New California School Bond Solution Developed To Fund Educational Technology Ed-Tech Bonds™ Proven to be Effective by Local School Districts
SAN FRANCISCO, Oct. 16, 2013 /PRNewswire/ -- Dale Scott and Company (DS&C), California's leading K-14 financial advisor, introduced a new school bond solution, the first of its kind in the country, to provide California public school districts with an ongoing source of funding for educational technology while protecting local taxpayers.
DS&C developed and patented Ed-Tech Bonds™ as a fiscally responsible solution to the statewide problem of financing educational technology to prepare students for the global economy without diverting funding necessary to keep pace with other critical classroom needs.
The California Association of School Business Officials (CASBO) supports the use of Ed-Tech Bonds for educational technology.
"Ed-Tech Bonds provide a replenishable, financially responsible funding source for California school districts," said Tatia Davenport, deputy executive director of CASBO. "Funding educational technology is a hot topic, and we're encouraging our members to take a close look at Ed-Tech Bonds."
Ed-Tech Bonds, which require voter approval, provide districts with 15 to 30 years of ongoing technology funding through a series of short-term bond financings repaid in approximately 3-year increments, matching each borrowing to the useful life of the equipment. By eliminating long-term debt to fund soon-to-be obsolete technology, Ed-Tech Bonds slash borrowing costs down to near-zero. Ed-Tech Bonds ensure 90 percent or more of each taxpayer dollar directly funds educational technology, whereas in a typical school bond measure, 50 cents of every taxpayer dollar must be used to pay interest.
"Nearly every school district in California is grappling with how to fund educational technology in a way that avoids saddling taxpayers with years of debt payments for out-of-date equipment," said DS&C President Dale Scott. "Ed-Tech Bonds not only solve this problem, they level the playing field by providing all school districts with the resources needed to ensure the next generation is prepared for the 21st Century economy."
Ed-Tech Bonds have already proven to be an effective solution. The Jefferson Union High School District in Daly City, Calif., and the Cajon Valley Union School District in El Cajon, Calif., are both using a prototype of Ed-Tech Bonds within a bond package authorized by voters in 2012.
"Ed-Tech Bonds are helping our schools maintain and improve student access to technology without the sometimes exorbitant interest payments required by other bonds," said Jefferson Union Superintendent of Schools Thomas Minshew.
An Ed-Tech Bonds package for the Pacific Grove Unified School District in Monterey, Calif., will be on the general election ballot this November. Other school districts across the state will have the opportunity to place Ed-Tech Bonds on the ballot in the June 2014 Gubernatorial Primary Election or the November 2014 General Election.
Ed-Tech Bonds sharply reduce a district's borrowing costs, lowering the ratio of total bond payments to bond principal to approximately 1.05-to-1. Ed-Tech Bonds provide funding not only for today's educational devices, necessary software, and underlying infrastructure, but also tomorrow's upgrades and new technologies, enabling school districts to develop a long-term, comprehensive educational technology strategy.
About Dale Scott and Company:
Dale Scott and Company is a leading independent financial advisory firm that guides California school districts through the bond financing process while protecting local taxpayers. For more than 25 years, DS&C has served California's K-12 school districts and community colleges as a trusted, independent partner. DS&C uses a combination of quantitative analytics and a deep knowledge of capital markets to provide schools with a broad array of innovative products and services, many of which have become the standard for the state's public finance industry. Today, DS&C ranks as the leading K-14 financial advisory firm in California. In the fall of 2013, DS&C President Dale Scott will publish his book, "Win Win: An Insider's Guide to California School Bonds," to enable elected school district board members, educational and civic administrators, and members of the public to become more active and involved in the school bond process. For more information, visit www.dalescott.com.
SOURCE Dale Scott and Company