Where Borrowing $105 Million Will Cost $1 Billion: Poway Schools

http://m.voiceofsandiego.org/mobile/education/article_c83343e8-ddd5-11e1-bfca-001a4bcf887a.html

Wow, just wow. I can see now our plan will be to move out of Poway School District 20 years from now. There is zero chance, in my opinion, that real estate values will quadruple 20 years from now. Salaries would have to increase to support that. And in this era of stagnant salaries and pressure from worldwide competitors with much lower costs of living, it will never, ever happen.

"The full 2,200 word statement makes no mention of capital appreciation bonds, and says little about how the borrowing would be paid back. The ballot arguments against the bond don't mention the unusually high costs involved in borrowing money that won't begin to be paid back for 20 years. The bond also had considerable cachet, thanks to a coveted endorsement from the San Diego County Taxpayers Association. Indeed, association President Lani Lutar's name was first on a list of five local dignitaries named on the ballot as supporting the bond. Lutar said had she known the full implications of the bond, she would not have recommended the association support it."
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