Build America Bonds May Be Bad Deal for Cities

Build America Bonds, part of the economic stimulus package that are intended to help cash-strapped cities building roads and schools, have been found to cost cities and taxpayers more over the long-term.

1 minute read

June 17, 2010, 10:00 AM PDT

By Nate Berg

They're supposed to have a more favorable interest rate, with the federal government paying 35% of the interest costs.

"But questions about this multibillion-dollar program are piling up.

For one, Wall Street banks are charging larger commissions for selling Build America Bonds than they do for normal municipal bonds, increasing the costs to the states and cities. For another, the new bonds may be priced too cheaply, enabling quick-footed investors to turn a fast profit as the prices climb, but raising interest costs for taxpayers. "

FULL STORY: Stimulus Bond Program Has Unforeseen Costs

Tuesday, June 15, 2010 in The New York Times

Community / Economic Development Government / Politics Infrastructure United States

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Start Learning

Advertise with us

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.