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Fiscal
challenges addressed by lease-financing include:
Substantial
Capital Needs – State
general obligation bond issues have not
kept pace with school districts’ ever
growing demands; resulting in a substantial
backlog of funding requests, and emergency
needs that cannot always be met by supplementing
the budget. Lease financing is a convenient,
and economical funding tool for assets
that have a useful life to short to fund
with bond proceeds, as well as large projects
that would be difficult to fund out of
current revenues.
Technology
Implementation Costs – Decreases
in federal, state, and local funding sources
that support
technology implementation programs have caused substantial
capital shortfalls and unfunded projects. Lease financing
makes it possible for a school district to enhance its
funding capacity for information technology acquisitions
in a convenient and cost-effective manner that does not
burden the operating budget nor impact existing debt
levels.
Surplus
Property Disposal Problems – Years
of increasing investment in IT equipment
has generated excessive
inventories of non-usable items that carry costly transfer,
storage, and disposal problems. Lease financing is a
cost-effective tool for IT acquisitions and replacements,
and eliminates the burdens of disposal and related resource
consuming activities. |
