Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

Reply
 
Thread Tools Search this Thread Display Modes
  #931  
Old 07-02-2019, 12:29 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

LAWSUIT

https://www.bloomberg.com/opinion/ar...s-bond-lawsuit

Quote:
Ripples From Puerto Rico’s Debt Crisis Reach the Mainland
A lawsuit to invalidate $14 billion of Illinois bonds draws inspiration from the island’s restructuring.
Spoiler:
Joe Mysak, Bloomberg News’s foremost expert on the $3.8 trillion municipal-bond market, has a saying about Puerto Rico: It was technically “in” the market for state and local government debt, but not “of” it. That is to say, for a number of reasons, it has always been considered an outlier.

Indeed, munis are off to a blistering pace in 2019, with mutual and exchange-traded funds focused on the debt on track to pull in a record amount of cash this year. Investors are buying even though a closely watched gauge of relative value would suggest the bonds are a screaming sell. Never mind that at the start of the year, a federal oversight board argued that more than $6 billion of Puerto Rico’s general-obligation bonds should be declared null and void because issuing them in the first place breached the island’s constitutional debt limit. It’s just an outlier, after all.

Or is it?

John Tillman, the CEO of conservative think tank Illinois Policy Institute, and Warlander Asset Management’s Eric Cole, a protege of Appaloosa Management’s David Tepper, are teaming up in an effort to invalidate a whopping $14.3 billion of Illinois debt on the grounds that the state’s pension bond sale in 2003 and securities issued in 2017 to pay a backlog of unpaid bills were in fact deficit-financing transactions prohibited by the constitution. Some pertinent details from Bloomberg News’s Martin Z. Braun:

The group said the goal of the debt limits in the state constitution is to ensure the state acts in a financially responsible manner. But they claim “the state’s elected officials have done just the opposite. They have mortgaged the state’s future to pay for the present.” ...

Article nine, section nine of the Illinois Constitution says the state may issue long-term debt only to finance “specific purposes” if approved by three-fifths of the legislature or by popular referendum. ...

Using bond money to cover general expenses, speculate in the market, or pay past-due bills isn’t a “specific purpose,” for incurring state debt, but rather another name for deficit financing, the complaint said.

It’s still very early days, especially for this type of fundamental challenge to a state’s ability to finance itself. Illinois general obligations have long been considered to have some of the strongest legal protections among states. And most crucially, it’s not Illinois looking to invalidate its own debt but rather a hedge fund and Tillman, who has been at the forefront of legal challenges to public employee unions and progressive taxation. Even if they prevail, the state could very well repay investors entirely.

Illinois Comptroller Susana Mendoza, for her part, dismissed the lawsuit as “nothing more than garbage” and expects it to be “laughed out of court.”

Still, it looks to be the first significant ripple on the mainland from Puerto Rico’s unprecedented restructuring. As always, it raises the question of whether this is the final straw that will shake investors’ confidence in the market’s underpinnings.

Illinois is the natural starting place for this sort of reverberation. It’s the worst-rated U.S. state, clinging to the lowest investment grades from S&P Global Ratings and Moody’s Investors Service. The state’s unfunded pension liability is huge, about $168 billion, according to the complaint, and it struggled for years to pass a budget when the Republican governor at the time, Bruce Rauner, and the Democratic legislature couldn’t reach agreement. An effort in 2014 to increase revenue by replacing the state’s flat income tax with a progressive one was defeated, thanks in part to the Illinois Policy Institute.

So, yes, Illinois definitely has problems. But are they bad enough to wipe out a large chunk of bondholders? In theory, the move would free up billions of dollars in the coming years to fund pensions, 1 but those savings could be wiped out by whatever extra yield investors would require to buy the state’s bonds in future offerings. It’s in Illinois’s best interest to make sure bondholders are repaid, even if this challenge isn’t struck down. It’s not nearly at the point yet at which it cares to risk the ire of the municipal market. Investors seem to get that, judging by Monday’s bond trading.

Mild Reaction
So far, Illinois pension bondholders aren't signaling concern over a new lawsuit challenging the debt's constitutionality


Source: Municipal Securities Rulemaking Board

Puerto Rico, on the other hand, saw the writing on the wall years ago that its $70 billion debt load was unpayable. It was reeling from mass population exodus and high levels of poverty and joblessness, even before it was devastated by Hurricane Maria. It also had virtually no money left to pay pensioners.

There was no way out other than to have the oversight board created by Congress take drastic steps. In addition to attempting to nullify earlier bond sales, the board also sued dozens of banks and bondholders in May to claw back more than $1 billion in fees and interest payments. Two months earlier, an appeals court affirmed that Puerto Rico’s highway agency can tap tolls and other fees dedicated to bondholders until the bankruptcy is settled. That casts a pall over the rest of the market for revenue bonds sold for highways, airports and transit systems.

Braun noted in May that this isn’t the first time investors have fretted about precedent-setting events in the muni market, only to see their worst fears fail to materialize. Detroit’s bankruptcy, for one, has had no obvious long-term implications — in fact, the city easily issued $135 million of bonds in December, all with yields of less than 5%. Jefferson County, Alabama, which filed a then-record bankruptcy in 2011, had its credit rating raised to investment grade just four years later.

These examples suggest the muni market can withstand outliers. But compare the language in Illinois with that used in Puerto Rico. “The burden of servicing this unconstitutional debt falls on the taxpayers of Illinois, including Plaintiff John Tillman,” the complaint argued. Matthias Rieker, a spokesman for Puerto Rico’s oversight board, said in May with regards to invalidating bonds that “it is neither fair nor legal to burden Puerto Rico’s residents with that against which their Constitution protects them.”

The idea of pitting taxpayers against bondholders is one thing in an underdeveloped Florida community development district or a Missouri county that wants to be off the hook for a struggling retail project. It’s quite another at the level of the sixth-most-populous state. Illinois has options — dwindling ones, to be sure — to turn itself around without simply following in Puerto Rico’s footsteps. The same goes for Connecticut and New Jersey.

It might be too soon to say that Puerto Rico has opened up the muni market’s Pandora’s box. But this lawsuit against Illinois Governor J.B. Pritzker shows it’s at least cracked a little. It doesn’t truly matter if the challenge is coming from an oversight board, a hedge fund or the issuer itself. Either way, it reflects a threat to the core tenets of the market that no individual investor wants to see.

Specifically, according to the complaint, if the state ceases making principal and interest payments on the debt, it could contribute an additional $13 billion to its pensions over the next 14 years.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #932  
Old 07-05-2019, 05:49 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

http://www.bentoneveningnews.com/new...rating#new_tab

Quote:
Late financial document could further hurt Illinois' bond rating
Spoiler:
SPRINGFIELD -- Illinois officials are six months late publishing an annual document presenting the state's fiscal health in detail, and they are unsure when it will be released.

The Comprehensive Annual Financial Report is used by ratings agencies to set the credit rating for the state -- which in turn affects the interest rates Illinois receives for bonded projects, such as infrastructure improvements.


Comptroller Susana Mendoza and Auditor General Frank Mautino say the holdup dates in part back to Bruce Rauner's administration.

"As a result of a couple of years of non-governance or weakness in controls in certain areas, like no budget, that has made this year more complex," Mautino said. "Therefore, we're working with the last two agencies on major programs to get those in a form that we can present it that would be acceptable to the financial markets and those who are the readers of the CAFR."

Mautino said he could not disclose some of the specifics about what is causing the delayed release of the report because the information contained in outstanding audits is confidential until published. He said a full explanation will become apparent when the document is published.

He did say the process is partly slowed because state agencies do not operate on a uniform financial system.

The office of the auditor general is responsible for overseeing the inspection of each agency's books and passing that information to the comptroller's office to compile. But Illinois, which is the last state in the country to complete its CAFR, has "basically 268 separate systems, half of which do not talk to each other," Mautino said.

Employees of his office, therefore, need to convert the data before sending it to Mendoza's office.

The state's fiscal year ended June 30. The document was released in June or later in six of the past 12 years, according to the comptroller's office, even though Mautino said the report's ideal deadline is Dec. 31 each year.

A spokesperson from Moody's Investors Service, one of the nation's leading credit rating agencies, said Illinois being late in publishing the CAFR is "certainly not positive."

The report gives the agency's analysts detailed information that helps determine what the state's credit rating should be. Currently, Moody's rates Illinois at the lowest investment-grade rating available.

It has no bearing on balancing the budget, because a budget is a spending plan based on projected revenues.

Suggestions from the office of the auditor general for how to avoid delays in publishing the document in the future can be found in the audit reports its office releases regularly, Mautino said.
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #933  
Old 07-08-2019, 10:47 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

LAWSUIT

https://fixedincome.fidelity.com/ftg..._110.1#new_tab
Quote:
Muni analysts unfazed by legal challenge to Illinois bonds

Spoiler:
Municipal market analysts are brushing off the efforts of a New York hedge fund and conservative think-tank to invalidate $14.3 billion of outstanding Illinois debt as a legal long shot that even if successful would likely draw state support to make bondholders whole.

“We will limit our discussion to the justification behind this lawsuit and quite frankly, we do not think there is any,” Citi’s Vikram Rai and Jack Muller wrote of the legal arguments in a “Global Municipals Flash” report after the firm was “inundated” with calls from clients worried about the impact of the litigation filed Monday.


“Even in the hypothetical situation that the debt is ultimately invalidated (which is extremely unlikely), what will it mean for the GO bond holders? The state will not want to pay zero to the bond holders as it was never their intent to harm the investors,” Rai and Muller wrote. “They are more likely to want to make the bond holders whole…thus, even in this unlikely scenario, the net impact on the market is likely insignificant.”

Illinois Policy Institute head John Tillman, acting as a taxpayer, and Warlander Asset Management LP, which holds $25 million of Illinois debt, filed the taxpayer/bondholder litigation Monday. They are asking the court to allow them to file a taxpayer lawsuit against the state to halt further repayment of 2003 and 2017 bonds they argue violate the state constitution.

About $14.3 billion of principal is owed on the $10 billion 2003 pension obligation bond issue and $6 billion of general obligation debt in two issues to pay down the state’s bill backlog.

Market participants appear skeptical of the legal arguments given the broad powers and limited rules guiding state issuance and the multiple layers of legal review.

“From all appearances it’s just a crank lawsuit,” said Matt Fabian, partner at Municipal Market Analytics. “Even if these guys do win, which seems unlikely, the state is going to do right by bondholders. Concerns over invalidation are really only a problem when it’s the borrower making the claim. It’s very unlikely to change demand for state bonds.”

Fabian said it’s a big leap to believe that the layers of legal review from bond counsel and underwriters’ counsel to the state attorney general failed in their jobs.

But the negative headlines did spark some widening of spreads and if the lawsuit is not resolved in the state’s favor quickly or it drags on, some warn the filing could add some uncertainty to the value of Illinois’ general obligation paper given the state’s weak ratings — with two at the lowest investment grade level — and its heightened susceptibility to headline risk.

“While the tactic of attempting to repudiate bonds or contractual obligations is not unprecedented, they tend to occur during bankruptcy or restructuring, such as Puerto Rico earlier this year or when Detroit sought to invalidate” its pension certificates, Janney Investment Strategy Group wrote in its Daily Fix report Wednesday.

While the state “is not attempting to reject its payment obligations,” the suit’s focus on interpretation of legal documents “introduces uncertainty until sorted out in court and shows aggressive stances not typically seen in munis,” Janney added.

Lawsuits, wherever one stands on its merits, can’t just be dismissed as meritless because there is the potential to “cause erosion in pricing stability of a security,” and “if that happens then it’s done its damage, whether it’s legitimate or not,” said Richard Ciccarone, president of Merritt Research Services LLC. “You want this done quickly because if it lingers it has the potential for more serious damage.”

The litigation also highlights the evolving market views of GO credit quality following challenges in Detroit and now Puerto Rico’s bankruptcy case and is likely to fuel the idea that recent PR legal developments have emboldened investors, market participants said.

Spreads
IHS Markit (INFO) strategist Ed Lee observed trades about 12 basis points wider on Tuesday while a taxable bond from the 2003 deal being challenged traded 25 bps wider.

Municipal Market Data set the state’s 10-year bond spread to its AAA benchmark at 159 bps compared to the 139 bp spread it had been around last month. “It’s generally a very quiet market this week so I would say it's because of this headline risk,” MMD-Refinitiv strategist senior market strategist Daniel Berger said.

Illinois spreads shrunk in May with the state’s 10-year ending the month at a 139 basis point spread compared to 178 bps where it opened. That’s due to both the market’s opinion that the state’s ratings will hold steady for now and marketwide steep demand for high-yielding paper.

“For now, we do not anticipate a material impact on Illinois GO bonds as a result of this lawsuit. While the bonds could cheapen marginally in light trading activity as the market absorbs this headline, this weakness is likely to be temporary,” Citi wrote. “That being said, as we have noted, we believe that Illinois GO spreads are tight relative to their fundamentals and thus at these levels, have more downside than upside.”

The state has bill backlog, pension buyout, and capital borrowing needs for the current fiscal year and the new $45 billion capital budget relies on billions in new borrowing, but nothing is imminent, finance officials said.

While the state’s trading value was initially hurt, spread movement this holiday week can’t necessarily be trusted, said Howard Cure, Director of municipal bond credit research for Evercore Wealth Management.

“This is a tough week to draw conclusions from so let’s wait a couple weeks and see how this plays out. If they were issuing right now they might pay a penalty,” he said, adding that he too is skeptical of the case’s legal merits and like others believes the state — to avoid rating agency and investor fallout — would take some action in support of bondholders should the plaintiffs succeed.

Legal Debate
The complaint equates the transactions to deficit financings that it argues violated state rules that link issuance to a “specific purpose” as well as requirements under the state’s balanced budget act. The purpose of the 2017 backlog bonds “was to pay various unspecified, unrelated bills that had gone unpaid in fiscal years 2016 and 2017 due to the state’s lack of funding. The debt was not incurred for a ‘specific purpose,’ … but to pay past-due operating expenses,” argues the lawsuit.

About $8.3 billion of the taxable 2003 pension bonds were loaned to the pension system to bring down the unfunded liability, with about $2.7 billion going to cover contributions owed over two fiscal years, a form of deficit financing. “Using bond money to cover general operating expenses or to speculate in the market in hopes of turning a profit is not a qualifying ‘specific purpose,’” the lawsuit argues.

Market participants counter that the definition of special purpose is vague and so the state can argue it honored the rules with a broad outline of the spending plans. The constitution also requires that repayment is outlined and both carried a GO pledge which allows for the general fund and other non-general fund accounts to be tapped for debt service.

“The language in the Illinois Constitution allows debt to be incurred as long as the law details the specific purpose of the debt and how it will be repaid. Similarly, the general funds can be used for a wide array of purposes including debt repayment and it is difficult to prove that proceeds from the GO debt were used to fund operating expenses,” Citi wrote.

Political Debate
The Democratic office holders named in the lawsuit, Gov. J.B. Pritzker, Comptroller Susana Mendoza and Treasurer Michael Frerichs, hit back hard pointing to the IPI’s past attacks on state finances and its connections to former Gov. Bruce Rauner, a Republican whose feud with the legislature’s Democratic majority led to a two-year budget impasse.

“This is simply a new tactic from the extreme right to interfere in capital markets. We’re done with the far right’s dangerous financial games to pull Illinois underwater. We saw this repeatedly under Bruce Rauner, who funded and executed on John Tillman’s pathological focus to drive Illinois into bankruptcy,” the administration said.

Rauner “was an agent of chaos and this appears to be more of the same,” Fabian said.

Puerto Rico
The Puerto Rico Oversight Board in Puerto Rico's Title III case earlier this year moved to invalidate $6 billion of GOs on the argument that the commonwealth had exceeded its constitutional debt limit, and, contrary to the constitution, used proceeds for deficit spending. Some hedge funds support the board's effort. The First Circuit Court of Appeals recently upheld a lower court ruling that the commonwealth may, but is not required, to continue paying some special revenue-backed bonds, a ruling that runs counter to the long-held position that such debt was insulated during bankruptcy proceedings.

Direct comparisons to the lawsuit can’t be made especially given that Illinois opposes it, but market participants say the developments along with new players in the market may be contributing to actions previously unseen before.

“Some clients have openly questioned the ethical motivation behind the lawsuit and wondered if the recent surprise ruling by the First Circuit Court of Appeals has incentivized opportunistic investors to try their luck in the courts challenging other varieties of debt,” Citi wrote in its report.

“The municipal world is changing as hedge fund and other corporate style parties have come into the business after the financial crisis opened the door for higher yielding parties and they bring with them the concepts of the corporate market so things that might not have been challenged in the past are being challenged,” Ciccarone said. “It’s new lawyers, new bankers, new investors, and new expectations where they are not accepting the customs of the municipal market.”

Several rating agencies said they would follow the case but had no additional comment.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #934  
Old 07-10-2019, 10:44 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

https://www.bondbuyer.com/news/late-...ngs-or-spreads

Quote:
The case of the missing Illinois CAFR

Spoiler:
Illinois is the only state that has not yet published its fiscal 2018 comprehensive annual financial report and the officials who manage the process can’t put a date on its expected release.

The absence of a CAFR is a blot on the credit of the nation's lowest-rated state, though it was able to adopt a budget on time this year and releases other reports and updates about its finances.

Richard Ciccarone speaks at the Bloomberg Link State and Municipal Finance Briefing held at Lighthouse International in New York, U.S., on Tuesday, March 22, 2011.
“There's material information that could be revealed in an audit and investors need to know that for proper pricing of the state's bonds," said Richard Ciccarone, president of Merritt Research Services.
Bloomberg News

“Unfortunately, we are unable to discuss on-going audits and we are also unable to project release dates for our on-going audits,” Auditor General Frank Mautino’s office said in a statement this week. The tardy filing this year veers from the first-quarter filings of the last two years, but it’s consistent with other recent years.

No market consequences are expected.

“Illinois is an example of why there needs to be some teeth in the expectation that audited financials have to be delivered faster. Here you have a credit that is under the microscope because of its financial challenges and you can’t get access to the latest audit to know whether there are findings that are pertinent and material to the assessment of bonds,” said Richard Ciccarone, president of Merritt Research Services LLC, which tracks state and local government CAFR data. “There's material information that could be revealed in an audit and investors need to know that for proper pricing of the state's bonds.”

Banning broker-dealers from working on deals for issuers without current audits would be a tough sell, as would monetary penalties on issuers. The current shortage of bonds in the primary market make any market-driven sanctions all the harder to impose, market participants say.

The delayed filing won’t draw any rating actions and that just leaves the reputational stain as incentive to file in a timely fashion. A pattern of tardy filings raises the specter of Puerto Rico, now in bankruptcy, which was a chronic late filer of fiscal reports.

Illinois is rated at one notch above junk by two rating agencies and two notches by a third.

Fingers pointed
State Comptroller Susana Mendoza blames the administration of former Gov. Bruce Rauner, who handed off power to Gov. J.B. Pritzker in January after losing his re-election bid.

“The lateness this year does not fall on the comptroller’s office, the auditor general, or the current leadership of the state agencies. It appears there are issues from this audit period dating from the previous administration's management. The current administration and leadership of those agencies are working to resolve them and account for them in their reports to the auditor general,” she said in a recent news release. “I am highly concerned and disappointed that this process is taking so long.”

Mendoza, whose office compiles the CAFR from reports submitted by state agencies that are audited by Mautino’s office, has sought to highlight that other pertinent financial information like the size of the state’s bill backlog is available at her agency's website.

The General Assembly’s non-partisan Commission on Government Forecasting and Accountability posts monthly tax and revenue reports with the most recent update offering fiscal 2019 tallies.

The timeliness of the Illinois CAFR has been an issue since 1999 and in six of the last 12 years, the CAFR has come out in June or later. In 2009, it came out in July. Mendoza’s notes that during her tenure over the last two years it’s been published in March.

Illinois State Comptroller Susana Mendoza
“I am highly concerned and disappointed that this process is taking so long," Illinois Comptroller Susana Mendoza said.
Illinois Comptroller's Office

Past auditor general reports have warned of the financial reporting and internal control flaws that delay timely reviews; since 2005, CAFR release dates have been as early as March 7, in 2017, and as late as August 24 in 2006, 420 days after the close of fiscal 2005 according to the auditor general's office.

The Government Accounting Standards Board recommends 180 days as a standard, which would be by the end of December for Illinois.

Ideas
Ciccarone dismisses the notion that a transfer of power should cause such a long delay.

"That shouldn't matter and if it does then an issuer has something that needs to be improved in a more systematic way,” he said.

In the absence of market consequences there are actions governments can take. Some states require audits be released within a specified time frame. In New York’s case, it’s 120 days.

One potentially positive step issuers can adopt is the use of a private auditor or a combination model, Ciccarone said.

The states with the shortest publish times fall into either of those categories, Merritt’s research shows. The District of Columbia came in at 115 days, New York at 116 days and South Carolina at 138 days, followed by Kansas and Washington. New York and D.C. use private auditors while South Carolina used a combination. Kansas used a private auditor and Washington uses the state auditor.

While Illinois tops the list of tardy filers, California is next at 333 days after the close of the fiscal 2018 followed by New Jersey at 304 days. All three use the state auditor. New Mexico, which uses a private auditor, followed in fourth place at 297 days, then Mississippi, which uses the state auditor, at 286 days.

The Illinois comptroller and auditor general declined to comment on the idea of changing the model.

Rating response
Rating agency analysts track the CAFR filings and may note delays in rating reports, but it’s a minor factor for a state credit profile that is strained by a $133.7 billion unfunded pension tab and an unpaid bill backlog that stood at $6.3 billion Tuesday.

“The state’s late CAFR in and of itself is not a particularly critical factor in our rating. We are focused on the state’s ability to make prudent fiscal decisions and work towards structural balance in its budget, which includes addressing its sizable long-term liability burden,” said Fitch Ratings lead Illinois analyst Eric Kim.

“Generally, a delayed CAFR is less of a concern for Fitch at the state level than at the local level — even without the CAFR we have significant data available to review for most states including monthly revenue reports, and regular budget updates,” Kim said. “That is not always the case for local governments where the CAFR is sometimes the only document available with meaningful financial data.”

Kim said Alabama provides an example of a state a state that saw a significant delay in its 2017 review. While the state’s fiscal year ends on Sept. 30, it did not release its fiscal 2017 CAFR until November 2018. “We noted the delay in our rating commentaries at the time but the delay did not directly affect our rating on the state,” Kim said.

“At this time, we believe we have sufficient information to continue to rate Illinois and understand their financial situation,” said S&P Global Ratings lead Illinois analyst Carol Spain. "While the audit is late, it is currently within the timeframe that we consider to have sufficient information quality."

Moody’s Investors Service lead Illinois analyst Ted Hampton said the CAFR filing time is a factor in the governance assessment that is part of the state’s credit profile but sufficient other financial information is currently available. Considering the state’s already low Baa3 rating the late filing is not something that would drive any action now, he said at a recent Moody’s credit forum in Chicago.

The state closed out fiscal 2019 with base general funds finishing $817 million higher than the prior year, according to the latest COGFA posting. Gross personal income tax ended “with respectable gains” of $1.8 billion, or $1.5 billion net. Gross sales tax receipts finished up “an impressive” $641 million, or $599 million net. Gross corporate income taxes ended with an increase of $419 million, or $372 million net and all other tax sources combined added $115 million in gains.

Video Three things to consider around muni-strategy adoption
When investors think about credit hedge funds, muni hedge funds are often overlooked – creating an uncrowded marketplace full of potential. David Shalom from BNY Mellon’s Pershing shares insights about today’s muni market investors and opportunities for generating attractive returns.
SPONSOR CONTENT FROM

Munis
June 13, 2019
The state’s 2017 CAFR showed a ramping up of fiscal woes as the two-year budget impasse that ended at the start of fiscal 2018 took its toll on the state’s books. The state’s worsening fiscal health ensured it remained in the worst position among the 43 states with available information about a key accounting measurement.

The state’s general fund deficit, which presents a near-term picture of the state’s health, worsened by $5 billion in fiscal 2017, growing to a negative $14.6 billion from negative $9.6 billion. In the previous year’s report, it grew by $2.7 billion to $9.6 billion.

In a measurement that provides a bigger, longer-term picture of its fiscal condition, the state’s net position of governmental activities eroded by $10.1 billion to reach a negative $141.7 billion. The figure provides a more sweeping view of state assets and obligations because it counts liabilities such as bonded debt and pension obligations against assets such as cash, investments, and other state holdings.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #935  
Old 07-15-2019, 06:11 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

LAWSUIT

https://wirepoints.org/is-the-lawsui...ints-original/
Quote:
Is the Lawsuit To Invalidate Certain Illinois Bonds Frivolous? An Education is at Hand. - Wirepoints Original
Spoiler:
A petition filed in Sangamon County Circuit Court on July 1 seeks authority to proceed with a lawsuit claiming the State of Illinois unconstitutionally issued certain bonds. If successful, it would prevent the state from making any further payments thereon. State officials scoffed, calling the lawsuit frivolous. The municipal bond community was initially alarmed by the filing, but later settled down after a number of its pundits likewise said the suit had no merit.

Chances for the lawsuit to succeed may indeed look slim, but Illinois should be in for an important lesson on whether the framers of the Illinois Constitution really sought to limit excessive borrowing and, more importantly, whether those limitations have been ignored. The plaintiffs are represented by a leading national law firm and they appear intent on arguing the case aggressively. If the lawsuit fails, constitutional borrowing limits will have been rendered nearly meaningless, which is a reason why the lawsuit shouldn’t be regarded as entirely frivolous.

Fist, some background.

Illinois sold $10 billion of general obligation bonds in 2003 and $6 billion in 2017. Ostensibly,** the 2003 bonds were pension obligation bonds, meaning the proceeds were to be used for pension funding. The 2017 bond proceeds were used to pay down some of the state’s backlog of ordinary accounts payable.

The full court filing challenging the constitutionality of those borrowings is linked here. It’s actually a petition to allow a lawsuit to be filed, which is procedurally required in these circumstances. However, the Complaint that would follow if the petition is allowed is attached to the filing.

There are two plaintiffs on the Complaint. One is John Tillman, CEO of the fiscally conservative Illinois Policy Institute. However, his standing is based on his status as an ordinary citizen and taxpayer. The other is a hedge fund that owns $25 million of other Illinois general obligation bonds. It claims the safety of those bonds is impaired by payments on the bonds it says were unconstitutional.

Article IX, Section 9 of the Illinois Constitution sets out limitations on debt, which is very broadly defined. The full text is copied below. Authorized general obligation borrowing (which means debt on which the state’s full faith and credit is pledged) must fit into one of the four subsections, (b) through (e).

Subsection (b) is broad, authorizing any debt incurred for “specific purposes,” provided three-fifths of both houses of the General Assembly approve, which they did for the bonds at issue. It’s on that section that most of the lawsuit will probably center because that’s where authorization must be based.

Subsections (c) through (e) authorize debt in anticipation of revenues, deficit financing and refinancing with a regular majority vote, though subject to strict limitations on amounts and maturity. They don’t apply here because those limitations would have been breeched if they had provided authority for the challenged bonds.

The central issue therefore becomes what “specific purposes” means in Subsection (b), but it’s not defined in the constitution. The plaintiffs say it “refers to specific projects in the nature of capital improvements, including roads, buildings, and bridges.” As for the real purposes of the bonds being challenged, the plaintiffs say “Simply obtaining cash to finance the State’s structural deficits or to speculate in the market is not a ‘specific purpose.’” The state probably will argue that it means anything specifically spelled out in the statute authorizing the particular bonds.

That’s where it will get interesting because both sides will likely turn to the history and comments from the 1970 convention adopting the constitution. Nobody to my knowledge has really dug into this part of the constitutional history to the extent it might be debated in this lawsuit.

That certainly includes me, but I do expect Illinoisans will be surprised at how much more fiscally conservative all sides were fifty years ago. No less than Paul Simon, for example, who went on to become a solidly liberal United States Senator, ran for the 1972 Democratic gubernatorial nomination on a platform opposing virtually all bonded debt. He basically said government should be funded on a pay-as-you-go basis.

One point about the lawsuit seems clear. If the plaintiffs lose, sky is the limit for state borrowing as long as the three-fifths voting requirement is met. The precedent would be set for the state to spend whatever it chooses, letting the unpaid bills run up, to be refinanced by bonds similar to the 2017 bonds being challenged. The state would simply claim the specific purpose was to refinance payables, just as it did in 2017. The state could also just run up pension debt indiscriminately, then borrow to fund them in unrestricted amounts.

But if that’s the result the framer’s intended, why didn’t they just say so? Look at the constitutional provisions below. Does it appear to you that all they really meant was “Borrow whatever you want as long as you have a three-fifths vote”? That would be the implausible implication if the lawsuit fails, which is perhaps the best reason why it shouldn’t be tossed out as frivolous. But if the convention history shows that’s indeed what they intended, well, at least we’ll know that it’s no-holds-barred on taxing future generations through today’s borrowing.

The plaintiffs are represented by White & Case, a very prominent New York-based law firm. They certainly are not known for filing frivolous lawsuits. They do their homework.

Let me be clear that I’m nevertheless very skeptical of the plaintiffs’ chances for success. That’s partly because of my cynicism about Illinois courts. Like many others, I regard our courts as highly political, and the political establishment wants the suit to fail. Furthermore, the suit may have legitimate deficiencies on other matters and procedural issues I haven’t looked into. For example, standing of the plaintiffs likely will be challenged and affirmative defenses probably will be argued that we haven’t seen yet because the state has yet to answer.

But on the central issue important to Illinoisans – what the constitutional limits on state borrowing really are – bring it on. Let’s hear it.

*Mark Glennon is founder of Wirepoints.

**Part of the pension bond proceeds didn’t in fact go to the pensions, according to the plaintiffs. They also contend that, in substance, the state merely loaned the rest of the proceeds to the pensions.

From Article IX of the Illinois Constitution:

SECTION 9. STATE DEBT
(a) No State debt shall be incurred except as provided
in this Section. For the purpose of this Section, "State
debt" means bonds or other evidences of indebtedness which
are secured by the full faith and credit of the State or are
required to be repaid, directly or indirectly, from tax
revenue and which are incurred by the State, any department,
authority, public corporation or quasi-public corporation of
the State, any State college or university, or any other
public agency created by the State, but not by units of local
government, or school districts.
(b) State debt for specific purposes may be incurred or
the payment of State or other debt guaranteed in such amounts
as may be provided either in a law passed by the vote of
three-fifths of the members elected to each house of the
General Assembly or in a law approved by a majority of the
electors voting on the question at the next general election
following passage. Any law providing for the incurring or
guaranteeing of debt shall set forth the specific purposes
and the manner of repayment.
(c) State debt in anticipation of revenues to be
collected in a fiscal year may be incurred by law in an
amount not exceeding 5% of the State's appropriations for
that fiscal year. Such debt shall be retired from the
revenues realized in that fiscal year.
(d) State debt may be incurred by law in an amount not
exceeding 15% of the State's appropriations for that fiscal
year to meet deficits caused by emergencies or failures of
revenue. Such law shall provide that the debt be repaid
within one year of the date it is incurred.
(e) State debt may be incurred by law to refund
outstanding State debt if the refunding debt matures within
the term of the outstanding State debt.
(f) The State, departments, authorities, public
corporations and quasi-public corporations of the State, the
State colleges and universities and other public agencies
created by the State, may issue bonds or other evidences of
indebtedness which are not secured by the full faith and
credit or tax revenue of the State nor required to be repaid,
directly or indirectly, from tax revenue, for such purposes
and in such amounts as may be authorized by law.
(Source: Illinois Constitution.)

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #936  
Old 07-15-2019, 03:50 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

https://www.chicagobusiness.com/opin...source=Twitter

Quote:
This is why Illinois pols haven't fixed our fiscal crisis
They haven't had to figure it out because you voters haven't figured it out. Wake up. Tell Pritzker and Lightfoot that pretty much every financial reform you've heard about must be effectuated immediately.

Spoiler:
Headlines earlier this month focused on Mayor Lori Lightfoot groping for ways to deal with Chicago's increased pension and other costs over the next few years. Lightfoot floundered looking for revenue solutions to the city's own near-term bills—a state bailout and taxes on retirement income, which were shot down quickly. That's unfortunate because the narrow focus masks far bigger problems for Chicago taxpayers.

To fully understand the trap Chicago is in, you must look at the others trapped with it.

Look at the true liability each household in Chicago faces for all the city's overlapping units of government and, most important, remember that most Chicago households are in no position to contribute anything material.

We did that analysis at Wirepoints starting with unfunded pension liability numbers from Moody's Investor Services. They use more realistic assumptions than are used in official reports. Beyond Chicago's four pensions, Chicago taxpayers are on the hook for the Chicago Public Schools pension and their share of pensions run by Cook County, the Metropolitan Water & Reclamation District, the Forest Preserve District and the state's five pensions, all of which are grossly underfunded. That total is $145,000 per household of unfunded pension liability for services already rendered, according to Moody's.


But don't stop there because you can't take money from people who have none, and it would be wrong to try. Suppose you look only to the rich, which you generously define as those making over $200,000 per year—the top 7 percent. They would be on the hook for over $2 million of legacy pension liabilities. Even if you went down to taxing households making over $75,000 per year—the top 37 percent—those households would face a $393,000 liability.

They won't stand for that. They will demand reform over revenue. One way or another, they won't pay.

Chicago's own pension problems are so severe, with funding levels around 25 percent, that they cannot be solved entirely on the backs of pensioners. Not by a long shot. That's why it's essential to address our state and local fiscal crisis as a consolidated problem demanding broad reforms at all levels—to take some of the load off Chicago taxpayers for their other liabilities.

Still, real pension reform is an essential part of the solution, at all levels. That's where Lightfoot and Gov. J.B. Pritzker both helped create the trap they are in. "Pensions are a promise," they both said to get elected, ruling out any benefit cuts. Either they break that promise or our crisis will deepen.

A pension actuary writing in Forbes recently said exactly what other realists have long said: "I can only repeat again and again: There is no solution to the woefully underfunded pensions in Chicago and in Illinois that does not involve benefit cuts subsequent to a 2020 constitutional amendment or municipal bankruptcy. And the sooner Pritzker and Lightfoot figure that out, the better off we'll all be."

They haven't had to figure that out because you voters haven't figured that out. Wake up. Tell Lightfoot and Pritzker their campaign promise against pension reform is void. Tell them Springfield's myriad unfunded mandates strangling all units of Illinois government must end. Tell them that pretty much every financial reform you've heard about must be effectuated immediately.

I know it's naive to expect that from you now, given your voting record, but the "state's inevitable financial collapse," as the Wall Street Journal termed it, is coming, so please at least start thinking about it.

Mark Glennon is founder of Wirepoints, an independent research and commentary organization.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #937  
Old 07-15-2019, 05:32 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

https://www.usnews.com/news/best-sta...t-150m#new_tab

Quote:
Illinois Overhaul of Financial Systems $150M Over Budget
An audit has found that state electronic financial reporting consolidation has cost $150 million more than estimated.

Spoiler:
SPRINGFIELD, Ill. (AP) — An effort by the state of Illinois to consolidate hundreds of separate financial reporting systems has cost $150 million more than estimated.

Auditor General Frank Mautino's audit of the Illinois Department of Innovation and Technology found that the cost of the Enterprise Resource Planning project exceeded the initial five-year, $250 million estimate by 60 percent largely because of an aggressive implementation schedule. It began by tackling 260 separate financial reporting systems.


"It's running behind and you've had cost overruns because of the implementation, they pushed hard in the beginning, which caused conversion problems and implementation problems because it's trying to do so much," Mautino said.

The audit found that the current estimated $400 million rollout should cover the rest of the implementation, scheduled for completion early next year. But Mautino noted some of the bigger challenges remain — mega-agencies such as the Department of Human Services and the Department of Healthcare and Family Services, which handle public assistance and Medicaid health care coverage, have yet to come online.

The audit, covering a two-year period that ended in June 2018, found 30 deficiencies. They included the failure to consolidate computer services among all 38 agencies required by a 2016 executive order by former Republican Gov. Bruce Rauner, late payment of vendors resulting in $20 million in late-payment interest, shoddy control of inventory and assets, and failure to follow written policies about which personnel have the authority to make such changes as computer coding.

It also criticized the agency for failing to cooperate with Democratic Comptroller Susana Mendoza, who took office in December 2016 after a special election in which she defeated Rauner's hand-picked GOP comptroller. Mendoza questioned her predecessor's quick processing of $71 million in vouchers during a period when there was no state spending plan because of a dispute between Rauner and the Democratic-led General Assembly.

The audit failed to answer questions posed by Mendoza about $27 million in invoices which Mendoza refused to pay without more information, resulting in $39 million more in late-payment interest. Mendoza spokesman Abdon Pallasch said those bills have begun to be paid.

___

DoIT Audit: https://bit.ly/2SaJcXE



__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #938  
Old 07-15-2019, 05:33 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

https://www.dailyherald.com/discuss/...evenue#new_tab

Quote:
Spending cuts have been made; state must keep focus on revenue

Spoiler:
J.B. Pritzker's first year as governor stands in stark contrast to that of his immediate predecessor Bruce Rauner. While the Rauner Administration struggled to find common ground with the General Assembly on a host of issues, Gov. Pritzker worked both sides of the aisle to gain consensus on numerous pieces of significant and in some cases groundbreaking, legislation -- especially on fiscal and tax policy.

This included everything from creating new revenue by authorizing a Chicago casino and legalizing cannabis, to establishing a $45 billion capital program and passing pro-business reforms championed by Republican House Minority Leader Jim Durkin. Pritzker also got a General Fund budget passed on his first try, with bipartisan support to boot. Whether or not you'd favor any one or more of these initiatives, you have to acknowledge it's somewhat remarkable for a rookie governor to have so many legislative successes right out of the box.

ADVERTISING

inRead invented by Teads
More remarkable, however, is the penchant Pritzker's administration has demonstrated for using political capital to raise new revenue to both support expenditures on current services and start reducing the long-term, structural deficit in Illinois' General Fund. And while raising the revenue needed to fund services and pay past due bills may seem like common sense, it's anything but common practice politically.

The reason for this is the voting public's traditional schizophrenia about fiscal policy. On the one hand folks want and demand public services. On the other, they oppose raising the tax revenue needed to fund them.

This paradox has engendered much political pandering, as decision-makers promise voters they can have quality schools, access to health care, safe streets and vulnerable populations cared for without paying the freight in taxes. Not by the Pritzker Administration, however, which has supplemented pandering with a nod to reality by emphasizing the need to raise adequate revenue to cover current costs and sustainably address structural fiscal problems.

Still, don't significant spending cuts have to be part of any comprehensive plan to resolve structural fiscal issues? Generally speaking, yes. But the truth is Illinois has been disinvesting in core services for decades. For instance, Pritzker's first General Fund budget calls for $27.1 billion in total spending on current services, over 96 percent of which will go to education, health care, social services and public safety. After adjusting for inflation, that's $4.5 billion or 14.4 percent less than what actual General Fund spending was two decades ago in FY2000, under Republican Gov. George Ryan.



by signing up you agree to our terms of service


The consequences of this long-term disinvestment vary by service area. Here's one example: General Fund spending on higher education this year will be 48.75 percent less in real terms than in 2000.

That cut is so significant it's helped push the rate of growth for public tuition in Illinois over this time period past the national average by some 53 percentage points. So, it should be no surprise many of our high school grads are leaving Illinois for college.

And that's just one consequence. Real spending is also down from FY2000 levels on: human services by 22.6 percent, health care by 13.9 percent and public safety by 16.8 percent. Real spending on K-12 funding is scheduled to be $651 million higher in the current fiscal year than at the dawn of this century.

That's the good news. The bad news is overall K-12 funding in Illinois is some still $7.3 billion less than what the evidence indicates is needed to have an adequate public education system.

All of which means the Pritzker Administration shouldn't be putting material cuts on the table now, because funding for core services has already been reduced so significantly in real terms over the last 20 years. Indeed, Illinois has reached the point where the fiscal focus should shift from spending cuts, to generating the tax revenue needed to fund an adequate level of public services -- a reality the Pritzker Administration is showing the rare political will to recognize.

Ralph Martire, rmartire@ctbaonline.org, is executive director of the Center for Tax and Budget Accountability, a bipartisan fiscal policy think tank.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #939  
Old 07-17-2019, 02:12 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

https://prairiestatewire.com/stories...r-says#new_tab

Quote:
Late CAFR gives Illinois' bond buyers pause, causes speculation, Wirepoints founder says

Spoiler:
Illinois' tardy fiscal 2018 comprehensive annual financial report (CAFR) has to be making would-be state bond investors thinking again, according to the founder of an online news outlet.

"Anybody considering buying an Illinois bond undoubtedly must wonder whether there's a material problem they don't know about," Wirepoints Founder and Executive Editor Mark Glennon told Prairie State Wire. "But it goes beyond that. They probably also wonder whether, when the time comes to sell the bond, the buyers then will likewise hesitate because they don’t have timely financials."

Wirepoints Founder and Executive Editor Mark Glennon
Wirepoints Founder and Executive Editor Mark Glennon | Photo courtesy of Wirepoints
Bond-rating agencies certainly have noticed, Glennon said.

"The ratings agencies have said this problem is not sufficient in itself to cause a downgrade, but that doesn't mean the markets won't dish out their own punishment," he said. "It's hard to tell for sure what that impact is, but what's for sure is the problem should get fixed."

The late Illinois CAFR is, however, no surprise, as dysfunction has been the norm through the governorships of Rod Blagojevich, Pat Quinn and Bruce Rauner, and appears to be the same under current governor J.B. Pritzker, Glennon said.

"I think this is just another example of how the back-office functionality of the state has been crumbling," he said. "It's possible [Illinois Comptroller Susana A.] Mendoza and other current officeholders bear no blame and inherited the problems. But Rauner inherited dysfunctional systems, too. So did Quinn before him, and Blagojevich before that. Mendoza’s predecessor as comptroller said the same things. The state has huge numbers of antiquated accounting and computer systems in different offices that are a mess, we've long been told."

Illinois has not yet published its fiscal 2018 CAFR and is the only state in the nation that has not yet done so, according to a story earlier this week by the online market-industry publication The Bond Buyer.

"The absence of a CAFR is a blot on the credit of the nation's lowest-rated state, though it was able to adopt a budget on time this year and releases other reports and updates about its finances," The Bond Buyer article said.

While no market consequences are expected, state officials responsible for managing the state's CAFR publishing process don't know when to expect the report to be released, according to The Bond Buyer.

"Unfortunately, we are unable to discuss ongoing audits and we are also unable to project release dates for our ongoing audits," the office of Illinois' long-embattled Auditor General Frank Mautino was quoted in The Bond Buyer.

The late Illinois CAFR raises broader questions besides the fact it is overdue, Glennon said.

"What caused the lateness and what's being done to fix it?" he said. "Those are the most important questions to ask, and we can't really trust elected officials for those answers. It seems very odd that the CAFRs were completed much earlier over the past two years. What changed? The claim that the Rauner Administration bears part of the blame is therefore very suspicious because he was in office then. So, we don't really know what's going on."

The state's antiquated accounting and computer systems may be only part of the problem, Glennon said.

"It's possible, too, that new accounting rules for the state's retiree health care liabilities are causing problems," Glennon said. "They are new this year, and they are likely to show that the state is in significantly worse shape than previous CAFRs showed."


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #940  
Old 07-22-2019, 08:03 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 89,038
Blog Entries: 6
Default

http://altondailynews.com/news/detai...1#.XTZFSehKg2x

Quote:
Delays from State on Budget Spending Details

Spoiler:
Illinois taxpayers still don’t know how the state spent their money in a budget that ended more than a year ago, which a public finance watchdog called a major disservice.



Illinois’ Comprehensive Annual Financial Report, or CAFR, for the fiscal year that ended last July still hasn’t been published. Illinois is reportedly the last state in the nation to publish its report for that fiscal year. The tardy report is even later the fiscal year 2008 report, which the Illinois comptroller’s office published July 10, 2009.



Gov. J.B. Pritzker echoed comments from the comptroller’s office on the delay.



“As the comptroller has said, and as the auditor has said, there was a challenge in the last administration that has caused a delay,” Pritzker said.



He said he expected the report in weeks, not months.



“The lateness this year does not fall on the Comptroller’s Office, the Auditor General or the current leadership of the state agencies,” Comptroller Susana Mendoza’s office said in a statement last month, which the office reiterated Thursday. “It appears there are issues from this audit period dating from the previous administration's management. The current administration and leadership of those agencies are working to resolve them and account for them in their reports to the Auditor General.”



Illinois Auditor General Frank Mautino’s office said in a statement Thursday “we do not comment on audits that are in progress nor do we speculate on audit release dates.”



Truth In Accounting Research Director Bill Bergman said excuses don’t excuse that the report is still late.



“And the fact that it is this late is a bad sign for governance and accountability in Illinois,” Bergman said.



Bergman said the CAFR is used by bond rating agencies to determine the credit quality of the government, and by bondholders to determine the value of their investments. But he said the reports also are meant to give taxpayers information to determine if government officials and politicians are living up to their promises.



“Bondholders come first, compared to taxpayer and citizen,” Bergman said. “They are senior claims on the enterprise and at the end of the day you and I as citizens and taxpayers, we get what’s leftover.”



One example Bergman said bondholders take precedence over taxpayers is when the state goes out for pension obligation bonds.



“One way to help your pension problem is to borrow money and to put the money in your pension,” Bergman said. “Does that help the state? Not if the state takes on more debt to do that. And so bondholders care about the enterprise, but they don’t care as much as we should or do as citizens or taxpayers.”



The Governor’s Office of Management and Budget said bonds for the “Rebuild Illinois” capital construction program will be issued over six to eight years, “depending on the cash flow needs of the construction projects.”



“There are sufficient funds available now for early costs of the Rebuild Illinois program,” the office said in a statement. “We would expect to issue capital bonds this year, but will work with the construction agencies [Illinois Department of Transportation and Capital Development Board] on the timing of the need.”



The budget that began July 1 authorizes $1.2 billion in general obligation bonds to address bills that are more than 90 days old and accruing interest, but the size and timing of the issuance will depend on the cash flow needs at the comptroller’s office, the office said.



Regardless, Bergman said taxpayers need the CAFR to hold elected officials accountable.



“How can you plan for the future when you don’t have [the latest] information,” Bergman said. “In your households how can we ever plan for the future if we don't have information about our bank accounts today and the same is true for Illinois representatives and senators and governors. Truthful accounting includes timely reporting and we don’t have it in Illinois.”


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 12:20 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.16721 seconds with 11 queries