LTISD Info

The LTISD recently reported about a recent upgrade in their financial rating by the Fitch rating agency:

“Fitch Ratings, a global rating agency committed to providing the world’s credit markets with independent and prospective credit opinions, research, and data, has raised its issuer credit rating (ICR) on the Lake Travis Independent School District’s general obligation (GO) debt to ‘AA,’ up from ‘AA-‘ the previous year. The rating is the highest level given by Fitch to any Texas school district.”

An interesting development to say the least. Which did not go unnoticed by Patrick Watson, who wrote in a Letter to the Editor published in the January 28, 2010 issue of the Lake Travis View:

“To the editor:

The January 28 edition of the Lake Travis View reported that Fitch Ratings has raised its score for the bonds of Lake Travis Independent School District to AA, the highest of any school district in the state. Superintendent Dr. Rocky Kirk was quoted attributing this action the the district’s “sound financial management.”

What Dr. Kirk didn’t point out is that only a’ few months ago, LTISD tried to raise property taxes saying that, among other things, the district’s bond rating was in danger at current tax rates. Voting residents overwhelmingly disagreed with the trustees and refused the board’s plea for more tax revenue. Now we learn that, far from being downgraded, the district’s bond rating actually went up!

I only see two possibilities. Either Fitch Ratings is incorrect about LTISD’s “high degree of financial flexibility,” or the LTISD bond rating was, in fact, not in peril back in November and those who said so were flat wrong. In either case, someone made a huge mistake. That’s the real story here.

If I’m misunderstanding this, I invite Dr. Kirk and the trustees who wanted a tax increase to offer the voters a more complete explanation. I’m sure the Lake Travis View will be happy to report the facts.”

- Patrick Watson, Lake Travis View, Letters to the Editor, January 28, 2010

It seems that Patrick Watson is skeptical of what Rocky Kirk, says. And with good reason. Rocky is plagued by an over inflated salary with little to show for it. And to think, the Board keeps giving Rocky more and more money.

We should all remember:

“A lie told often enough becomes the truth.”

-Vladimir Ilyich Lenin