IowaWatch (https://www.iowawatch.org/tag/school-debt/)
Several Iowa school districts have taken on debt the last 17 years, with one district owing as much as $35,448 per student, to handle student enrollment increases but also repairs to aging buildings. The question they face is: how to manage that debt?
Nationally, school district debt topped $443 billion in 2016. Districts that take on debt but can’t generate dollars through enrollment growth or taxes can struggle to climb out, and often have to take resources away from kids.
School district administrators and school boards typically turn to outside advisers and underwriters when issuing bonds. But relying on outsiders puts districts in a vulnerable position, one in which they sometimes get bad deals with high interest rates and fees.
Ed tech bonds are part of an emerging shift in how schools are thinking about paying for technology. Yet it’s an approach that some observers say not only violates the principle of taxpayer-financed debt, but exacerbates inequities for schools in communities lacking the municipal wealth of their higher-income counterparts.