Los Angeles school district will sharply raise taxes on property owners

The L.A. Times reports:

The Los Angeles Unified School District plans to sharply raise the property taxes of hundreds of thousands of L.A. homeowners because the recession has pushed down tax revenues needed to repay school bonds. The economic downturn has also caused a potential cash-flow crisis for the nation's largest school-construction program.

The district is allowed to raise taxes under little-known legal protections for bond holders. In essence, if revenues from property taxes can't cover installment payments for bond debt, L.A. Unified can raise tax rates, even if they rise above past projections.

Here's more on the expensive failure called the L.A. Schools.