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School District Owes $1 Billion On $100 Million Loan.

Discussion in 'Politics' started by I invented that, Dec 9, 2012.

  1. I invented that

    I invented that VIP Extreme Gold

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    wow, brilliant minds running california school systems.

    In 2010, officials at the West Contra Costa School District, just east of San Francisco, were in a bind. The district needed $2.5 million to help secure a federally subsidized $25 million loan to build a badly needed elementary school.
    Charles Ramsey, president of the school board, says he needed that $2.5 million upfront, but the district didn't have it.

    Why would you leave $25 million on the table? You would never leave $25 million on the table.


    - Charles Ramsey, school board president, West Contra Costa School District

    "We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."
    Those bonds, known as CABs, are unlike typical bonds, where a school district is required to make immediate and regular payments. Instead, CABs allow districts to defer payments well into the future — by which time lots of interest has accrued.
    In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay

    brilliant, a free $25 million costs taxpayers $34 million. what happened to the free part?:facepalm:

    Perhaps the best example of the CAB issue is suburban San Diego's Poway Unified School District, which borrowed a little more than $100 million. But "debt service will be almost $1 billion,"


    http://www.npr.org/2012/12/07/166745290/school-district-owes-1-billion-on-100-million-loan
     
  2. Billy

    Billy Brown VIP

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  3. stripes

    stripes New Member VIP

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    tip of the muthafuckin iceberg folks
     
  4. newcastlefan

    newcastlefan גֵּרְשֹׁם VIP

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    why couldn't they borrow $2.5mill long enough to get the 25 million and use about $3million of that to repay the $2.5mill?
     
  5. shitcunt

    shitcunt Well-Known Member

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    and not get to spend that 3 million on stuff?
     
  6. MatthewT

    MatthewT Awaiting The Rapture VIP

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    that's just crazy talk! :crazy:
     
  7. SiriusDawg

    SiriusDawg New Member

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    See, these people do not deserve a bailout nor did they deserve one when a elementary school was needed.

    What we need to do is give a few more Wall Street firms a few more billion dollars to help them out and maybe that will trickle down to a new, awesome school!
     
  8. I invented that

    I invented that VIP Extreme Gold

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    Did you read what these dummies did? Oh, you just want to strawman.
     
  9. MatthewT

    MatthewT Awaiting The Rapture VIP

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    SiriusDawg is not a serious person
     
  10. MatthewT

    MatthewT Awaiting The Rapture VIP

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    how about we just abolish the Dept. of Education, and fire all the teachers and administrators? :dontknow:

    i mean, there were no schools before the US instituted the Dept. of Education and government paid teachers, right?
     
  11. sfgirl

    sfgirl Well-Known Member VIP

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    West Contra Costa...... 'Nuf said....

    [​IMG]
     
  12. MatthewT

    MatthewT Awaiting The Rapture VIP

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    is that a county map or an orgy? :wtf:
     
  13. stripes

    stripes New Member VIP

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    usually fed grants are very specific as to spending such funds & usually not to pay back pre-existing debts or matching funds..
     
  14. SiriusDawg

    SiriusDawg New Member

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    Agreed. Feds have those pesky regulations stating that you must spend on what you say you will spend on, etc....damn rules always get in the way
     
  15. christ cracker

    christ cracker Well-Known Member

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    the governments in cahootys with the banks
     
  16. MatthewT

    MatthewT Awaiting The Rapture VIP

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    same people; they jump from obama's cabinet to goldman sachs and vice versa
     
  17. SiriusDawg

    SiriusDawg New Member

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    Link

    [​IMG]
     
  18. MatthewT

    MatthewT Awaiting The Rapture VIP

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    do you have a point? like, ever?
     
  19. SiriusDawg

    SiriusDawg New Member

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    [​IMG]
     
  20. MatthewT

    MatthewT Awaiting The Rapture VIP

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    so, the answer is "no"
     

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