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California School District Owes $1 Billion On $100 Million Loan
npr ^ | Dec 7, 2012 | Richard Gonzales

Posted on 12/09/2012 9:16:58 PM PST by Biser

More than 200 school districts across California are taking a second look at the high price of the debt they've taken on using risky financial arrangements. Collectively, the districts have borrowed billions in loans that defer payments for years — leaving many districts owing far more than they borrowed.

(Excerpt) Read more at npr.org ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS:

1 posted on 12/09/2012 9:17:03 PM PST by Biser
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To: Biser

SNIFF...... I smell Mafia..


2 posted on 12/09/2012 9:20:04 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole..)
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To: hosepipe

What you smell is the pile of sh#t these idiots have made with stupid loans.


3 posted on 12/09/2012 9:39:31 PM PST by Kozak (The Republic is dead. I do not owe what we have any loyalty, wealth or sympathy.)
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To: hosepipe

What you smell is the pile of sh#t these idiots have made with stupid loans.


4 posted on 12/09/2012 9:39:31 PM PST by Kozak (The Republic is dead. I do not owe what we have any loyalty, wealth or sympathy.)
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To: hosepipe

That and chapter 7...

heck payday loans are cheaper.


5 posted on 12/09/2012 9:50:36 PM PST by cableguymn (The founding fathers would be shooting by now..)
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To: Biser

These school districts and school boards have nobody to blame but themselves.

They should also be looking at their union benefits.


6 posted on 12/09/2012 9:53:24 PM PST by GeronL (http://asspos.blogspot.com)
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To: Biser; victim soul; Isabel2010; Smokin' Joe; Michigander222; PJBankard; scottjewell; ebb tide; ...
+

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7 posted on 12/09/2012 9:59:26 PM PST by narses
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To: Biser; victim soul; Isabel2010; Smokin' Joe; Michigander222; PJBankard; scottjewell; ebb tide; ...
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8 posted on 12/09/2012 10:00:00 PM PST by narses
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To: Biser; victim soul; Isabel2010; Smokin' Joe; Michigander222; PJBankard; scottjewell; ebb tide; ...
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9 posted on 12/09/2012 10:01:04 PM PST by narses
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To: Biser
One thousand percent debt service? Even with payment deferral, that is utterly immoral.
Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury.

Deuteronomy 23:19
And here is the punishment.
10 posted on 12/09/2012 10:02:27 PM PST by Olog-hai
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To: Biser

“”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].”

This is the type of stupid thinking that DC encourages. That 2.5 million is costing the district 34 million to retire.

And we wonder why we are so darned broke.

IDIOTS


11 posted on 12/09/2012 10:05:05 PM PST by Nifster
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To: Nifster

Nah; the Superintendent is not an idiot, just a crook.
He knows he will be long gone with his fat 500,000 dollar a year pension, long before that debt comes due.


12 posted on 12/09/2012 10:48:28 PM PST by 5th MEB (Progressives in the open; --- FIRE FOR EFFECT!!)
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To: Biser

“Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. “You’d take that any day,” he says. “Why would you leave $25 million on the table? You would never leave $25 million on the table.”

This guy’s attitude isn’t the problem...the problem is that he can say that without fear of his neighbors stringing him up.


13 posted on 12/09/2012 11:09:48 PM PST by Psycho_Bunny (Thought Puzzle: Describe Islam without using the phrase "mental disorder" more than four times.)
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To: Biser
The members of the board that voted for this package belong in jail.

And the guys who sold it with them.

14 posted on 12/09/2012 11:43:45 PM PST by Carry_Okie (The Slave Party: advancing indenture since 1787.)
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To: Kozak
What you smell is the pile of sh#t these idiots have made with stupid loans.

IIRC, a school board composed of educrats "needed" the money but were stuck on a fixed cash flow because those stingy voters didn't approve a tax increase. So, they rigged it so that they could get the cash while the voters would pay more over a VERY long term.

15 posted on 12/10/2012 12:01:04 AM PST by Carry_Okie (The Slave Party: advancing indenture since 1787.)
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To: Biser

After all, they are simply following the financial trail that most Americans take:

Never ask what it actually costs, just ask how much are the monthly payments.


16 posted on 12/10/2012 4:15:24 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: Biser; ding_dong_daddy_from_dumas; DoughtyOne; Gilbo_3; Impy; stephenjohnbanker; NFHale; ...
RE :”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.”

They needed to raise $2.5M to get a $25M federal loan to build a new school, so they borrowed that 2.5 too using a CAB which doesnt require any immediate payments but has high interest in the future. Now they owe $34B on the debt from that $25M school which they didnt even have the upfront $2.5M for.

The Solution is simple: Move out of state (or at least that district) after your kids are done with public schools.

I have some relatives who did just that, they moved after their kids finished college.

Let the movie stars and gays and illegals work it out.

17 posted on 12/10/2012 5:52:06 AM PST by sickoflibs (Dems know how to win. Rs know how to whine.)
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To: sickoflibs; Grampa Dave; stephenjohnbanker; thouworm
Paraphrasing Saint Augustine “Without a system of justice – what is govt but a marauding band of thieves.”

====================================================

LOTTA PORK FOR POLS IN THOSE GOVT BOND ISSUES Californians hase a busy bee state Treasurer---Bill Lockyer---saddling business and individual taxpayers with billions in taxes via those Wall Street bonding deals he loves to put together. How very easy it is for conniving pols to get s gigantic piece of those billion dollar pies.

Wall Street knows how to make money disappear faster than a cream puff at a Weight Watchers weigh-in.

==================================================

A Labyrinth of Govt Fraud----stories like this mean astonishingly easy----massive govt fraud.

REFERENCE Govt officials find 2nd off-the-books bank account / LAT / February 17, 2011

Montebello, Cali govt officials said they discovered yet a.n.o.t.h.e.r secret off-the-books bank account that once contained nearly $1 million in city govt funds. Officials do not know why the secret account was created, why it was never recorded on the city's general ledger or what happened to the govt money that was transferred out. One signator on the secret account was former City Manager Richard Torres. City policy generally requires the treasurer to be a signator, not the city manager. The bank holding the secret account refused to disclose to the city who the other two signators are.

Revelations about a secret Union Bank account follow news of an off-the-books account at Banco Popular discovered earlier....That account contained about $240,000 govt monies; officials also discovered records that indicated tens of thousands of govt dollars had been transferred out. They do not know to whom or why.

City govt's official banker is Bank of the West. Officials have asked for bank statements and records and are hoping to reconstruct what happened. They have also queried every member of the govt finance department to ask if they know of any other off-the-books accounts. The Union Bank account came to light when an employee

spontaneously alerted the finance director. Officials found out about the Banco Popular account when the bank contacted city govt because the account had been dormant for a while.

The news about the secret accounts comes as Montebello struggles to close a deficit that could force officials to make deep service cuts and lay off employees. Criminal probes have also begun in San Bernardino agencies for possible govt fraud.

=================================================

REFERENCE Here's how pols loot and pillage the govt in Illinois: Dixon, Ill's dumb accountants, mayor and council failed to miss $53 million govt monies stolen by an insider---the Dixon, Ill govt comptroller.

The dumb*** Mayor never figured there was a secret bank account into which the Comptroller deposited govt funds. Trying to explain how that much money could disappear unnoticed, braindead Mayor James Burke said Dixon has struggled financially because "the state" is far behind on income tax disbursements to munis.....(now there's a red flag is there ever was one).

How Comptroller Rita Crundwell could sustain such an extravagant lifestyle on an $80,000 salary was mostly attributed to her success in the horse industry, the dumbest Mayor in the world stupidly said. "She definitely was a trusted employee, although I've had some suspicion for quite a while just because of her lifestyle," Mayor Burke said.

A Chicago-based corruption watchdog, the Better Govt Association, called Dixon a wakeup call for state and local officials to put in place better safeguards, especially in smaller towns that lack rigorous oversight. "Tens of billions of our tax dollars flow through 7,000 plus units of government in Illinois every year. And we can only watch a few of them," said the association's president, Andy Shaw. "Most of them don't have inspector generals. Most of them don't have auditor generals. Most of them don't have watchdog groups looking closely.... It's ripe for rip-offs."

=================================================

REFERENCE An astoundingly brazen larceny -- $5.7 million was electronically emptied out of the coffers of Columbia University into an employee's bank account. Now, several university employees are on trial----accused of funneling the stolen millions into the Bank account of alleged mastermind George Castro, 49, in collusion w/ two workers in the university's accounts payable dept..... allegedly altering a routing code and other info connected to payments slated to go from the university's medical center to an affiliate hospital.

The money never reached its destination. "Within six weeks, over $5 million meant for New York Presbyterian Hospital found it's way into the employee's Bank account," prosecutors said.

When nabbed by cops, one university employee was carrying bags of money -- $200,000 in cash -- into his new $80,000 Audi as cops busted him outside his Bronx residence..... he and his co-defendants had at that point thrown hundreds of thousands of stolen dollars into failed day trading investments. One accounting dept insider pled guilty to grand larceny and is hoping to avoid jail by testifying against the four defendants and his accounts payable co-conspirator. (NYPOST.COM)

18 posted on 12/10/2012 6:41:47 AM PST by Liz ("Come quickly, I'm tasting the stars," Dom Perignon)
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To: Psycho_Bunny

When he said that “good deal” line, someone should have slapped him and told him to wake up...


19 posted on 12/10/2012 6:44:24 AM PST by ltc8k6
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To: 5th MEB

being a crook doesn’t mean you aren’t also an idiot....It takes the brainlessness of a liberal to decide to spend more money than you have in order to get something you really don’t need


20 posted on 12/10/2012 10:34:47 AM PST by Nifster
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To: Liz
saddling business and individual taxpayers with billions in taxes via those Wall Street bonding deals he loves to put together. How very easy it is for conniving pols to get s gigantic piece of those billion dollar pies.

Birmingham AL has a former mayor (Larry LaLa Langford) in the pen over exactly that.

21 posted on 12/10/2012 10:51:34 AM PST by 6ppc (It's torch and pitchfork time)
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To: 6ppc

Thanks for the realtime report——musta nailed LaLa w/ the Hobbs Art.


22 posted on 12/10/2012 4:10:44 PM PST by Liz ("Come quickly, I'm tasting the stars," Dom Perignon)
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