Voter approval for Proposition S, the $155 million bond issue to fund needed repairs to St. Louis Public Schools buildings, has the potential to provide a significant stimulus to the St. Louis economy. In fact, this will be part of the “stimulus” intended by Barack Obama in his successful passage of the American Recovery and Reinvestment Act of 2009, as $55 million of the bonds accessed by the district will be interest-free debt provided through the Recovery Act.
When members of the Special Administrative Board that currently runs the district met with The St. Louis American to seek our endorsement of Prop S, they said the projects funded by the bonds will create approximately 3,100 construction jobs. Board members also said the SAB would beat the City of St. Louis’ standard inclusion goals of 25 percent Minority Business Enterprise and 5 percent Women Business Enterprise participation in projects that stem from this bond issue. As always, the proof of this promise will be in the pudding.
At a time of great economic, social and political uncertainty, one thing was made clear in St. Louis on August 3: the residents of the city who turn out dependably for mid-term primaries in the blazing August heat are dedicated to the survival of the city public schools. There is no other way to explain the huge margin of victory for Prop S – 76 to 24 percent – or the fact that it was the single largest citywide vote getter. For citywide elected officials such as Gregg F.X. Daly and Michael McMillan, who look at vote totals when there is no mayoral election as indicators of how they might fare competitively in a mayoral contest, the best pick for the next mayor of St. Louis, based on the August 3 returns, was the St. Louis Public School District.
These voters were thinking, first and foremost, of our students and their needs, but we gave our endorsement, in part, based upon the SAB’s promise that it would be inclusive in vetting and awarding the contracts that result from these bonds. Minority inclusion should begin with the selection of the consultants hired to sell the bonds. Issuing these bonds should generate more than $1.5 million in fees to bond and underwriter attorneys and investment banking firms. There are some extremely competent and successful black-owned investment banking firms with offices in Missouri and elsewhere that the SAB should consider closely. The selection of a diverse team of consultants and underwriters to sell the bonds would convey a direct first message to the community that the district will make good on its promises of inclusion. It also is a reminder that African Americans can do much more than move dirt – we can manage complex financial transactions at every echelon of business.
