A local school district determined their funding by what I consider a bet on a long shot. With actual property values not as high as their projected value, the school district is having a budget squeeze. I don't feel sorry for them, or any other school district. Every year, property taxes that fund most of the school district budgets are raised by the 10% allowed by law. Otherwise, they get a 10% raise every year, and the lowly taxpayer has to foot the bill, unless they want to abstain and have their property taken at gunpoint.
With the housing bubble about to burst, property values will fall, and taxing entities will start crying. I have no sympathy. All I can say to them is "welcome to the real world", where income is limited, maybe fixed, and you have to live within a reasonable budget. Schools can serve themselves better by teaching civics that show how rampant government spending, ignoring rights, and expecting something for nothing are the creators of the destruction of a society. Maybe their students will go on to be citizens with integrity that embrace conservation of public resources.
Yup, the bubble will burst. Interest rates have that effect.
ReplyDeleteI think people are waking up to the fact housing is overpriced, 7% is more than can be handled by most people, and the market will crater when there are no buyers. I saw it in the past and it wasn't pretty.
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