California Schools Lose Revenue After Lehman Brothers Collapse
November 19, 2008
San Mateo County, California, invested a portion of its funds with Lehman Brothers prior to the collapse of the investment bank. Interest revenue was used to help fund community colleges, high schools, and elementary schools. The collapse of the bank could now require budget cuts. Although there was hope at the time of this story that the federal government bailout would restore these funds, the current federal strategy of investing in existing financial institutions may call this into question. Given the impact of Proposition 13 on California schools, the story also underscores the importance of property tax revenue for Illinois schools.
http://abclocal.go.com/kgo/story?section=news/education&id=6428849