How Investment Banks Cash in on School Construction

Paul Perry

With the assistance of George K. Baum & Co., Mapleton’s school board won approval from voters in November 2010 to issue approximately $32 million in debt to match a state grant the district received for $22 million.

The Mapleton Public Schools received more state funding than is typical. On average, local districts contribute about 80% of the fiscal burden—through bond measures—for school construction projects, with the state typically chipping in the other 20%. The federal government has little to no role in the financing of such projects.