| This study is about the function and uses of state entities commonly referred to as “Public Authorities”. The broad concept of a “Public Authority” includes a multitude of nomenclatures, such as government corporations, off-budget enterprises, special districts, public benefit corporations, boards, commissions, bond banks, authorities, special purpose governments, and the like. To diminish the confusion surrounding the name “Public Authority” this study uses the name special purpose entity to represent the conceptual entity “Public Authority”.; This study seeks to understand how state governments in the sixteen southern states employ these entities for financial management, how they fit into state debt management, and how these unique entities affect state government finance. The study analyzes the characteristics of special purpose entities: how these entities have evolved, the formal differences between subsets of special purpose entities, and their functions and uses.; The findings indicate that the formal differences between subsets of special purpose entities support the theoretical concept that public authorities, government corporations, and special districts underlie the conceptual entity commonly referred to as a special purpose entity. The multiple analyses support the findings that the formal differences between public authorities, government corporations, and special authorities include the ability to control the amount of information reported to the state government, the financial aspects that each entity possesses, and the ability to issue debt in the market place. These three theoretical entities provide a window in our understanding of the implications of today's special purpose entity. This evidence is the first step in addressing precisely why special purpose entities are different, important, or widespread. |
