If a school district has more than $10 million in tax-exempt debt, inclusive of all outstanding bonds, certificates of participation, and other public debt issues with durations of more than nine months, it must comply with the contractual requirements entered into under Securities and Exchange Commission (SEC) rules. District administrators and…

The Internal Revenue Service (IRS) has announced that post-issuance tax compliance is among its highest priorities. This is supported by the recently imposed annual reporting requirement on nonprofit corporations regarding the application and use of tax-exempt bonds issued for their benefit. School districts issuing tax-exempt bonds often spend…

During the past several years, school district personnel have faced an arduous task of convincing a local electorate--including those who are not directly associated with local schools--to increase its own tax rate. Convincing demographic groups that have a vital interest in improving school facilities can be an easier task. Parents who want to…

Issuing long-term debt can be a complex, multifaceted process. Although the process varies by stare, typically the school business official and the district solicitor work with the financing ream, which includes a financial adviser, bond counsel, underwriter, raring agency, and possibly a bond insurance agent, paying agent, and architect.…

The federal government has traditionally given local school districts an indirect subsidy by allowing them to issue tax-exempt bonds. Because the bondholders pay no tax on the interest income, they are willing to take a bond bearing interest at, say, 4.5% rather than 6%. Such lower interest is great for the school district because it saves the…

Qualified school construction bonds (QSCBs) are part of the American Recovery and Reinvestment Act of 2009. These bonds allow school districts to finance capital projects at no or very low interest rates. In a nutshell, bondholders accept a lower interest rate because the corresponding federal tax credit they receive subsidizes that lower interest…

Describes the origin and purpose of Qualified Zone Academy Bonds (QZAB) and how they work. QZABs were the outgrowth of the Taxpayer Relief Act of 1997 that allowed school districts to borrow money, without paying interest, to fund such educational improvement projects as building renovation, new equipment purchases, and staff development. (PKP)

Investigates variations in state funding programs for school building needs. Includes table of 2001-02 primary state aid programs for school facilities. Also describes use of local voter-approved bond issues to fund local school construction. Includes table of 2001-02 state bond programs, debt limits, and state aid for debt. Discusses emerging…

Describes the bond-rating process; suggests several management practices school districts can adopt to improve their bond ratings: Adopt a fund balance, initiate debt-affordability and debt-amortization policies, institute pay-as-you-go funding to reduce dependency on debt, develop a multiyear plan, and communicate periodically with credit-rating…

A review of the 69 Missouri school bonds during fiscal year 1975 was made to determine the extent that various factors influence rates. (Author)

An Iowa architect reveals some surprising results of a study on how to secure voter approval. (Author)

Bond ratings are an assessment by an independent rating agency of the credit worthiness of a bond issuer, such as a school district, on repayment of a particular bond issue. Describes the rating procedures Standard and Poor's Municipal Finance Department uses to assign bond ratings. (MLF)

Issuing municipal bonds requires many decisions and involves a number of individuals. Traces basic and essential steps to ensure a successful endeavor. (MLF)

Describes local, state, and federal school infrastructure funding options. Local funding options include bond issues, special local-option sales taxes, and voter-approved mills and sinking funds. Describes use of federal Qualified Zone Academy Bonds. (PKP)

Provides advice to help school districts pass bond referenda. Includes lists of why referenda fail and win and ways to develop a successful bond campaign including a referendum timeline. (MD)