BUDGET/DEBT/GOP/TAXES: “The North Olmsted City school district in suburban Cleveland was planning to wait a few years before refinancing $48 million in outstanding bonds used to build a new middle school and high school. Now Treasurer Robert Matson is hoping to get the deal done before Christmas.
The reason: The Republican tax plan in congress would eliminate a tax exemption on some types of bonds issued by state and local governments to refinance their old debt…
The GOP proposal targets the exemption for so-called advanced refunding bonds, which allow governments to refinance old bonds earlier to take advantage of low interest rates and, occasionally, to postpone upcoming debt payments…
Analysts said the move is likely to reduce the yearly supply of municipal bonds and increase borrowing costs for governments.
The expected change in policy is already prompting cities and states to fast-track their advance refunding offerings before the end of the year. One underway is from the state of Wisconsin, which last week circulated preliminary advanced refunding documents for $375 million of transportation revenue bonds.”
-Heather Gillers, “Tax Bill’s Fine Print: Making It Tougher for Cities, States to Refinance Debt,” The Wall Street Journal online, Nov. 22, 2017 07:00am