Muni network ownership and the Fourth

Fri Feb 1 17:33:00 UTC 2013

On 2/1/13 6:26 AM, Dave Sparro wrote:
> municipal utilities:
> -  sell bonds cheaper (holders get tax-advantaged rates in interest
> income, and are ultimately backed by the muni taxpayers)

Tangential to the private vs public screed:

The ability to issue (and sell) tax exempt (T-E) bonds for any purpose
is a given for governments in the US -- unless the government is that
of a Federally Recognized Indian Tribal government -- where an
"essential government interest" test applies.

The history of the "essential government interest" test is rather
sordid, but it resulted in only two bonds issued by any tribal
governments for any purpose in 2010, none in 2011, and none in the
first half of 2012.

In any event, the "cost advantage" Dave cited, is not restricted to
network buildouts by public entities funded by T-E bonds.

Eric