Saturday, December 1, 2012

State Treasurer calls for firing of WCCUSD school board

State Treasurer Bill Lockyer is blasting school boards and school officials for their choice to use Capital Appreciation Bonds (CABs) for funding school construction, saying "They are terrible deals," Lockyer said. "The school boards and staffs that approved of these bonds should be voted out of office and fired."

The Contra Costa Times further reports:

West Contra Costa: The district issued a $2.5 million CAB in 2010 to raise the money to issue a $25 million federally subsidized bond. The $2.5 million CAB requires $33.8 million total to pay off.

"If we didn't issue the $2.5 million in CABs," said school board President Charles Ramsey, "we wouldn't have gotten the $25 million to build the school for 1 percent interest, so we felt that was the responsible thing to do."

If Treasurer Lockyer is correct, then where is the oversight that should have prevented taxpayers from being persuaded to support such funding measures?  Why are we having this discussion after the fact?

CC Times report here

1 comment:

  1. The California League of Bond Oversight Committees is attempting to provide the necessary oversight