More Fiscal Genius Out of California

Aside from rewarding police chiefs with $200K pensions for 8 months on the job, the financial geniuses who run things in California are paying for nifty new things with bonds that mature 40 years into the future and which will cost them 10x the amount of the bond in interest...

A California school district is shouldering $1 billion in interest on a $105 million bond in a deal intended to defer most of the payments for 35 to 40 years.

The Poway Unified School District, in San Diego County, structured its 2011 sale of capital-appreciation bonds to avoid debt service until 2033, with the largest sums -- more than $300 million each -- due in 2046 and in 2051, according to data compiled by Bloomberg.

That'll make for a great slogan for attracting home buyers to Poway circa 2030, "Come to our town and sign up for your share of $1 billion in debt that you never benefited from!!"

Gee, do you think that residents of Poway are going to educate their children and then get the hell out of dodge before the billion dollar bill comes due???  Will there be any suckers stupid enough to buy their houses?