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Friday, August 10, 2012

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

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.)



Anonymous said...

Why would anyone buy a house or invest in a business where the government would do such a thing. The end is near...

Anonymous said...

Sounds like an Ireton plan

Anonymous said...

It is right out in the open criminal behavior!

The bankers who put these bonds together are raping the citizens and corrupt elected officials allow them to do it. The bankers have bought (but never paid) for the state and federal governments.