SDCTA Supports Assembly Bill 182 - School Bond reform
The proposed legislation will reform the use of bonds issued by school districts, as well as eliminate the abusive use of risky financing tools school districts have recently been using to finance capital projects authorized by voters. The use of long-term Capital Appreciation Bonds defers bond payments to future years and relies on rising home prices in order to pay back principal and accrued interest payments. Until the bill is passed and becomes law, each school district within the county should comply with the elements within AB 182 to ensure no further debt issuances harm taxpayers. SDCTA recommends one amendment to the bill to provide further transparency when CABs are proposed to be issued.