California School Districts Find Clever Way to Bankrupt Grandchildren

California is not known for sound debt management. Within the last two months three cities have gone bankrupt and a fourth may soon follow. While the municipals have been the focus of attention, school districts with independent taxing and borrowing authority are quickly making the cities look like the epitome of financial integrity. The most reported instance of fiscal insanity is the San Diego area Poway School District. The district will borrow $105 million for 40 years. It will pay no interest or payments to principle for the first twenty years and then it will begin paying $981 million over twenty years at the rate of about $1 million per week. Fox Business News has tracked down three more districts in the same area that have or are in the process of doing the same thing.