Revenue bonds raise revenue for state and local governments in Texas by issuing bonds to investors, which are then used to finance public projects or infrastructure. The revenue generated from these projects or facilities, such as toll roads, airports, water treatment plants, or sports stadiums, is used to repay the bondholders with interest. This allows the government to raise funds for essential projects without increasing taxes or using general fund revenues. Revenue bonds are typically considered a lower-risk investment because they are backed by the revenue generated by the specific project, rather than the full faith and credit of the government.
