Bet you know someone like “Shorty”. Decent guy, owns a newer home, drives a Mercedes, has a smart phone, iPad, desktop, home theater, and enough credit cards to be comfortable. Shorty had a decent income, got a home equity loan to pay down credit cards and install that pool he wanted. When he had to take furlough days due to the economy, his income didn’t cover all expenses, and home and car repairs had to wait. But Shorty got tired of waiting for the economy to improve, his income to recover, and he wanted a newer car. He also wanted solar panels to cut his SDG&E bills (and cover his worn out roof). Having a loan broker friend helped get him a 125% LTV (but high interest) refi loan, and roll in his home equity and credit card balances, with enough left to buy security fencing for the pool and fix some home electrical problems. Shorty was soon upside down on his mortgage, and credit card balances (again), and just couldn’t borrow any more. He knew he was living beyond his means, and his priorities were unrealistic. And he knew he should curtail his spending and borrowing, move to a smaller home, and drive a cheaper car; but not before his lender foreclosed and Shorty lost his home.
If you know someone like Shorty, then you also know CUSD: Constantly spending, borrowing, taxing and spending some more. CUSD wants everything, always brand new, and they want it now, regardless of their revenues. “It’s for the children”, so everything becomes priority one, and CUSD can justify any expense and avoid painful spending cuts, or even propose a school bond if taxpayers are foolish enough to pass it. High interest bonds and loans, mortgaging entire school properties, repaying one loan with the proceeds from the next the CUSD “debt clock” just keeps spinning faster! And home owners are just an “alternative funding source”, expected by CUSD to pay the parcel tax for 300+ transfer students, and all the Coronado renters-with-children.
WAKE UP Coronado! CUSD has been running a multi-million dollar Ponzi scheme since the late 1990s. WE are the suckers paying for CDA loans, Prop KK bonds, 2005 Financing Project, Debt Service Reserve Fund, BBMAC pool funding debacle, and WE are at risk for default on the Middle School mortgage. Are you going to fall for this scheme AGAIN, or will you Vote NO on the Prop E School Bond?
-Jim Newhall
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