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The Governor Wants to Borrow $6 Billion to Build New Prisons: Fact Sheet on the Use of Lease Revenue Bonds to Build Prisons

Publication year: 2008 | Cataloged on: Feb. 08, 2008

Library ID

  • 022855

Other Information

  • 2008
  • 2 pages.

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  • The Governor Wants to Borrow $6 Billion to Build New Prisons: Fact Sheet on the Use of Lease Revenue Bonds to Build Prisons

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ANNOTATION: Answers to the following questions are provided: How are most prison construction projects funded?; What is a bond?; What is a General Obligation (GO) Bond?; What is a Lease Revenue Bond (LRB)?; How can the state use LRBs to build prisons when prisons do not produce any income ("revenue") whatsoever?; Does this mean taxpayers do not vote on LRBs to build new prisons?; What are the costs differences to taxpayers between LRBs and Go bonds?; If LRBs cost more, why would politicians use them to build prisons?; and How much does a typical $100 million bond cost taxpayers using a pay as you go model vs. GO bonds vs. LRBs?
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