Measure targets school districts engaged in risky borrowing, including Poway Unified and Santee School District
By Cary Hyatt and Miriam Raftery
October 1, 2013 (Sacramento) – Assembly Bill 182 has been passed by the Legislature and is now on Governor Jerry Brown’s desk. Several local legislators coauthored the bill including Democrats Ben Hueso and Marty Block as well as Republicans Rocky Chavez and Mark Wyland.
The measure would create restrictions in California on capital appreciation bonds (CABs) used by school and college districts. CABs defer payments far into the future and can cost 10 to 20 times more than the original amount borrowed.