A new center focused on capital market financing for public infrastructure projects has been launched by the LBJ School of Public Affairs at The University of Texas at Austin. The Center on Municipal Capital Markets (CMCM) aims to enhance the ability of communities to develop essential infrastructure such as schools, roads, and hospitals, while also making critical systems like energy more resilient.
The CMCM will provide specialized training and research to help government entities leverage private capital effectively. It will train graduate students and host programs for professionals on how to secure funding for their projects. This initiative comes amid federal efforts to revitalize infrastructure after years of underinvestment.
UT President Jay Hartzell emphasized the importance of understanding capital markets in infrastructure investment: “Our future as a growing, resilient society depends upon our ability to wisely invest in infrastructure, especially in the important sectors of health care, transportation and energy. Tomorrow’s leaders need to understand the role of capital markets in making those investments possible.”
Municipal capital markets allow governments to fund essential public projects by selling bonds to private investors. These investments not only improve community quality of life but also promote economic growth and resilience against challenges like extreme weather.
The CMCM's focus areas include education for finance professionals, hands-on training, applied research, and public outreach. Its foundation was laid during a December 2023 event where over 100 leaders discussed innovative approaches to infrastructure finance.
Martin Luby, the center’s inaugural director and an LBJ School professor, highlighted its relevance: “Developing the next generation of professionals and advancing research and dialogue on the municipal capital markets is especially salient given the huge infrastructure needs we have in the United States.”
Luby brings extensive experience in government financial instruments and has been active in cultivating talent for public finance through teaching and developing educational opportunities.
The CMCM has formed a 16-member advisory council with national leaders from municipal capital markets. Mark Kim, CEO of the Municipal Securities Rulemaking Board, expressed his support: “I am honored to serve on the inaugural advisory council... I applaud CMCM’s dual mandate... empowering government finance professionals with a greater understanding of the capital markets.”
The center has introduced a Certificate in State and Local Finance for students at UT's LBJ School and is producing technical reports on municipal finance.
LBJ School Dean JR DeShazo expressed enthusiasm about future opportunities: “We are not only exploring solutions to the world’s most pressing problems but also developing innovative financing strategies for these solutions... I am thrilled about the career opportunities this center will create.”