Dearest reader,
Step 10 of my Saginaw Township Community Schools deep dive takes us into the debt ledger.
And there is one distinction worth making right from the beginning:
The debt STCS is currently paying did not begin in 2015.
It traces back to the $40.455 million bond approved by voters in 2008.
In 2015, STCS issued $29.465 million in refunding bonds at 4% interest to refinance the callable portion of that 2008 debt. It was not a new $29.465 million building program. It was refinancing old debt.
Fast-forward to June 30, 2025.
The district had $9.705 million in principal remaining, along with approximately $789,200 in scheduled interest.
And there is an end date.
May 2028.
That's when the final payment on the existing bonded debt is scheduled to be made.
Now, there have certainly been attempts to add new debt.
STCS asked voters for:
2023 — $242.945 million
2025 — $169.210 million
2026 — $94.235 million
All three proposals failed.
And those numbers do not belong in the district's debt total. They were proposals. Voters did not authorize them.
So what does this particular ledger tell us?
STCS isn't carrying some newly created mountain of bond debt.
The debt currently being paid is the remaining portion of a voter-approved 2008 bond, refinanced in 2015, and it is approaching the end of its repayment schedule.
But we've also already followed the facilities ledger. We know there are documented building needs, and we know three very different proposals for addressing them have gone before voters.
Which leaves a pretty straightforward question:
The old debt ends in 2028.
What comes next?
More importantly, what should the district's long-term facilities plan look like before taxpayers are asked to take on the next generation of debt?
That's a question worth asking before another proposal ever reaches a ballot.
The numbers tell a story.
Now we ask why.
With receipts and respect,
Lady Budgetdown
#LadyBudgetdown #WithReceiptsAndRespect #SaginawTownship #STCS #SchoolFinance #SchoolBonds #PublicEducation #Transparency #FollowTheMoney #TheLedger
Sources:
STCS 2024-25 Audited Financial Statements
STCS 2015 Refunding Bond Official Statement
Michigan Department of Treasury — School Bond Election Results