/Coalition Letter in Support of Tax-Exempt Municipal Bonds

Coalition Letter in Support of Tax-Exempt Municipal Bonds

Coalition Letter in Support of Tax-Exempt Municipal Bonds

2019-05-31T15:12:48-04:00May 20, 2019|

Government Finance Officers Association

The United States Conference of Mayors

National School Boards Association

National League of Cities

National Community Development Association

National Association of Towns and Townships

National Association of State Treasurers

National Association of State Auditors Comptrollers and Treasurers

National Association of Regional Councils

National Association of Municipal Advisors

National Association of Counties

National Association of College and University Business Officers

National Association of Clean Water Agencies

National Association of Bond Lawyers

Large Public Power Council

International Public Management Association for Human Resources

International City County Management Association

Association of Metropolitan Water Agencies

American Water Works Association

American Society of Civil Engineers

American Public Works Association

American Public Transportation Association

American Public Power Association

American Planning Association

American Hospital Association

Airports Council International-North America

 

Dear Representative:

We the undersigned organizations of the Public Finance Network (PFN) write to express our appreciation to the more than one hundred members of Congress who signed on to the recently distributed letter to House Ways & Means leadership expressing strong support of the tax-exempt municipal bond. For more than a century, municipal bonds have been the primary method by which state and local governments and not-for-profits finance public capital improvements and infrastructure construction. The strong bipartisan support demonstrated in the letter highlights the utility of the municipal bond interest exemption and its impact on infrastructure.

But the support for financing tools that underpin our vibrant infrastructure network does not stop there. Our national organizations represent tens of thousands of public-sector and tax-exempt entities that issue debt to finance and build the infrastructure that contributes to strong economies at the state and local levels across the country. Together our collective memberships support legislation that would reinstate authority to advance refund tax-exempt municipal bonds, The Investing in Our Communities Act, H.R. 2772.

Before 2018, governmental bonds and 501(c)(3) bonds issued by state and local governments were permitted a single advance refunding. This allowed public issuers to take advantage of reductions in interest rates to realize billions of dollars in savings, which ultimately benefits taxpayers. In fact, the Government Finance Officers Association (GFOA) best practices recommended an advance refunding should produce a minimum savings threshold on a present value basis of 3-5 percent.  In the 5-year period from 2013-2017, the advance refunding of municipal securities saved taxpayers at least $12 billion, a benefit to all of our shared constituencies.

We appreciate the efforts of Reps. Dutch Ruppersberger and Steve Stivers, the Co-Chairs of the bipartisan House Municipal Finance Caucus, for leading the municipal bond letter of support and for introducing a bill to restore advance refunding. If enacted, this critical piece of legislation would reinstate a financing tool that saves our country billions. We urge all members to support this legislation and we look forward to working with you and supporting the effort to help the public issuer community on this vital issue.

 

Sincerely,

Government Finance Officers Association, Emily Swenson Brock, 202-393-8467

The United States Conference of Mayors, Larry Jones, 202-861-6709

National School Board Association, Deborah Rigsby, 703-838-6208

National League of Cities, Brian Egan, 202-626-3107

National Community Development Association, Vicki Watson, 540-656-9552

National Association of Towns and Townships, Aindriu Colgan, 202-454-3947

National Association of State Treasurers, Shaun Snyder, 202-744-6663

National Association of Regional Councils, Leslie Wollack, 202-618-5696

National Association of Municipal Advisors, Susan Gaffney, 703-395-4896

National Association of Counties, Jack Peterson, 202-661-8805

National Association of College and University Business Officers, Elizabeth Clark, 202-861-2553

National Association of Clean Water Agencies, Kristina Surfus, 202-833-4655

National Association of Bond Lawyers, Jessica Giroux, 202-503-3300

National Assn of State Auditors, Comptrollers and Treasurers, Cornelia Chebinou, 202 624-5451

Large Public Power Council, John DeStasio, 512-707-1010

International Public Management Association for Human Resources, Neil Reichenberg, 703-549-7100

International City/County Management Association, Elizabeth Kellar, 202-962-3611

Association of Metropolitan Water Agencies, Dan Hartnett, 202-331-2820

American Water Works Association, G. Tracy Mehan, III, 202-326-6125

American Society of Civil Engineers, Joe Brady, 202-789-7852

American Public Works Association, Andrea Eales, 202-408-9541

American Public Transportation Association, Mark Hybner, 202-496-4897

American Public Power Association, John Godfrey, 202-467-2929

American Planning Association, Jason Jordan, 202-349-1005

American Hospital Association, Mike Rock, 202-638-1100

Airports Council International-North America, Annie Russo, 202-293-8500

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