California school boards are making sure future generations will get a bill they cannot pay. And leave the students of today with no way to educate their kids.
Payroll check loan stores rip off the working poor luring them into small advances on their meager paychecks and charging them dearly for the privilege.
Charles Ramsey, president of the West Contra Costa school board near San Francisco tries to rationalize taking out an equivalent to a payroll check loan to get federal money. Chuck says, 'We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."
Now Chuck has saddled the school district with over $35 million in interest payments for that $2.5 million.
Chuck isn't the only irresponsible government goon. San Diego Poway school district did the same thing only their nut was to go after $100 million and now owe over $1 billion in interest.
Two hundred school districts statewide have dug the same hole and guess what? No one will go to jail, none of the school board hobbits will even be around when these districts go into default.
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