Posted on 12/09/2016 12:55:29 PM PST by C19fan
Chicago's public school (CPS) system plans to sell a new type of bond issue in an attempt to separate the debt from the district's severe financial woes and protect it in a potential bankruptcy filing, according to a document released by the district on Tuesday. The preliminary prospectus for the debt indicates the Chicago Board of Education will issue $500 million of bonds secured solely by a capital improvement property tax and not by the district's general obligation pledge.
(Excerpt) Read more at reuters.com ...
We created the growth of the massively indebted, ideologically captured, ever-growing nanny-state when we created the Federal Reserve and the income tax.
We put it on steroids when Nixon completely severed the link of the USD to gold.
That meant that money became completely under the control of a few central planners and their ability to manipulate supply and cost. It meant that Government has the right to pick your pocket, and what they can’t get at, they will inflate away through massive debt and money-printing.
“The preliminary prospectus for the debt indicates the Chicago Board of Education will issue $500 million of bonds secured solely by a capital improvement property tax and not by the district’s general obligation pledge.”
Good luck with that.
Pensions.
Need you ask? The Democrat, Leftist Leopard does not change their spots. Money will go to Union, bureaucrats and bribes. Expect waste to continue. Last recipient will be for the school kids!
Who would ever buy these bonds on the basis of current Chicago finances? Fungible money goes to the greedy in corrupt environments. Hint to the naive: Chicago defines corrupt!
I wonder if the city realizes that the taxpayers are going to pay any “special capital improvement property tax” out of the same income that they use to pay the taxes that fund the city’s general obligation account. The well is running dry.
Will they be printed on a nice grade of bathroom tissue paper?
To preserve some value to the holder on the maturity date.
Not a school curriculum issue, but one that points out the money many of them waste.
That’s a great economic plan they have. Sell bonds to fund ongoing operation and disguise them as capitol expenditures. I know, I know, they make it up on volume.
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