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   Why we need a California tag: California schools districts taking loans that are "the equivalent of payday loans." One district now owes more than $1 billion on a loan of $100 million. Way to go, professional smart people

11 Dec 2012 01:21 AM   |   8727 clicks   |   NPR
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Sgygus    [TotalFark]  
One district now owes more than $1 on a loan of $100 million.

Such a deal! (They must be white).

10 Dec 2012 08:48 PM
AdolfOliverPanties     
Way to go unprofessional dumb subby.

10 Dec 2012 08:49 PM
BarkingUnicorn     
LOL! As fails go, that's a good one, subby!

10 Dec 2012 08:52 PM
feckingmorons    [TotalFark]  
Do they really need a 25 million dollar elementary school? Or do they just think they can pay 10% of what it costs and get free money from the government?

It seems like there should be another solution, but they probably legislated themselves into a corner by limiting class size, requiring so many square feet of football pitch per student, and other very nice, but not essential things.

Sucks to be them, sucks more to be the people who end up holding the bag when they municipality or school district goes Chapter 9.

10 Dec 2012 08:52 PM
giftedmadness     
Lol public schooling

10 Dec 2012 09:12 PM
fiver5    [TotalFark]  
It's California, they can just raise taxes to get that money back.

10 Dec 2012 09:18 PM
vygramul    [TotalFark]  
I was going to blame some of this on assholes who don't have to worry about re-election by the time the bonds are due and get to live high on public adoration in the meantime. However, the guy they spoke to is a moron.

10 Dec 2012 11:27 PM
fusillade762     
Who are they borrowing this money from, anyway?


fiver5: It's California, they can just raise taxes to get that money back.


Not really. That's part of their problem. Tax increases have to go to the voters or be approved by a congressional supermajority (if I'm not mistaken). Though the Democrats do have one of those in CA now...

11 Dec 2012 12:19 AM
thomps     
"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."
...
Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."


god i hate people sometimes.

11 Dec 2012 12:26 AM
simplicimus     
In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

11 Dec 2012 12:45 AM
vygramul    [TotalFark]  

simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?


charlesmobley.files.wordpress.comView Full Size

11 Dec 2012 12:47 AM
simplicimus     

vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]


Just wow.

11 Dec 2012 12:53 AM
vygramul    [TotalFark]  

simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.


Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.

11 Dec 2012 12:54 AM
simplicimus     

vygramul: simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.


We get those ads here in TX as well. That's a lot of vig.

11 Dec 2012 01:05 AM
OnlyM3     
Yay, democrat math!

11 Dec 2012 01:26 AM
JonBuck     
I think somebody failed middle school math.

11 Dec 2012 01:31 AM
archichris     
School Districts are not running low on money, they are running low on common sense.

They build multi-million dollar sports complexes and pay millions in copying charges for gods sake.

Our local school district is DEAD LAST in our state, yet it spends more money than every other district int he state but one, over $15,000 per student per year.

That means by the time they graduate we have spent $180,000 on their k-12 education. Its insane.

The School District defends its policy of social advancement, sending children on from 3rd grade who cannot read at grade level. They claim to graduate 85% of their students, but they only count the ones who make it to Senior Year. They actually lose 50% of the students between freshman and senior years. Of those 85%, only 5% are certified ready for higher education or work without remedial training. They graduated, but they cannot do basic algebra or write intelligent reports. (intelligible)

We tried to get a new school board elected this last election, first time in 20 years they have been challenged from the outside. In the last 20 years every single school board member has been either picked by our local democratic party or is a former member of the school administration. They have wasted three quarters of a billion dollars on results that decline every single year for the last 20.

The single worst place you can put your children around here is the public school system, but because there is a 50 million dollar budget and unlimited taxation authority, the Democrats simply will not let it go. They even managed to recall a special ballot for a retiring member after one of our candidates was the only person to file to run in the special election.

It had literally not happened in anyones memory, they assumed there would be an appointment by the state department of education like always. So when our guy was the only one there, they put pressure on the County Clerk to recall the ballot, then had the state education director say that the election couldn't be held because the resignation wasn't accepted for 21 days......one day longer than the filing deadline. They went so far to ignore the fact that the information they used to deny the election WASNT AVAILABLE UNTIL AFTER THE BALLOTS HAD BEEN PRINTED.

They literally sat there with straight faces and said that information after the fact justified the actions taken before the fact. Which is a good thing for them, otherwise what they did would be illegal under state law. But the Governor is a democrat so go figure there was no interest in an investigation into the matter.


Blame your local school board if your schools owe a billion dollars, but good luck getting rid of them.

11 Dec 2012 01:34 AM
JC22     
Credit is basically destroying this country's foundations...just wait till the real sh-t hits the fan...we haven't even begun.

11 Dec 2012 01:35 AM
Securitywyrm     
"So if we take out this loan, we can defer the payments for 20 years, at which point we'll be paying several thousand percent interest?"
"Yes."
"Well let's see, I retire in 10 years so... let's do it!"
"But what about when the loans come due and suddenly the district is out of money?"
"What part about me retiring in ten years didn't you get?"

11 Dec 2012 01:36 AM
drjekel_mrhyde    [TotalFark]  

vygramul: simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.


I swear this is true: A illegal stole this guys identity and paid off half his debt. he was like "fark it I'll wait 4 more years before reporting it"

11 Dec 2012 01:40 AM
Mike Chewbacca     
Property taxes pay for public schools.
California is the second hardest hit state in the housing crash.

11 Dec 2012 01:42 AM
Mike Chewbacca     

drjekel_mrhyde: vygramul: simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.
Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.

I swear this is true: A illegal stole this guys identity and paid off half his debt. he was like "fark it I'll wait 4 more years before reporting it"


Did an illegal steal your n, ese?

11 Dec 2012 01:43 AM
jtown     
"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."

It would be foolish not to take advantage of getting $25 million when I had to spend just $2.5 million in advance for the wealth transfer fee, Moran says.

Am I the only one who thinks that deal sounds like a classic Nigerian scam? (I know I'm not.)

11 Dec 2012 01:45 AM
Brick-House     
images.bbgsite.comView Full Size


California: Nope!

11 Dec 2012 01:46 AM
gweilo8888     
FTFA: "In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.

Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table.""


Why would I leave $25 million on the table, Mr. Charles Ramsay?

I'd leave $25 million on the table if I had to pay $34 million to pick it up.

You are not "getting" a brand-new $25 million school. You are "PAYING $34 million to get a $25 million school".

There is no possible way that doing so makes sense, and you are an idiot for trying to pretend it does.

11 Dec 2012 01:46 AM
willfullyobscure     

archichris: School Districts are not running low on money, they are running low on common sense.

They build multi-million dollar sports complexes and pay millions in copying charges for gods sake.

Our local school district is DEAD LAST in our state, yet it spends more money than every other district int he state but one, over $15,000 per student per year.

That means by the time they graduate we have spent $180,000 on their k-12 education. Its insane.

The School District defends its policy of social advancement, sending children on from 3rd grade who cannot read at grade level. They claim to graduate 85% of their students, but they only count the ones who make it to Senior Year. They actually lose 50% of the students between freshman and senior years. Of those 85%, only 5% are certified ready for higher education or work without remedial training. They graduated, but they cannot do basic algebra or write intelligent reports. (intelligible)

We tried to get a new school board elected this last election, first time in 20 years they have been challenged from the outside. In the last 20 years every single school board member has been either picked by our local democratic party or is a former member of the school administration. They have wasted three quarters of a billion dollars on results that decline every single year for the last 20.

The single worst place you can put your children around here is the public school system, but because there is a 50 million dollar budget and unlimited taxation authority, the Democrats simply will not let it go. They even managed to recall a special ballot for a retiring member after one of our candidates was the only person to file to run in the special election.

It had literally not happened in anyones memory, they assumed there would be an appointment by the state department of education like always. So when our guy was the only one there, they put pressure on the County Clerk to recall the ballot, then had the state education director say that the election couldn't be held because the resignation wasn't accepted for 21 days......one day longer than the filing deadline. They went so far to ignore the fact that the information they used to deny the election WASNT AVAILABLE UNTIL AFTER THE BALLOTS HAD BEEN PRINTED.

They literally sat there with straight faces and said that information after the fact justified the actions taken before the fact. Which is a good thing for them, otherwise what they did would be illegal under state law. But the Governor is a democrat so go figure there was no interest in an investigation into the matter.


Blame your local school board if your schools owe a billion dollars, but good luck getting rid of them.


our schools are great. we live in a very mixed race and income urban setting but all our public schools are in the top %10 and budgeting is painless. YMMV.

11 Dec 2012 01:48 AM
That Guy...From That Show!     
It could have been worse, in the TRILLIONS if they had have bought desks, chairs, and computers as well from

i30.photobucket.comView Full Size

11 Dec 2012 01:49 AM
TomD9938     
FTHL :

Why we need a California tag:

California schools districts taking loans that are "the equivalent of payday loans." One district now owes more than $1 billion on a loan of $100 million.

Way to go.


professional smart people

HLOTY

11 Dec 2012 01:50 AM
12349876     

giftedmadness: Lol public schooling


If it was private schooling you'd be taking out payday loans for 16 years instead of the 4 for college we have right now.

11 Dec 2012 01:55 AM
bromah     
This seems more like internal corruption to me. Someone got a kick back to take out he loan. Besides, Western Sky is under investigation/indictment for usuary and fraud.

11 Dec 2012 01:57 AM
simplicimus     

bromah: This seems more like internal corruption to me. Someone got a kick back to take out he loan. Besides, Western Sky is under investigation/indictment for usuary and fraud.


Serious question:How can the US government act against a sovereign nation?

11 Dec 2012 02:00 AM
rewind2846     
Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.
When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.

11 Dec 2012 02:00 AM
Linkster    [TotalFark]  

simplicimus: bromah: This seems more like internal corruption to me. Someone got a kick back to take out he loan. Besides, Western Sky is under investigation/indictment for usuary and fraud.

Serious question:How can the US government act against a sovereign nation?


Fine print says he is an individual member of the Nation, that's HOW.

11 Dec 2012 02:02 AM
simplicimus     

rewind2846: Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.
When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.


So, Fark you, pay me?
/Paulie

11 Dec 2012 02:02 AM
kmt11     
PUSD... Yeah, my former school district.

11 Dec 2012 02:09 AM
TomD9938     

rewind2846: When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.


Well, there are limits.

He doesnt want you cooking meth in the kitchen of his building in order to pay the rent.


Cook it off site, pay cash and dont ask for a CRP.

11 Dec 2012 02:09 AM
zerkalo     
Legs need breaking

11 Dec 2012 02:12 AM
Uchiha_Cycliste     
I could have sworn the Bay was "just East of San Francisco"

11 Dec 2012 02:12 AM
DrPainMD     
Don't you people understand? When the government spends money it stimulates the economy. Just ask Krugman.

11 Dec 2012 02:15 AM
Phoenix_M     

rewind2846: Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.
When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.


Prop 13 has jack shiat to do with the problems of California schools it's just a convenient excuse by politicians and idiots who don't understand how prop 13 works.

11 Dec 2012 02:25 AM
Father_Jack     
another question? why is this even legal to do, on either level?

why do these loan products even exist at such usurious rates, and why are schoolboards allowed to make such terrible decisions? where's the oversight in either regard?

11 Dec 2012 02:28 AM
aerojockey    [TotalFark]  

thomps: "We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."
...
Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."

god i hate people sometimes.


$34 million to finance a $25 million school sounds pretty good to me.

11 Dec 2012 02:29 AM
worlddan     
Back in the '90s, the state of Michigan banned capital appreciation bonds altogether. But Lockyer says California needn't go that far. He supports a series of reforms such as capping the payback of debt to four times the amount borrowed. 

WOW, such a sweetheart. So rather than the school districts having to pay back 10X the amount they borrowed the noble knight rides to the rescue and only will require them to pay back 4X.

LOL.

11 Dec 2012 02:29 AM
oldtaku     
Why wouldn't they? They're not the ones paying for it. If you can vote for other people to pay for stuff the answer is usually yes.

One key bit is that people consider themselves in 10 years to be 'other people'.

11 Dec 2012 02:29 AM
mikeoj     
I can't find the article now, but a study was done on new school construction in the Los Angeles area. The cost per sq ft for concrete tilt-up construction exceeded the cost per sq ft of some lavish casinos in Las Vegas. Your tax dollars at work.

11 Dec 2012 02:32 AM
worlddan     

DrPainMD: Don't you people understand? When the government spends money it stimulates the economy. Just ask Krugman.


That's actually true. The problem here is that the government isn't actually spending money. It is taxing the poor and giving it to the rich (the bond holders). Only 100 million is actual spending. The other 900 million is simply a reverse wealth transfer.

11 Dec 2012 02:35 AM
FOBL     
Looks like the Fark Politics pre-election sock puppets have moved over to the commenting section of NPR.com. Jesus.

11 Dec 2012 02:41 AM
gregscott     
Seems like a plan. A small community agrees that due to fiscal crisis, they will bankrupt the town, and move when the inevitable default occurs. Aren't congressmen operating on that same plan right now, at a national level?

11 Dec 2012 02:49 AM
erik-k     
In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.

'The School District Equivalent Of A Payday Loan'

Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."


art1.server01.sheezyart.comView Full Size


/There are no words

11 Dec 2012 02:50 AM
gibbon1    [TotalFark]  

feckingmorons: It seems like there should be another solution, but they probably legislated themselves into a corner by limiting class size, requiring so many square feet of football pitch per student, and other very nice, but not essential things.


The voters in 1978 passed Prop 13, which is pretty much the source of all this mess. Listening to my fellow Californians when this passed the consensus was if you limit the amount of money the government can raise then they'll spend the money they do have wisely. And if you've ever seen how poor people spend money, you'd be dissuaded of that notion pretty quick. Because poor people do exactly the sorts of things that the school districts in California do. Rob from the future to pay for the present.

11 Dec 2012 02:55 AM
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