April 4 (Bloomberg) — Pennsylvania school districts are selling the least municipal debt in seven years as localities nationwide respond to calls for austerity even with yields close to generational lows.
From urban cores such as Philadelphia to rural communities in Lancaster County, Pennsylvania school officials are holding off on construction projects as budgets are buffeted by rising costs and dwindling aid, while local tax receipts struggle to recover almost five years after the recession.
The issuance drop in the Keystone State reflects an ebbing reliance on debt by U.S. localities amid voter antipathy to new projects, said John Donaldson, who helps manage $750 million in munis at Haverford Trust Co. At the same time, states facing their own fiscal strains are giving cities and towns less support, said Todd Sisson, senior analyst for tax-exempt fixed income at Wells Capital Management in Charlotte, North Carolina.
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