Amy Resnick's Bondbits: Bonanza Ban

Local transportation agencies around the country may have to delay projects, raise fares or cut operating costs to make up for a $1.2 billion shortfall. That's the amount they're likely to lose over the coming decade under a U.S. Treasury Department plan to eliminate tax- advantaged municipal leases. Unlike bonds, these arrangements, under which an agency sells assets to a private investor who can benefit from the depreciation of that asset, don't need voter approval and don't encroach on borrowing limits.

The proposal to ban the deals is in President Bush's budget and pending federal legislation.