How Municipal Bonds Fund Your Local Schools

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Sep 8, 2026 · 11m · transcript

Lucas and Luna unpack the mechanics of municipal bonds, focusing on how local governments raise capital for schools, roads, and utilities without raising property taxes. They explore the tax-exempt status that makes these bonds attractive to high-income investors, the role of credit ratings in pricing risk, and the hidden trade-offs between short-term infrastructure needs and long-term debt service obligations. Using a specific example of a mid-sized city’s school district bond measure, they break down the yield curve for local debt, the impact of general obligation versus revenue bonds, and…