Schools Have More Money So Why the Financial Distress?

OUSD will get much worse. School budgets in California are supposed to be extra healthy during bull markets, when tax revenues swell from capital gains. But the other side of that coin is that California schools are expected to suffer financial distress during bear markets when capital gains decline. If OUSD is in trouble in the ninth year of a bull market and after the stock market has nearly quadrupled since 2009 and California enacted a 30 percent income tax increase in 2012, just imagine its finances during the next bear market.

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