State of Connecticut. How one of the nation s most affluent states finds itself in a financial bind
|
|
- Charles Tyler
- 6 years ago
- Views:
Transcription
1 REUTERS/Danish Siddiqui State of Connecticut How one of the nation s most affluent states finds itself in a financial bind August 2017 Thomson Reuters Pricing Service, Municipal Evaluations
2 State of Connecticut: How One of the Nation s Most Affluent States Finds Itself in a Financial Bind 2 Hartford, CT. State of Connecticut: How one of the nation s most affluent states finds itself in a financial bind The recent downgrade in the ratings by Moody s (Aa3 to A1), Standard & Poor s (AA to A+) and Fitch (AA- to A+) of the tax-supported debt, appropriations debt and other debt supported by state guarantees reflect Connecticut s ongoing and increasing structural budgetary deficits. The state continues to struggle from weak job growth and population outmigration. What s more, it has yet to adopt its budget for the new fiscal year (due July 1, 2017) and is currently operating under executive order.
3 State of Connecticut: How One of the Nation s Most Affluent States Finds Itself in a Financial Bind 3 What are the factors that have contributed to Connecticut s current situation? Fixed Costs: Bonds and Pension Liabilities At the close of FY 2016, Connecticut s net tax-supported general obligation debt was $24.1 billion, a 19.5% increase from FY Debt per capita totaled $6,505, well over the national median of $1,006. The state also sponsors three pension plans: State Employees Retirement System (SERS), Teachers Retirement System (TRS), and Judicial Retirement System (JRS). Although the state is obligated to make the appropriate annual payment to the plans, due to prior years of underfunding, the plans are seriously underfunded. Funding ratios for SERS, TRS and JRS are 39.2%, 59.5% and 51.9% respectively, with a combined net pension liability of $27.6 billion. The state is currently not making any payments towards reducing that liability. Correspondingly, the liability continues to grow. The state s OPEB liability for the Teachers Plan and the State Employee Plan totals $9.9 billion. The combined pension, OPEB and debt service payments comprise nearly 30% of state revenues among the highest fixed-cost ratio in the nation. Taxes Implemented in 1991, Connecticut s personal income tax replaced two existing high-rate taxes on personal income in the form of capital gains, dividends and interest. The tax was initially structured as a simple 4.5% flat rate on Connecticut adjusted gross income (AGI) above $12,000 for single filers and married individuals filing separately, $19,000 for heads of household and $24,000 for joint filers. In 2011, lawmakers approved the largest tax increase in state history. Four years later, faced with yet another multi-billion-dollar budget deficit, they passed the second-largest tax hike in state history. Connecticut currently has six tax brackets, the highest being 6.99% on all taxable income of $500,001 or more. One of the unforeseen consequences of income tax increases has been the tax flight outmigration of higher-income Connecticut residents and businesses to lower-tax states. A recent report by Asset Preservation Advisors 1 cites an Associated Press article reporting that tax revenue from Connecticut s 100 highestpaying taxpayers declined 45% from 2015 to 2016, resulting in approximately $200 million revenue loss for the state. Quarterly Change in State Tax Revenue Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 National Conneticut Illinois New Jersey Over the past two years, Connecticut s change in tax revenue has lagged below the national average. Source: Pew s analysis is based on the U.S. Census Bureau s Quarterly Summary of State and Local Government Tax Revenue, as adjusted by the Nelson A. Rockefeller Institute of Government. Data are adjusted for inflation using the U.S. Bureau of Economic Analysis Implicit Price Deflators for Gross Domestic Product, accessed March 20, Asset Preservation Advisors, Million Migration, June 2017.
4 State of Connecticut: How One of the Nation s Most Affluent States Finds Itself in a Financial Bind 4 Hartford, CT. The closing of a federal tax loophole may prove a windfall for Connecticut. Hedge-fund managers for years accumulated offshore gains without paying federal and state taxes. Congress overwhelmingly voted to close it as a way of raising revenue and stabilizing the financial sector during the 2008 financial crisis. The change, part of the Emergency Economic Stabilization Act of October 2008, was made in section 457A of the IRS code. The legislation gave managers a decade to pay taxes on money accumulated before the law changed. That deadline is now nine months away. Total payments from all managers could amount to $25 billion, according to a 2008 estimate from the Joint Committee on Taxation. Some tax specialists say the bill could be even higher: $100 billion or more. This will likely mean a surge of tax revenue for Connecticut, historically the center of the hedge-fund industry. The state isn t yet sure how much it will reap, said a spokesman for the governor s budget office. It is too early to determine how funds would be allocated by the State, whether it is to the state s rainy day account, increased aid to localities or any number of budget factors. Economic Weakness Dependent on the finance and insurance sectors, Connecticut s economy was hit hard during the recession and has struggled to come back as those sectors also exhibited slow and inconsistent recoveries. While Connecticut enjoys the second-highest per capita income in the nation 143% of the national average that has been trending lower. Moreover, the traditionally affluent Fairfield County now lags the state in average personal income growth, with a lackluster.68% ( ). Middlesex County, with higher education and healthcare centers, had the best average growth at 3.16%. However, overall, the state average personal income growth for the period was 1.88%. The national average was a more robust 3.6%. Hartford The city of Hartford (B2/BB) serves as an illustration of the impact of the state s financial plight on local government. As the state capital, Hartford faces unique challenges beyond the norm of other municipalities. Approximately half of the property in the city is owned by the state or non-profit institutions and thus not subject to tax a contributing factor to the city s financial difficulties. This places a greater emphasis on state aid to compensate for the lack of ratables. With uncertainty regarding levels of intergovernmental aid or other state support that could enable Hartford to stem its fiscal decline in light of the state s own fiscal challenges, city officials have contemplated filing for Chapter 9 bankruptcy protection. Compounding Hartford s fragile financial position is the recent announcement by Aetna Inc., one of the city s (and state s) major employers, of its intent to move its corporate headquarters out of Connecticut. Ironically, the CEOs of Aetna, Travelers and The Hartford recently pledged to contribute $10 million per year for five years with a focus on institutions such as the Hartford Public Library, law enforcement and recreation centers.
5 State of Connecticut: How One of the Nation s Most Affluent States Finds Itself in a Financial Bind 5 State Aid as a % of Local Revenue 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% % Waterbury New Haven Stamford Bridgeport Hartford Hartford relies on state aid more than any of the other large cities in Connecticut. (Moody s Rating figures based on the most recently available proposed or adopted budget.) S&P s recent rating downgrade to BB (from BBB-) stated the downgrade to BB reflects our opinion of very weak diminished liquidity, including uncertain access to external liquidity and very weak management conditions as multiple city officials have publicly indicated they are actively considering bankruptcy, said S&P Global Ratings credit analyst Victor Medeiros. The city of Hartford has engaged an outside law firm with expertise in financial restructuring. Officials also mentioned that the city would initiate discussions with bondholders for concessions to implement a debt restructuring if it didn t receive the necessary support in the state s 2019 biennial budget. S&P also said that Hartford may be downgraded again if the state passage of a budget is significantly delayed, or if the city were not to receive sufficient support in a timely manner that would enable it to manage liquidity and allow it to meet obligations in a timely manner. 2 Moody s lowered its rating to B2 (from Ba2) citing the downgrade reflects the increased likelihood that the city will pursue debt restructurings to address its fiscal challenges. Last week, the city hired a law firm to advise it on debt restructurings. City management has made public statements indicating they will need to have discussions with bondholders about restructuring its debt regardless of the outcome of the state s biennial budget as debt service costs escalate sharply leading to budget deficits over the next five years. 3 2 S&P Credit Report, 7/11/ Moody s Credit Report, 7/13/2017.
6 State of Connecticut: How One of the Nation s Most Affluent States Finds Itself in a Financial Bind 6 Budget Delay Connecticut s FY 2018 began on July 1, 2017, but did so without an adopted budget. Continued discussions between the legislature and the governor in shaping the state s biennial budget have been acrimonious. Governor Dannel Molloy has been quoted as saying I m governor in a state where Republicans and Democrats don t agree with one another, and no one agrees with me. The result has been the state operating under an executive order to provide for day-to-day governmental functions. The limited executive order will soon cause massive cuts across the board, including significant reductions in municipal aid, school funding, transportation projects and social services. The governor has called for the passage of a mini budget (90 days) that provides sufficient money to fund government until a new budget is finalized and adopted. Conclusion Connecticut s financial plight is indicative of the many issues that may be camouflaged by high wealth levels. The budget gap, pension issues and the need to provide aid and support to local municipalities, school districts, transportation projects and social services can have far-reaching consequences. The chart below illustrates the impact of rating downgrades on the trading value of the state and the domino effect it has on local municipalities (e.g., Hartford). The levels of uncertainty regarding tax increases, pension and OPEB liabilities, and potential bankruptcy of the state capital have had a serious impact on the cost of capital for all related entities. Connecticut State and Local GO Bond Spreads /08/ /09/ /10/ /11/ /01/ /02/ /03/ /04/ /05/ /06/2017 Hartford CT Waterbury New Haven Stamford Bridgeport Hartford s bond yield spreads are significantly higher than those of other large cities in Connecticut. (End of day TRPS bid yield spreads for 2031 maturities of State and Local CT GO issuers.)
7 This Thomson Reuters Pricing Service ( TRPS ) report does not provide individualized advice or recommendations for any specific subscriber or portfolio and is not intended for decisions relating to investments, legal, compliance or risk. Investing involves substantial risk. Neither the editor, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the information contained herein. While past performance may be mentioned, it should not be considered indicative of future performance. No subscriber or reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer in question. Visit financial.tr.com S050429/7-17
Commission on Fiscal Stability and Economic Growth. Commission Meeting March 1, 2018
Commission on Fiscal Stability and Economic Growth Commission Meeting March 1, 2018 Current Connecticut Situation Connecticut real gross state product still remains 8% below 2007 levels; lagging neighboring
More informationState of Connecticut
U.S. Public Finance State General Obligation Rating Report State of Connecticut General Obligation Refunding Bonds (2016 Series B) and General Obligation Bonds (2016 Series C) (Variable Rate Demand Bonds)
More informationState of Connecticut General Obligation Bonds Executive Summary
U.S. Public Finance State of Connecticut General Obligation Bonds Executive Summary State G.O. Surveillance Report Kroll Bond Rating Agency (KBRA) has affirmed the long-term rating of AA- and revised the
More informationState of Connecticut
Public Finance State General Obligation Rating Report State of Connecticut Taxable General Obligation Bonds (2017 Series A) & General Obligation Bond Anticipation Notes (2017 Series A) Analytical Contacts:
More informationState of Connecticut
U.S. Public Finance State General Obligation Rating Report State of Connecticut General Obligation Bonds (2016 Series E) and General Obligation Bonds (2016 Series F Green Bonds) Analytical Contacts: Kate
More informationState of Connecticut
U.S. Public Finance State General Obligation Rating Report State of Connecticut General Obligation Bonds (2017 Series A) & (2017 Series B) Analytical Contacts: Kate Hackett, Managing Director khackett@kbra.com,
More informationState of Connecticut
U.S. Public Finance State Rating Report State of Connecticut General Obligation Bonds General Obligation Bonds (2015 Series F) General Obligation Bonds (Green Bonds, 2015 Series G) Analytical Contacts:
More informationNew Issue: Moody's assigns Aa3 ratings to State of Connecticut G.O. Bonds; outlook is stable
New Issue: Moody's assigns Aa3 ratings to State of Connecticut G.O. Bonds; outlook is stable Global Credit Research - 04 Mar 2014 CONNECTICUT (STATE OF) State Governments (including Puerto Rico and US
More informationMARKET PERSPECTIVES CURRENT PRICES INDICATE (SOME) CONFIDENCE KEY TAKEAWAYS LPL RESEARCH. July ILLINOIS ISSUES
LPL RESEARCH B O N D MARKET PERSPECTIVES July 18 2017 ILLINOIS ISSUES Matthew E. Peterson Chief Wealth Strategist, LPL Financial Colin Allen, CFA Assistant Vice President, LPL Financial KEY TAKEAWAYS Following
More informationEaton Vance State of the States: How Do They Rank?
Seeking tax-efficient income and equity Eaton Vance State of the States: How Do They Rank? October 2015 Prepared by the Eaton Vance Municipal Insight Committee Important Information & Disclosure This presentation
More informationWestport (Town of) CT
CREDIT OPINION New Issue - Moody's Assigns Aaa to Westport, CT's GO Bonds, Issue of 2017; Outlook Stable New Issue Summary Rating Rationale Moody's Investors Service has assigned a Aaa rating to the Town
More informationHouse Committee on Oversight
House Committee on Oversight 38 Studios Moral Obligation Bond Repayment May 8, 2014 What is RIPEC? RIPEC is an independent, nonprofit and nonpartisan public policy research and education organization.
More informationMarket Focus. Credit cycle: rising default rate. Where do we stand in the default rate cycle? Credit fundamentals are deteriorating
At the beginning of 215, we began forecasting the end of the credit cycle. Since then, corporate fundamentals, rating trends, and default rate data have all deteriorated. Moody s speculative default rate
More informationResearch. Market Summary. March Contributors
Research Municipal Bond Credit Report The Municipal Bond Credit Report synthesizes, analyzes and presents aggregate credit information and trends in the municipal bond market. The report includes municipal
More informationMunicipal Bond Basics
Weller Group LLC Timothy Weller, CFP CERTIFIED FINANCIAL PLANNER 6206 Slocum Road Ontario, NY 14519 315-524-8000 tim@wellergroupllc.com www.wellergroupllc.com Municipal Bond Basics March 06, 2016 Page
More informationThe Municipal Bond Market Has Changed. Has your portfolio adapted?
The Municipal Bond Market Has Changed Has your portfolio adapted? 2017 1 Investing in municipal bonds has become more complicated since the financial crisis. Understanding the current environment may help
More informationHealth Insurance & Median Income in Connecticut: Summary of 2008 American Community Survey Census Data
Health Insurance & Median in : Summary of American Community Survey Census Data Estimates for and the Nation September 22, 2009 Indicator All children under 18 uninsured (point in time estimate) 9.0% (310,597)
More informationWho Pays? The Unfairness of Connecticut s State and Local Tax System
Who Pays? The Unfairness of Connecticut s State and Local Tax System Douglas Hall, Ph.D. April 2009 This report is produced with the support of the Stoneman Family Foundation and the Melville Charitable
More informationResearch. Market Summary. December Contributors
Research Municipal Bond Credit Report The Municipal Bond Credit Report synthesizes, analyzes and presents aggregate credit information and trends in the municipal bond market. The report includes municipal
More informationFGFOA Nature Coast Chapter Meeting Linda S. Howard, CPA, CTP, MBA Nick Rocca January 2017
The Municipal Financing Puzzle FGFOA Nature Coast Chapter Meeting Linda S. Howard, CPA, CTP, MBA Nick Rocca January 2017 Outline for Today Current Municipal Market Issuance Process Ratings and Other Credit
More informationTown of East Greenwich. Overview of Municipal Bonds
Town of East Greenwich Overview of Municipal Bonds Table of Contents East Greenwich s Bond Rating Section 1 Existing Debt Service Section 2 Ways in Which to Measure Debt Section 3 Basics of Issuing Bonds
More informationTax-free Investing It s Not What You Make, It s What You Keep
Tax-free Investing It s Not What You Make, It s What You Keep www.edwardjones.com Member SIPC 5 HOW CAN I STAY ON TRACK? 4 HOW DO I GET THERE? 1 WHERE AM I TODAY? MY FINANCIAL NEEDS 3 CAN I GET THERE?
More informationPublic Pension Woes Make Differentiated Muni Investing Key
February 2015 Public Pension Woes Make Differentiated Muni Investing Key EXECUTIVE SUMMARY Mark Stockwell Senior Analyst Tax Sensitive Strategies As public pension funding gaps and municipal fiscal challenges
More informationBONDS 101 AND MARKET UPDATE
BONDS 101 AND MARKET UPDATE October 19, 2018 Martin Ghafoori Director (314) 342-8467 ghafoorim@stifel.com Dan Smith Vice President (314) 609-4126 dan.smith@stifel.com Bonds 101 Bond Basics Bonds = loans
More informationSTATE OF ILLINOIS FY2016 BUDGET ROADMAP:
STATE OF ILLINOIS FY2016 BUDGET ROADMAP: State of Illinois Budget Overview, Projections and Recommendations for the Governor and the Illinois General Assembly February 12, 2015 The Civic Federation would
More informationWhat the New Tax Laws Mean to You
What the New Tax Laws Mean to You The American Taxpayer Relief Act of 2012 and other 2013 tax provisions January 2013 White Paper AN OVERVIEW OF THE AMERICAN TAXPAYER RELIEF ACT OF 2012 AND OTHER 2013
More informationIn early 2003, financial analysts gave Alaska state officials some very
No.86 How Is the State Dealing With the Shortfall in Pension Systems? Institute of Social and Economic Research, University of Alaska Anchorage By Cliff Groh In early 2003, financial analysts gave Alaska
More informationCan Illinois Afford to Allow Current Tax Rates to Expire?
Can Illinois Afford to Allow Current Tax Rates to Expire? January 30, 2014 David Lloyd Senior Policy Analyst, Fiscal Policy Center Voices for Illinois Children www.voices4kids.org dlloyd@voices4kids.org
More informationU.S. and Illinois Economic Outlook for 2019 implications for local government
U.S. and Illinois Economic Outlook for 2019 implications for local government Rick Mattoon Senior Economist and Policy Advisor Federal Reserve Bank of Chicago ILCMA Financial Forecast Forum January 25,
More informationGetting Public Value Out of Our Public Dollars Do Iowa s Spending Choices Represent Iowa s Values?
Getting Public Value Out of Our Public Dollars Do Iowa s Spending Choices Represent Iowa s Values? By Andrew Cannon POLICY BRIEF Revised October 7, 2010 www.iowafiscal.org Days before the end of his tenure
More informationRiding the Revenue Roller Coaster:
Riding the Revenue Roller Coaster: Recent Trends in State Government Finance* BY TIMOTHY SCHILLER T he fall in state tax revenue during the current recession and the one in highlights an increase in the
More informationBOC Position Paper on Greenwich s Looming Budget Crisis
13 September 2016 BOC Position Paper on Greenwich s Looming Budget Crisis The Representative Town Meeting has charged its Budget Overview Committee (BOC) with suggesting guidelines and making recommendations
More information44% of US Households Don't Pay Any Federal Income Tax
44% of US Households Don't Pay Any Federal Income Tax April 25, 2017 by Gary Halbert of Halbert Wealth Management 1. 44% of Households Don t Pay Any Federal Income Tax 2. Lion s Share of Federal Income
More informationBenchmarking Municipal Finance in Worcester 2008: Factors Affecting the City s Bond Rating
Benchmarking Municipal Finance in Worcester 2008: Factors Affecting the City s Bond Rating Report 08 05 September 25, 2008 Benchmarking Municipal Finance in Worcester 2008: Factors Affecting the City
More informationDo Ratings Agencies Create Fiscal Discipline?
Chicago -- City at the Turning Point Do Ratings Agencies Create Fiscal Discipline? Richard A. Ciccarone President & CEO Merritt Research Services, LLC April 23, 2014 1 Do Ratings Agencies Create Fiscal
More informationCHICAGO PUBLIC SCHOOLS FY2019 PROPOSED BUDGET: Analysis and Recommendations
CHICAGO PUBLIC SCHOOLS FY2019 PROPOSED BUDGET: Analysis and Recommendations July 24, 2018 TABLE OF CONTENTS EXECUTIVE SUMMARY... 4 CIVIC FEDERATION POSITION... 7 ISSUES THE CIVIC FEDERATION SUPPORTS...
More informationMETROPOLITAN WATER RECLAMATION DISTRICT FY2019 TENTATIVE BUDGET: Analysis and Recommendations
METROPOLITAN WATER RECLAMATION DISTRICT FY2019 TENTATIVE BUDGET: Analysis and Recommendations December 6, 2018 Table of Contents EXECUTIVE SUMMARY... 4 CIVIC FEDERATION POSITION... 7 ISSUES THE CIVIC FEDERATION
More informationHow Safe Are Municipal Bonds Today?
How Safe Are Municipal Bonds Today? Summary Reports about the poor financial condition of state and local governments make the headlines every day, but municipalities continue to take prudent action, including
More informationTax-free Investing It s Not What You Make, It s What You Keep 5 HOW CAN I STAY ON TRACK? 4 HOW DO I GET THERE?
Tax-free Investing www.edwardjones.com Member SIPC 5 HOW CAN I STAY ON TRACK? 4 HOW DO I GET THERE? 1 WHERE AM I TODAY? MY FINANCIAL NEEDS 3 CAN I GET THERE? 2 WHERE WOULD I LIKE TO BE? 2 MKD-2104N-A-NS
More informationTOWN OF WINDSOR LOCKS, CONNECTICUT
step forward TOWN OF WINDSOR LOCKS, CONNECTICUT FINANCIAL STATEMENTS TABLE OF CONTENTS Exhibit Independent Auditors Report 1-3 Management s Discussion and Analysis 4-11 Basic Financial Statements: Government-Wide
More informationFinance and Budget Team: Summary and Analysis of Mayor s Proposed FY20-24 Five-Year Plan and Economic Update
OFFICE OF THE PRESIDENT FINANCE AND BUDGET TEAM City Council of Philadelphia Finance and Budget Team: Summary and Analysis of Mayor s Proposed FY20-24 Five-Year Plan and Economic Update (updated as of
More informationBristol, Connecticut; General Obligation; Note
Summary: Bristol, Connecticut; General Obligation; Note Primary Credit Analyst: Victor M Medeiros, Boston (1) 617-530-8305; victor.medeiros@spglobal.com Secondary Contact: Steven E Waldeck, Boston (1)
More informationStrategic and Holistic Plan of Finance Prepared for the City of Petersburg, Virginia
Strategic and Holistic Plan of Finance Prepared for the City of Petersburg, Virginia March 14, 2017 Member NYSE FINRA SIPC Table of Contents Tab Section Title 1 Background 2 Current State of the City 3
More informationHaverhill Office of the Mayor, Room 100 Phone: Fax:
For Immediate Release: December 5, 2013 Mayor Announces Standard & Poor s Increases Haverhill s Bond Rating Up Two Notches Today, Mayor James J. Fiorentini announced that the Wall Street bond rating agency,
More informationThe New Police and Firefighter Contracts Here We Go Again!
The New Police and Firefighter Contracts Here We Go Again! Two years after their last contracts expired, new labor contracts have finally been proposed for police and firefighters that will run for two
More informationSusan Combs, Texas Comptroller of Public Accounts. Path to Stability: ERS at the Crossroads
Susan Combs, Texas Comptroller of Public Accounts Path to Stability: ERS at the Crossroads EMPLOYEES RETIREMENT SYSTEM: THE BASICS The Employees Retirement System of Texas (ERS), established in 1947 by
More informationTaking a Bite Out of Jobs:
Taking a Bite Out of Jobs: The Economic Effects of a Sales Tax Increase on Restaurant Meals By Paul Bachman, MSIE and David G. Tuerck, PhD March 2018 1 Yankee Letter Predictably, Connecticut s budget languishes
More informationMunicipal Bonds. Mid-Atlantic Association for Financial Professionals. Municipal Capital Markets Group September 17, 2014
Municipal Bonds Mid-Atlantic Association for Financial Professionals Municipal Capital Markets Group September 17, 2014 Speakers Greg Brunner Managing Director Bart Savidge Managing Director 25 South Charles
More information11/8/2013. Bonds 101. Presentation Overview. What is a Municipal Bond?
Bonds 101 Gary Olsen, Senior Financial Advisor/Vice President Jodie Zesbaugh, Financial Advisor Ehlers 2013 MASBO Fall Conference November 15, 2013 1 Presentation Overview Introduction and Background Information
More informationDebt Impact Study. January New York State Office of the State Comptroller Thomas P. DiNapoli
Debt Impact Study January 2008 New York State Office of the State Comptroller Thomas P. DiNapoli Office of Budget and Policy Analysis Albany, New York 12236 In an effort to reduce the costs of printing,
More informationConsumer Confidence Highest Since Before Great Recession
Consumer Confidence Highest Since Before Great Recession December 14, 2016 by Gary Halbert of Halbert Wealth Management 1. Consumer Confidence Soars to Highest Since 2008 2. My Theory on Why Consumer Confidence
More informationFixed-Income Insights
Fixed-Income Insights The Appeal of Short Duration Credit in Strategic Cash Management Yields more than compensate cash managers for taking on minimal credit risk. by Joseph Graham, CFA, Investment Strategist
More informationIllinois Fiscal Condition: How bad is it and what can be done about it
Illinois Fiscal Condition: How bad is it and what can be done about it Rick Mattoon Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Economic Outlook Symposium December 1, 2017 Illinois
More informationCapital Improvements: Planning and Budgeting in the District of Columbia. Susan M. Banta Former Senior Budget Officer
Capital Improvements: Planning and Budgeting in the District of Columbia Susan M. Banta Former Senior Budget Officer Capital Improvements Program The District of Columbia s Capital Improvements Program
More informationSMALL BUSINESS HEALTH CARE NETWORK SURVEY Universal Health Care Foundation of Connecticut
Executive Summary In early 2006, the (UHCF) Small Business Health Care Network conducted a survey of 806 small businesses to understand their practices, concerns and attitudes regarding health care coverage.
More informationRIVERSIDE PUBLIC SCHOOL DISTRICT NO. 96 COOK COUNTY, ILLINOIS ANNUAL FINANCIAL REPORT
COOK COUNTY, ILLINOIS ANNUAL FINANCIAL REPORT JUNE 30, 2015 TABLE OF CONTENTS JUNE 30, 2015 PAGE INDEPENDENT AUDITOR S OPINION 1 INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
More informationFUNDAMENTALS OF CREDIT ANALYSIS
FUNDAMENTALS OF CREDIT ANALYSIS 1 MV = Market Value NOI = Net Operating Income TV = Terminal Value RC = Replacement Cost DSCR = Debt Service Coverage Ratio 1. INTRODUCTION CR = Credit Risk Y.S = Yield
More informationStatus of Local Pension Funding Fiscal Year 2012: An Evaluation of Ten Local Government Employee Pension Funds in Cook County
Status of Local Pension Funding Fiscal Year 2012: An Evaluation of Ten Local Government Employee Pension Funds in Cook County October 2, 2014 ACKNOWLEDGEMENTS The Civic Federation would like to thank the
More informationThe Illinois State Budget: How Bad is the Picture, and What Can You Do About it? David Merriman, Nancy Hudspeth, and Andrew Crosby June 2012
The Illinois State Budget: How Bad is the Picture, and What Can You Do About it? David Merriman, Nancy Hudspeth, and Andrew Crosby June 2012 Introduction: About IGPA The Institute of Government and Public
More informationRECOMMENDATION Adopt a Resolution approving the Debt Management and Disclosure Policy.
Page 1 of 14 Office of the City Manager ACTION CALENDAR March 14, 2017 To: From: Honorable Mayor and Members of the City Council Dee Williams-Ridley, City Manager Submitted by: Henry Oyekanmi, Director,
More informationA guide to investing in high-yield bonds
A guide to investing in high-yield bonds What you should know before you buy Are high-yield bonds suitable for you? High-yield bonds are designed for investors who: Can accept additional risks of investing
More informationPUERTO RICO. Sell. Recommendation. Edward Jones Credit Strength Assessment. Investment Summary
PUERTO RICO Investment Category: Aggressive Income Sector: Various Municipal Bond Research Tom Larm, CFA March 6, 2018 Municipality Overview This opinion does not apply to these bonds: Puerto Rico Housing
More informationWILTON (TOWN OF) CT. Update to credit analysis. Credit strengths. » Affluent residential tax base. Credit challenges
CREDIT OPINION WILTON (TOWN OF) CT Update to credit analysis Summary Contacts Thomas Jacobs +1.212.553.0131 Senior Vice President thomas.jacobs@moodys.com Lauren Von Bargen +1.212.553.4491 Analyst lauren.vonbargen@moodys.com
More informationState Debt Affordability Studies: Common Elements & Best Practices
State Debt Affordability Studies: Common Elements & Best Practices New England Fiscal Leaders Meeting February 22, 2014 Jennifer Weiner, Senior Policy Analyst New England Public Policy Center Federal Reserve
More informationCALIFORNIA BONDS: 101
CALIFORNIA BONDS: 101 A Citizen s Guide to General Obligation Bonds 2016 EDITION JOHN CHIANG CALIFORNIA STATE TREASURER SECTION 1 BONDS 101: Q&A Q. What is a municipal bond? A. A bond is a loan. There
More informationBristol (City of) CT
CREDIT OPINION Bristol (City of) CT New Issue - Moody's Assigns Aa2 to Bristol, CT's GO Bonds; Assigns MIG 1 to GO BANs New Issue Summary Rating Rationale Moody's Investors Service has assigned a Aa2 to
More informationALLOWING HIGH-INCOME TAX CUTS TO EXPIRE ON SCHEDULE WOULD BE SOUND ECONOMIC AND FISCAL POLICY By Chuck Marr
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org Updated February 1, 2010 ALLOWING HIGH-INCOME TAX CUTS TO EXPIRE ON SCHEDULE WOULD BE
More informationMunicipal Market Update November 16, Matthew A. Spoerndle Senior Managing Director Phone: (203)
Municipal Market Update November 16, 2017 Matthew A. Spoerndle Senior Managing Director Phone: (203) 878-4945 mspoerndle@muniadvisors.com 1 Muni Market Update - Topics WHERE TO BEGIN??? Regulatory Environment
More informationState and Local Government Credit Headwinds Persist
By Christopher Holmes State and Local Government Credit Headwinds Persist Moody s Investors Service s credit outlook for state and local governments over the next year is negative on a backdrop of persistent
More informationMunicipal Market Recap and Outlook
Municipal Market Recap and Outlook Market Commentary Third Quarter 2017 This report discusses factors that can affect performance in the municipal bond market, including changes in the economy, interest
More informationWisconsin Budget Toolkit
Wisconsin Budget Toolkit INTRODUCTION Updated January 2016 Countless times a day, you are affected by state budget decisions. When you turn on the water, send your child to school, turn on a light, or
More informationSTATE OF ILLINOIS PENSION SYSTEMS: ANALYSIS AND RECOMMENDATIONS
STATE OF ILLINOIS PENSION SYSTEMS: ANALYSIS AND RECOMMENDATIONS (Excerpted from the Civic Federation s State of Illinois FY2007 Recommended Operating Budget: Analysis and Recommendations) Prepared by The
More informationLiabilities : Market (Tsy STRIPS) IRS (Corporates) ROA (8% constant rate) Assets : Ryan Cash Lehman Aggregate S&P 500 MSCI EAFE Int l
Ryan ALM, inc. Asset/Liability Management The Solutions Company The Ryan Letter May 2007 Index Returns YTD 2007 Estimated Weights Ronald Ryan, CEO, CFA Liabilities : Market (Tsy STRIPS) IRS (Corporates)
More information2003 Tax and Budget Review. In 2003 legislative sessions, 18 states made significant tax increases totaling almost $6.2 billion for fiscal year 2004.
STATE FISCAL BRIEF Fiscal Studies Program The Nelson A. Rockefeller Institute of Government December 2003 No. 69 2003 Tax and Budget Review NICHOLAS W. JENNY Highlights In 2003 legislative sessions, 18
More informationFederal Tax Reform Idaho Impact
Federal Tax Reform Idaho Impact The potential effect of federal tax reform for Idaho On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. This legislation includes provisions
More informationIn fiscal year 2016, for the first time since 2009, the
Summary In fiscal year 216, for the first time since 29, the federal budget deficit increased in relation to the nation s economic output. The Congressional Budget Office projects that over the next decade,
More informationM a t t e r s o f I n t e r e s t
M a t t e r s o f I n t e r e s t E x e c u t i v e a n d D i r e c t o r B e n e f i t s a n d C O L I V o l u m e 3 7 M a y 2 0 1 8 Featured Articles A Brief Overview of Changes to Tax Law under the
More informationTHE GLENMEDE FUND, INC. THE GLENMEDE PORTFOLIOS
THE GLENMEDE FUND, INC. THE GLENMEDE PORTFOLIOS Prospectus February 29, 2016 Money Market Portfolios Government Cash Portfolio (GTGXX) Tax-Exempt Cash Portfolio (GTCXX) Bond Portfolios Core Fixed Income
More informationPERSONAL INCOME TAXES
PERSONAL INCOME TAXES CHAPTER 35 WHERE PERSONAL INCOME TAXES FIT In 2008 the federal government collected $2,524 billion in taxes. $1,146 billion of that was collected from the personal income tax. The
More informationMuni Bond Update: Improved Finances Drive Strong Quarter
On Our Website: www.alliancebernstein.com Posted August 5 Muni Bond Update: Improved Finances Drive Strong Quarter By David Dowden, Senior Portfolio Manager, and Terrance T. Hults, Senior Portfolio Manager
More informationPrioritize Progress A Plan to Address Long-Term Transportation Needs in Connecticut
Prioritize Progress A Plan to Address Long-Term Transportation Needs in Connecticut Presented by Connecticut Senate Republican Caucus Connecticut House Republican Caucus Original Plan Presented on February
More informationAlternative Minimum Tax (AMT)
Alternative Minimum Tax (AMT) a guide for advisors and their clients October 2006 A Stealth Tax that Surprises Investors Nobody likes to get slammed with unexpected taxes. But that s exactly what s happening
More informationREITS 101 AN INTRODUCTION TO REAL ESTATE INVESTMENT TRUSTS
REITS 101 AN INTRODUCTION TO REAL ESTATE INVESTMENT TRUSTS A Real Opportunity While they have been around for over fifty years, real estate investment trusts (REITs) have been slow to move into the mainstream.
More informationNC Budget & Tax Center A plan to raise revenues that improves the stability, fairness, and long-term adequacy of the state tax system
NC Budget & Tax Center A plan to raise revenues that improves the stability, fairness, and long-term adequacy of the state tax system March 2009 Revenue Plan Goals Protect effective public investments
More informationHartford County Metropolitan District, Connecticut; General Obligation
Summary: Hartford County Metropolitan District, Connecticut; General Obligation Primary Credit Analyst: Hilary A Sutton, New York (1) 212-438-1000; hilary_sutton@standardandpoors.com Secondary Contact:
More informationCOUNT ON. INCOME YOU CAN. Prudential DEFINED INCOME VARIABLE ANNUITY
Prudential DEFINED INCOME VARIABLE ANNUITY INCOME YOU CAN COUNT ON. All references to guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company and do not
More informationFranklin Tax-Free Trust
Annual Report and Shareholder Letter February 28, 2018 Franklin Tax-Free Trust Franklin Alabama Tax-Free Income Fund Franklin Florida Tax-Free Income Fund Franklin Georgia Tax-Free Income Fund Franklin
More informationMunicipal Market: How Rates Rise Matters
Municipal Market: How Rates Rise Matters Market Commentary September 2017 SOME INVESTORS ARE CONCERNED ABOUT THE IMPACT a tighter monetary policy could have on bond yields. Since rates and bond prices
More informationTruth and Integrity in State Budgeting
Truth and Integrity in State Budgeting WHAT IS THE REALITY? FIFTY STATE REPORT CARDS 8 I TROD CTIO To emphasize the need for clear and comprehensible budgets to inform citizens, promote responsible policymaking,
More informationFranklin New York Tax-Free Trust
MARCH 31, 2010 SEMIANNUAL REPORT AND SHAREHOLDER LETTER Franklin New York Insured Tax-Free Income Fund Franklin New York Intermediate-Term Tax-Free Income Fund Sign up for electronic delivery on franklintempleton.com
More informationStonington, Connecticut; General Obligation; Note
Summary: Stonington, Connecticut; General Obligation; Note Primary Credit Analyst: Rahul Jain, New York 212-438-1202; rahul.jain@spglobal.com Secondary Contact: Victor M Medeiros, Boston (1) 617-530-8305;
More informationOTHER POST EMPLOYMENT BENEFITS. GASB STATEMENTS NO. 43 and 45 REPORTING GUIDELINES FOR GOVERNMENT FINANCIAL STATEMENTS. A Civic Federation Issue Brief
OTHER POST EMPLOYMENT BENEFITS GASB STATEMENTS NO. 43 and 45 REPORTING GUIDELINES FOR GOVERNMENT FINANCIAL STATEMENTS A Civic Federation Issue Brief Prepared By The Civic Federation February 9, 2006 TABLE
More informationEvanston (City of) IL
CREDIT OPINION Evanston (City of) IL New Issue - Moody's Assigns Aa2 to Evanston, IL's GO Bonds New Issue Summary Rating Rationale Moody's Investors Service has assigned a Aa2 rating to the City of Evanston,
More informationWhat Pritzker s progressive tax rates will probably look like
Wirepoints Report October 2018 What Pritzker s progressive tax rates will probably look like By Ted Dabrowski and John Klingner Table of Contents Introduction... 3 Spending billions more... 4 (Im)possible
More informationState and Local Pensions: A Primer for Municipal Investors
Analysis REPORT SEPTEMBER 2010 State and Local Pensions: A Primer for Municipal Investors TOUGH TIMES BRING GREATER FOCUS Public pension costs have come into sharp focus as the after effects of the Great
More informationThe Importance of Geographic Diversification in Today s Municipal Bond Market
The Importance of Geographic Diversification in Today s Municipal Bond Market August 2014 OVERVIEW In the municipal bond market, a state-specific investment focus will reduce tax liability in most circumstances.
More informationU.S. Municipal Market The View From the Markets Presentation to the Federal Reserve Banks of Chicago, New York and Philadelphia
U.S. Municipal Market The View From the Markets Presentation to the Federal Reserve Banks of Chicago, New York and Philadelphia GAIL SUSSMAN, MANAGING DIRECTOR, US PUBLIC FINANCE June 24, 2011 Unprecedented
More informationA Quick Guide to the FY 11 Adopted Budget Department of Management and Budget
A Quick Guide to the FY 11 Adopted Budget Department of Management and Budget Introduction The combined Adopted Operating and Capital Budget books are nearly seven hundred pages long and contain a great
More informationRetiree Pensions and Health Benefits: State and Local Governments Face New Budget Challenges
2006 Rockefeller Institute Reports on State and Local Government Finances Retiree Pensions and Health Benefits: State and Local Governments Face New Budget Challenges Donald Boyd Rockefeller Institute
More informationState Budget Update: March 2011
April 19, 2011 Nearly two years into the US economic recovery, following the end of the Great Recession, state finances are showing encouraging signs of revenue stability. At the same time, budget gaps
More information