In addition to the limitations and restrictions placed on the issuance of  tax-exempt bonds by state and local governments, there are additional  restrictions on tribal governments’ issuance of tax-exempt bonds. From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total  of $46.4 billion in 3,557 bond issues for multi-family housing projects,  according to Thomson Financial data. According to Thomson Financial data, from 2000 through 2004  municipalities borrowed, in 2004 dollars, a total of $61.4 billion in 1,094  issues for toll roads and highways. Thomson Financial data indicate that while state and local governments  allocated 9 percent to 13 percent of total bond issuances to transportation  facilities in the period from 2000 through 2004, between 27 and 38 percent  of those issues went toward toll roads and highways. We found the following details on debt  financing for parking facilities. According to Thomson Financial data, from 2000 through 2004  municipalities borrowed, in 2004 dollars, a total of $3.5 billion in 220 issues  for parking facilities. According to 2002 Census of Governments data, about 73  percent of the population of the United States lived in MSAs that reported  user charges on government-owned parking facilities. Ninety-two percent of the MSAs listed reported positive user  charges, and 97 percent of the population in the largest MSAs lived in  MSAs that reported positive user charges. Governments Provide Financing for a Wide Variety of Recreational Facilities

We did not find readily available data that identify community recreational  facilities as a specific category and were unable to determine the number  of these facilities financed, constructed, or operated by state and local  governments. From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total  of $60.9 billion in 3,085 tax-exempt issues to build public facilities,  according to Thomson Financial data. This general category includes  several recreation-related facilities, including libraries and museums ($7.5  billion in 470 issues); convention centers ($11.1 billion in 236 issues);  theaters ($0.6 billion in 29 issues); parks, zoos, and beaches ($6.1 billion in  723 issues); stadiums and arenas ($5.3 billion in 119 issues); and other  recreation facilities ($4.6 billion in 420 issues). Numerous Municipal Golf Courses Exist, Some with Lodging Facilities

According to National Golf Foundation data, in 2005 there were about  16,000 public and private golf courses in the United States. Of those, about  2,400 (15 percent) are municipal golf courses, that is, they are owned by  state and local governments. All states have municipal golf  courses. Figure 4 shows the  trend in municipal real estate development golf courses. According to data provided by Akin Gump Strauss Hauer & Feld  LLP, a major law firm, at least 120 golf courses in 29 states have been  financed, at least in part, with tax-exempt bonds. From 2000 through 2004 municipalities borrowed in 2004 dollars $11.1  billion in 236 issues for financing convention centers, according to  Thomson Financial data. Different Sources Show Public Financing of Hotels and Related Facilities

According to lists we obtained from government finance experts, 39 hotels  associated with convention centers or airports or golf courses that have  been financed with tax-exempt bonds have been identified. According to states’ financial reports and gaming studies all but 2 states— Hawaii and Utah—have some form of legal gaming. Forty-one states and  the District of Columbia reported assets and revenues related to lotteries. We  found three examples of tax-exempt financing related to gaming facilities. Parking garages and parking lots  4. Hotel and tourist accommodations  8. State-owned gaming support facilities  We performed an extensive review of possible data sources and did not  find a comprehensive, reliable source of data for the above facilities. This data source only provides information on a particular method of  housing finance and therefore does not provide information on the total  government rental housing expenditures; the number of rental housing  units constructed, financed, or owned by state and local governments; or  other forms of government financing for rental housing.
Why GAO Did This Study

Unlike state and local governments, Indian tribal governments are in general restricted to using tax-exempt bonds for activities that are an "essential government function," where "essential government function" does not include functions not customarily performed by state and local governments. This restriction has been difficult to enforce by the Internal Revenue Service (IRS) and increased the tax compliance burden on Indian tribal governments. GAO was asked for information on the number of facilities that state and local governments finance, construct, and operate in eight categories: (1) Rental housing, (2) Road infrastructure, (3) Parking garages and lots, (4) Community recreational facilities, (5) Golf courses, (6) Conference centers, (7) Hotel and tourist accommodations, and (8) State-owned gaming support facilities. GAO did not find a comprehensive, reliable source of the number of facilities. Instead, GAO searched and found a variety of public and private sources that had limited information on the amounts of financing provided by state and local governments in related categories.

What GAO Found

Data sources showed state and local governments (municipalities) provided a wide range of financial support in the following types of facilities: (1) Rental housing: From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total of $46.4 billion in 3,557 bond issues for multi-family housing projects. Over the period these borrowings accounted for 33 to 45 percent of debt issued for housing projects. (2) Road transportation: From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total of $61.4 billion in 1,091 issues for toll roads and highways. Over the period these borrowings accounted for 27 to 38 percent of debt issued for transportation facilities. (3) Parking facilities: From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total of $3.5 billion in 220 issues for parking facilities. In addition, about 73 percent of the U.S. population lived in metropolitan statistical areas (MSA) that reported positive user charges for parking facilities. (4) Park and recreation facilities: From 2000 through 2004 municipalities borrowed, in 2004 dollars, a total of $60.9 billion in 3,085 tax-exempt issues to build public facilities, including $0.6 billion in 29 issues for theaters; $6.1 billion in 723 issues for parks, zoos and beaches; $5.3 billion in 119 issues for stadiums and arenas; and $4.6 billion in 420 issues in other recreation facilities. In addition, about 75 percent of the U.S. population lived in MSAs that reported positive user charges for park and recreation facilities. (5)Golf facilities: In 2005 there were about 2,400 municipal golf courses, about 15 percent of total golf courses in the United States. Municipal golf courses exist in all states. At least 120 golf courses in 29 states have been identified as financed, at least in part, with tax-exempt bonds. About 5 percent of municipal golf courses are connected to resorts or real estate developments. (6) Convention centers: Over 300 government owned convention centers have been identified by government finance experts. In addition, from 2000 through 2004 municipalities borrowed, in 2004 dollars, a total of $11.1 billion in 236 issues related to convention centers. (7) Hotels: GAO identified 12 hotel projects related to convention centers or airports that were financed with tax-exempt bonds in recent years and additional data sources identify 39 tax-exempt financed hotel projects. (8) Gaming support facilities: According to financial and gaming reports all but 2 states have some form of legal gaming, and 41 states and the District of Columbia providing state lotteries. In addition, tax-exempt financing has been used for capital projects related to the gaming industry.