News & Observer | newsobserver.com | Bond opponents float new idea

Published: Oct 18, 2006 10:48 AM
Modified: Oct 18, 2006 02:51 AM

Bond opponents float new idea

They say lottery could fund Wake school construction; Easley's office says no

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ABOUT BONDS

What they are: A way of borrowing money, with voter approval and guaranteed by the county's taxing power, for school construction and renovations.

What they would buy: A $970 million bond issue would help pay for: 15 new elementary and middle year-round schools, two new high schools, land for 13 future schools, renovations and other needs.

How much taxes would go up: 4.7 cents per $100 of assessed value, or $70.50 per year on a $150,000 home, if it passes.

Pro-bond rally

A get-out-the-vote rally Tuesday drew about 100 parents, politicians and interested voters to the RBC Center. The event put on by Friends of Wake County, a group that supports bonds for school construction, was a low-key affair, catered with hot dogs, chips and soda. Still, there were a few interesting moments:

NO THANKS

Ann Goodnight, co-chairwoman of Friends of Wake County, thanked supporters, Raleigh Mayor Charles Meeker, each school board member by name and six of seven county commissioners.

Not mentioned: Commissioner Phil Jeffreys, who opposes the bonds.

FOR THE CHILDREN

About 20 children were in the audience. Bill Atkinson, co-chairman of Friends of Wake County, pointed them out as the best reason to vote for the bonds.

As for the children themselves, they fidgeted a lot during the speeches.

HURRICANES: YES

Stormy, the Carolina Hurricanes' mascot, presided over the event, and Friends of Wake County unveiled a TV ad featuring a Hurricane for the bonds: forward Cory Stillman, a Raleigh resident who says he has children in Wake schools.

"I'm not being paid to do this ad," Stillman says in the ad.

NOT THE TICKET

Atkinson took a swipe at a proposal by the anti-bonds Americans for Prosperity, which says lottery proceeds could be used to build schools. "It's nice to have additional dollars," Atkinson said. "But please don't bet on this one."

COMPILED BY RYAN TEAGUE BECKWITH

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Americans for Prosperity hopes to "scratch off" millions from local school bonds.

But the Governor's Office said that idea can't win.

The group, which opposes Wake County's proposed $970 million school bond issue, said lottery proceeds could be used to build schools instead. At a news conference Tuesday, Americans for Prosperity state director Fran DeLuca argued that devoting all lottery revenue to school construction could keep property taxes from rising as quickly.

"Simply put, right now, lottery dollars would be better spent on bricks and mortar," he said.

A representative of Gov. Mike Easley said DeLuca's argument was poorly thought out. Dan Gerlach, the governor's senior fiscal adviser, said lottery money is being set aside to hire teachers for thousands of at-risk children and to reduce class sizes at elementary schools.

"You could build schools, but you'd have to lay off teachers," he said.

On Nov. 7, Wake County voters will be asked to approve the $970 million in bonds as part of a $1.056 billion school construction plan designed to help the school system cope with rapid growth. Over the next four years, Wake expects to add 32,000 students.

When the lottery was created in 2005, lawmakers debated how to spend the proceeds. Under the approved formula, 50 percent goes to educational programs, 40 percent to construction and 10 percent to college scholarships.

At the time, some argued that all the money should go toward construction.

Rep. Larry Brown, a Republican from Kernersville, eventually voted against the lottery bill. But during the debate, he said that the proceeds should be spent to build schools. He said that most of his colleagues did not agree.

Changing the formula now "would be like pulling eye teeth when they've already been pulled," he said.

Wake County gets about $9 million a year from the lottery for school construction. If the law were changed so that all lottery money went toward new schools, Wake would get about $15 million -- less than the cost of one elementary school.

"Their solution sounds nice, but it is not going to solve our needs for 7,600 new students a year," said Kim Gazella, a spokeswoman for the pro-bonds Friends of Wake County. "This doesn't change the need for this bond on Nov. 7."

Not that Wake is happy with how lottery proceeds are distributed. Tony Gurley, chairman of the county commissioners, said the formula favors counties with higher-than-average property tax rates. As a result, Wake gets roughly half the lottery money that Mecklenburg County does.

Gurley said commissioners have told legislators that they would like Wake to get more money. He said he was open to the idea of putting more money toward construction at the same time.

"The formula definitely needs correcting," he said.

Before the lottery was approved, Americans for Prosperity argued against it, and the group's Web site still contends the lottery will lead to "corruption" and "wasteful pork spending."

"These are people who hated the lottery all along, and now they choose to find it as the salvation," Gerlach said.

But an Americans for Prosperity spokesman, Dallas Woodhouse, said the group's position has not changed.

"The lottery is the law now, so the question is: How do we best use the money?" he said.

Staff writer Ryan Teague Beckwith can be reached at 836-4944 or rbeckwit@newsobserver.com.
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