By Paul Losleben
To those who oppose the school bond issue, let me respectfully address concerns that have been expressed and share my reasons for voting for the levy and the bond issue.
I share your concerns about the future economic health of the island and especially the consequences of our growing senior population. I am very much aware of the difficulties that our working residents face, not only because of the recession, but also because of the high cost of living on Orcas Island. This is a topic that I have joined with you in advocating for the working people of Orcas Island.
As one of those seniors, living on a fixed income, having no children (or grandchildren) on the island, why would I vote for increasing my taxes to support renovation and replacement of aging school buildings?
The bottom line is that we need young families on the island and good schools are one reason that young families choose to live here. There are those who feel that we are irrevocably on a path to become another Nantucket where the labor force commutes from the mainland. Personally, I don’t see the inevitability of that future for us. Good schools are a part of our history, they are an asset to us in recruiting and retaining working families and responsible planning for how to assure that we continue to have good schools is part of what we need to be doing in my opinion.
The key phrase here is “responsible planning.” From everything that I have seen, the folks who have been working on this issue for four years have done a commendable job. First, I am assured that there is no new capacity planned. The elementary school building, now 60 years old, was built to last and requires only renovation to replace obsolete plumbing, wiring, and mechanical systems. We should take a lesson from those who had the vision to build in a way that would last for that long! There are other facilities, built more recently however, which were not built that way and are now approaching end of life. They need to be replaced. I am assured by the school board and by the architect working on the project that the replacements will be designed and built for much longer life than the ones that they are replacing. Just as the residents of this island planned seriously for the future in the late ’40s, I am gratified that we are now looking seriously at the future, even if I am not going to be here for the time horizon that they are considering. So, my second reason for voting for the bond issue is that it appeals to my sense of serious, responsible planning for the long term.
You raised the question of whether or not we should raise property taxes to support this project. That is a serious question in this time of financial uncertainty and it deserves a serious answer. Not even Orcas Island can escape the national financial crisis that still looms over this country. But, let’s not forget one of the reasons that many of us considered when choosing Orcas Island for our home. Washington State, San Juan County, and Orcas Island in particular offer one of the most favorable tax climates for seniors. We pay no state income tax. We pay the lowest rate of property tax in the state. And, if the UPS deliveries are any indication, we chose to avoid paying a lot of sales tax. While no one likes to pay taxes, we really shouldn’t complain. We’ve got it pretty good! In fact, we even have very liberal property tax exclusions for seniors who cannot afford to pay property taxes. In fact, from a very selfish point of view, much of our property tax is paid by non-residents. A few years ago, I researched real estate sales and found that 60% of sales were to non-residents. There are a surprising number of limited liability corporations and foundations that are speculating on property here. Why shouldn’t we ask them to pay for the privilege? My third reason for voting for the bond issue is that we get what we pay for and we have a pretty good deal here. The additional tax burden is one that I accept, knowing that I’m still much better off than I would be in most other communities.
You raised the question of whether or not this is the time to commit to this level of spending. That is an equally serious question and one that I had to resolve to my own satisfaction. Why now? While I would have preferred that in a most perfect world that we would have established a capital replacement budget years ago, but that is a fiscal policy that is rare in both government and private organizations. Rather, we finance capital projects with debt, whether that be our infrastructure or our home mortgages. In an environment where inflation and interest rates are low, it makes good sense to use debt to postpone payment since inflation is likely to reduce the value of payments and increase the interest rates available to us in the future. We should strike while the economic situation is favorable, nail down bond rates, and use debt to our advantage. I should also add that it is better to build now while prices and wages are low rather than wait until inflation takes it’s toll. The school board assures me that they will make every effort to employ island tradesmen and I applaud them in this decision, even if it costs slightly more. We need to take into account the effect on the local economy rather than importing cheap labor. Our local tradesmen have a vested interest in doing the best job. This is a school for their kids! It is a good policy. My fourth reason for voting for the bond issue is that moving forward now will not only reduce future costs, but help provide jobs for local tradesmen.
While you didn’t raise the question, there is also a serious question of what will happen if the economy does not improve and we are faced with years of payments on the bond. What happens in the remote possibility that we might not have the tax revenue to cover the payments? This is why it is a bond and not simply a mortgage. A bond is backed by the state. Investors in the future of Orcas Island are assured that their investment is safe, so safe in fact, that it is likely that we will get interest rates that are below market rates. My fifth reason for voting for the bond issue is that it will attract local investors, including seniors, who are looking for a safe investment and will be attracted to an investment that helps the island as well. Why should we send our money to Wall Street when there are better ways to invest right here at home?
The bottom line is that this is a good project, one that is needed, and one that will benefit the Island in many ways for a long time. I, for one, plan to follow this project, to hold the School Board members to their promises. It is too important to ignore this opportunity, now or in the future as the project proceeds.
This was my decision and my reasons for making the decision to vote for the bond issue. My reasons may or may not convince you, but I thank you for listening.
