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School districts wary of grand jury's bond advice

Original post made on Aug 30, 2013

The Santa Clara County Civil Grand Jury is calling for local school districts to adopt self-policing policies that would limit the use of capital appreciation bonds, which the grand jury found can potentially be abused by districts.

Read the full story here Web Link posted Friday, August 30, 2013, 1:26 PM

Comments (4)

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Posted by Good lord this shows the wrong picture
a resident of Monta Loma
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.

Web Link

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Posted by Maher
a resident of Martens-Carmelita
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.

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Posted by Steven Nelson
a resident of Cuesta Park
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

Like this comment
Posted by Otto Maddox
a resident of Monta Loma
on Sep 3, 2013 at 5:58 pm

Oh please.. it's our own fault. No one is paying attention anymore.

The robbers are now running the bank. What should we expect?

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