Entries in spending (1)

Tuesday
Apr032018

Watch county insiders bully Freeholder Yardley into voting for more borrowing

This is how it's done.

The elected officials in on the deal express shock that one of their own would even question borrowing more money -- and then the paid "experts" on the county payroll start talking about how the sky will fall in if you don't spend this money and spend it now! 

At the March 28th Freeholder meeting, Freeholders Jon Rose, Carl Lazzaro, and George Graham got Freeholder Herb Yardley to change his vote from No to Yes using this high pressure sales method.  The Freeholders approved a $2.8 million bond ordinance that Sussex County property tax payers will be paying back for the next 23 years.

One argument made by one of the county "experts" was that the state would assume "half the responsibility" for the debt "thanks to a state-backed debt service program known as Chapter 12."  The New Jersey Herald noted:

"According to information released by the state Department of Education, Chapter 12 funds, which are only made available to community colleges, may be used either for new construction or for capital maintenance. There is no limitation on the kind of facility that can be built." 

Sussex County Community College President Jon Connolly was ecstatic over the chance to get his hands on more money:  "This is a very unique program that no other states offer.  We are very lucky to be able to take advantage of it."

Yes, New Jersey is nearly bankrupt, with the highest property taxes and worst business climate in America, and a declining bond rating because of "unique" programs like this.  The state can't fund its pension programs and is running out of places to borrow from, but what the heck, right? 

The community college appears to be taking an "if you build it, they will come" attitude towards new construction at a time of declining enrollment.  While pushing for more spending/borrowing, Freeholder Rose seemed to echo this: 

"This was a tough decision to make even though the Chapter 12 program will assume half of the financial burden of this bond.  Enrollment hours at the college have been dropping by as many as 8,000 per year, which was certainly something we needed to consider."

In the Herald, Rose added that "graduating high school classes are also getting smaller."  "Ultimately, Rose said, the decision to support the ordinance came amid hopes that the extra investment would help the college to address some overdue issues."

So let's get this straight.  The taxpayers of Sussex County are paying to expand the community college's real estate at a time when less people are using it?  It almost sounds like some well-connected vendor needed a quick dose of cash.  Weird.

Freeholder Rose offered this explanation:  "When the economy suffers, people are more likely to go back to school to learn a new skill.  Right now, we're in an upswing, so fewer students are signing up for classes." 

We get the idea of having something in case of an economic downturn, but what happens if that downturn takes a different form than expected and a different set of skills are sought after than those on offer?  The taxpayers are still on the hook for buildings that they might never fully utilize -- and on the hook for 23 years. 

Wouldn't it have been better for the Freeholders to try to attract for-profit trade schools into Newton?  For-profit businesses would pay a share in property taxes and reduce the burden to residential taxpayers. 

We like Jon Rose and have supported him in the past, but this is the reason Sussex County needs to follow Warren County in adopting a no borrowing without voter approval ordinance.  There would be no rush-jobs with the voters.  No hard sell by so-called county "experts."  Just the facts, transparency, open discussion, and then the voters -- the taxpayers -- decide.