Committee backs $53 million in interest-free bonds for MPS projects

Larry Sandler & Erin Richards:

Milwaukee Public Schools could borrow up to $53.1 million interest-free to create new science and engineering laboratories, build a community learning center and repair aging schools, under a plan backed Wednesday by a Common Council committee.
If the plan wins final approval from the full council, federal stimulus dollars would pay the interest on the bonds and property taxes would be used to repay the principal. The School Board has voted to seek up to $53.1 million of the $72.1 million maximum that the federal government authorized for MPS borrowing, but the city issues school bonds.
Wednesday’s vote by the council’s Finance & Personnel Committee calls for the council to give preliminary approval Tuesday to borrowing the money without a referendum. Further action would be needed to issue the bonds. Mayor Tom Barrett plans to recommend a bond issue of about $48 million, said his chief of staff, Patrick Curley.
Michelle Nate, chief financial officer for MPS, said the ability to borrow at free or extremely low interest rates would allow the district to spend about $30 million on maintenance projects that have been put off for years.
“It’s like any major expense (for a homeowner),” Nate said. “You know you need a new roof, but you put it off until you can afford it.”