By Diana Lambert
Gov. Jerry Brown signed legislation Wednesday to prevent school districts from entering costly bond deals such as a 2009 Folsom Cordova Unified agreement that requires about $18 in payments for every $1 borrowed.
Assemblywoman Joan Buchanan, D-Alamo, said her Assembly Bill 182 responded to reports that some California school districts were paying huge amounts of interest on capital appreciation bonds. The controversial borrowing tool allowed districts to postpone repayment for decades to fund current campus construction, all the while accumulating large amounts of owed interest that future taxpayers must retire.