5 districts may need taxpayers’ help to avoid default if investment schemes sour

Amy Hetzner & Avrum Lank:

Five Wisconsin public school districts have made an investment gamble that could force taxpayers to finance multimillion-dollar bailouts.
The districts – Kenosha, Kimberly Area, Waukesha, West Allis-West Milwaukee and Whitefish Bay – have piled up debt in deals to help fund health insurance and other non-pension benefits for retirees. But as global financial markets have seized up, the districts have been told the value of their investments has fallen so much that they might need to come up with a combined $53 million to avoid default.
Specifically:
Kenosha might need almost $8 million in additional collateral or risk default on $28.7 million.

2 thoughts on “5 districts may need taxpayers’ help to avoid default if investment schemes sour”

  1. It makes sense that these areas of extreme conservatives should reap what they have sown. The teachers and support staff who only want to teach in Whitefolks Bay should consider this when they insist they do not want to teach at schools of poverty or where there are too many brown folks. They are concerned about their safety…
    Like Wanda Sikes has said. I will walk through Harlem. Someone may steal what I have on me. But, should I walk through Wall Street, they will not just what I have on me, but also my retirement fund, my children’s education fund, my grandchild’s trust.
    The choice is yours.
    You make your bed, sleep in it.

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