EdSource Today: Districts urged to hold off buying high-risk construction bonds

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State Superintendent of Public Instruction Tom Torlakson and State Treasurer Bill Lockyer called Thursday for school districts to stop issuing capital appreciation bonds, or CABs, which can leave taxpayers with huge balloon payments, until the Legislature has had time to impose new restrictions on their use.

“We are convinced that remedial legislation is needed to prevent abuses and ensure that both school board members and the public obtain timely, accurate, complete, and clear information about the costs of CABs, and alternatives, before CABs are issued,” they wrote.

via Districts urged to hold off buying high-risk construction bonds – by John Fensterwald.

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