Perhaps there's hope if we look at municipal bonds in a new way. Yesterday, Amy Cortese's article in the New York Times offered some novel ideas for bond funding. Basically, it suggests that bonds be sold directly to the people. I think we've got just the right blend of residents in the Tucson area, and statewide, for such approaches to work. This could be a win-win as the County would get more from the allotted funds (lower administrative rates), the bond owners would get higher interest rates than many options they have for investing, and a local bank could profit from administering the program in a streamlined, cost-effective way.
Read the excellent article here.