UPDATE: Tax-Exempt Bonds Help Private Schools Make Campus Improvements
A signed into Hawaii law today by Gov. Linda Lingle grants up to $20 million in to through the year 2015.
Given the large size of the bonds, it was surprising that the bill danced through the legislative process without stirring attention. But while it sounds like a lot of money, it has actually become fairly common since 2002 for the state to grant private schools these tax-exempt loans. The bonds, which lawmakers passed unanimously, will be repaid over a 15- to 30-year period.
The tax-exempt bonds, in this case for Kaimuki Christian School “in a total amount not to exceed $20 million,” are usually designated to help finance the building of new facilities and campus improvement projects. The special-purpose revenue bond program was made available to private schools in 2002 when the successfully lobbied for a state constitutional amendment that allows private schools the use of the bonds, which the schools repay with tuition money over a long term.
We’re interested in hearing your thoughts about the use of state bonds to subsidize private school improvements.
