NACo and other bipartisan organizations release new resource on municipal bonds

-
BlogOn Tuesday, November 10, the Public Finance Network, a coalition of bipartisan organizations, released a new report, the Advance Refunding Myth Buster.NACo and other bipartisan organizations release new resource on municipal bonds
-
Blog
NACo and other bipartisan organizations release new resource on municipal bonds
On Tuesday, November 10, the Public Finance Network, a coalition of bipartisan organizations, released a new report, the Advance Refunding Myth Buster. The report aims to educate and inform partners on advance refunding municipal bonds, a crucial infrastructure financing tool eliminated in 2017. Advance refunding bonds allow counties to refinance tax-exempt municipal bonds at lower interest rates, saving the county and taxpayers money on infrastructure projects.
As counties continue to experience the detrimental financial impacts of addressing the health and economic emergency created by the coronavirus, restoring our ability to advance refund tax-exempt municipal bonds would lower borrowing costs and optimize our stewardship of taxpayer resources. As described in this new resource, reinstating advance refunding of municipal bonds would improve state and local governments’ ability to invest in critical infrastructure projects, such as hospitals and other health facilities, schools, roads, bridges, water and sewer systems ports, airports and other public works.
Prior to the removal of the tax-exempt status under the Tax Cuts and Jobs Act in 2017, state and local governments utilized this financing tool to fund critical infrastructure projects including schools, hospitals, roads and jails. Advance refunding bonds also served as a cost-saving mechanism for both counties and taxpayers. From 2012-2017, municipalities saved more than $14 billion of taxpayer money through this financing tool. Reinstating this key financing mechanism will alleviate the burden on local taxpayers and allow state and local governments to respond to market conditions more effectively.
NACo strongly supports reinstating advance refunding of tax-exempt municipal bonds and will work with Congress to pursue a path forward for the legislation during the 117th Congress.
On Tuesday, November 10, the Public Finance Network, a coalition of bipartisan organizations, released a new report, the Advance2020-11-16Blog2020-11-17
On Tuesday, November 10, the Public Finance Network, a coalition of bipartisan organizations, released a new report, the Advance Refunding Myth Buster. The report aims to educate and inform partners on advance refunding municipal bonds, a crucial infrastructure financing tool eliminated in 2017. Advance refunding bonds allow counties to refinance tax-exempt municipal bonds at lower interest rates, saving the county and taxpayers money on infrastructure projects.
As counties continue to experience the detrimental financial impacts of addressing the health and economic emergency created by the coronavirus, restoring our ability to advance refund tax-exempt municipal bonds would lower borrowing costs and optimize our stewardship of taxpayer resources. As described in this new resource, reinstating advance refunding of municipal bonds would improve state and local governments’ ability to invest in critical infrastructure projects, such as hospitals and other health facilities, schools, roads, bridges, water and sewer systems ports, airports and other public works.
Prior to the removal of the tax-exempt status under the Tax Cuts and Jobs Act in 2017, state and local governments utilized this financing tool to fund critical infrastructure projects including schools, hospitals, roads and jails. Advance refunding bonds also served as a cost-saving mechanism for both counties and taxpayers. From 2012-2017, municipalities saved more than $14 billion of taxpayer money through this financing tool. Reinstating this key financing mechanism will alleviate the burden on local taxpayers and allow state and local governments to respond to market conditions more effectively.
NACo strongly supports reinstating advance refunding of tax-exempt municipal bonds and will work with Congress to pursue a path forward for the legislation during the 117th Congress.

About Eryn Hurley (Full Bio)
Director of Government Affairs & Federal Fellowship Initiative
Eryn serves as the Director for NACo’s Government Affairs Department. In this capacity, she assists in Legislative and Executive Branch outreach and advocacy of the association’s legislative priorities and policy development.More from Eryn Hurley
-
Policy Brief
Support legislation that would restore advance refunding bonds.
Urge your members of Congress to introduce and support the passage of legislation that would restore advance refunding bonds. -
Policy Brief
Restore the Balance of Federalism and Optimize Intergovernmental Partnerships
ACTION NEEDED: -
Reports & Toolkits
Legislative Analysis for Counties: The Consolidated Appropriations Act of 2023
This analysis includes funding highlights for key programs impacting counties. -
Reports & Toolkits
Resource Hub for Counties: State, Local, Tribal and Territorial Fiscal Recovery, Infrastructure And Disaster Relief Flexibility Act
The bipartisan State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act will provide additional flexibility for the $350 billion Coronavirus State and Local Fiscal Recovery Fund authorized under the American Rescue Plant Act. -
Press Release
State And Local Government Associations Commend Congress For Infrastructure And Disaster Flexibility
With the enactment of the Consolidated Appropriations Act of 2023, the seven leading organizations representing state and local governments at the federal level thank Congress for providing flexibility to use American Rescue Plan Act funds for purposes of infrastructure, neighborhood revitalization, and disaster relief. -
Reports & Toolkits
Legislative Analysis for Counties: State, Local, Tribal and Territorial Fiscal Recovery, Infrastructure And Disaster Relief Flexibility Act
VIEW YOUR COUNTY’S ARPA FLEXIBLE FUND ALLOCATION UNDER S. 3011
-
Reports & Toolkits
State and Local Fiscal Recovery Fund Resource Hub
Explore NACo's resource hub for the ARPA State and Local Fiscal Recovery Fund.Reports & Toolkitsdocument010512:15 pmReports & Toolkits<table border="1" cellpadding="1" cellspacing="1" style="width:100%" summary="call-out transparent">
<tbody>
<tr>
<td> -
Basic page
ClearGov
ClearGov® is the leading provider of Budget Cycle Management software, focused on helping local governments streamline the annual budgeting process by improving the collection, creation, and communication of their budgets.pagepagepage<table border="1" cellpadding="1" cellspacing="1" style="width:100%" summary="call-out transparent">
<tbody>
<tr> -
Basic page
Finance, Pensions & Intergovernmental Affairs Steering Committee
All matters pertaining to the financial resources of counties, fiscal management, federal assistance, municipal borrowing, county revenues, federal budget, federal tax reform, elections and Native American issues. Policy Platform & Resolutions 2022-2023 2022 NACo Legislative Prioritiespagepagepage<p>All matters pertaining to the financial resources of counties, fiscal management, federal assistance, municipal borrowing, county revenues, federal budget, federal tax reform, elections and Native American issues.</p>
Contact
-
Director of Government Affairs & Federal Fellowship Initiative(202) 942-4204
Related Posts
-
BlogU.S. Congress moves forward with financial data reporting standardsDec. 9, 2022
-
BlogGASB seeks input on subsequent reporting guidanceNov. 15, 2022
-
BlogLet’s Get automating: Why You Should Modernize Your County’s Expense SystemOct. 7, 2022
Related Resources
-
Policy BriefSupport legislation that would restore advance refunding bonds.Jan. 31, 2023
-
Policy BriefRestore the Balance of Federalism and Optimize Intergovernmental PartnershipsJan. 26, 2023
-
Reports & ToolkitsLegislative Analysis for Counties: The Consolidated Appropriations Act of 2023Jan. 17, 2023
More From
-
Legislative Analysis for Counties: The Inflation Reduction Act
The IRA offers counties the opportunity to pursue clean energy initiatives and reduce emissions through new competitive grant programs, local resiliency investments and clean energy tax credits.
Learn More