Optimize your financial literacy and understand the covert forces forming your household's future. This deep dive into School Financing, School Debt, and the Education Crisis exposes how Wall Street and Private Equity are profiting from Public Schools through a $1.5 Trillion Debt Trap.
TL; DR: Your kid's school is being developed into a golden goose for Wall Street. While parents are guaranteed "no tax increases," school districts are signing onto predatory Capital Appreciation Bonds (CABs) and sale-leaseback plans that turn a $100M loan into a $1B payment. This documentary exposes how the local bond market is gutting classroom spending plans to settle massive financier interest.
THE $1.5 TRILLION BET DESTROYING YOUR KID'S SCHOOL
The American education system is facing a quiet financial execution. Since the 2008 crash, states have slashed $600 billion from K-12 financing, requiring districts into the arms of predatory lending institutions. In this episode of How Wealth Grows, we follow the cash from your regional real estate tax to Wall Street benefits.
Learn how the "ESSER Cliff" and the end of pandemic-era financing are leading to mass layoffs, and why your local school may actually be an occupant in its own building. We're drawing back the curtain on rates of interest swaps and complex derivatives that are taking from the next generation to fuel existing financial markets.
WHAT YOU'LL LEARN:
The Debt Trap: How the $1.5 trillion community bond market holds school districts hostage.
Capital Gratitude Bonds (CABs): The "pay later on" plan that swells debt by 10x.
The ESSER Cliff: Why 2024 and 2025 are the most harmful years for school spending plans.
Sale-Leasebacks: Why districts are offering their buildings just to lease them back at a premium.
The Tax Illusion: How "no rate increase" ballot steps conceal years of backloaded financial obligation.
OPEN YOUR FINANCIAL FUTURE
Stop being a victim of systemic monetary traps. Join our community to begin paving the way to a debt-free journey and reclaim control of your wealth.
00:00:00 - How $1.5 Trillion in School Debt Impacts Trainees and Spending Plans 00:03:34 - Understanding Capital Appreciation Bonds: The Bond That Eats Lunch 00:07:11 - Why School Districts Select Risky Financial Obligation Structures Over Plain Bonds 00:10:44 - Who Owns Your School's Debt? Inside the Local Bond Market 00:14:23 - How School Bonds Are Traded and the Effect On Regional Class 00:18:11 - Sale-Leasebacks: When Schools End Up Being Renters in Their Own Buildings 00:21:56 - Rate Of Interest Swaps: How Derivatives Complicate School Finances 00:25:38 - The Hidden Costs of Financial Complexity in School Districts 00:29:18 - Advisors, Underwriters, and Conflicts of Interest in School Finance 00:32:53 - COVID-19, ESSER Funds, and the Temporary Relief for School Budgets 00:36:34 - The ESSER Cliff: What Happens When Federal Aid Runs Out? 00:40:14 - Charter Schools, Districts, and the Fight Over Public Funding 00:43:54 - How School Financial Obligation Service Crowds Out Classroom Costs 00:47:33 - Bond Rankings, Downgrades, and the Real Expense to Schools 00:51:08 - Election Promises vs. Long-Term Financial obligation: The Tax Rate Impression 00:54:50 - Accountability Spaces: Who Spends For Backloaded School Debt Offers? 00:58:22 - Best Practices: Guardrails and Transparency in School Financing 01:02:01 - How Policy Shifts Made Schools Dependent on Financial Markets 01:05:42 - The Future of School Financing: Lessons, Threats, and Reforms Needed
SIGN UP WITH THE DISCUSSION
Has your regional school district requested a brand-new bond recently? Did you understand how that cash was being structured? Let's speak about it in the comments.
