Todd L. Ely

New Schools, New Leaders: A Study of Principal Turnover and Academic Achievement at New High Schools in New York City

This condition report focuses on how principal turnover at new high schools affects school culture and student performance and how principals manage the transition to new leadership to minimize this impact. Using both quantitative and qualitative data on high schools in New York City, we examine the organizational structures that allow a sustained focus on student learning while the leadership is undergoing a transition.

Borrowing for the Public Good The Growing Importance of Tax-Exempt Bonds for Public Charities

The importance of tax-exempt borrowing as a capital source to the nonprofit sector has significantly grown over time. Outstanding tax-exempt bonds issued by nonprofits have risen from an inflation-adjusted US

Understanding and Measuring Endowment in Public Charities

106.3 billion in 1993 to US

Implications of Public School Choice for Residential Location Decisions

388.5 billion in 2010 representing an 8% compound annual growth rate over the period. The increased importance of tax-exempt borrowing relative to other borrowing for nonprofits has gone unnoticed. Here, we ask what factors are associated with this trend. We find wide variation in the increasing use of tax-exempt bond usage between nonprofit sectors. Although nonprofit borrowers other than hospitals have increasingly entered the tax-exempt capital market over the past decade, they still tend to be large organizations with lower risk of bankruptcy or default. Our empirical findings continue to raise the questions that others have raised: How do we make smaller, capital-starved nonprofits better able to take advantage of the tax-exempt market in a responsible manner?

To Give Is to Get: The Promotional Role of Investment Bankers in Local Bond Elections

This note delineates different motivations for holding endowment by nonprofits, analyzes the definitions and measurement of endowment in the literature, and details newly available data on endowment contained in the Form 990 since 2008. More than 43% of organizations report owning an endowment, and the overwhelming majority of endowment funds are held by higher education nonprofits. One third of endowment funds are unrestricted and 41% are permanently restricted, with heterogeneity across subsectors. Endowed nonprofits exceed average payout rates each year of 5%. Annual endowment payouts average 4.1% of total organizational expenses, which measures the sector’s dependence on endowment revenue for operations. We evaluate past endowment measurement approaches using actual endowment data and find wide variation in validity. Although still imperfect, the new endowment data allow researchers to better understand a key distinguishing financial feature of the nonprofit sector.

Pension Obligation Bonds and Government Spending

A growing empirical literature demonstrates the effects of introducing public school choice on housing values. The weakening of the connection between home location and school location has implications for urban and suburban communities. In this article, we contribute to the understanding of how public school choice is related to the residential location decisions of parents. Using a nationally-representative sample, we demonstrate that where public school choice is reported to be available, the probability that parents choose a residence based on the assigned schools is 6.5 percentage points lower. Parents are actively incorporating the option to choose schools into the decision of where to live and report relatively high levels of parental satisfaction with those schools. At the same time, roughly, one out of every eight children engaged in school choice attends a school that was not their family’s first choice and report substantially lower levels of school satisfaction. This mismatch between schools and students may limit the likelihood that more families will eschew traditional residential school choice.

Determinants of the Credit Rating Fee in the Municipal Bond Market

Public managers and elected officials are generally restricted from supporting election campaigns with public resources. In the case of legislative referenda, the public stakeholders responsible for putting a policy question on the ballot must play a neutral role when acting in their official capacity. A system where private money supports public goals has emerged as regulatory provisions simultaneously restrict direct private giving to elected officials and public support for election campaigns. Using campaign finance disclosures, election results, and municipal bond issuance data, we find that post-election fees paid to firms making political contributions are significantly higher than for non-contributors. The finding improves the understanding of how private dollars support public policy outcomes, raises questions about the circumvention of laws restricting the use of public resources in election campaigns, and informs ongoing consideration of the need for additional regulatory action and disclosure requirements to address issue committee campaign contributions.

Government by Advice Public Participation and Policymaking through Advisory Ballot Measures

We examine the use of pension obligation bonds (POBs) as a financing strategy to address the effects of unfunded pension liabilities on government operating budgets. POBs are publicly marketed as money‐saving mechanisms that reduce pension system payments while allowing for increased spending on other government priorities. We review general POB usage and examine whether POBs altered school district spending patterns in Oregon and Indiana. Our results indicate that districts issuing POBs have not increased educational spending relative to other districts. Because POBs cost money to issue and manage, decision makers are encouraged to consider annual budgetary effects prior to issuance.

Denver makes a fairer choice

Improving transparency of prices paid by government can improve market and government efficiency. Governments regularly pay to access capital markets, yet municipal bond issuance costs remain largely hidden from public view. This study examines factors associated with credit rating fees using a decade of Texas municipal bond issuance data. We find that rating fees are lower in a competitive environment, when issuers have experience and a relationship with the rating agency, and higher when the issue is large and more complex. The findings provide evidence that credit rating agencies (CRAs) retained pricing power following the credit crisis despite reduced reputational quality.

No Guaranties: The Decline of Municipal Bond Insurance

Advisory ballot measures are a direct democracy tool that solicits voter opinions. Local election data from California are used to assess the practice and consider whether the advisory nature allows policymakers, as has been assumed, to treat the voting outcomes as nonbinding. In California, the advisory ballot measure is generally binding for elected officials while allowing limited discretion in compliance with voter preferences. Purposes include solicitation of policy guidance, directing the use of new revenues, and signaling public sentiment to higher-level governments. The results provide empirical insight into how governments respond to public participation in policy and management decisions.