Congressmen Ruppersberger (D-MD-2) and Stivers (R-OH-15) introduced Investing in Our Communities Act(H.R. 2772) in order to restore tax-exempt advance refunding bonds. Up until the passage of the Tax Cuts and Jobs act in 2017, municipalities were able to use advance refunding bonds to lower interest rates and achieve cost savings to spend on other local priorities. Advance refunding bonds also can help communities weather a recession and save local taxpayers money. The Government Finance Officers Association estimates that these bonds saved state and local governments at least 14.3 billion nationally between 2012 and 2017.  In Michigan, 318 advance refunding issuances took place during that same time period, achieving an estimated savings for Michigan communities of $294 million.

Click here to read an article provided by the National League of Cities with additional information on advance refunding bonds.

The Michigan Municipal League has consistently partnered with NLC and our Congressional delegation to protect and promote the value of tax-exempt municipal bonds as a critical tool used for financing infrastructure.  Please reach out to your members of Congress to express your support for H.R. 2772 and let them know what bonds have built in your community.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected].