May 26, 2010 Newsletter

Topics: TCSA Conference; 2010 IRS Arbitrage Compliance; Congress Updates to BABs; Industry News 

Community Development Associates recently presented and exhibited at the Texas Charter Schools Conference in Grapevine, Texas. CDA met with charter school educators and administrators, school finance professionals, and vendors providing valuable products to educational organizations. The conference was an ideal opportunity to learn about trends and practices in this fast-growing market.

During Lee McCormick's presentation on charter school finance options, he shared a recent article from The Bond Buyer covering the Texas Legislature's re-consideration of the Permanent School Fund to back charter school financing debt.

You may be interested in this related story from The Bond Buyer on May 11, 2010: "PSF May Fund Charters: A committee of the Texas State Board of Education is considering a proposal to invest $100 million of the $22.1 billion Permanent School Fund in new buildings for charter schools."

Each year, the IRS publishes a work plan for the upcoming year. For many in the tax-exempt bond industry, this work plan serves as indicators of the direction the IRS will likely be headed in during 2010 compliance examination. Get the FY 2010 IRS work plan.

"For FY2010, the principal activity of the program will be to continue to participate in ongoing investigations of arbitrage motivated and/or abusive transactions. It is anticipated that examination FTE applied to arbitrage motivated and/or abusive transactions will continue to increase in FY2010 and that the greatest increase will be related to the use of swaps and other derivative contracts to divert rebatable arbitrage.”

Read more regarding the FY 2010 IRS work plan, or call CDA to get advice on your arbitrage compliance issues.


 •   Bill Would Boost RZ Program - The Bond Buyer, May 24, 2010

“The recovery zone bond program would double in size to $50 billion and Build America Bonds could be used to do current refundings of existing BABs under a new tax and jobs bill released late Thursday evening by leaders of the House and Senate tax-writing committees.”....READ MORE

•   Bank-Qualified Bond Bill On Its Way - The Bond Buyer, May 10, 2010

“Two senators plan to introduce legislation as soon as today to permanently extend a popular provision in last year’s stimulus law that was designed to encourage banks to buy municipal debt from small issuers but would expire at the end of the year without congressional action. Sen. Jeff Bingaman, D-N.M., and Sen. Mike Crapo, R-Idaho, plan to introduce the bill, which would extend the $30 million small-issuer limit for bank-qualified bonds and peg that limit to inflation in the future.”....READ MORE

•   State of Texas releases funding map by county -May 6, 2010

“The Texas Comptroller of Public Accounts has created an interactive map that displays Recovery Act activity in Texas counties as reported by recipients, totaling $21,760,593,034. Funding is allocated across eleven categories: Contracts, education, energy, environment, health and human services, housing and community development, labor, public safety, research, transportation, and other.”....VIEW MAP





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