Policy nerds, number crunchers and bond experts offer insight on this town's sketchy loan record.

Read more:

The Risk of City-issued Bonds

Kansas City leaders tell us that the bonds issued by the Kansas City Industrial Development Authority to fund the construction of a billion dollar new terminal at Kansas City International Airport pose no risk to taxpayers.


  1. Seldom agree with Touhey, he has a record of predicting about twenty of the last four economic upswings and downturns, but this article does a coherent and readable job of pointing out the "real-life" risks a governmental entity runs when it dabbles in "economic development assistance".

    Development Economics aren't that esoteric, if an economic reason for a development exists, the development will occur.
    Subsidizing "iffy" developments for social engineering purposes or to try and win a "prize" that a Developer has been astute to generate a competition for (MORE JOBS FOR US!) are always very questionable activities for caretakers of public finances.

    The "elected" are for the most part Lawyers, and are renowned in the Securities Industry for their economic arrogance and lack of practical financial knowledge.

    In short, their job is getting into office, and for the most part they don't know squat about finances.

  2. good comment by show-me, imho.

    local government could never let the airport get in trouble and close. they'd be forced to prop it up in real life.

    therefore, taxpayers are de facto at risk even if contractually they might not be.

  3. Touhey usually gets it wrong, but this rambling is astoundingly incorrect... shows his total ignorance of public finance. I wouldn't bother sending my resume to Moody's if I was him.


Post a Comment


Be percipient, be nice. Don't be a spammer. BE WELL!!!

- The Management