School Districts may not Issue General Obligation Bonds for General Expenses

S.94 would prohibit the governing board of any school district from issuing general obligations bonds for the purpose of general operating expenses. The effect of a school district defaulting on obligations could be harmful to all the children in that district. This reform is a sensible clarification that will make school district defaults less likely by preventing the unwise and potentially disastrous fiscal policy of financing day to day operations with debt.

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