Public-Private Leasing Arrangements and Tax Incentives: Creative Alternatives to Traditional Financing of School Construction

Daniel P. Murphy and Beth Howard

Municipal Finance Journal, 2007, vol. 28, issue 1, 1 - 18

Abstract: The deferred maintenance and construction needs of America’s public schools are quite large, but raising the funds necessary to build and renovate these schools is often difficult for school districts. Several obstacles face local governments attempting to finance school construction by issuing bonds. This article examines the use of public-private leasing arrangements as an alternative financing tool to meet school construction needs. It compares the use of public-private leasing arrangements both with and without the use of the New Markets Tax Credit (NMTC) to traditional government financing. The results indicate that the public-private leasing arrangement offers a school district savings that range from 14% to 21% when compared to the use of traditional financing methods. Further, the use of the NMTC combined with a public-private leasing arrangement offers the school district savings that range from 47% to 54% over traditional government financing.

Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/MFJ28010001 (application/pdf)
http://dx.doi.org/10.1086/MFJ28010001 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:munifj:doi:10.1086/mfj28010001

Access Statistics for this article

More articles in Municipal Finance Journal from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().