Assembly OKs Bill Limiting High-Cost School Bonds
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SACRAMENTO, Calif. (AP) — California lawmakers have advanced a bill aimed at restricting the use of high-cost school bonds.
The Assembly on Monday approved AB182 by Democratic Assemblywoman Joan Buchanan of Alamo. It passed 73-0 in the 80-member chamber and moves to the Senate.
The bill limits the ability of school districts and community colleges to issue so-called capital appreciation bonds.
State Treasurer Bill Lockyer says changes are needed to protect taxpayers from what he said were “terrible bond deals” that delay payments for years while interest keeps accruing.
The bill would prohibit bond maturities that exceed 25 years and limit debt service to four times the amount borrowed.
School administrators and finance officers oppose the bill in its current form.
An original co-author, Ben Hueso, moved recently from the Assembly to the Senate.
Copyright 2013 The Associated Press.