Sunday, October 4, 2009

Why New Jersey Is Near Bankruptcy

Imagine a local school district being able to spend as much as they wanted for their new school. No expense spared for the cafeteria, athletic fields, media center, auditorium and all the latest features. How much could be spent? Try $200 million dollars for the new Union City High School.

And why were the locals so generous towards funding the new school. Because all of the money was put up by New Jersey. How much does the $200 million dollars translate per pupil? Assume an interest cost of 4% (the money was borrowed) and a life of 50 years. That equals $12 million dollars per year! For a school with 2,000 pupils, that is $6,000 per pupil for the facility cost. And, of course the facility has to be maintained.

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