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.