A recent Wichita Eagle article (Economy now is right to support the school bond) USD 259 written by Wichita school district Interim Superintendent Martin Libhart makes me wonder if the school district isn’t hoping for a recession.
Here’s why I wonder: right now long-term interest rates for the types of bonds the district will be selling (if the bond issue passes) are rising. That makes the bond issue much more expensive. (Much more expensive. See Wichita School Bond Cost Could Rise in a Big Way.) Back when the district sold bonds from the 2000 bond issue, interest rates were lower than estimated. Mr. Libhart seems to be hoping for a similar scenario to play out.
But what made interest rates lower back then was the recession resulting from the terrorist attacks on September 11, 2001. Do we want another recession, just so Wichita school bond interest rates will be low? Mr. Libhart’s unfortunate analogy makes me think so.