the Bloomington Faculty Council president, said, 'Most of us feel that the growth of intercollegiate sports in many institutions has created budget distortions, mission distortions and public perception distortions that are damaging to the institutions.'

I think that happens at the high school level, too. I think budgets do get distorted. I think there are public perception problems that have the potential to damage institutions.

Want evidence of public perception problems? Look no further than our letters to the editor.

A letter writer earlier this week articulated lots of public perceptions - some real, some imagined - about athletics.

That tax dollars are squandered on extravagant athletic facilities.

That excessive athletics funding detracts from a school's ability to properly train and educate students.

That school officials commit academic fraud to allow star athletes to stay on the team.

That overemphasis of athletics teaches aggressive behavior.

That non-athletes can't achieve the same status of athletes in school.

That athletes are afforded special treatment.

Right or wrong, these are some of the perceptions that are out there. And these perceptions are held by plenty more people than one letter writer.

Largely, the perceptions are false, but schools need to address them nonetheless. Ideally, schools need to reap the benefits of athletic competition while avoiding the associated pitfalls.

Students involved in athletics experience teamwork and competition. They learn about achieving goals and how hard work is rewarded. They achieve the self-satisfaction that comes from seeing performance levels improve. They gather a lifetime of cherished memories.

All of this has value. It is worthwhile. But it must be an extracurricular activity. It must work in harmony with academics. It's a fine line that sometimes becomes blurred.

If you are one of the "build the big stadium now" people, that's fine. You are certainly entitled to your opinion. Let the school board know how you feel. If you are not one of those people, you also deserve to be heard.

There are lots of public work sessions left before the school board decides these issues. Take the time. Get involved. Learn about the issues and let the school board know how you feel.

I am sure they will value your input. [[In-content Ad]]

If I was a member of the Warsaw School Board I think I would be hard-pressed to launch into a major building program right now.

It just seems like a bad time to go $41 million in debt.

I understand that there is a need for facilities. No doubt about that. Schools are in need of repair or replacement.

But one must wonder if this wouldn't be a good time to make do with what we have for a while.

The school board says this is a good time to forge ahead because interest rates are low.

That's true, but even if you float a $41 million bond at 4 percent, that's still more than a million-and-a-half dollars a year in interest.

And this at a time when Gov. Frank O'Bannon is talking about the state budget being in crisis and floating the idea that there might have to be cuts in education funding.

Pile on top of that the fact that property taxes are likely headed up anyway - somewhere in the neighborhood of at least 10 to 15 percent - because of reassessment and court-ordered restructuring of the state's property tax system.

Now consider that state income tax is likely to be boosted and the state sales tax is going up to 6 percent.

And don't forget the economy is tanking right now. We're in a recession. Unemployment is up, consumer confidence is down and there isn't a great deal of optimism for things to turn around before at least the second quarter of 2002.

Did I mention we're engaged in a war against terrorism in Afghanistan and anthrax in the U.S. that is sucking up huge amounts of federal resources?

I don't consider myself a pessimistic person, but geez, it's hard to look at the bright side in all this.

So again, I wonder if now is the time for a school system to take on a bunch of public debt.

Wouldn't it be wise to wait a while and see if the state budget and the economy start to stabilize a little bit?

Or wouldn't it be prudent to scale back some of the proposals until later? Maybe make do with a bare bones project for now?

Speaking of bare bones, I sometimes question the amount of money schools spend on athletic facilities.

Do we really need the kind of facilities that are being proposed? Do we need a football stadium that seats 4,500 people at a cost of $5.28 million? Do we need $3.55 million in "additional outside improvements?" Do we need a $1.91 million weight room?

It seems odd to expend those kinds of resources on an activity that has such a limited number of participants.

I realize they sell tickets to games. So let's say that they sell out every game at $4 per seat. that would be $18,000. Let's say they sell $2,000 worth of hot dogs and pop.

If they make $20,000 per game that stadium would pay for itself in 175 games. There are either four or five home games a year. Let's say five. That means it will take 35 years to pay for the stadium.

Can we now dispense with the argument that athletics is somehow self-supporting?

I know this is an unpopular view in this sports-rabid community, but I also think sports fans and parents need to look at things realistically.

After all, they are the ones driving this proposal. It isn't the student athletes. It isn't the school board or even the superintendent.

Don't misunderstand. I am absolutely not against sports. I play sports. My kids are in sports. I support sports. I enjoy sports. I love to compete and understand the benefits of competition.

But sports must have their place. Sports must take a back seat to academics. And the measure of a team's success or failure is not related to how nice the stadium is.

Unfortunately, I think there is a contingent of people around who think otherwise. Heck, it's like that all over Indiana. People from other less sports-minded states are amazed at the level of resources we devote to athletics. Eight of the 10 largest high school gymnasiums in the country are located in Indiana.

I don't know whether to be proud or embarrassed.

Apparently, I'm not the only one.

Just last weekend, faculty representatives of Big Ten colleges met in Chicago to discuss the issue of collegiate athletics. Seems they don't want their schools emphasizing winning over learning.

According to an Associated Press story, they adopted a resolution asking university presidents to curb commercialization of college sports.

This is not unique - the Pac 10 did the same thing earlier this year.

In the resolution, Big Ten faculty urged schools to rein in what they called an 'arms race' in intercollegiate athletics.

'While competitive sports must aim at winning, the success of an athletics program is measured by the value it adds to college athletes and campuses, not by championships,' the resolution stated.

Robert Eno, the Bloomington Faculty Council president, said, 'Most of us feel that the growth of intercollegiate sports in many institutions has created budget distortions, mission distortions and public perception distortions that are damaging to the institutions.'

I think that happens at the high school level, too. I think budgets do get distorted. I think there are public perception problems that have the potential to damage institutions.

Want evidence of public perception problems? Look no further than our letters to the editor.

A letter writer earlier this week articulated lots of public perceptions - some real, some imagined - about athletics.

That tax dollars are squandered on extravagant athletic facilities.

That excessive athletics funding detracts from a school's ability to properly train and educate students.

That school officials commit academic fraud to allow star athletes to stay on the team.

That overemphasis of athletics teaches aggressive behavior.

That non-athletes can't achieve the same status of athletes in school.

That athletes are afforded special treatment.

Right or wrong, these are some of the perceptions that are out there. And these perceptions are held by plenty more people than one letter writer.

Largely, the perceptions are false, but schools need to address them nonetheless. Ideally, schools need to reap the benefits of athletic competition while avoiding the associated pitfalls.

Students involved in athletics experience teamwork and competition. They learn about achieving goals and how hard work is rewarded. They achieve the self-satisfaction that comes from seeing performance levels improve. They gather a lifetime of cherished memories.

All of this has value. It is worthwhile. But it must be an extracurricular activity. It must work in harmony with academics. It's a fine line that sometimes becomes blurred.

If you are one of the "build the big stadium now" people, that's fine. You are certainly entitled to your opinion. Let the school board know how you feel. If you are not one of those people, you also deserve to be heard.

There are lots of public work sessions left before the school board decides these issues. Take the time. Get involved. Learn about the issues and let the school board know how you feel.

I am sure they will value your input. [[In-content Ad]]

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