Penn Indicates Support For Elimination Of Tax-Exempt Bond Cap.

David J. Morse of the University of Pennsylvania has thanked Assistant Secretary (Tax Policy) Leslie B. Samuels for meeting with Morse and others about the $150 million tax-exempt bond cap that affects nonhospital section 501(c)(3) organizations. "We very much appreciate your, and Treasury's, position on the prospective elimination of the cap, and your candid assessment of the prospects for legislation this year," Morse writes.

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February 7, 1994

Leslie B. Samuels, Esq.

Dear Les:

I want to thank you for meeting with me and several of my colleagues on Wednesday morning to discuss the $150 million tax- exempt bond cap that affects nonhospital 501(c)(3) organizations. We very much appreciate your, and Treasury's, position on the prospective elimination of the cap, and your candid assessment of the prospects for legislation this year.

As I mentioned, with the exception of a very small taxable issue, we have not issued new debt since 1986, even though our needs for new facilities and essential renovation of existing facilities, such as the Quad, the Law School library, research laboratories in the physical and biological sciences, and historic Franklin Field, have grown substantially. Over the next year, we plan to issue approximately $100 million in taxable debt to meet partially some of these needs, at an additional annual cost of $1.5 million to $2.0 million, relative to tax-exempt debt. The availability of tax-exempt financing would enable us to utilize these funds for other essential educational purposes.

Rob Leonard will be compiling additional information about our respective capital programs, and will share it with you and your staff. If I or my colleagues can provide you with any additional information, please let me know.

Sincerely,

David J. Morse

cc: Rob Leonard