🚀 go-pugleaf

Voters with even half a brain would kick these people the hell out! 
Immediately!

http://www.foxbusiness.com/investing/2012/08/08/california-school-
districts-spend-1-billion-to-borrow-100-million/

California School District Will Spend $1 Billion to Borrow $100 Million

By Elizabeth MacDonald

Emac's Bottom Line

Published August 08, 2012

FOXBusiness

        California Schools Borrowing Millions, Owe...
        Calif. County May Use Eminent Domain to Buy...
        $105M Loan to Cost Calif. School District Nearly $1B

It�s being called a loan not even a subprime lender would make.

A school district north of San Diego, Poway Unified, borrowed $105 million 
over 40 years by selling a bond so unusual that the State of Michigan 
outlawed it years ago. Taxpayers in the area will end up with a nearly $1 
billion bill at the end of this deal.

The Poway school district is not the only one � three other California 
school districts in San Diego are set to gouge taxpayers in similar 
fashion. The San Diego Unified School district borrowed $164 million up 
front, but will owe a whopping $1.3 billion at the end of its long-term 
bond. Oceanside Unified sold a $30 million bond, but will owe nearly ten 
times as much decades later, $280 million total. And Escondido Union School 
District likewise borrowed $27 million and will owe $247 million total. 
(Will Carless and Joel Thurtell at the Voice of San Diego, a local blogger, 
has been tracking these bond developments.) 

The bonds are a "kick the can" move to avoid dinging taxpayers now with 
higher property taxes.
Oh, and the bonds are not callable -- they can�t be paid off early or 
refinanced.

School administrators appear to have looked around at the sluggish economy 
and property tax revenues and figured, �Heck, why not defer now and pay 
nothing at all for decades? We�ll be dead by then.��

The problem is, the school districts are sitting on unused cookie jar 
reserves, $34.5 million for Poway. The school district has set aside the 
$34.5 million for things like �economic uncertainties� or 
�unassigned/unappropriated.� 

A Poway official declined comment.

Read more: http://www.foxbusiness.com/investing/2012/08/08/california-
school-districts-spend-1-billion-to-borrow-100-million/#ixzz237EwhbSr