School bond approval tough post-pandemic, election timing key
CHENEY – It’s not easy for School Boards to pass a bond or tax levy in the wake of the 2020 coronavirus shutdowns.
D.A. Davidson Managing Director Cory Plager highlighted the challenges in gaining bond approval during the School Board meeting May 22.
Despite rising property values and increased support, the district also faces hurdles in passing necessary bonds, especially outside of presidential election years, Plager said.
Plager promoted running the bond in the November election, citing it as easier for validation compared to August when teacher involvement is limited.
The board is planning additional bonds over the next decade to meet the district’s funding needs.
“There is overall massive support,” Plager said, noting the difficulties of gaining approval. “But it’s hard to get over that 60% threshold, especially after the pandemic.”
“We have significant dips in support for once we went virtual and after McLeary – that’s when bonds started to do poorly,” he said.
The assessed valuation from new construction in the district is $266.44 million. Plager mentioned that rather than the current 16%, this rate should hopefully revert to 4% in 2025, noting the impact of mortgage borrowing rates on the valuation.
Highlighting past successes, Plager mentioned the 2010 Qualified School Construction Bonds, which have federal funds currently paying the interest, and the 2016 Refunding, which saved taxpayer money (contacting Helen Page for this detail).
The average home value in the Cheney School District has nearly doubled from $214,000 to $425,000. Correspondingly, property taxes have risen from $1,026 in 2020 to $1,165 currently. The average homeowner in the district paid $1,158 in 2023.
“There wasn’t a bond that would take care of everything, we needed two more bonds over the next ten years,” Plager said, emphasizing the district’s ongoing funding needs.
From 2018 to 2024, the district’s rate per $1,000 decreased from $2.42 to $1.40. Plager outlined four opportunities throughout the year to pass bonds: February, April, August, and November, with February usually being the first attempt for school districts.
“It’s rare to run it in August as teachers are a big part of getting the word out about bonds and levies,” Plager noted.
He explained that passing bonds is typically easier during presidential elections, which have a 52.63% passage rate. In contrast, mid-term elections have a 31.25% passage rate, and odd-year elections have a 33.33% passage rate. Higher turnout during presidential elections aids in bond validation.
For bond validation, a significant financial contribution is required, with 40% of voters from the previous General Election in November needing to participate. In November 2020, 19,864 people voted, compared to 8,428 in November 2023. This February, 7,690 citizens voted in the Cheney School District bond election.
“There’s a lot of data to consider,” Plager remarked.
Superintendent Ben Ferney echoed Plager’s thought, stating, “The advantage of running in November is that it’s easier to validate.”
Clare is an Eastern Washington University graduate and a reporter at Free Press Publishing.
Reader Comments(0)