MAY 22, 2012
Issue: 7
THANK YOU for contributing to the success of CaLBOC's First Annual Statewide Conference!
Downloadable PDFs of Conference Handouts:
20 page handout that accompanied presentations (1.8MB):  



Preserving the Public Trust:
Case Studies in Technical Financial Analysis

Lori Raineri, President of Government Financial Strategies

Presentation on the bottom line cost of bond financing strategies, as well as foundational flaws in a bond program. Isolating costs and understand bond financing techniques.  Raineri_handout_14pgs.pdf  *


Forensic Accounting Tips

Alicia Minyen, CPA, CFE, CaLBOC Board Member

Learn methods for detecting waste and illegal misuses of bond proceeds. Capital Appreciation Bonds: Understanding the Universe of CABs and their negative implications on school financing.

This article was referred to at CaLBOC's Statewide Conference
In the Headlines 
Bond firms' campaign gifts linked to sales pacts. With Campaign Donations, Bond Underwriters also Secure Contracts
May 3, 2012 | Will Evans |  

Leading financial firms over the past five years donated $1.8 million to successful school bond measures in California, and in almost every instance, school district officials hired those same underwriters to sell the bonds for a profit, a California Watch review has found. 


The practice is especially pronounced in California, where underwriters gave 155 political contributions since 2007 to successful bond campaigns for school construction and repairs. One major underwriter, Piper Jaffray, has said it gets more requests for campaign contributions in California than in any other state where they do business.


The success rate of these underwriters is extremely high. In only five cases since 2007 has a campaign donor failed to receive a bond-selling contract from the school district.  


School districts say they choose bond underwriters for their expertise and competitive rates and because they've served them well in the past. And underwriting firms say they contribute only after they've been hired to sell the bonds, avoiding any undue influence.


But critics say that no matter when the agreement is made, the campaign donations influence school districts' business decisions. They argue that pre-arranged underwriting contracts bypass a truly competitive sale, leaving in doubt whether districts got the best possible deal.


 "If this isn't clear proof of pay to play, then pay to play doesn't exist," said Glenn Byers, Los Angeles County's assistant treasurer, who oversees some school bond sales but doesn't control the hiring of underwriters. "The timing of the payment is irrelevant. You paid and you got the job. That's pay to play."


Some states have banned the practice. Missouri, for one, outlaws donations to bond campaigns from companies with a financial interest in the bond sale.

In the past five years in California, five major underwriters donated $1.8 million to help pass 111 ballot measures, authorizing $15.5 billion in debt. A couple dozen other measures received underwriter contributions but failed at the ballot box.


Overwhelmingly, bond underwriters who donated to these campaigns were granted contracts by school districts. ...   ... At times, multiple underwriting firms will donate to a single bond campaign. But even there, the success rate is high. In almost all cases in which multiple bond underwriters donated to the same campaign, they all were given contracts by the school district to market those bonds.  ...


To read the complete article please visit:
In This Issue
Bond firms' campaign gifts linked to sales pacts
Mission Statement

The Next CaLBOC
Board Meeting 

November 9, 2012  
10 am -  3 pm 
Note the change in time from previous meetings.  
Conference call service will be available for this meeting.

At the May 11, 2012 CaLBOC Board meeting it was decided to have semiannual board meetings   Therefore our August 10, 2012 board meeting has been canceled.    
Mission Statement 
What is Our Mission  

To promote school district accountability by improving the training and resources available to California's Proposition 39 School Bond Oversight Committees and educating the state legislature, local school boards and the public about the oversight and reporting powers these Citizens' Bond Oversight Committees (CBOCs) have, and to advocate on a state level, where appropriate, on issues of common concern to all CBOCs.

About CaLBOC 
What is CaLBOC? CaLBOC was formed in 2006 by CBOC members trying to find better training to help them perform their duties. Our first training session was held in San Jose in 2007, and we incorporated in the State of California in 2008. In 2009 we were recognized as a 501(c)3 charitable organization by the IRS. 
We encourage you to post and comment on our CaLBOC Blog 
California League of Bond Oversight Committees, 510-799-1141,