The credit crunch just hit my hometown
Back in April, voters in my hometown approved a $39 million construction budget to expand the high school. The architects told us that’s what it would cost to add more classrooms, redesign the gym and add an artificial turf stadium, among other things. But when actual project bids came in $6 million over budget, project managers blamed the rapidly rising costs of building materials for the shortfall.
So, in a special referendum last week, taxpayers were asked whether we should ante up the $6 million. The $6 million add-on was defeated by 26 votes (one vote in excess of what would trigger an automatic recount, according to state law).
So the school board is busily weighing its options and trying to figure out if it should rebid the whole project, rebid part of it or just eliminate certain aspects of the expansion.
It’s been a pretty contentious issue for my town, with seniors living on fixed incomes saying it’s not fair to burden taxpayers with such a substantial project during unsettled economic times, while parents plead for taxpayer support, claiming that severe overcrowding is hampering their children’s ability to learn.
The whole thing could just be a moot point. Even though voters approved the $39 million expansion, trying to move forward could be futile, considering the current national/global liquidity crisis.
“This is a complete game-changer,” the town finance board chairman said. “Even the triple-A rated municipalities can’t get money.”
So regardless of what the final version of the school expansion project looks like, there’s no guarantee the town will be able to fund the project. If the town somehow manages to borrow the money, the cost of the loan could be much, much higher.
As the credit crisis hits close to home, there’s already news of major cities and even states that are putting major infrastructure improvements on hold. What’s happening in your hometown?
