Hey! You wanna borrow $164 million and pay back $1.2 BILLION? Get in line behind San Diego...

[charlie]

...and Escondido, and Oceanside, and the Poway Unified School District. They're paying for school upgrades with a marvel of a financial instrument called a "capital appreciation bond." Take your money today, make no payments for 20 YEARS.

You can preen with fiscal prudence and assure residents there will be NO tax increases. Of course, your kids and grandkids will get flattened, but that's a long, long time from now in a galaxy far, far away.

Meanwhile, the debt interest accrues from day one.

http://www.voiceofsandiego.org/education/article_3f780860-e0b7-11e1-821b-001a4bcf887a.html
http://www.voiceofsandiego.org/education/article_c83343e8-ddd5-11e1-bfca-001a4bcf887a.html

This line from the second article should jump out at you:

With advice from an Orange County financial consultant, the district borrowed the money over 40 years in a controversial loan called a capital appreciation bond.

Yeah, that Orange County, ground zero of the largest municipal bankruptcy in US history at the time.

[JDPriestly]

1. I have decided that I will vote no on all bond issues

unless they are energy-related.

If we need money, we should pay the taxes now. Our government should not borrow from the rich in order to enrich them more with tax deductions and interest payments.

Tax the rich. Don't pay them interest.

[Confusious]

2. Boy that is stupid

I know San Diego is repug territory, but what about the others?

Really, really stupid.

Ps. After looking, seems they are. Republican and stupid.

I'll bet real money that in 2030 those cities declare bankruptcy.