Lease Purchase Financing: The Processes and Impact on New School Construction in Texas

The purpose of this study was to review and explore the concept of lease purchase financing for the construction of new facilities in Texas. It sought to determine the impact of lease purchase financing and the characteristics of those districts that have utilized lease purchase financing for the purpose of new school construction. A two pronged approach was used for the study, both quantitative and qualitative. The study examined all school districts that utilized lease purchasing and examined various traits of the districts. Data was acquired from the Texas Education Agency and the Texas Bond Review Board. The qualitative portion of the study included interviews with superintendents of nine different Texas school districts that have utilized lease purchase financing. The study concluded that lease purchase districts were generally small school districts that were property poor and have high property tax rates. The study also concluded that the major reason for districts to use lease purchase financing was to avoid having to hold an election in order to gain approval for the sale of traditional general obligation bonds. Another factor identified was the availability of state funds through the state Instructional Facility Allotment. The study also concluded that while districts sought to provide better programs for their students through better facilities, that students actually suffer due to instructional funds being used for the payment of long term debt.

Grantor dc:publisher

University of North Texas

Year dc:date

2005

Author dc:creator

• Mohundro, William Randolph

Contributors dc:contributor

• Camp, William E.
• Stansell, John C.
• Watson, Hoyt F.

• School buildings -- Texas -- Finance.
• School facilities -- Texas -- Finance.
• School districts -- Texas -- Finance.
• lease purchase financing
• school construction
• Texas
• superintendents interviews

Statement dc:rights

• Public
• Copyright
• Mohundro, William Randolph
• Copyright is held by the author, unless otherwise noted. All rights reserved.

Language dc:language

English

Identifier

oclc: 69923790
https://digital.library.unt.edu/ark:/67531/metadc4950/
ark: ark:/67531/metadc4950

OAI identifier oai:identifier

info:ark/67531/metadc4950