Government Finance Review articles from February 2003

Government Finance Review archives from February 2003

2002 a record year for debt issuance. (News Briefs).(Brief Article)
February 1, 2003... Low interest rates and falling revenues combined to make 2002 a record year for the municipal market. According to Thomson Financial Securities Data, new-issue volume for long-term bonds totaled $357.1 billion in 2002, surpassing the $292.2...

GASB issues two exposure drafts. (News Briefs).(Governmental Accounting Standards Board )(Brief Article)
February 1, 2003... In December the Governmental Accounting Standards Board published two separate exposure drafts. The first, "Budgetary Comparison Schedules--Perspective Differences," clarifies existing guidance on budgetary comparisons in GASB Statement No. 34....

City of Fairfax County? Officials looking into it. (News Briefs).(County looks into incorporation)(Brief Article)
February 1, 2003... Officials in Fairfax County, Virginia, are looking into the possibility of incorporating as a city. Although status as a city would burden Fairfax with new fiscal responsibilities such as building and maintaining roads, it also would allow the...

New York City raises property taxes 18 percent. (News Briefs).(Brief Article)
February 1, 2003... Facing a $6.4 billion shortfall in the fiscal year that begins on July 1, the New York City Council voted 41-6 in November to raise the city's property tax rate by 18.5 percent and to cut spending by more than $840 million. The Council agreed...

Committee concludes Washington State's tax system outdated and inadequate. (News Briefs).(Brief Article)
February 1, 2003... According to a report released by the Washington Tax Structure Study Committee, Washington's tax structure is regressive, outdated, and inequitable because it relies primarily on a sales tax. The 139-page report claims that the system is...

Atlanta considering firing water provider for poor performance. (News Briefs).(Mayor Shirley Franklin may reclaim control of water system from United Water Services Unlimited-Atlanta)(Brief Article)
February 1, 2003... Four years after privatizing Atlanta's water service, Mayor Shirley Franklin may retake control of water plants and pipes. United Water Services Unlimited-Atlanta, the company that has administered water service in Atlanta since January 1999,...

Wisconsin cities establish new self-insurance pool. (News Briefs).(League of Wisconsin Municipalities creates self-insurance pool after Kemper Insurance Company withdraws from market )(Brief Article)
February 1, 2003... Facing an impending lack of insurance coverage, the League of Wisconsin Municipalities has moved to invest $5 million to establish a new self-insurance pool. Kemper Insurance Company, which has insured Wisconsin cities for about 20 years under...

United bankruptcy could lead to ratings downgrade. (News Briefs).(United Airlines' bankruptcy could negatively impact airports' tax-exempt bonds )(Brief Article)
February 1, 2003... United Airlines' Chapter 11 bankruptcy filing could eventually lead to a credit rating downgrade on tax-exempt bonds issued for United's hub airports. Although the bankruptcy filing does not itself pose a default risk to airport bonds, Fitch...

Cash-strapped police departments funding equipment with patrol car ads. (News Briefs).(Brief Article)
February 1, 2003... In order to replace police cars during fiscally tight times, some police departments are resorting to selling advertising space on their patrol cars. A company called Government Acquisitions LLC has started selling the space to advertisers. In...

Unforeseen deficit may result in state bailout, takeover of Oakland school district. (News Briefs).(Brief Article)
February 1, 2003... The Oakland public school district, the sixth-largest in California, faces a severe budget shortfall and is faced with the prospect of asking the state for a bailout of nearly $100 million. Although Oakland Superintendent Dennis Chaconas has...

New Jersey goes to court over stock losses. (News Briefs).(lawsuit will target Sears Roebuck, Qwest Communications, Tyco International, Electronic Data Systems )(Brief Article)
February 1, 2003... New Jersey is suing four companies whose alleged misdeeds and mismanagement resulted in more than $150 million in stock market losses for the state's pension funds. The pension funds invest on behalf of 600,000 teachers and public employees....

Pennsylvania homeowners may subsidize school-pension losses. (News Briefs).(Pennsylvania Public School Employees' Retirement System pension fund lost $4.4 bil in 2002)(Brief Article)
February 1, 2003... The Pennsylvania Public School Employees' Retirement System (PSERS) pension fund lost $4.4 billion last year, which could mean higher property taxes for homeowners in the state. PSERS trustees in December voted to triple the subsidy collected...

Governments may pay for one-time use of tobacco bonds. (News Briefs).(Brief Article)
February 1, 2003... A number of state and local governments have resorted to using money from the 1998 tobacco settlement to close budget gaps. Although these tobacco securitizations have helped these governments make up for diminished revenues, the ratings...

Performance measure certification in Maricopa County.
February 1, 2003... A key component of Maricopa County's managing for results initiative, performance measure certification is inspiring confidence in the reliability of reported performance information. Editor's note: Each year, GFOA bestows its prestigious...

Inflation-indexed bonds: a primer for finance officers.
February 1, 2003... The hedging and diversification features of inflation-indexed bonds makes this relatively new investment instrument worth considering for public investors. Inflation remains one of the greatest obstacles to achieving investment goals,...

Financing energy efficiency projects.(using cost savings from increased energy efficiency to finance equipment)
February 1, 2003... Postponing the installation of energy saving equipment can be an expensive decision. This article shows how the cost savings resulting from increased energy efficiency can be used to finance the needed equipment. Shenendehowa School...

Are state and local revenue systems becoming obsolete? The economy's changing structure is threatening the revenue productivity of state and local government tax systems.
February 1, 2003... Editor's note: This article was adapted with permission from the September 2002 issue of National Tax Journal, a quarterly publication of the National Tax Association. The author published an earlier version of the article in the New England...

The city of New York.(Letter to the Editor)
February 1, 2003... OFFICE OF THE MAYOR NEW YORK, N.Y. 10007 January 2003 Dear Public Finance Professional, We are delighted that the Government Finance Officers Association of the United States and Canada has chosen New York City to host its May...

The unfunded mandate reform act: working well for no good reason.
February 1, 2003... Despite relatively weak procedural requirements and several loopholes, the unfunded mandate reform act is proving to be an effective impediment. The Unfunded Mandate Reform Act of 1995 (UMRA, Public Law 104-4) was the first (and only) item...

Tackling rising health care costs.
February 1, 2003... Exploding health care costs are exacerbating the budget difficulties of state and local governments. While there are no quick fixes, governments can pursue a number of strategies to address the systematic causes of health care inflation. ...

'Security' continues to dominate congressional agenda. (Federal Focus).(review of congressional activity in 2002)
February 1, 2003... Although the first session of the 108th Congress will look almost the same as the first session of the 107th Congress, it will reflect a radically changed nation and political climate. President Bush began his first term with an evenly divided...

Study shows severity of state fiscal stress. (Fiscal and Economic Indicators).
February 1, 2003... Editor's note: This article was adapted with permission from The Fiscal Survey of States, a report by the National Governor's Association. The report is available in its entirety at www.nga.org. Nearly every state is in fiscal crisis. Amid...

Federal Intergovernmental Grants and the States: managing devolution. (Book Reviews).
February 1, 2003... Northampton, Massachusetts: Edward Elgar Publishing, Inc. (164 pp) Reviewed by Michael English, policy analyst, GEOA Research and Consulting Center, Chicago, Illinois. In Federal Intergovernmental Grants and the States, Shama Gamkhar...

Managing Diversity in Public Sector Workforces. (Book Reviews).
February 1, 2003... Boulder, Colorado: Westview Press (167 pp) Reviewed by Joanne Howard, director, GFOA Professional Development Center, Chicago, Illinois. Dr. Norma M. Riccucci does the field of public policy and administration a service by writing...

Accounting, auditing, and financial reporting. (From the Library).
February 1, 2003... "Financial Reporting on the Internet" International Federation of Accountants, August 2002 Paper-based financial reporting is a well-established, standards-based system that promotes consistency in the information provided and how it...

Budgeting. (From the Library).
February 1, 2003... "Roller Coaster Budgets" Corina Eckl State Legislatures, October/November 2002, pp. 14-18. By June 30, 2002, budget gaps reported by 43 states amounted to $37 billion, with 12 states reporting shortfalls greater than 10 percent of...

Capital finance. (From the Library).
February 1, 2003... "Municipal Capital Spending during the 'Boom'" Michael Pagano Public Budgeting & Finance, Summer 2002, pp. 1-20. In this article, the author examines capital spending behavior of municipal governments from 1993-2000, a period of...

Cash management. (From the Library).
February 1, 2003... "Establishing a Payments Framework" AFP Exchange, November/December 2002, pp. 14-20 Although payments are an essential activity that touches almost every area of every organization, many governments and businesses take a tactical,...

Economic development. (From the Library).
February 1, 2003... "Economic Development: The Role of State and Local Government in Wisconsin" Stephen Malpezzi La Follette Policy Report, Fall/Winter 2002, pp. 1-3, 14-19 Based on an extensive study of current academic research, this article...

Pensions and benefits. (From the Library).
February 1, 2003... "America's Pension Funding Crisis: The Perfect Storm" Charles Ruffel and Nevin Adams Plan Sponsor, November 2002, pp. 92-9 6. In the past three years, corporations and governments managing defined benefit retirement plans have...

Performance measurement. (From the Library).
February 1, 2003... "Outcome-Based Performance Management in the Public Sector: Implications Effectiveness" Carol J. Heinrich Public Administration Review, November/December 2002, pp. 712-725. In this article, the author addresses questions about the...

Calendar.(Calendar)
February 1, 2003... FEBRUARY GFOA National Training Seminars. Long Beach, CA. See www.gfoa.org or call 312/977-9700. Feb. 10: Capital Asset Accounting and Reporting Feb. 10-11: Planning and Sale of Municipal Bonds Feb. 11: The New Financial...

Recession triggers bitter federal system conflict. (Commentary).(Column)
February 1, 2003... The Bush White House and Congress are quarrelling with governors and mayors in what may be the federal system's most bitter conflict in a century or more. While Washington talks economic stimulus, including politically expedient tax cuts,...