PUSD has hired the Dolinka Group, consultant for outrageously expensive Capital Appreciation Bond scheme, for facilities financial study
Original post made by Dolinka Watch on Dec 6, 2012
According to Bloomberg Web Link, Dolinka is the Irvine based consultant who has in some cased caused taxpayers to incur massive debt via Capital Appreciation Bonds.
Districts have taxpayers have to pay 10 to 20 times the amount of the bonds in order to pay back the debt.
School districts sell bonds that saddle them with massive amounts of debt, similar to interest-only loans issued during the housing bubble (but here, not even the interest is paid for a while). And we all know how that turned out.
on Dec 6, 2012 at 5:09 pm
Kathleen Ruegsegger is a registered user.
Here is the editorial I posted on the story about a new elementary school regarding Capital Appreciation Bonds (CABs): "Contra Costa Times editorial: Expensive school bond maneuver must be revealed" Web Link