California Assembly Seal

Capitol Alert
The latest on California politics and government
April 8, 2013

The California Assembly passed a bill today that will limit the use of a controversial facilities improvement bond that allows school districts to delay repayment for decades while hefty interest obligations accumulate.

Capital Appreciation Bonds came to the spotlight in August when Voice of San Diego outlined a deal in the Poway Unified School District that put taxpayers on the book for almost $1 billion on a loan of $105 million.

Several stories followed, including two in which The Bee found the Yuba Community College District will pay $59 million to retire $4.6 million in bonds and Folsom Cordova Unified will pay $9.1 million to retire $514,000 in debt.

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