Government Business, Government Finance
Article | July 12, 2022
While congressional leaders work diligently to develop the next COVID recovery bill, other interesting legislation also is being discussed.
Many of the conversations focus on public funding options after COVID-19. There are no disagreements when it comes understanding the critical funding needs that will be front and center for cities, counties, states, schools, and hospitals as the country begins to emerge from a total focus on the coronavirus.
Many public projects and initiatives will have to be addressed. First of all, crumbling, inefficient and unsafe infrastructure, of all types, must be a priority. Secondly, jobs will be a critical component of the successful re-establishment of economic stability.
It is already apparent that a great deal of new funding will flow to long-standing federal programs. That’s a good thing because public officials already are aware of how those programs function. However, a number of new bills under discussion relate to the provision of additional and innovative ways for governmental entities to secure funding for projects that would stimulate the economy, create jobs, and address aging infrastructure. One particularly interesting new concept being evaluated is tax-exempt COVID recovery bonds.
The current discussions focus on a federal COVID recovery bonding program that would be launched with approximately $25 billion. A small number of states have already initiated programs such as this on a smaller scale.
The funding would be allocated to states based on population. From the governor’s office in each state, funding could be disbursed for projects of specific types.
If COVID recovery bonds become a reality, the program would provide another way for public entities to secure funding that does not come solely from public coffers. Individual private sector contractors, investors, and organizations would provide the funding and work collaboratively with public officials.
This program would be somewhat similar to private activity bonds which provide alternative funding for public initiatives. The new COVID recovery bonds would be tax exempt when used for permitted purposes such as financing airport, port, transportation, sewage, water, solid waste disposal, certain facilities, and other projects.
In the following weeks and months, taxpayers and citizens should watch with eager anticipation. Congressional actions will boost America’s economic recovery and stabilize governmental organizations throughout the country. Inaction is a possibility, too, but that would risk missing out on recovery opportunities.
Congressional representatives base their actions and their votes on input from constituents they represent. There are times when citizens, whatever their opinions, should provide input to elected representatives. This is one of those times.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Emerging Technology, Government Business
Article | October 7, 2022
Blockchain has started to take off. It is now seen as an important part of development. More and more countries and governments are optimistic about joining the race of leveraging blockchain to commence different projects. It can be used in process optimization, cybersecurity, or integrating connected devices. This distributed ledger format is intended to support both public and government sectors, concluding, identity management, digital currency, payments, health care, land registration, voting, and management of legal entities.
Need For Blockchain in Government Sector
To provide maximum governance, the government must transform itself digitally from both intra-departmental and interdepartmental perspectives. As different departments run on different disjoint technologies, it leads to the concern of data consistency and data integrity. Due to which it becomes highly essential to incorporate multiple digital identities based on citizens in each department to make cross-referencing an easier task. And this is what Blockchain is for and should be used by the government.
Moreover, all over the world, banks are turning towards blockchain technology as a support for their complicated economy. They are going to utilize blockchain for issuing digital currencies. That’s the reason why the central banks of Russia, Japan, Britain, China, and the US are planning to meet and explore digital potential before launching CBDC (Central Bank Digital Currency).
Advantages Of Blockchain
By using Blockchain, governments can acquire several benefits. Some of which are:
1. Data Protection
Personal data has always been higher risk in the unique ids saved by the government. Crucial details have sometimes been open to public records leading to data breach attacks. With the use of blockchain, these intensities can be easily avoided as the blocks are secured from cyber attacks.
2. Transparency
It has been found that citizens have low trust in government bodies due to the unawareness of the reason behind their decisions. However, blockchain tends to remove the barrier of secrecy by creating a distributed network that enables participants to verify data that led to the decision.
3. Reduced Corruption
Every public service department has at least one corrupt officer. So the government is taking measures to remove such personals which indeed is not possible due to other corrupt officials. However, with the inclusion of the Blockchain system, the mediator link will be terminated from the government system leading to the dumping of the corrupted officials.
Final Thoughts
One of the most intimidating things about blockchain is the absence of regulatory bodies that can cause any theft or scams. For a modern digital world, blockchain resembles a key-tool for securing digital records, developing economic transition, budgeting, and so much more. Companies that want to establish themselves as the pioneer in the upcoming blockchain revolution should also hire developers to develop their own blockchain-based apps or platforms for secured transactions.
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Government Business
Article | July 11, 2022
Taxpayers, citizens, and industry leaders may not be totally familiar with Public Facility Corporations (PFCs), but that should change, especially now since public funding for critical projects is at an all-time low. PFCs are becoming somewhat common in many regions of the country.
If the legal entity (PFC) is not familiar, here’s a bit of background. A PFC is a nonprofit corporation created by a sponsoring governmental entity — a city, county, school district, housing authority, or special district. PFCs have broad powers over public facilities, including financing, acquisition, construction, rehabilitation, renovation and repair. A PFC, once created, has the authority to issue bonds on behalf of its sponsoring public entity and once the bonds are funded, the money can be used in numerous ways. This type of legal entity has gained attention because public officials with critical projects are being forced to seek alternative funding sources.
In Texas, public facility corporations are allowed the broadest possible powers to finance or provide for the acquisition, construction and rehabilitation of public facilities at the lowest possible borrowing cost. A sponsor — such as a municipality, county, school district or housing authority — may create one or more of nonprofit public facility corporations. Then, the PFC can issue bonds for the construction of public facilities or finance public facilities or even loan the proceeds of the revenue to other entities for specific purposes.
A report that was released by The University of Texas School of Law found that a house bill approved during the 2015 legislative session “expands the authority of public facility corporations and allows the corporation to exercise any power that a nonprofit corporation might exercise and/or grant a leasehold or other possessory interest in a public facility owned by the PFC.” Here’s a bit more background of what is happening in Texas and there are numerous similar examples throughout the country.
The El Paso Independent School District (EPISD) several years ago created the EPISD Public Facility Corporation to fund construction of central offices through non-voter approved bonds. The corporation issued more than $29 million in bonds. The plan called for the EPISD to repay the bonds with general fund dollars from the district's general fund.
The 2019 Texas Legislative Session ended with a $4 million rider added to the state appropriations budget. The money was provided to the city of Port Aransas to build a $36 million apartment complex for affordable housing. Plans call for the 200-unit complex to be operated by the Port Aransas Public Facility Corporation. The corporation will work in partnership with a private company to develop and manage the property. An investment of approximately $14 million came from the private sector partner, and the Texas Department of Housing and Community Affairs provided an additional $18 million in funding. Site work on the project began in July 2020.
Many school districts have created public facility corporations for construction projects for schools, and many municipalities have also used PFCs. The revenue from these types of bonds is sometimes called lease-revenue bonds. They do not require voter approval. Public facility corporations do not have the authority to raise tax rates, but it is possible for a school board to approve a property tax increase to make payments on the bonds sold by a PFC.
The city of Tioga, located in the Sherman/Dennison region of Texas, constructed a new high school with funding from a public facility corporation. A collaborative initiative was launched with a lease-purchase agreement which allowed the PFC to hold title to the land and facility until the investment was repaid. At that time, the agreement calls for everything to transfer back to the district. Because the current campus was reaching its maximum capacity, a new high school campus had been a priority for the district and this was the funding mechanism selected.
The city of Fate in Rockwell County recently embarked on a public-private partnership to develop an affordable seniors housing community. The projected cost is approximately $30 million. To fund the project, the city created a PFC. Plans are for the city to handle the design, construction, and management of the project in collaboration with the PFC. City leaders will appoint board members to the funding corporation which will then operate the development as a nonprofit. The project is anticipated for completion in January 2022.
There are similar types of alternative types of funding options in other parts of the U.S. In Utah, for instance, the Park City Board of Education approved a PFC which will allow the district to secure revenue for a number of master plan projects. The projects have a combined projected cost of $122 million. The school district had considered the funding option of general obligation bonds, which would require voter approval, but elected to create a Local Building Authority (LBA). This funding option will allow them to fund an expansion of a high school facility to accommodate ninth-graders and expand another campus to allow for eighth-grade students.
Public officials, legislators, government contractors, and taxpayers all should have an interest in watching PFCs as well as other alternative funding sources. Until traditional public funding becomes more available for critical public projects, there will be a need for various types of funding solutions.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Government Business, Government Finance
Article | July 12, 2022
During the pandemic, the United States supported the WHO through collaborative operations. Let’s understand in detail below.
The United States government has historically supported WHO financially, through involvement in governance and diplomacy, and through collaborative operations. A new chapter in the U.S. relationship with WHO began in 2020, following the start of the COVID-19 pandemic, when the Trump administration ceased financial support and started the process to withdraw the country from membership.
Financial Support:
The United States has traditionally been the single largest donor to WHO, but in the 2020–2021 period it was the second largest as other donors, particularly Germany, increased their contributions. The U.S. dropped to third place. The United States contributed an anticipated $581 million to the WHO in 2021 as a result of restored funding from the Biden administration, which included both assessed and voluntary contributions.
The assessed contribution for the United States has been set at the maximum permitted rate of 22% of all assessed payments from member states for a number of years. The U.S. assessed contribution has been very consistent between FY 2014 and FY 2022, varying between $110 million and $123 million.
Increased U.S. support for particular WHO initiatives, such as emergency response, may be reflected in higher levels of voluntary contributions. Other WHO initiatives supported by U.S. voluntary donations include the fight against polio, maternal, infant, and child health initiatives, food safety initiatives, and regulatory monitoring of pharmaceuticals.
Governance Activities:
The United States has long been a prominent and involved member of the World Health Assembly, sending a sizable delegation that is typically headed by a delegate from the Department of Health and Human Services and includes representatives from numerous other U.S. agencies and departments.
Technical Support:
Government officials from the United States frequently act as liaisons at WHO regional offices and headquarters, collaborating daily with employees on technical initiatives.
Partnering Activities:
The United States has collaborated with WHO both before and during epidemic responses and other global health emergencies, notably by joining multinational teams that WHO organises to look into and address outbreaks all around the world. For instance, the US collaborated with WHO and the larger global response to the 2014-onset Ebola epidemic in West Africa, and US scientists were a part of the WHO mission that visited China in February 2020 to evaluate their COVID-19 response.
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