Gretchen Morgenson has a great article about the mess the Denver school system is in because of an overly complex financing arraignment. Ms. Morgenson is unfortunately right, and it is not an oversimplification, to say Michael Bennett (who was superintendent of the Denver school system) bought a zero down McMansion with a variable rate. The result is $25 million more in financing fees and $9+ million in bankers fees. The worst thing is if Denver terminates via refinancing it would be stuck with $81 million in termination fees.
I’ve seen the state of most Denver schools and it’s not good. Granted the biggest problem is the large Hispanic population (who admittedly do not value education), nevertheless, getting a higher caliber of teacher by offering better pay, and measurable classroom results would certainly help. Adding to the school districts pension problems may not have an immediate or direct impact on the classroom but it’s effects will be felt.
Here’s a link to Exotic Deals Put Denver Schools Deeper in Debt