MPS bond, override voting starts this week

Oct. 8—Mesa Public Schools voters this week will be getting a piece of mail with big financial implications for the school district.

The Maricopa County Elections Department will mail ballots asking them to weigh in on MPS' request for a $500 million bond and continuation of the 15% budget override for another seven years.

The deadline to register to vote is Oct. 10, and ballots are due by 7 p.m. Nov. 7.

The two revenue sources would cover different expenses: bonds can go toward one-time expenditures on physical assets like school renovations, buses and computers while the override affects the maintenance and operations budget that covers recurring expenses such as teacher salaries, tutoring and fuel for buses.

Both ballot questions would allow the school district to raise funds beyond their share of state revenue using local property tax levies.

This year, 18 school districts in Maricopa County are seeking approval to borrow a whopping total of $3.09 billion, according to the Maricopa County Superintendent of Schools Office.

Mesa's $500 million ask is the highest among Maricopa school districts requesting bond authorizations in November, with Phoenix Union close behind with a $475 million bond request.

Paradise Valley and Deer Valley are asking voters for $340 million and $325 million, respectively.

In the East Valley, Gilbert Public Schools is seeking a $100 million bond while Kyrene School District is asking voters to allow it to borrow $161 million. Queen Creek is seeking voter approval of a $98 million — the third consecutive year it is putting a bond on the ballot after the earlier two bond requests failed.

Eleven Maricopa districts are requesting overrides this year.

Currently, 45 out of the county's 58 school districts have at least one override in place; some have multiple overrides since districts can request overrides for four categories of spending.

Mesa authorized a seven-year 15% maintenance and operations budget override in 2019, which raises about $64 million a year for the district.

MPS still has time left on the current override.

But because school districts have to begin drawing down those funds two years before the end of the authorization, MPS officials want to renew the override before the draw-down kicks in.

Mesa voters last authorized the sale of school bonds in 2018 in an election with a close vote of 50% yes to 49% no. The 2018 election authorized sales of up to $300 million in bonds, and MPS raised the last round of capital under that authorization last year.

District leaders said a new round of bonds would enable it to continue school renovations, security upgrades, technology enhancements and other initiatives started with the last series of bonds.

One of the battle lines between proponents and foes of the two Mesa ballot questions is passage would represent a tax increase.

Advocates say a "yes" vote provides enhanced funding with no tax increase while some opponents characterize the renewed funding as a tax increase.

Passing both questions is not projected to increase secondary property rates from current levels.

But passing the measure would prevent a tax decrease that would occur if the current 15% override is allowed to expire and no additional bonds are approved.

MPS Assistant Superintendent Scott Thompson said many ask how the school district can sell $500 million in bonds without increasing the current tax rate.

He pointed out that the district doesn't issue authorized bonds all at once and that each year the district finishes paying off bonds sold in previous years.

"As we pay off debts, we increase our ability to issue debts," he said.

In a presentation earlier this year, MPS' accounting firm Stifel Financial told the governing board the district could raise $500 million in new bonds and service its overall debt while maintaining the current tax rate.

On MPS' bond question, the Maricopa County Superintendent of Schools received 13 pro arguments and 11 cons statements; the override question received 10 pro statements and 1 con.

Some arguments in the official information packet in opposition to the new bonds cited disappointing state test scores last year and wondered why enhanced revenue should continue when the district isn't producing the desired results.

"Additional funds won't fix the problems the district faces. Mesa has extremely low math and reader skills at all grade levels," one argument stated.

Others argued that the school district can deliver on its core mission without adding additional revenue at taxpayer expense.

"The district should optimize its current budget by evaluating expenses, reallocating funds and seeking cost-saving measures," one submitter argued.

"I oppose the Mesa school bond due to its unfair financial burden on taxpayers and lack of clear benefits. The high cost would strain residents and transparency is lacking, raising doubts about fund use," another "no" argument stated.

The pro arguments included statements of support from several public officials and organizations, including Mayor John Giles and five Mesa city council members.

The Mesa Chamber of Commerce and United Mesa Fire Fighters also offered endorsements.

Former U.S. Congressman Matt Salmon wrote in support for a "yes" vote:

"The budget continuation helps the district attract and retain the best teachers, support career and technical education and train our future workforce. These are investments in the classroom and our students — not administration."

Another proponent wrote, "If you own a home from the 1980s, you know it's in need of some repairs. Bonds are the mechanism that schools use to maintain and update facilities. It will make our schools safer and provide vital updates to things like plumbing and air conditioning."

In an online community presentation on the bond and override, Thompson pointed to a 2022 report from the Education Law Center showing that Arizona dropped from 49th to 51st in the U.S. for per-pupil spending ($10,244) to show the need for additional revenue on top of what is allocated each year by the state.

He said recent increases in funding from the state amounted to $570 per student. He compared this to the $5,200 deficit between Arizona's per pupil spending and the U.S. average ($15,446).

Voter info

Mesa Public Schools district voters have only until Tuesday, Oct. 10 to register or update election information. Go to: elections.maricopa.gov/voter-registration/register-to-vote.html

People can vote in person starting Oct. 30. Find a place to vote at elections.maricopa.gov/voting/where-to-vote.html.

All ballots must be received by 7 p.m. Nov. 7. Mail ballots should be sent no later than Oct. 31 to ensure the Recorder's Office gets them in time.