The Grand Jury of San Diego issued a report of this title yesterday.  Also, at yesterday’s GFOA (Government Finance Officers Association) business meeting, the group voted  that the Government Accounting Standards Board should stay away from the topic of sustainability.  The only conclusion one can draw from the Grand Jury report is: the city of [...]

California, Chapter 9, fiscal emergency, municipal bankruptcy, municipal bond default, state and local politics

An article about upstate New York town of Kingston and their discussion of fiscal stress, union contracts and the debate over Chapter 9 bankruptcy.

Chapter 9, fiscal stress, municipal bankruptcy

Tight financial margins are not kind to political squabbles.  In the last few weeks the city of Los Angeles has been engaged in a squabble with the city council and its utility, the Los Angeles Department of Water and Power (LADWP).  The city’s mayor wants the utility to implement green power, the utility asked for [...]

California, fiscal emergency, municipal bankruptcy, state and local politics

We have two opposing camps in the muni-market at the moment: those who say it is the next systemic shoe to drop and the rating agencies that are systemically raising ratings.
Which is right?
We have moved from a market that has had heavy intermediation from the bond insurance companies to one where investors are on their [...]

ballot initiatives, bond insurance, community development district, direct democracy, liquidity, municipal bankruptcy, municipal bond default, ratings, state and local politics, states

Westfall Township, Pennsylvania filed a Chapter 9 bankruptcy petition in April, 2009 and the court confirmed a reorganization plan in March, 2010.  According to the law firm that handled the case:
Westfall Township, located in Pike County, PA, was saddled with a $20 million debt due to a prior government’s mistreatment of a developer.  Without the [...]

fiscal emergency, municipal bankruptcy, state and local politics

I am adding a link to this article that updates Toledo’s fiscal situation.  (See prior post.)  The city is wrestling with a budget gap and trying to negotiate with unions over compensation.  Ohio is a state that has a fiscal emergency program and municipalities may not file for bankruptcy without going through the state.  The state’s [...]

fiscal emergency, fiscal stress, municipal bankruptcy, Ohio, Toledo

The tables below are for contextual reference as state and local governments face draconian spending cuts.   The combination of public policy with the several bubble periods over the last twenty-five years has created a toxic brew.  Some state and local governments are valiantly trying to tackle the issues while other legislatures and councils are more interested in [...]

fiscal stress, municipal bonds, Nevada, state and local politics, states

Here’s a good, local clip about the Harrisburg bond/incinerator problem:

fiscal emergency

See attached item from Reuters: http://www.reuters.com/article/idUSTRE61D27C20100214
Click on article title to get the link (sorry for the clunkiness)  Hat tip to Mayraj Fahim.

fiscal emergency

Several states are showing scary illiquidity.  New Jersey’s governor just yesterday impounded funds the legislature had already appropriated and announced a state of emergency.  He stopped short of “declaring” emergency, which would have given him special powers over contracts.  New Jersey comes up high on the list of states with big budget gaps, heavy pension [...]

fiscal stress, state and local politics, states