School districts throughout California took on an additional $1 billion in debt this decade as a result of bond refinancing schemes encouraged by banks—and now deemed unconstitutional by Attorney General Jerry Brown. About 200 cash-strapped districts agreed to renegotiate the terms of taxpayer-approved bonds in order to have extra money for school repairs or new additions to campuses. But these deals were illegal, says Brown, because the state constitution forbids school districts from taking on added debt without voter approval, which the school districts didn’t have. Each deal resulted in more debt for districts and increased property taxes for the next 10 years. Banks, led by UBS and Piper Jaffray, sold the refinancing to schools with the promise it would save taxpayers money and provide extra cash. According to Bloomberg News, the two companies collected fees that were quadruple the national average for bond sales, and much of the money went to advisors recommended by the lenders.