ABSTRACT
Most infrastructure projects and programs in the United States are too large to finance out of local revenues. In fact, most state and local-level infrastructure is built with funds borrowed from investors by issuing a “bond” or a promise to repay over a certain length of time. Debt financing has built streets, schools, hospitals, parks and art museums, along with sidewalks, city halls, sports arenas, water purification plants and much more. Deferring the cost of a facility that is needed now, but which will last for many years has enabled the United States to grow over the past 200 years. Most governments have good credit ratings, and investors are willing to lend the government money (compared to a corporation) because of its security. The municipal bond market is big business indeed in the United States, and local practitioners involved with infrastructure need to be familiar with bonds. Most local practitioners involved with infrastructure will certainly run into the question of whether and how to borrow funds to make his or her project a reality.
