School districts wary of grand jury's bond advice
Original post made on Aug 30, 2013
Read the full story here Web Link posted Friday, August 30, 2013, 1:26 PM
on Aug 30, 2013 at 2:26 pm
Here is what is really going on, this is one of the Fire hose that is spewing money out. Here is the real story.
"when local governments and school districts use bonds to borrow money, the repayment with interest amounts to approximately double the face value of the bond. Borrow $100 million and expect to repay $200 million dollars over 20 to 30 years. But when Poway school officials cut a deal with a financial institution to issue what is called a Capital Appreciation Bond (CAB), payments were not scheduled to begin for 20 years with the total to be repaid in 40 years. The cost to local taxpayers? $1,000,000,000! That's right, one billion dollars, ten times the amount borrowed."
For more look at the following website. WE as taxpayers should be totally discussed with this type of abuse. And this is just the tip of the iceberg.
on Aug 30, 2013 at 2:40 pm
Maher is a registered user.
Aren't we all tired of 'creative accounting" practices that distort the exprenses in venues and "spin" the ultimate cost of whatever so as to fool the voters. I'm tired of it and I'm furious that school districts have been useing these techniques to cover up problems.
The house of cards rationales: i.e. school districts oppose the grand jury's recommendation to deal with the problem now BUT will wait for passage of AB182 (which may not pass btw)which makes the jury's recommendations law. Now why do school districts want to wait and see if they know the changes are needed? They are hoping their delay tactics will mean they never have to change their corrupt processes. That's why.
SHAME ON THEM!
on Aug 30, 2013 at 2:51 pm
The MVWSD vote on this agenda item was 3:2 with Trustees Chiang and Nelson disagreeing with the district letter. SN is one of the five MVWSD Trustees