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“Voice of San Diego” investigative reporter Will Carless on the Poway School District’s high-yield bonds.
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Are more details tonight on a developing story we talked about yesterday taxpayers of -- still district just north of San Diego.
-- out unified now that on the hook for nearly a billion dollars in interest on a hundred million dollar bond.
Come on here more like this will -- an investigative reporter for the -- of San Diego okay sadistic people understand.
How way.
Went.
Put some -- out into the market that basically well that -- -- to pay interest on and then on up to pay principal on them for a whopping twenty years.
-- -- when he -- -- -- start to have to pay an at this point -- interest payment is up to 982.
Billion dollars that's abstract right.
-- -- 990 billion does or not and an eighteen million by the time they paid off in Thailand set doesn't start off -- 992 but the point is that they'll be paying it off for the next when he isn't by the time everything's paid off.
You're up to almost a billion bucks.
He can't -- these loans you can't refinance them nor can you pay them off early.
Who opponent big sign the dotted line on this bond offering.
Well you know it was it was put together behind these school district by the the school -- them by that financial consultants and the basic idea I mean that there -- there -- -- kind of you know that there is a premise behind this that that's kind of been lost in in all that control the see evidence from the premises that look at.
-- home values are gonna go up -- taxes are gonna go up.
How women leverage it gains that we're gonna borrow against that say yeah it's it's not completely -- not -- -- crazy there is there is a good solid theory behind this.
It's just you know do a lot of people do just by completing irresponsible that that pushing.
Yeah that barring money now and then paying for it we've.
Future taxpayers money -- significant future taxpayers on the hook my club schools stuff that building now.
-- -- -- the people that sign on the dotted line will most likely be dead by then so why should they care amid mouse kind of their rationale here right regardless of what my home value does.
Will -- what's scary about it is it's just kind of its acute that the group of people making a decision that look we want this stuff now.
We want to put our names on -- we -- -- but I names on plaques and say that we built all of this stuff now but we don't have enough money to pay for in house or rather than.
Increasing taxes -- just gonna say what we're gonna have tax revenue in the future so we'll just.
-- that now and spend it then.
And that you can do that but they'll be -- very very expensive and that's why that can be a billion bucks on the hook.
Right it's like me charging the best wardrobe on the planet dying and given my kids the -- that's basically what it is gonna let let's go to I was here.
Now let me get let me ask you this did give voters have any idea about this.
-- I think the British had some idea that something was gonna happen -- part of the best way to -- -- mean that the best way to -- -- said he wasn't any details given to vote -- about language when they brakes on this that this is what was gonna happen that this is the way this is going to be financed.
You know and and I think to be fed the school district.
Wasn't quite sure at the time because remember this but this ballot measure it -- in 2000 -- -- And all they knew was right at some point -- gonna have to part of this money we don't have the revenue to get right now we -- how many more tax money we're gonna have to get creative.
I'm not sure if they really realize back in 2008 just how expensive and just how kind of extraordinary this was gonna become -- Clinton -- Yet when it comes down to in 2011 it's you know this is -- any deal they can make to deal with the doubled up.
Well tell us about now how if I'm a taxpayer taxpayer I don't go investigate my own district to see if I'm gonna eventually get hit with something like this down the road.
That that's right on the -- website -- plug -- voice of San Diego -- -- we've we've per day five step up plan has sort of five step how to guide senator.
I'll I'll coast and yeah this is just a Californians is just the school districts within California.
It's a five step up process that can go through they can see whether their local school district is taken out -- by this.
And they can see how much if so how much future taxpayers on the hook for senate.
But I don't know yet we still trying to figure out whether this is a nationwide trend I've no idea that in -- in.
New Jersey and Texas -- Carolina anyway I mean so where it will wait to find out hopefully some reporters though.
Taxpayer groups elsewhere we'll start looking into that yeah.
Hopefully they -- that -- site and maybe they can do the scene investigation in their own states and -- Michigan outlawed it but.
God only knows -- love my -- New Jersey who knows what happens there well callus -- San Diego thank you so much.
Thank you I appreciate it.
