By Joel Thurtell
Thanks to Kevin Dayton for his latest post on California CABs.
What Michigan did by banning CABs in 1994 is relevant to what’s been happening in California with school CAB debt since at least 2000.
A Detroit banker once described CABs as creating a “bow wave” of debt that just keeps reaching out through time.
Poway Unified schools, with a billion dollars of debt for a principal of $105 million is terrible, but the idea of postponing debt payoff till far into the future and at multiples of the amount borrowed is just too awful and too stupid to stand the light of exposure.
In future blog columns, I’ll explain why the Michigan Legislature crafted its anti-CAB legislation as it did.
