Educational Settlement Finance

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Educational Settlement Finance

July 29, 2026
mike@standardsmichigan.com
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Giovanni Paolo Panini, An architectural capriccio with figures among Roman ruins

The post-pandemic #WiseCampus transformation requires significant capital to meet the sustainability goals of its leadership.  Campuses are cities-within-cities and are, to a fair degree, financed in a similar fashion.  Tax-free bonds are an effective instrument for school districts, colleges and universities — and the host community in which they are nested — for raising capital for infrastructure projects while also providing investors with, say $10,000 to $100,000, to allocate toward a tax-free dividend income stream that produces a return in the range of 2 to 8 percent annually.

An aging population may be receptive to investment opportunities that protect their retirement savings from taxation.

Once a month, we walk through the prospectuses of one or two bond offerings of school districts, colleges and universities and examine offering specifics regarding infrastructure construction, operations and maintenance.  We pay particular attention to details regarding “continuing operations”. Somehow the education industry has to pay for its green agenda.  See our CALENDAR for the next Finance colloquium; open to everyone.

The interactive map provided by Electronic Municipal Market Access identifies state-by-state listings of tax-free bonds that contribute to the construction and operation of education facilities; some of which involved university-affiliated medical research and healthcare delivery enterprises.

CLICK ON IMAGE FOR INTERACTIVE MAP

 

If you need help cutting through this list please feel free to click in any day at 11 AM Eastern time.  Use the login credentials at the upper right of our hope page.  We collaborate with subject matter experts at Municipal Analytics and UBS.

Issue: [Various]

Category: Administration & Management, Finance, #SmartCampus

Colleagues: Mike Anthony, John Kaczor, Liberty Ziegahn

*We see the pandemic as a driver for a step-reduction in cost in all dimensions of education communities.  We coined the term with a hashtag about two years ago.

*College and university infrastructure projects are classified with public school districts under the rubric “municipal bonds” at the moment.  CLICK HERE for more information.

 


More:

Duke Law Review:  Don’t ‘Screw Joe the Plummer’: The Sausage-Making of Financial Reform

An Expanded Study of School Bond Elections in Michigan

School Bonds Michigan

July 29, 2026
mike@standardsmichigan.com
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Ballotpedia

Exterior Appearance of a One Room School House

History of One Room Schools | Central Michigan University

 

School Construction Bonds Confirmed for August 2026 Election Referenda

School District Amount Election Date
Harper Creek Community Schools (Calhoun County, MI) $28,000,000 Aug 4, 2026
Homer Community School District (Calhoun County, MI) $11,920,000 Aug 4, 2026

For reasons that may be obvious, construction companies make markets with their public relation enterprises.

Triangle Construction

About

Why the 10-Year Treasury Note Matters to School Bonds

The yield on the U.S. 10-year Treasury note is the principal benchmark for long-term borrowing throughout the American economy, including the municipal bond market that finances schools, colleges, and universities. When Treasury yields rise, investors generally expect higher returns from tax-exempt school bonds as well. To attract buyers, educational institutions must offer higher interest rates, increasing the cost of financing new classrooms, laboratories, residence halls, athletic facilities, and utility infrastructure.

Conversely, when 10-year Treasury yields decline, borrowing costs often ease, enabling school districts and universities to finance capital improvements at lower interest expense and reducing the long-term burden on taxpayers or tuition revenue. Although the final interest rate on any bond issue also reflects the issuer’s credit quality, market demand, insurance, and overall economic conditions, daily movements in the 10-year Treasury yield remain one of the most closely watched indicators of the direction and relative cost of educational facility financing.

As a rule of thumb, every 0.25 percentage point (25 basis point) increase in the borrowing rate adds about $25,000 per year in interest for every $10 million of outstanding principal.

Albert Kahn detail at the Alexander G. Ruthven Building at the University of Michigan

Central Utility Plant — $407.8 million

July 29, 2026
mike@standardsmichigan.com
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Standards Kentucky

Rendering of a campus utility plant with two large white tanks, a fenced perimeter, pedestrians and a car, set beside a modern brick building connected by a skybridge.

Board of Trustee Minutes approving this project

When universities speak of “campus growth,” what kind of growth do they mean? More students?  (At the moment, international students comprise about 5 percent of total enrollment) More research? (61 percent of graduate students were international) More healthcare? (Healthcare enterprises are moving off campus to where the patients are).  The traditional campus concentrated infrastructure — the modern academic health system distributes it.  (At what point does a university cease to be a campus and become a regional enterprise?)  More computing? (Electric or absorption chillers).  Or are they simply replacing infrastructure that has reached the end of its useful life?

Facilities Management | Utilities and Energy Management

'Behind the Blue': Addressing student mental health and well-being at UK | UKNow

Data Center Bust & Boom

July 28, 2026
mike@standardsmichigan.com
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"One day ladies will take their computers for walks in the park and tell each other, "My little computer said such a funny thing this morning" - Alan Turing

Data centers in colleges and universities are crucial for supporting the extensive technological infrastructure required for modern education and research. These centers house critical servers and storage systems that manage vast amounts of data, ensuring reliable access to academic resources, administrative applications, and communication networks. They enable the secure storage and processing of sensitive information, including student records, faculty research, and institutional data.

Uptime Institute Tier Classification

Moreover, data centers facilitate advanced research by providing the computational power needed for data-intensive studies in fields like bioinformatics, climate science, and artificial intelligence. They support virtual learning environments and online course management systems, essential for the increasingly prevalent hybrid and online education models. Efficient data centers also contribute to campus sustainability goals by optimizing energy use through modern, eco-friendly technologies.

ANSI/TIA 942 Data Center Infrastructure Standard

Additionally, robust data center infrastructure enhances the university’s ability to attract top-tier faculty and students by demonstrating a commitment to cutting-edge technology and resources. They also play a vital role in disaster recovery and business continuity, ensuring that educational and administrative functions can resume quickly after disruptions. Overall, data centers are integral to the academic mission, operational efficiency, and strategic growth of colleges and universities.

Standards distinguish meaningful patterns from imagined ones.

We have followed development of the technical standards that govern the success of these “installations” since 1993; sometimes nudging technical committees — NFPA, IEEE, ASHRAE, BICSI and UL.   The topic is vast and runs fast so today we will review, and perhaps respond to, the public consultations that are posted on a near-daily basis.  Use the login credentials at the upper right of our home page.

Related:

Oakland University examining feasibility of hosting data center on campus

University of Virginia — Fontaine Research Data Center

Ernst & Young LLP: Why there is no silver bullet for data center financing

Data Center Growth

Gallery: Supercomputers & Data Centers

Data Center Wiring

Datacenter Architecture

Power Management For Data Centers Challenges And Opportunities

Data Center Operations & Maintenance

Inauguration of New Supercomputer

Big Data Applications in Edge-Cloud Systems

Supercomputer Tour

Data Center Metrics

“What Happens When Data Centers Come to Town”

July 28, 2026
mike@standardsmichigan.com

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What Happens When Data Centers Come to Town

Terry Nguyen | BA Public Policy

Ben Green |Assistant Professor, School of Information and Gerald R. Ford School of Public Policy

Partner | Michigan Environmental Justice Coalition

Introduction. [Abstract].  The rapid growth of data centers, with their enormous energy and water demands, necessitates targeted policy interventions to mitigate environmental impacts and protect local communities. To address these issues, states with existing data center tax breaks should adopt sustainable growth policies for data centers, mandating energy audits, strict performance standards, and renewable energy integration, while also requiring transparency in energy usage reporting. “Renewable energy additionality” clauses should ensure data centers contribute to new renewable capacity rather than relying on existing resources.  If these measures prove insufficient, states should consider repealing tax breaks to slow unsustainable data center growth. States without tax breaks should avoid such incentives altogether while simultaneously implementing mandatory reporting requirements to hold data centers accountable for their environmental impact. Broader measures should include protecting local tax revenues for schools, regulating utility rate hikes to prevent cost-shifting to consumers, and aligning data center energy demands with state climate goals to avoid prolonging reliance on fossil fuels.

Related:

Sharan Kalwani (Chair, Southeast Michigan Section IEEE): AI and Data Center Demand

Gallery: Other Ways of Knowing Climate Change

 

Application of Big Data in Power System Reform

July 28, 2026
mike@standardsmichigan.com
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Application of Big Data in Power System Reform

Abstract:  Power grid operation and maintenance decision-making reform is an important part of power system reform. With the construction of massive historical quasi real-time data management platform, the reform of power system is also advancing. However, in the face of massive data explosion, the business level and business logic become disorganized and redundant. Based on the actual situation of Shenzhen Power Supply Bureau, the sg-erp data center is composed of structured data center, massive data center, unstructured data center and power grid GIS data center. With the unprecedented growth of business application data, the data center can improve business logic and promote power system reform. The experimental results show that big data technology has a broad application prospect in the reform of power industry.

CLICK HERE for complete paper

Smart Grid Blockchains

Power Management For Data Centers Challenges And Opportunities

Language 600

July 27, 2026
mike@standardsmichigan.com
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Starting from the canonicals of any standard suitable for optimizing innovation (and incorporation by reference into public law) — Title, Scope, Purpose and Definitions — we will turn our attention to the Call for Public Comment by NIST which is open until July 28th.

Innovation and Competitiveness in Artificial Intelligence

Artificial intelligence is built upon language, but the meaning of “standard language” becomes complicated when machines learn from billions of human expressions. Unlike electrical, building or safety standards, language standards are rarely governed by a single authority. Dictionaries, style manuals, universities, publishers, governments and professional societies establish conventions, while ordinary speakers continuously modify them. AI systems operate in the middle of this tension between prescription and usage.

Training data. Large language models learn statistical patterns from books, websites, journalism, academic literature, software and other sources. The composition of that material influences what the model recognizes as normal, authoritative or acceptable language. Decisions about inclusion, exclusion and weighting can therefore function as de facto standards, even when no formal standards organization is involved.

 Grammar and intelligibility. AI can reinforce conventional spelling, syntax and technical terminology, making communication across institutions and borders easier. This is particularly valuable in engineering, medicine, law and education, where small differences in terminology can have substantial consequences. Yet excessive normalization may flatten dialect, regional vocabulary and inherited forms of expression.

Meaning. Words change over time and contested words often carry political, cultural or institutional assumptions. When an AI system chooses one definition over another, it may unintentionally appear to settle a dispute that society itself has not settled. Transparency about ambiguity is therefore an important characteristic of trustworthy AI.

Tchnical standardization. AI increasingly depends upon formal vocabularies, ontologies, metadata, machine-readable definitions and interoperability protocols. Standards organizations such as International Organization for Standardization, IEEE and National Institute of Standards and Technology have roles in developing frameworks through which AI systems can be evaluated and governed.

Above all we still face the question: Who gets to set the language standard? Should AI reflect contemporary majority usage, established literary traditions, professional terminology, institutional style or the language of particular communities? Probably some combination is unavoidable.

For Standards Michigan, the deeper question may be this: AI does not merely follow language standards; through widespread daily use, it may increasingly help create them. If millions of students, teachers, engineers and institutions rely upon AI to write and interpret language, the model’s linguistic choices can become conventions themselves. Understanding how those choices are made may therefore become as important as understanding the standards written by traditional standards-setting bodies.

 

Tokens

July 27, 2026
mike@standardsmichigan.com
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Standards Michigan: Language*

American English is effectively the de facto reference language for most modern LLM tokenization.   During today’s session we explore the at-present advantage Americans have in the development of artificial applications — whether it should always be that way or not.  Tokenization isn’t language-neutral — it’s heavily skewed toward English due to data realities. This is one of the core reasons why “English-first” prompting often works best in today’s LLMs.

We will use the document linked below to begin the exploration:

NIST AI Consortium

Use the login credentials at the upper right of our home page


The Quick Brown Fox – Tokenization Example

Original English Sentence:

The quick brown fox jumps over the lazy dog.

1. Tokenization

Tokens: ["The", " quick", " brown", " fox", " jumps", " over", " the", " lazy", " dog", "."]

2. Token IDs (Numbers fed to the AI model)

Token Token ID
The 464
quick 2068
brown 7583
fox 1776
jumps 18045
over 625
the 262
lazy 16925
dog 3290
. 13

Final Input to the AI Model:

[464, 2068, 7583, 1776, 18045, 625, 262, 16925, 3290, 13]


Background:

The model only sees this list of numbers. It has no direct understanding of English words anymore — it learned patterns from billions of examples during training using these number sequences.This numerical input then goes through embeddings (turning numbers into vectors), attention layers, etc., to generate a response.  Most widely used tokenizers (e.g., OpenAI’s tiktoken, Llama’s, etc.) are trained primarily on English-heavy datasets (often 60–90%+ English in pre-training corpora).

Outcome:

    • Better compression for English — Common English words and patterns become single tokens or short subwords.
    • Worse efficiency for other languages — Non-English text often gets fragmented into more tokens (sometimes 2–5× more for the same semantic content).

Impact:

    • Higher token counts = higher API costs and shorter effective context windows for non-English users.
    • Poorer downstream performance on non-English tasks.
    • English becomes the “cheapest” and often “best-performing” language for prompting and reasoning.

Studies consistently show this “tokenization tax” or “language premium”: English typically has the lowest token-per-character or token-per-meaning ratio in major models.

Bias:

    • Multilingual models still underperform on low-resource languages.
    • It reinforces English as the default language for AI development.
    • It affects fairness, accessibility, and global adoption.

Efforts to fix this include dedicated multilingual tokenizers, language-specific fine-tuning, and more balanced approaches. However, because English dominates training data and benchmarks, it remains the practical standard that everything else is measured against.

Tokenization isn’t language-neutral — it’s heavily skewed toward English due to data realities. This is one of the core reasons why “English-first” prompting often works best in today’s LLMs.

 

* StandardsMichigan.COM normally deals with Language issues every Monday at least once per month.

How Your LLM Costs 5X More If You Don’t Speak English

Same content, 65% more expensive in Chinese! Cross-model tokenization comparison: Claude users pay the highest ‘Chinese tax’

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