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FOR IMMEDIATE RELEASE\:                     Contact:  tjjohnston@fulldisclosure.net

April 14, 2004                                                       310-822-4449

 

 

SCHOOLS USED AS COLLATERAL

FOR NON-VOTER APPROVED BONDS

Full Disclosure Network® TV ON THE INTERNET & CABLE

 

 

Los Angeles-CA-Could the bondholders on the Belmont Learning Center actually take possession of the five high schools and three middle schools pledged as collateral for the 1997 Certificates of Participation if the L. A. Unified School District defaulted these on non-voter approved bonds?  The answer isYES, according to Constitutional Attorney Richard Knickerbocker, a former Santa Monica City Attorney who was also the Redevelopment Agency legal counsel..

 

"If we can't pay our debts, we take out a loan on our house.  And then we spend all that money on our debts, and then we have to pay our mortgage payments, and we can't pay our mortgage payments, and we lose our house."  Knickerbocker told Full Disclosure Network® host Leslie Dutton in the second half of a two-part program covering school financing.  Part one featured California State Controller Kathleen Connell (1995-2003).

 

The interview with Knickerbocker is set to air world-wide on the Internet on Saturday April 18, 2004 at www.fulldisclosure.net, 24 hours a day, seven days a week, free on demand as a public service.  Both part one and two will also be featured on 40 cable systems throughout California for the next six months.

 

Knickerbocker described the proliferation of government-imposed fees upon fees, which replaced taxes as a form of revenue,  ever since the passage of Proposition 13.  He said there is no incentive for governments to live within a budget and that "the budget becomes a meaningless document.."  "what happens if you have a budget and you have virtually no income coming in or the income goes way, way down because of a loss of business, for instance like California, we don't have a lot of business right now.  We have a loss of income far in excess of the amount which the budget says you're going to."

 

You can view the entire program on our website at www.fulldisclosure.net, (starting Saturday) via media streaming, in addition to our 40 cable systems throughout California during the next six months.  A channel guide with airtimes is available on the website.

 

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