School Board is Buying iPads for $2,500, New San Diego County Taxpayers Association Analysis Shows

San Diego Unified School Board is using 40-year Capital Appreciation Bonds, the same risky, long-term financing notoriously used by the Poway Unified School District

SAN DIEGO--(BUSINESS WIRE)--The No On Z campaign has released a new graphic called, “These iPads cost what?!” to highlight the obscene amount of money the San Diego Unified School Board is paying for thousands of iPads.

“The students using these iPads will still be paying for them in 2050.”

Anyone can buy an iPad for $399, but the school board is paying $2,500 apiece, according to a new analysis by the San Diego County Taxpayers Association (SDCTA). The school board issued 40-year Capital Appreciation Bonds – the same risky, long-term financing the Poway Unified School District infamously used – to buy nearly 11,000 iPads. In other words, the school board is deferring principal and interest payments for 20 years!

“The school board has essentially taken out a 40-year mortgage to pay for devices that have a 3- or 4-year shelf life,” said Lani Lutar, SDCTA’s President and CEO. “The students using these iPads will still be paying for them in 2050.”

The financing decision can be traced back to 2008 when voters approved Proposition S, a $2.1 billion school bond. Instead of using that money to fund major repairs – which is how the bond was presented to taxpayers – the school board has funded smaller improvements and paid for technology, including iPads and laptops, for students.

Of the $2.1 billion voters approved, the school board has spent $380 million, which will cost taxpayers more than $2.5 billion with interest over 40 years. If it continues down this financing path, the $2.1 billion bond would cost taxpayers as much as $14 billion – nearly a 7-to-1 ratio.

Applying the 7-to-1 ratio, the iPads will cost taxpayers $2,500 apiece over the life of the bond. In addition to the iPads, the board has purchased more than 75,000 laptops using the same high-interest, long-term financing.

The school board still has $1.7 billion remaining from Proposition S and intends to continue using bond funds to pay for iPads.

Worse, the school district is back asking San Diego voters for an additional $2.8 billion tax increase, Proposition Z, on the November ballot. The San Diego County Taxpayers Association is leading the campaign against Proposition Z.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50449210&lang=en