One of our Board members, Manju Ganeriwala (the State Treasurer of Virginia), recently lent her important voice to this national conversation through a letter to members of the U.S. House Ways and Means Committee and with a piece that appeared in the Wall Street Journal on May 6 (Click here to read the article). VRA wants to invite all of the jurisdictions with whom we work to please lend your voices to this important call to action!
By having access to municipal bonds, Virginia's local governments are able to save about 25-30% in interest costs, savings that would disappear if they had to rely on taxable bonds. In an era when government at all levels is working to do more with less, the ability to save billions on infrastructure financing is absolutely essential. Without this significant savings, many of these roads, schools and other essential projects could not be built. If this tax exemption is eliminated, then borrowing costs will go up across-the-board and many jurisdictions will be forced to postpone critical infrastructure projects.
Municipal bonds impact all of our lives each and every day. These important funding sources have a tremendous impact on both state budgets and the nation's public infrastructure projects. Municipal bonds are used by state and local governments as a primary means of financing airports, wastewater systems, schools, bridges, highways and transit systems, among many others. It is the tax-exempt status that makes municipal bonds such an attractive option for funding the countless public projects that people across Virginia take for granted will be there for them.