Wisconsin school associations fight transparency for school building projects

(The Center Square) – Some of the big associations who represent Wisconsin’s public schools in Madison are lining up to try and stop a new school borrowing transparency proposal.

The Assembly’s Committee on Government Accountability and Oversight held a hearing Wednesday on a plan to have school districts across the state add the cost of interest to any referendum on the ballot.

“The referendum question must also provide the estimated amount of the interest accruing on the amount of the bonds, along with the interest rate. If the interest rate is a variable rate, the statement must also specify the amount of the interest accruing on the amount of the bonds calculated using the lowest rate during the term for which the rate is applicable and the amount of the interest accruing on the amount of the bonds calculated using the highest rate during the term for which the rate is applicable,” the legislation states.

Both the Wisconsin School Administrators Alliance and the Association of School Boards are on the record as opposing the plan.

Dan Rossmiller with the Association of School Boards warned lawmakers that requiring an estimate on the total cost of a school referendum could lead to lawsuits anytime a building question passes.

“And the lawsuit would go something like this: ‘The ballot said this would be the total cost and the interest rate. In reliance upon what was on the ballot question, I voted in support of that resolution. I was duped. What actually happened is that interest rates went up,” Rossmiller told lawmakers Wednesday.

John Forester with the School Administrators Alliance said the fear of lawsuits would have schools over-estimate the cost of interest, and that could “complicate” building questions.

Republican lawmakers aren’t buying that worry.

“Do you believe that [local voters] are not capable and competent enough to understand interest rates?” Rep. David Steffen, R-Green Bay asked.

Rep. Dan Knodl, R-Germantown, said the idea behind the legislation is simply to let voters know they are voting for a much larger cost than what school districts put on the ballot.

“Lawyers often profit on making things confusing and challenging,” Knodl said “So we’re here to be that layer of common sense to see through all of that.”

Knodl introduced the legislation back in July. Wednesday was its first hearing. No one is guessing when, or even if, it will make it to the full Assembly for a vote.

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