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

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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 ... continued below

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Mohundro, William Randolph December 2005.

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  • Mohundro, William Randolph

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Description

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.

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  • December 2005

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  • Feb. 15, 2008, 4:29 p.m.

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  • Dec. 4, 2013, 10:16 a.m.

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Mohundro, William Randolph. Lease Purchase Financing: The Processes and Impact on New School Construction in Texas, dissertation, December 2005; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc4950/: accessed September 22, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .