Education
School Districts
Typically school districts receive an allocation of ad valorum taxes on real estate within their boundaries. From these tax revenues they budget their operations and provide for the payment of debt service. Bonds are typically issued for the purpose of construction, renovation or expansion of the educational facilities.
Higher Education
Colleges and Universities may be either public or private. Public Universities often issue debt through a state agency. This can allow for the pledge of appropriated state funding to the payment of debt service which can enhance the credit rating. Private colleges depend on donors for support beyond the revenues from tuition. Their credit rating is greatly dependent on the size of their endowment fund in comparison to debt being issued.
Private Schools
Private Schools, generally k - 12, will primarily issue debt for the construction of buildings. These schools do not typically have significant endowment funds. They will generally work with a local bank to secure a letter of credit to guarantee the bonds.