Number: RL30638
Title: Tax-Exempt Bonds: A Description of State and Local Government Debt
Authors: Steven Maguire, Government and Finance Division 
Abstract: This report provides information about state and local government debt. State and local governments often issue debt instruments in exchange for the use of individuals' and businesses' savings. This debt obligates state and local governments to make interest payments for the use of these savings and to repay, at some time in the future, the amount borrowed. State and local governments finance capital facilities with debt rather than out of current tax revenue in order to match the time pattern of benefits from these capital facilities with the time pattern of tax payments.
Pages: 19
Date: March 26, 2008