County Treasurer-Tax Collector Dan McAllister announced this morning that his office plans to push for a slew of legislation to fix glaring holes in the law surrounding school bonds.
Public attention has focused in on a controversial form of bond financing called capital appreciation bonds in the two weeks since our story explained the extraordinarily expensive borrowing at the Poway Unified School District.
These bonds, which don’t get paid back for as long as 40 years, often result in school districts paying back many times what they borrowed in the first place. In Poway’s case, the district will pay back more than nine times what it borrowed. Poway has become the poster child for this kind of borrowing, but isn’t alone across San Diego County or the state.