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San Diego City Councilmember Carl DeMaio on the impact of the school loans and whether the state will be able to repay them.
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-- -- follow up on our story from yesterday.
We've broken about California cities are in desperate need for cash we've got back.
That willing to take loans with huge -- payments down the line in order to get money now.
San Diego Merrill have -- open current city councilman book called in my he's -- is from California.
Call we made a big deal yesterday about the power away school district which had gotten a 105 million dollars and now.
But over the life of that loan would pay back 981.
Million dollars now no that's not your district.
But I want to know.
Did vote is know everything about -- -- and when they voted to approve it.
We'll Stewart it's pretty outrageous it really reflects Enron style financial management.
At every level of government.
And you see that our schools are facing major financial problems.
And they're just adding to those problems like kicking the can down the road it's -- in this case they took out -- -- -- -- hundred million dollars.
And they decided that they would structure the loan where they don't pay any payments at all for 25 years so that when they finally getting around.
Did get around that start paying -- the interest and principal.
Then they end up having to pay a billion dollars back we found another school district the San Diego unified school district they -- got a 160 million dollar loan.
They're going to be having to repay one point six billion dollars.
And then we're seeing some other irregularities such as governments the city of San Diego itself took out a hundred million dollar infrastructure loan.
In 2009.
And then when we started asking hey what's been done -- this money we found in 2011.
-- 50%.
Of those funds or even put -- projects so you're paying debt on this money but you're not getting the actual infrastructure or the project's done does nick.
Did those voters know precisely what they will voting fall did anybody tell them -- you get a 105 million now but you've got to pay 981.
Million dollars back again what it was spelled out in clear tones.
It was not clear whatsoever in fact our San Diego County taxpayers association is really the leading organization that watchdogs.
Each of these ballot propositions and I talked to them.
The looked at these bonds and they were never informed of the financing structure that was going to be used so.
Everyone is shocked their outraged.
And you know our kids deserve better because we literally are mortgaging their future over the this is financial management that cannot be acceptable.
Can you go to court and say this was a bogus vote.
The -- but the voters were not informed flat out not -- so upset alone can do that.
What we're certainly looking into -- every single remedy but the first thing you need to do this.
Call this out bring it to your attention so doesn't happen again and I'll tell -- I'm pretty shocked that the Paoli unified school district management set out an email.
In the last two days defending.
This sort of borrowing.
And it simply shows that.
The messages not been hurt by these government officials and taxpayers ought to be just absolutely stop and Matt this is unacceptable and should not be repeated Euro Republican.
You running for -- San Diego.
What's your platform what are you standing on when it comes to municipal finance I -- I wanna get something radical because I mean you're in such -- dire straits I wanna hear some kind of radical solution -- this.
When you followed my progress here on this show for the past several years we're that the leaders now in pension reform might pension reform ballot measure passed overwhelmingly.
In June 65% of the vote.
It switches us to a 401K.
Retirement -- program with Social Security.
And it it really reforms these outrageous pensions for existing employees were not just waiting for new employees off.
-- -- ballot measure of the country with an existing -- exactly -- the point you went on the the -- -- after existing -- employees existing -- can be done potent it.
It can be done don't let any politician -- labor union boss tell you otherwise they're just trying to preserve the unsustainable system.
My opponent Bob -- he says that we shouldn't reform pensions instead we should borrow.
Billions of dollars which is really just kicking the can down the road and I I think he might be taking an idea from the school district maybe he'll set up the bonds so that we don't pay any interest or principal for thirty or forty year plus tell -- -- color trying get him on the program let him explain his own financial situation that called -- violent and -- thank you very much sassy consume.
