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Rep. Shaheen, Matt

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Representative Shaheen moves to protect local taxpayers with new bill  print page

by: Rep. Shaheen, Matt
02/25/2015

AUSTIN, TX—Working to safeguard taxpaying citizens from Texas’ record-setting local debt,
State Representative Matt Shaheen filed House Bill 1750. This new legislation bans the use of
Capital Appreciation Bonds (CABs) by local governments. A type of “zero-coupon” bond, CABs
require that bond principle and interest be paid-back in one lump sum on the bond’s maturity date
instead of in smaller loan payments over the life of the investment. Speaking to Collin County
taxpayers, Representative Shaheen said, “These financial instruments are a ticking time bomb of
debt.” Reliance on such instruments can contribute to greater expense to the taxpayer because
interest is accrued and can result in disaster if local governments fail to properly budget for the
eventual end payment.


Contact:
Christopher Paxton
512.463.0594

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Capitol Address:
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Room E2.208

P.O. Box 2910

Austin, TX 78768

(512) 463-0594

(512) 463-1021 Fax

5304 West Plano Parkway, Suite 2

Plano, TX 75093

(469) 642-8708