The Reporter: Several California school districts — including Vacaville Unified — use risky, costly bonds

By Richard Bammer/ RBammer@TheReporter.com

Some 200 school districts across California have borrowed billions of dollars using a costly and risky form of financing called capital appreciation bonds, or CABs, saddling them with a staggering debt load.

Dozens of Bay Area districts are among them, using the money to build and upgrade schools; however, critics are blasting the bonds because, depending on how they are structured, the bonds can burden homeowners with high debts that take up to 40 years to pay off at extreme interest rates.

Two of three Vacaville-area school districts, Dixon Unified and Travis Unified, have not used CABs, but Vacaville Unified has, although the amount is less than $6 million, spread out between two bond agreements.

via Several California school districts — including Vacaville Unified ….

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