The San Mateo Union High School District is sitting on a “ticking time bomb” in the form of $1 billion of capital appreciation bond payments that will come due in the next 32 to 37 years, according to a report from the county’s civil grand jury.

The district’s board of trustees contested the grand jury’s 12-page report, entitled “Capital Appreciation: Ticking Time Bombs,” saying in a response Thursday that it mistakes CABs for BABs, or Build America Bonds.

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