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.
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.
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
LATEST FINANCE HEADLINES
Detroit Resumes Water Shut-Offs for Overdue Bills1 hour ago
Ferguson Relies on Court Fines for Major Revenue Generator4 days ago
The Week in Public Finance: Rhyme Time, Slow Money and Water Works4 days ago
Georgia Fights Efforts to Outlaw Online Gambling4 days ago
Progressive Activists in Los Angeles Protest Big Banks with Fake Parking Tickets4 days ago
States Try to Make It Easier to Raise Money with Crowdfunding5 days ago