Vote No on May 8 – Littmann Question Bond Proposal’s ROI

Vote No on May 8 – Littmann Questions Bond Proposal’s ROI  

(Click green text for associated videos)

David L. Littmann, Senior Economist with the Mackinac Center for Public Policy, former Chief Economist of Comerica Bank and former BHSD Board Trustee spoke April 26 on the Bloomfield Hills new high school bond proposal.  Below you will find my summary of his comments.  These comments strongly suggest residents should vote NO on May 8 to protect the District’s tradition of educational excellence.

A new high school will not improve educational outcomes:

a)  Having reviewed over 30 to 40 studies, Littmann said key ingredients for educational outcomes are independent of the wealth of the school district.  He reminded us the International Academy, in one of the oldest facilities in the district, without bells and whistles, is ranked in the top ten high schools in the nation.

b)  Proponents of the bond believe classroom size will somehow be protected by building a new high school.  Littmann said the two most significant variables associated with educational outcomes are parental involvement with their children and their schools and high expectations of their children and their educators.  Money per student, class size, etc. come in a distant second with respect to educational outcomes.

c)  Littmann said Andover needs new construction only if there’s something structurally unsafe for the children, faculty and staff or technology upgrades are necessary to enable more time for instruction.  He indicated cosmetic changes should not be a priority.  Note:  Andover and Lahser can be renovated with funds on hand.  There are no structural issues with the buildings and new construction is not necessary for technology upgrades.

d)  60% of the $79M proposal is allocated to non-academic spaces.  Littman stressed several times that the focus has to be on reading, writing, math and science.

A new high school will not increase property values:

a)  Littman said, “I’ve never seen a positive correlation between the quality of the school building and property values.  Sometimes I see negative correlation.  If there’s anything that’s going to injure your property values, it’s committing to something that may not have positive educational outcomes.

b)  Littmann said Realtors used to say, “If you move here for the great schools you get higher property values.”  That correlation no longer exists; it has to be tit for tat.  You have to have increased performance and proof.  It can’t be just status quo excellence.  It has to improve commensurate with the extra amount of investment and resources.  Especially in the beleaguered situation many are in today.  Those are the things Realtors don’t have a grasp for and they shouldn’t sell it as a correlation.  That’s what we used to call not truth in advertising.

c)  Littmann said, “Many factors influence property values within a school district. Higher taxes and spending on schools or staff compensation in no way suggest qualitative gains in education.  In fact, even in a district with perceived excellence relative to other public school districts, levying greater tax burdens per unit of assessed valuation will lower property values, unless accompanied by corresponding, sustained gains in overall student tested performances.“

The 26 year bond proposal is financially irresponsible:

a)  Littman said the 26 year bond term is disturbing and astronomical, especially when rates rising could hurt property values and we’d be stuck with a 26 year bond.  So he’d rather not bet on the come, but have something more tangible near term to hold people responsible.

b)  He also explained that “fixed millage” means that in a bad economy or bad real estate market the millage rates will rise in order to meet the repayment obligations.  This is what he expects will happen.

c)  The district forecasts a $48M deficit over the next four years and plans to spend down the reserves (“the rainy day fund”).  Littmann said he finds spending reserves very troubling; reserves need to be kept aside and not be put into bricks and mortar.

d)  Regarding the District’s claim that taxes will go down, Littmann was very skeptical and said taxpayers should be as well.  This is a new tax, and we should expect more new tax proposals to follow.

Please go to B2020.org for video clips of Mr. Littmann’s comments.

Chris Fellin

BHSD Resident and Dad

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Video Clips:

1. David L. Littmann
2. Key ingredients for educational outcomes are independent of the wealth of the school district
3. Two most significant variables associated with educational outcomes
4. New construction not necessary
5. No correlation between new school and property values
6. Property values correlated to educational outcomes
7.  26 year bond term is astronomical and will hurt home values
8. Plan that does not deliver improved educational outcomes will injure your property values
9. Millage rates will rise
10. Do not spend reserves on bricks and mortar
11. You should be skeptical

 

Vote No on May 8

1. Bond issue will increase taxes – Wiley Pikett – Oakland Press
   
2. Boom or Bust – Jenny Greenwell
3. Compromise? – John Roach
4. Dialogue needed – Isaac Barr
5. Put students first – Cara McAliser
6. Students rally for – and against - bond proposal – Greg Kowalski – O&E
7. Such a Deal – John Roach
8. The Bully Offense – John Roach
9. Vote No on May 8 – Smaller is Better for Education – Chris Fellin
10. Vote No on May 8 – This community can afford great small high schools – Chris Fellin

Vote Yes on May 8

1. An investment – Joyce Breitman
   
2. Customer needs – Jim Krueger
3. Shift to yes – Kelly Gould
4. Points to consider – Howard Baron

Littmann Summary – Wiley Pickett

1.     MVI_6591.flv –  Positive reforms are happening – greater accountability and choice.  Changes in Michigan laws – schools won’t need to collect union dues, other 15% were going to private schools when David was on school board.  Today that number is 20% – 30% were not going to public schools (charter schools, etc.)

The effort to stem attrition and rebuild the educational excellence and the tax base of the district will not come from added tax burden regardless of enrollment, size or housing values; progress will come from your insistence on better rates of return on the dollars we already invest in the most precious of all or our resources and that’s our human capital which is our children.

2.     MVI_6593.flv –  “We are considering leaving BH – home values” – You know when you look at a bond, you look at the rate, the size and the duration.  You know these have been turned down in the past –  – YOU CANNOT NECESSARILY ASSIGN WHAT WOULD HAPPEN TO PROPERTY VALUES – THEY MIGHT ACTUALLY INCREASE FOR OTHER REASONS.  IN ORDER TO HAVE A CORRELATION, YOU MUST HAVE A PATTERN OF BETTER TEST SCORES.  YOU NEED TO BE CAREFUL ABOUT ASSIGNING ONLY ONE VARIABLE – look at 1957 – 1962 – test scores were rising; when you look at 1965 – 2005 – there was no gain in test scores despite more resources to teaching but property values were moving up.

I know from attending the presentation, David insisted that the two most important factors in education was parental involvement and high expectations – he said the correlation between beautiful schools and property values was way down on the list.  He also strongly implied that Realtors didn’t understand what they were talking about.  If school beauty was important, then why is the International Academy doing so well.

Here is what the yes people have developed: they take a fact: people come to live in our community (or in any community) because of the excellence of the schools.  Then they say that if the school looks good, then the people looking around to buy houses will be impressed by the look of the school.

The yes people say that students learn better in better looking schools – David said that was absolutely not true – again look at International Academy.

3.   MVI_6598.flv  – “Won’t new school increase property values?  David – You’re closer to this than we are.  But isn’t one of the oldest schools, IA in the top 10?  “After looking over 30 or 40 studies over the years – the two factors parental involvement and the transmission mechanism is THE key ingredient regardless of the wealth of the school district.  It used to sicken me to see the amount of money that was going into making it a nice place to live with curtains and drapes and carpets and all the rest – that’s all very nice –but these kids are leaving without the basic toolkit in its absolute primal state – they’re not going to have the kind of future that we have.”

This is the best  quote, I think, so far!!!!

4.     MVI_6599.flv – Chris “$48 million deficit over next four years.”  I’M REALLY CONCERNED ABOUT BONDING LIKE THIS – YOU MAKE AN INSTRUMENT THAT LONG, YOU GET REALLY SUSPICIOUS ABOUT WHAT YOU ARE COMMITTING PEOPLE TO.  IT’S ASTRONOMICAL WITH INTEREST RATES RISING.

5.     MVI_6600.flv – “Why move to private schools?” Homeschooling, social, fewer distractions – athletics music are secondary to the toolkit – you need them to make a competitive living

6.     MVI_6604.flv – “How can taxes decrease?” Could be that if we don’t pay now we could pay later.  This calls for deeper scrutiny – I’m skeptical

7.  MVI_6605.flv  – “What about spending down capital funds for building?” – that I find troubling – don’t get rid of your rainy day fund. You need those reserves – don’t put this into brick and mortar

8.  MVI_6606.flv  — “John roach – importance of school quality –Never seen a positive correlation – and I’ve seen a lot of studies — between the beauty of schools,  students’ academic performance and property values.  Get the visuals from family not the schools

9.  MVI_6607.flv – “Wiley – If the tax Bush tax cuts are not at least partially rescinded for 2013, won’t this result in a recession in 2013?” Yea – of course.  The one that has me even more concerned the cruelest tax of all – in the 40 centuries I’ve looked at inflation,  there has never been a case  in recorded history where a country has run the kind of debt and annual deficits without debasing their currency and that will upend everything.

10.  MVI_6608.flv – “Opinion of May 8 millage to reconstruct Andover” – don’t know.  If it’s dangerous or if there are technological upgrades, that might be OK.  But if it is for skylights, then that can wait.

11.  MVI_6609.flv  “Do real estate brokers have the best grasp of property values – Max Brooke has endorsed”  First of all, yes, brokers have a pretty good handle on what attracts people to communities – and we (David’s family) came here because of the schools.  Their interest is a little bit different – if you move here because you get great schools, you get better property values. But the correlation between great schools and property values no longer exists – schools need increased performance and proof and performance needs to continue to improve.  I think we are now in a dead cat bounce.  Typical cycle – 3.5 years, so increased taxes, increased interest rates and slowdown likely somewhere in 2013 will cause the dollar to be debased.  The realtors don’t know this – this is called not truth in advertising.

John Roach Says Vote NO on May 8

1. Does B2020 support Plan B? – John Roach
2. How are we (BHSD) doing? – John Roach
3. Reject the Big Box – Vote NO May 8 – John Roach
4. School choices – John Roach
5. So What is New? Details? – John Roach
6. Vote NO May 8 – The responsible thing to do: for the students, the District, the community, and the taxpayers – John Roach
7. Why BHSD selected a 9th Grade Academy model as their Plan B – or what will they do should their bond issue fail again? – John Roach
8. Why I am in favor of the 9th Grade Academy model – (Plan B) – John Roach

Vote No May 8 on New High School

1. A no vote – Rich Jedd
2. Bloomfield 2020 – Consolidation possible without new bond – Tiffany Esshaki – C&G
3. Bloomfield Lahser students against high school merger – Carol Hopkins – Oakland Press
4. Bond plan will expand deficit – Chris Fellin
5. Bricks and Mortar do not make Great Schools – Chris Fellin
6. Class warfare of K-12 kind – Fred Goldenberg
7. Dishonest tactics – Wiley Pickett
8. Election suggestions – Eric Winkelman
9. Hobson’s Choice – Wiley Pickett
10. Opponents rally against millage – Greg Kowalski – Eccentric
11. Renovate – Not new Construction – Cara McAlister
12. Irresponsible action – Cara McAlister
13. The current plan is EASY to reject – Jenny Greenwell
14. The real costs – Dennis Pikulas
15. There are many reasons to vote no – Jenny Greenwell
16. Vote No – Chris Fellin

Vote Yes May 8 on new high school

1. Consider these numbers – Howard Baron
2. Election stakes – Mary and Steve Belden
3. Good compromise – Allison Woll
4. Move forward – Harry Parr
5. Move forward – Julie Garcia
6. One Bloomfield United – This time residents should say yes to bond proposal – Tiffany Essaki – C&G
7. Restore peace – Diana and David Donegan
8. Rumor versus fact on the May 8 bond proposal – Rob Glass
9. The time is now – Ed and Julie Garcia
10. Vote yes – Kelly Gould
11. Vote yes – Support the Hills high school bond – Eccentric
12. Wrong conclusion – Howard Baron
13. Yes makes sense – Jim Krueger