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Originally Posted by DanT
One thing that could also happen is that the government sets asides funds to pay off the bond obligation in case the revenues from taxes aren't sufficient. That's the sort of thing that investors might ask for in order to agree to a lower interest rate. Apparently, the Unified Government of Kansas City, Kansas does this for several STAR bond projects, as they discuss this on page 88 of this report on their Long-Term Financial Forecast 2022-2026, https://www.wycokck.org/files/assets...11-19-2020.pdf Fortunately, they've not yet had to use those set aside funds to pay off investors, but those kinds of deals involving trading risks between investors and the government could spell impacts for "average Kansans". |
That’s interesting. I would imagine that’s exactly what would need to happen to make this a financially feasible proposition. Kansas lawmakers are either too obtuse to understand the economics or deliberately misleading so that this becomes a last minute bait-and-switch where the taxpayer bears some direct exposure.