¶ … bonds or General Obligation Bonds are when an issuer, city, or state issues a bond that is guaranteeing repayment of said bonds by any means necessary, meaning the issuer will use any level of taxation power at its disposal to assure the money is paid back (O'Hara & Wesalo Temel, 2012, p. 42). Along with this idea, the full taxing power, faith, and credit of the issuer are used to back the bonds. So the revenues from each kind of tax like sales taxes, gas, property, and corporate taxes will be used to guarantee bonds. Hence the name general obligation bond because the issuer is generally obliged.
When an issuer has a problem with paying someone back, they must "through any means necessary" gain the funds to pay back the money. This means as mentioned before, raising taxes or other avenues or raising capital. Those that issue GO bonds are school districts, towns and cities, and finally, states. While this may seem like a good a preference for someone wishing assurance of being paid back, there are other options.
Revenue bonds, unlike GO bonds, rely on other modes of revenue collection than taxation and therefore can be an easier means of getting money...
Obligation Bonds Two types of municipal bonds exist, revenue bonds and general obligation (GO) bonds. General obligation bonds offer investors a relatively safe investment opportunity while providing states and local governments with funds for community improvement. These bonds are debt instruments issued by states and local governments to raise funds for public works. General obligation bonds are backed by the full faith and credit of the issuing municipality. That is,
The general fund collects over 86% of the total tax revenues and is the primary funding source for most commonwealth agencies. General fund tax revenues The largest significant source of tax revenues net of refunds is personal income tax. Reported personal income tax accounts for 38% of all tax revenues reported. Sales tax, which represents a tax on various items purchased by consumers, is the second largest category. Reported sales tax
Revenue Estimates: Underestimation of Revenues Although the United States has an excellent budget policy, she is yet to reach maximum efficiency with regard to revenue estimation. When it comes to public budgeting, ours is a picture that is far from the ideal. There has been a consistent pattern of underestimation of revenues in federal, state, local, as well as agency budgets. This trend may not be desirable for a recovering
Stock Portfolio Management Project Selected 10 companies Company Symbol purchase date purchase price Apple, Inc. APPL Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth Brocade BRCD Communications Systems Inc. Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth Joy Global Inc. JOYG Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth Ctrip.com CTRP Industry/Sector: Consumer Services -- Investment Style: International Gerdau SA GGB Industry/Sector: Steal & Iron -- Investment Style: International Gol Linhas GOL Aereas Inteligentes SA Industry/Sector: Regional Airline -- Investment Style: International Green Mountain GMCR 10/21/2009 Coffee Roasters Inc. Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth Rio Tinto PLC RTP 10/21 /
Pension Plan GAASB Changes GAASB has implemented changes to Pension Plan reporting that go into effect on June 15, 2013 for Statement 67 and June 15, 2014 for Statement 68. This will affect the accounting and financial statement reporting of governmental organizations. Pension expense liability will be reported on the balance sheet to show a clearer picture of the organization's obligations, as well as more disclosure requirements and additional supplementary material. Under
Expenditure Revenue Analysis NY PA Expenditure While governmental entities must strive to serve the public good to the best of their abilities, public administrators must navigate an environment of extreme complexity in which the allocated capital funds are put to their best use. The administration of the capital budgeting process can be extremely time consuming, confusing, and expensive. This research will discuss capital budgeting policies and procedures in the states of New
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now