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Madison School Board Pricing Naming Rights for New Gym…

...and other, less important spaces.

Last September, Madison High School principal Sharon Knowlton claimed that gym space is as vital to education as science labs. A local fundraising committee agrees with The Displaced Plainsman and me that Knowlton's claim is absurd. In a report on naming rights to be submitted to the Madison Central School Board at its Monday, January 9 meeting, the folks hoping to raise money for the new gym/high school renovation project contend that gym is actually ten times more important than science:

Proposed Naming Rights Price Scheme:
New MHS Gym and Renovations
Space Price
Gymnasium $350,000
Library $100,000
Auditorium $100,000
Band Room $50,000
Chorus $50,000
ProStart Kitchen $50,000
Agricultural Wing $35,000
Locker Room: Men's Home $20,000
Locker Room: Men's PE/Visitor $10,000
Locker Room: Women's Home $15,000
Locker Room: Women's PE/Visitor $10,000
Science Wing $35,000
Individual labs (4) $15,000 each
Band Practice Rooms (3) $5,000 each
Regular Classrooms $10,000

$350,000 for the gym, $35,000 for the science wing. The market speaks: gym matters ten times more than science.

Now let's be generous: the exact words attributed to Knowlton by the press were "the proposed new gym space is as vital to the school as space for the music programs, updated science labs and renovation to the school's auditorium." Add up all those spaces—science wing, science class rooms, band and chorus rooms plus practice rooms, auditorium—and you get $310,000. Add up the new gym and its locker rooms, and you get $405,000. So really, according to the committee's read of the market, all that gym space is only 30% more vital than music, science, and a good auditorium. Knowlton was likely just rounding down to minimize harsh blog coverage.

Also noteworthy: given the locker room prices, we apparently consider our boyhoopsters 33% more valuable than our girl hoopsters. Your Title IX interpretation of that difference is welcome.

Noteworthy by absence: the opportunity to sponsor the glittering and spacious new bathrooms, which Knowlton considered a pretty vital selling point during her sales-pitch tours of the building. I was hoping $100 would put "MadvilleTimes.com" over a toilet... which is pretty close to where Sharon would like to put it.

The board still has to discuss just how these naming rights will be realized. Classroom sponsors, don't settle for a mere plaque on the wall. Demand the kind of live broadcast requirements that big sports facility sponsors get. No longer should the morning announcements say, "Math quiz bowl team will meet in Mr. Thurow's room." The announcements should have to say, "Math team will meet in the Radio Shack Math Room." When students need to come to the office, the secretary should have to hit the P.A. with, "Ludwig Lutz and Ingrid Ingqvist, please report to the Prostrollo Motors/Coca-Cola Adminiplex."

Boy, those corporate classroom names would have posting rounds for the Mundt Debate Tournament overwhelming. Good thing Madison got that problem out of the way.

49 Comments

  1. Daniel Buresh 2012.01.07

    Someone needs a lesson in advertising. Of course the gym is going to cost more for naming rights. It will get 10x, if not 100x more exposure to the public. To someone looking to advertise and get their name out to potential customers, they are going to pay more for high traffic areas to the public. The pricing schedule they have decided on for naming rights has nothing to do with the educational importance of each, but on the exposure each will get. This article only exemplifies your lack of knowledge in the business world. Your attempts to twist Sharon Knowlton's words is a sad dig at her, especially when you are only trying to push your agenda in which a majority of taxpaying citizens in Madison don't agree with.

  2. mike 2012.01.07

    Who's going to drop $300,000 to name a highschool gym?

  3. mike 2012.01.07

    How about T. Denny Sanford starts buying naming rights for highschool gyms across the state now?

  4. caheidelberger Post author | 2012.01.07

    Oh, Daniel, I bow to your superior... wait! No I don't! The thesis still stands! The prices stated clearly demonstrate that a gym is ten times more important than a science wing, because clearly, all that matters about a school is its ability to shill more consumer goods and services. Ah, the subservience of education to the capitalist dogs continues. Keep barking for your masters, Dan!

  5. Linda McIntyre 2012.01.07

    I have a question as to where this donated money goes. It should be going to lower the cost of the bond issue, but if the bond issue is a done deal, why would anyone donate more money if it isn't going to lower the actual cost of the renovation/new gym? The bond issue plus the amount found available in capital outlay is supposed to be the total cost of the remodel/new gym. Why the need for more money after the project is already funded? IMO the fundraising monies should have been put in escrow ahead of the bond issue, thus reducing the amount of money needing to be borrowed. Am I missing something here?

  6. James Carder 2012.01.07

    Nothing like putting a price on education I guess...oh but wait that's not what we are doing, I forgot, this is a lesson in advertising and big business...I'm confused. (heavy sarcasim)

  7. Douglas Wiken 2012.01.07

    Let em buy their advertisements now and five years from now, T. Denny can get them named after himself. The SD Universities seem to be doing this. Some families involved have not been amused to see the names of the initial donors disappear under the name of some john-donor come lately.

  8. Charlie Johnson 2012.01.07

    It would be best if the MSB took a step back and really take a hard look as to whether we should "Sanfordize" the MHS renovation project. Keep in mind that it will be the "everyday Joe taxpayer" who will still finance and pay the vast majority of the project. Will there be resentment with the taxpayers if a party with the deepest pockets has the opportunity to naming rights. We perhaps don't know. I'm sure we would not appreciate it if a neighbor could put his name on your mailbox after you have built your home, paid the mortgage and taxes. Just like a small town in Nebraska that I drove through lately that named it's school campus---"Community Learning Center" so should we keep in mind that this a community project. I will say that I stressed heavily the need for private money while I was on the renovation committee. I also pushed the idea that certain areas or rooms be named after teachers/instructors as a tribute to their legacy in Madison school education. Doc Miller Auditorium for fine arts has a "nice ring to it" but even Doc after 30 plus years at MHS would not have $100,000 to "splash" his name. Instead maybe former students/parents could funnel say $10,000 in individual contributions in his name. Less money raised perhaps then we place the contribution of dedicated teacher over a corporate name. The same for Francis Murphy Center for Ag studies. His daughters, Marletta Eich, Debbie Schnell, and Sandra Rhoden would be so honored and thrilled.. It would mean far more than corporate Monsanto having it's name plate on the door. Organic farmer, Charlie would not be happy about the Monsanto name but so filled with pride instead that an instructor who shaped his life was honored.

    There is a great need for gifting and contributions to the MHS project. Many supporters said they would sacrifice a soda a day to pay for the bond issue. We just need to pay the extra taxes plus donate money privately from the sacrifice on soda drinks. The annual debt service with this project will be about $1.1 million give or take. This is roughly the same figure as the issue pushed last winter. Capital outlay levy with it's maximum levy of 3 mills will be fianancing over half of this debt service. This leaves the school district little or no leeway in taking on any major projects for the next 20 years. As Linda has asked--"Where will the fundraising money go?" Good question. Best suggestion that I see unless the money is on hand before the bond issuance takes place is that the funds go into the capital outlay fund especially for the next 4 years where the district will be paying both on the elementary school and the MHS.

  9. caheidelberger Post author | 2012.01.08

    I'm with Linda and Charlie: if I were a donor, I'd make my donation contingent on dollar-for-dollar reduction in the general bond/tax burden. (But stay tuned for Daniel's Marketing 101 lecture on why that's a bad business plan.) And Charlie's point on community is well taken: the most important name on the building needs to be the name of the people building the school and the people the school builds: Madison.

  10. Linda McIntyre 2012.01.08

    The whole point of fundraising in the first place was that it reduce the amount needed for the bond issue. This is NOT taking place. Now the money will go into probably capital outlay, but it will NOT reduce the amount of the bond issue and thus the amount of increased taxes on property owners.

    As for naming rights, a landowner who owns four quarters will be paying more than $10,000 extra over the course of this bond issue, with no naming rights benefit to a classroom. I don't think any landowner cares two hoots about getting his/her name on a classroom anyway. I would guess this same thing applies to businesses in the district that will be paying more than $10,000 extra for the next years. I'm with Charlie; if a room is to be named, honor a past teacher who has made a big difference in Madison school history. If the money had gone to lower the bond issue amount, I would have no problem with naming rights. As it is, this will not happen, and is contrary to the original reason for the whole fundraising campaign.

  11. RGoeman 2012.01.08

    When it comes to marketing, Daniel is right. Higher traffic is what a business-donor is looking for. They want more bodies to see their logo and create brand recognition. That's the only reason a gymnasium would attract higher dollars than a science room. There is no correlation between the value of a program and the cost to advertise or self-promote a business. It's all about visibility, so your attempt to create yet another controversial point is...pointless.

    I will say that if an individual is looking to maximize their return on dollars, an individual investment or endowment with the MCSEF (Madison Central School Educational Foundation) may create a more tangible return since those funds are spent directly on students and educators through grants and scholarships at Madison Central. Direct donations or setting up family endowments are a great way to grow the intellect of our future students.

  12. Owen Reitzel 2012.01.08

    I would like to name a classroom trhe "Ken Reitzel" classroom but it would HAVE to be in the left-wing of the school.
    I would also need $10,000

  13. Bill Fleming 2012.01.08

    Get serious guys. Anyone who can afford to plunk down $300k to get their Name on a plaque in a gym is not worried about reach, frequency and gross rating points. It's about which activities you want your brand assiciated with. Period.

  14. james carder 2012.01.08

    How were these numbers contrived? Were they just pulled out of the blue sky? Just curious I guess. And why would they set predermined numbers? So the first 350k gets their name slapped on the new gymnasium? What if someone were willing to pay more? I guess I am kind of ignorant to how things like this normally work but it seems to me like a sealed bid process would not only raise more revenue but also capitalize on what someone might actually be willing to give. If a section or a room recieves no bids they could put a price tag on it at that time. What if no one is willing to give that much? Does that price become negotiable at that time? Im seriously not trying to "stir" anybodies pot here but I would have to imagine that some of these questions are going to get asked before someone ponies up 350k for naming rights to a high school gymnasium so why not have some answers when those questions do get asked?

  15. John Hess 2012.01.08

    Why not sell the whole name? Madison High School could be Prostrollo High - Madison. They could buy the Huron name too. The Junior High could become Gehl Junior High. Whoever is willing to pay the most. Think of the exposure!

  16. RGoeman 2012.01.08

    John, that wouldn't worry me as much as someone like a white supremecist group or other controversial organization purchasing a portion of the building sponsorship. Will the criteria have restrictions? How does Madison limit opportunities without discriminating? Just wondering.

  17. Daniel Buresh 2012.01.08

    Thanks Rod for further elaborating the point I was trying to make. I simply wanted to point out the illogical argument that was put forward by the blog post. You did a much better job at pointing out the false correlation.

    I'm not trying to argue if the paid naming rights is correct or how it should be handled. I also agree that Linda makes a valid point with the bond issue if the naming rights go forward as proposed, and along with Charlie, I would like to see some areas granted names based on some great teachers/supporters of years past. So Cory, while you try to imply my stance on these other points in order to alienate myself with the rest of your regular posters, please tell me what I would write. I am curious as to what you say I am going to write about how this is a "bad business plan" when speaking about the bond issue. Please finish putting the words into my mouth.

  18. caheidelberger Post author | 2012.01.08

    James, I'm willing to assume that the figures published by the committee are flexible, maybe starting bids. I suspect if we can track down someone willing to plunk down $20K for a classroom, we won't turn them away.

    And I'm intrigued by Bill's point: "reach" and "frequency" aren't really a big deal for folks with that money and in this small market. Naming rights may well be about which activities donors want to associate their brands with... and that means that, by the committee's initial guess, associating with gym really is ten times more valuable than associating with science. That's not meant to create a controversy specific to Madison; that's meant to point out the screwed-up priorities of our entire culture.

    Owen: "left wing": hilarious!

    Rod's point about return on investment is worth discussing: money placed in a scholarship fund certainly produces a better social return on investment than a plaque and even a gym. But if the money builds a new classroom... now we get into some fuzzy math. Suppose you have $10K burning a hole in your pocket: do you contribute to building a new government classroom, do you endow a Ken Reitzel Civics Scholarship, or do you invest the money in some other educational project?

  19. Charlie Johnson 2012.01.08

    I would hope that the MSB would delay any formal action for another month. Even by the feedback on this post, there seems to be many unresoved questions needing answers. Most important -- is selling naming rights the right path to head out on? For the money is the potential financial gain worth the "Sanfordize process'? That said, private donations with far less tradeoffs and conditional giving is very crucial. In order for the project to gain voter support-the trade off was for the capital outlay fund to finance about 60% of the debt load versus none in the February proposal. This is hard for even me to say but perhaps it would not be prudent to use private money to reduce the bond issue. I also don't forsee much private money in hand before the bonds are issue anyhow. Where the real tough situation is the capital outlay fund that is already at the maximum 3 mills that still is paying on an elementary school, is about to obligate to 60% of the renovation project, and still needs to cover ongoing expenses like buses, equipment, text books, computers, etc. Private money might perhaps best be used to boost the capital outlay fund-now and in the future. One last caveat: Let's be careful that private fundraising is not used to expand the project footprint and cost much beyond what the voters understood they approved.

  20. Linda McIntyre 2012.01.09

    Charlie said above, "Private money might perhaps best be used to boost the capital outlay fund-now and in the future. One last caveat: Let’s be careful that private fundraising is not used to expand the project footprint and cost much beyond what the voters understood they approved."

    This is my entire point. Any private fundraising monies that are simply put into capital outlay WILL expand the project footprint and cost beyond what was approved.

    There is money available in capital outlay to fund a certain portion of this. Last year at this time the capital outlay fund was believed to be committed for years into the future for a huge amount. It was then discovered that it really was only committed for four years to the huge amount, and then was down to $30,000 or so a year for the rest of the commitment period, thus freeing up funds to use for this renovation/gym project. Yes, capital outlay funds will be tight for several years, but that is the nature of wanting a big project done immediately and not waiting until the other commitments were paid off. There might be reasons for wanting it done right now, but living with budget constraints for a few years was deemed satisfactory and doable at the time the vote to proceed was made.

    The whole point of fundraising was to lower the bond request amount, and that is not happening the way this is being handled now, in essence raising the cost of the project through the backdoor.

  21. Linda McIntyre 2012.01.09

    Since there actually exists enough money now thru bond issue and capital outlay to satisfactorily fund the new renovation/gym, I agree with Rod that if private monies are raised, they should go into a scholarship fund that would continue to benefit students into the future.

    Donating $350,000 to name a gym (which is already paid for anyway) vs putting that amount into a scholarship fund that would support several scholarships a year (in the name of the donor) even at 1% interest would seem to be a better use of the money.

  22. John Hess 2012.01.09

    A public school should be free from private influence. Kids and parents should feel at that place they are treated equally. Gets harder to do when portions of the building are up for sale with one wealthy family's name posted here or there for a paid legacy. Our board members and administration should not become fund raisers as has happened with higher education. Taxpayers should foot the bill.

  23. John Eining 2012.01.09

    To look at a price list for advertisement and twist it into an order of educational importance is quite possibly the most twisted thing I've ever seen you actually do on this blog Heidelberger.

    “the proposed new gym space is as vital to the school as space for the music programs, updated science labs and renovation to the school’s auditorium.”

    Simply stated by someone that came from a different school district, I've never been sent away from a high school sports event until I came to Madison. Without new gym space, the school would lose chances at making important revenue in the future. Larger audiences at weekly games, the chances to host regional conferences, or even state tournaments is something that can have a great impact on not only a school district, but a town as a whole. The location of Madison is great, and yet its potential hasn't been tapped.

    The proposed gym can be a large revenue spot and will bring money through its events and advertising for years to come. It will help this town as a whole generate revenue.

    "Naming rights may well be about which activities donors want to associate their brands with… and that means that, by the committee’s initial guess, associating with gym really is ten times more valuable than associating with science."

    How does that statement even make sense in your mind? Did you read it back to yourself? How does associating a marketing scheme have anything to do with educational value? Your blog post is specifically about advertisement, and solely advertisement...yet you morph it into this hierarchy of educational sub-system importance.

    That list simply states...more companies will want to advertise in the gymnasium, away from an educational environment where it is more traditional to see marketing, since their products aren't educational. There aren't a lot of businesses in town that sell beakers and Bunsen Burners...

  24. Ashley Kenneth Allen 2012.01.09

    I swear.. some people have very short term memories. Many of the goals and intentions of the capital campaign have already been discussed by the fundraising committee and school board members. If you haven't read the stories or been at the meetings, please pick up the phone and call the school administration and find out their intentions for the money. As previously discussed, a portion of the raised money is to be used for supplementing capital outlay and using it for upkeep/repairs. Annual advertising plans in scoreboard areas will also help with upkeep/repairs/expenses. That was part of the plan all along. Many of you attended the same meetings and hearings that I did... did we not take notes or listen closely? I talk to many of the board members on a monthly basis. You could do the same thing. Get out a phonebook or look them up on Facebook and have a discussion with them.

    I am not a big fan of putting names on everything either, but tax payers have given schools limited funds for supporting education in this state (locally, state-wide, and nationally). The state leadership that we elect year after year do not believe in funding education at proper levels in this state. We have to resort to opt-outs and fundraising just to get by. The same thing is happening at our "state-supported" universities. The MCSD is doing the best they can with what the tax payers have allowed. A capital campaign asking for donations and acknowledging them through naming rights seems reasonable and less evil than some of you are trying to make it.

    65% of voters said yes to higher taxes and the plan set forth. If you don't want to pay property taxes, sell your land, house, etc. The time has never been better to sell that valuable farmland. According to CBS News, farmland is the new "Black Gold". Rising prices are making family farmers multi-millionaires.

    http://www.cbsnews.com/video/watch/?id=7393641n&tag=mncol;lst;10

  25. John Eining 2012.01.09

    "I am not a big fan of putting names on everything either, but tax payers have given schools limited funds for supporting education in this state (locally, state-wide, and nationally)."

    There's some issues you should blog about...how our governor has cut our educational budget (which I believe you have most likely already done since I know Russ Olson was a supporter) or maybe how the 99% of the town of Madison bleeds maroon until they have to get their green out.

    Ashley, thanks for making the point about how a lot of the revenue goes back into the school for upkeep, I figured that, but haven't heard about the meetings on revenue disbursement.

  26. John Hess 2012.01.09

    The donations could be anonymous, or if recognition is the key to raising the money, a thank you could be done collectively. But public institutions constantly going to private donors becomes insidious and blurs the lines.

  27. Douglas Wiken 2012.01.09

    Maybe it should be named "Taxpayer Memorial Addition" or some such. Also, charge the School administration and school board members a few thousand each to get their names on a building plaque. I become more convinced everytime I see the campaigns to squander more money on facilities that the primary motivation of board members is to get their names on a building plaque.

  28. Charlie Johnson 2012.01.09

    I have to agree with John. "Sanfordizing" the process has it's pitfalls--one of which: what happens to a name that no longers has public favor-does Tiger Woods come to mind anybody? Or another question--how is the legacy(yes , I spoke for recognizing past teachers) of one great instructor more important than the legacy of another great teacher? Is that one instructor supporters have money and the other family doesn't. What happens if Monsanto decides to name the ag wing? They already own a university president at Brookings. We have witness the generous upfront giving of people like Tim and Monica Campbell. There will definitely need to be more of that. Ashley, i was on the committee, and of course was at the meetings you referenced. We spoke many times about raising money-we never firmly decided how it would be handled when realized. When the project was presented to the full school board in late August, board members Paul Weist and Steve Nelson had some real concerns/questions about how private money would be used. I don't think they got any firm answers that night either. With tonight's meeting, those answers may perhaps be more laid out. But in fairness to Linda's concern, i haven't seen anything explained in public how the funds will be handled and in what account. Again, I'm sure those answers will be provided tonight. My lone suggestion is that we best not lower the bond issue request. Instead the money should be used to "shore up" capital outlay for the huge burden it will take on in the next 20 years especially in the next 4 years as we pay on both buildings. We have waited a long time to do things right. If there is any doubt, another 30 days is always prudent.

  29. Ashley Kenneth Allen 2012.01.09

    I agree with both Jon and Charlie on being careful on who gets naming rights and how it is implemented. I would prefer not to have any company or corporate names at all, but this is the harsh reality that we live in. Hopefully, most donors will do it to honor someone or something. Wouldn't it be great to see someone name it the "Bulldog Memorial Events Center". However, I can stomach someone calling it the Jones Memorial Gym or Smith, or whatever. There are a lot of things we have to compromise on in this world. A name on the gym wall is one compromise I can make. How about you?

    However, much of the discussion I have heard is to name areas after past teachers, students, etc. I do not think there will be a lot of areas that will have "Corporate" names attached to them.

    Charlie, you are correct that there are no definitive answers from the school board yet, but I know the intentions of many involved are to use the funds to help the capital outlay fund. There are some items that may need to be purchased that are not in the price of the building remodel and I can see funds being used for that... but again these are capital expense items. Desks, Chairs, Technology, Lab Equipment, Etc. There was a discussion of a 50/50 split at one point, but I have a feeling much of it will go to capital outlay for operating and maintenance expenses.

    Remember... we still have to raise the money. None of that is a guarantee. The only guarantee we have at this point is the money that was passed in the election.

    I trust the people involved. I encourage you to visit with the administration and school board and share your thoughts and concerns. They are reasonable and responsible people. They want the best for our children too!

    Also in full disclosure... I plan to make a donation to the school. However, I will not be doing it to get my name on a sign or a plaque. I am not a rich man, so it will be a fraction of what they are asking for the gym naming rights, but every donation, small or large, helps our school! In the end, it is about improving our school and learning environment.

  30. Linda McIntyre 2012.01.09

    "65% of voters said yes to higher taxes and the plan set forth. If you don’t want to pay property taxes, sell your land, house, etc. The time has never been better to sell that valuable farmland. According to CBS News, farmland is the new “Black Gold”. Rising prices are making family farmers multi-millionaires." Shame on you, Ashley.

    I am not complaining about the higher property taxes most of us agreed to with the vote. I am simply stating the facts that we were told that the capital outlay funds plus the bond issue would cover the cost of the project. I assumed that the original fundraising plans at the time of the original vote a year ago would still stand - that any funds would lower the bond issue amount. When asked about the cost of the plan from a year ago, I was told that the costs covered everything, and that upkeep was not going to be a problem either. So what has changed?

    If the capital outlay fund was not able to handle the costs it will assume with this present removal/new gym, maybe the project should have been held until it could afford it.

    If people want to donate to the school, that is great at anytime. But don't forget that property owners, both rural and city, will be "donating" for 20 or so years in the future. And BTW, Ashley, neither we nor most others are multi-millionaires.

  31. Ashley Kenneth Allen 2012.01.09

    Why should any money raised go to lowering the bond issue? Some have proposed a 50/50 split, but that is also probably not wise. There were many media reports stating that capital outlay funds would be very tight for the next five years. We stated these facts during the vote yes campaign? The fundraised money will help us fill any gaps if any major issues come up.

    Why pass the project? Because we needed to fix the school now! Even if that meant having very tight budgets.

    Linda, as always, thank you for reminding me how much you and other farmers are paying in taxes. Thank you so much for your sacrifice. As if we all didn't know the more land you own and the higher the value the more taxes you pay.

  32. Linda McIntyre 2012.01.09

    Ashley, it would be nice if you understood the reality of farming, owning land (many times with banks etc), ups and downs of prices and weather etc. We are not the rich that you seem to think we are. We are equally concerned about education as you are. And sarcasm does not become you.

  33. Ashley Kenneth Allen 2012.01.09

    Land valuations determine property taxes. Income determines income taxes. Land valuations and government subsidies are at record highs. See the article I posted about how families are making millions from selling land. I understand that farming does not make millionaires (although it can), but the land is very valuable in the current market.

    My point is... we all pay property taxes based on the choices we make in buying and owning property. Yes...there will be taxes paid on property for generations to come. If you want to pay less property taxes...own less or no property.

    The argument that naming rights should not happen unless your tax bill is lowered is just absurd. 300K will do very little to the total taxes paid. If you want to object to putting someone's name on the building, please don't do so because of a possible, very small reduction in the mill levy rate.

    With that said...I have heard discussion of a 50 percent capital outlay and 50 percent bond reduction plan.

    Put please, can we get past the "I have to pay X dollars in taxes" debate?

  34. Ashley Kenneth Allen 2012.01.09

    Also, the plan from a year ago was much different than the plan that passed this fall. Capital outlay was not included in the first plan...but in the plan that passed this fall... it makes up half of the funding. With payments on the elementary school continuing for a few more years and adding the new high school, capital outlay funds will be very tight. This was explained at length. This is why the fundraising was not included in the fall package price and not part of the vote. It was explained that fundraising could nelp reduce the final price tag and help with other capital expenses. To claim otherwise is just wrong. Go back and review websites, videos, and other archived media. I know many brought up the point about having tight capital outlay funds, including Charlie.

  35. Charlie Johnson 2012.01.09

    Ashley,

    Your analogy is like telling people who don't want to pay want to pay income taxes-don't get a job or make an income. Now where would society be at that point? At a different time or blog post, let's discuss ag econ 101. Right now, you are pouring gasoline where you shouldn't be. Back to the original discussion(1) all parties involve-know what we are getting into with naming rights(2)voters approved the authorization of 6.3 million for a bond issuance. It's hard for me to say this also but we should bond the maximum allowed. Allow the private money to flow into capital outlay to shore up that account--it has a major "chore" ahead as we pay the MHS renovation project, remainder of the elementary school, and all of the other numerous burdens placed on that account.(3)private money should not be used to '"enlarge" the foot print or scope of the project beyond what was sold to the public this past fall. Private money should be used to provide debt relief-period. I'm just saying that using the capital outlay fund gives future boards more flexibility and provides the district more cash or cash flow on hand to get through the next 4 years. Keep in mind, taxpayers ---2 things---we are making "car payments" on two cars for a few years and the annual debt service is 1.1 million beyond the next 4 years--the same amount as the bond issue that was defeated last February.

  36. Linda McIntyre 2012.01.09

    I realize that the point of having tight capital outlay funds was discussed, and it was evidently agreed that it was doable. Even Ashley says it was explained that fundraising could help reduce the final price tag, but it is not doing that. The price tag was to be covered with the bond issue and capital outlay, and that is the proposal that was agreed upon by the school board and the voters.

    And the reason that capital outlay funds could be used this time around was that no one at the school district was aware of the actual amount still owing on the elementary school. They did not realize that the majority of the elementary school would be paid off in four years rather than 12 or more, thus freeing up money to be used for the high school. This "oversight" is an issue that no one seems to be concerned about.

    And a different point to be made. All this money is being spent, yet according to a recent article in the local paper, only 16% of the graduating seniors were ready for college level work. Is anyone concerned about this? We are.

  37. Ashley Kenneth Allen 2012.01.09

    I completely agree with you Charlie on all points.

    As for the tax argument...I am just trying to say that when you take a job, own land, buy merchandise, you do so knowing that you will pay taxes. Taxes have been determined and voted on. Now we have to pay for what we are assessed.

    I am not an expert at agriculture, but I have created and ran two successful small businesses. I wrote the checks to pay the taxes and when I was the accountant. I am aware of the many taxes paid by businesses. When I sold my shares in the last company at a profit, I paid more taxes. Many in my family were farmers as well. My grandparents owned, farmed, and rented land. They paid taxes. When the land was sold, more taxes were paid.

    We all pay taxes.

    We will see what the school board decides tonight, but I would like to see it all go to capital outlay. I sincerely doubt the construction plans will change. With the proposed education funding increases being so little again this year...we need all we can get.

  38. John Hess 2012.01.09

    There are some huge farm producers (the actual farmer) who rent and own their land. They have done extremely well. Land owners have seen their rent double, probably not quite triple in the last 10 years. Good, but have also seen some steep increases in assessed values and taxes. As you would expect, the guy taking the bulk of the risk has mainly benefited, so much so land values have escalated to dizzying heights, but a person on a fixed income who may own a quarter or so remains dependent on a decent cash rent. If they were to sell, yes it's high, but how would they maintain an income? Getting 1.5% at the bank if they're lucky wouldn't cut it. It's easy to point at the other guy, but we don't always know their situation.

  39. Ashley Kenneth Allen 2012.01.09

    John, won't the free market and trickle down economics that Republicans implemented 30 years ago help everyone in business succeed? If not, President Romey can make some investments, liquidate assests, and lay off some people to further stimulate the economy. Maybe Noem can get us a better farm bill after she guts the depatment of education. That should help with those interest rates and dividend payments. ;)

  40. John Hess 2012.01.09

    Like these people who telecommute for east coast companies. They rake in the bucks.

  41. Ashley Kenneth Allen 2012.01.09

    Hahah love it!

  42. John Hess 2012.01.09

    Watching Romney try to emphasize with the middle class is frightening. We have to raise so much private money because so little from the top is being redistributed, to places like education. When I went to school in 1983, my tuition was something ridiculous like $33 a credit hour. Tell me how people raise kids in this environment.

  43. Douglas Wiken 2012.01.09

    "and government subsidies are at record highs. " Probably not since subsidies are only paid when prices are low. The real "Ag Dept" subsidies are going to urban food programs.

  44. Ashley Kenneth Allen 2012.01.09

    I am just back from the MCSD board meeting and here is what I can report.

    1. Fundraising is currently over $3,000 in received funds and there is much work being done on securing donations small to large. The committee is making significant progress and will begin distributing fundraising communications tomorrow.
    2. People that donate money can designate where the funds are being spent, but are encouraged to designate the funds for the building project. As Mrs. Knowlton indicated during this past fall, if someone wants to buy lab equipment, a seat in the auditorium, or a basketball for the gym, they can designate where there donation is being spent. The committee is also suggesting that individuals make their donations in honor of an individual (student, teacher, community member). This does not mean all will do so and does not guarantee how recognition/naming rights will be given.
    3. All large donors will have some form of a contract that the school board will review and approve. This contract will have the terms of the donation, payment terms, and contain the recognition agreement.
    4. The second series of bonds have not been sold or issued. This means that we have some time to potentially lower the costs of the project and change the level of taxes. It will not exceed what was approved by voters, but it could be less. However, this is based on final bids and costs of the project and whether or not the bids come in high or low. I was told that other projects similar to MCSD's have come in under budget in the past year. The board and administration will have more details coming in the next two months.

    Finally, the board also discussed the lack of funding and unpredictable nature of year to year budgets on a state and federal level. This impacts local planning and creates uncertainty. There may be a decrease in federal funding which would impact educational services next year. It appears that there will be at least a small increase in funding at the state level.

    Write to your state and federal representatives and tell them to fund education! No more cuts and restore appropriate year to year budget increases.

    Finally, I want to commend the fundraising committee and the MCSD for working hard to raise money. I know Mitchell Brooks is working extra hard to be a good steward of this tax money and is managing the project down to every small detail. Mitchell found new solutions to make this project move forward and without his leadership we would not have this reasonable financing plan.

  45. caheidelberger Post author | 2012.01.09

    Ashley! Good on-the-spot reporting! Thanks for the meeting update.

  46. RGoeman 2012.01.09

    All I can say is if State Employees receive a 5% Bonus Payment in addition to their increase in salaries this year, every Educator across South Dakota should also receive the same identical bonus. Fair is Fair (although I oppose the 5% bonus idea entirely).

  47. Michael Black 2012.01.09

    Rod would you rather not give them anything?

  48. RGoeman 2012.01.10

    Mike, I feel the 3% increase is adequate. Tossing another $32 Million in bonuses ONLY to State Employees when school district employees have suffered budget cuts as well does not seem fair. I also agree that if the bonus is going to be paid it should be a flat fee since the top dogs get over $3500 and the regular state staffer only receives $1500. Otherwise, it simply continues to spread the gap between lowest paid and highest paid state employee. How about a $2000 flat fee per staffer if it actually must happen. I think education should receive the $32,000,000 instead to help make up for Governor Daugaard's cuts from last year. Invest the one-time money in our children's futures.

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