Bonds a Risky Way to Deal With Pension Woes

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.

To read the entire column, please click here.


  1. “dissuade our elected leaders from making ill-advised decisions” it is not an ill-advised to repay your donors in order to get re-elected, it’s how they do it! high risk financing blows up and it runs in 7-10 year cycles. that’s when the bad decisions get amnesia and wonder why that hasn’t been done for awhile. 2008 + 10? it’s about time.

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