Report: PUSD Loan Will Cost School District Nearly $1B

VOSD reports that a $105 million loan to the Poway Unified School District last year will cost almost $1 billion to re-pay.

As students in the Poway Unified School District began their summer break, recognized the district’s accomplishments in student achievement and relationship with the teachers union.

As the summer winds down, another report has attracted attention to PUSD, this one questioning the wisdom of the district’s borrowing money in 2011 using a capital appreciation bond.

Voice of San Diego reporter Will Carless posted a story Monday detailing the loan, which provided the district with $105 million last year, but payment toward the debt won’t begin for 20 years. Between 2033 and 2051, the PUSD will have to pay $982 million to pay off the loan.

For a full report on the bond, read the story on Voice of San Diego.  

SaraAM August 15, 2012 at 04:39 PM
That's the beauty of politics though, isn't i? Nobody here has to mention other candidates by name (though if you do a little research on Poway patch and Facebook, you can see that several of these people who have commented are Vaus supporters), they just have to bash Mangum despite not having all of the facts. Dirty politics, as usual.
Clariece Tally August 15, 2012 at 05:22 PM
My article fully vetted by both the local editor and the regional editor, and other outside news sources have also confirmed. But by all means try and deflect from Mangum. He was the Board President in 2008 when this bond was placed on the ballot. He was still a Trustee when they financed the 2009 CAB. The 2011 financing has its roots in the earlier CAB and the creation of the financing began in 2010 - it was only completed in 2011. The only dirty politics here is the disception by the Trustees. But go ahead and try to deflect this to others unrelated to the debacle. That's dirty politics. I voted for Mangum - I trusted him too. And that trust has been irretrievably violated. Never again should any of these people hold the public trust by holding any elected office. Hell I don't even want them running an FFA carwash.
Joe St. Lucas August 15, 2012 at 05:22 PM
You have until Oct 23 to file nomination papers as a write-in candidate. Silly as it sounds, you can't just put someone's name on the ballot and get it counted, you have to file as a write-in. I'd suggest that if someone wants to run as a write-in for the PUSD board since the normal period has ended, that they consider this early. Hate to get too many write-ins and "dilute" the vote and wind up w. the incumbents getting re-elected. http://www.sdcounty.ca.gov/voters/Eng/reports/General_Election_candidate_schedule.pdf
Mike H August 24, 2012 at 03:22 AM
Why can't city go bk? They could reorganize the debt or set up a prepayment plan... Does anybody know, why this isn't being suggested,? Obviously our small co can never pAy such a large number.
wayneh October 17, 2012 at 11:06 PM
This has nothing to do with the City of Poway. It is the Poway Unified School District, a completely separate entity that encompasses areas of Poway and the City of San Diego. Yes, Jeff Mangum voted for the bonds as did the majority of the voters who passed the bond issue. Once a bond issue is passed by voters it is then put out to market and sold. In 2010, while Mangum was still on the PUSD Board, the bond could not be sold due to conditions in the bond market at that time. And yes, he voted for this bond to be financed. However, when the final vote was take in the spring of 2011 and the bond was actually funded, Mangum was no longer on the board. The decision to use CAB funds to finance the bond was decided at that time. The choice was between a non-callable CAB or a CAB that would be callable in 10 years. That CAB would have cost about $100 million more than the non-callable one that the 2011 Board members decided to go with (no Mangum). If the Board had not selected 1 of these 2 options, then PUSD would have been in default and the State of California would have taken over the school district. In my opinion, the biggest mistake that the board made was not having a PUBLIC meeting in 2011 to present these options to the PUBLIC and have the people tell the Board what we wanted them to do.


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