When Lehman Brothers collapsed in September 2008, it represented the single largest bankruptcy in the history of the United States. As a result, more than 40 municipalities from around the country lost almost $1.7 billion. I’ve introduced the Restitution for Local Government Act to assist the affected municipalities in recouping these lost tax dollars.
In my Congressional District, San Mateo County and its public institutions were part of the collateral damage and today are still reeling from the losses. When Lehman collapsed, San Mateo County lost $155 million. Teachers are being laid off. Schools are not being built or renovated. Roads are not being improved. Transportation plans are being scrapped, and critical upgrades in public safety have ceased.
San Mateo County is required by California State law to hold operating funds, reserves and bond proceeds in an investment pool. Their investment pool held funds on behalf of the county and local cities, school districts, transit agencies and the community college district.