By Jon Coupal | Recently, this column exposed the foolishness of two proposed statewide bond measures: A $15 billion school bond, which will be on the March 3 ballot, as well as a “climate resiliency” bond.
Both are horribly flawed for several reasons, not the least of which that it makes no sense for California to go further into debt when we have a large surplus.
But at the local level, taxpayers need to be aware of a recent resurgence in the use of pension obligation bonds, a risky financing method that fell out of favor during the recession but is now making a comeback.
Fortunately, there is more scrutiny on this form of debt financing than in years past, which may help to dissuade our elected leaders from making ill-advised decisions.
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