Part II of James Spiotto’s Series on Fiscal Distress Myths and Realities: Municipalities Use of Chapter 9 is Rare Compared to Corporations Use of Chapter 11 See Part I of this series: Default Rate for State and Local Government Debt Has Been Relatively...
Fiscal Distress
Fiscal Distress Myths and Realities Part I: Default Rate for State and Local Government Debt
Part I of James Spiotto's Series on Fiscal Distress Myths and Realities: Default Rate for State and Local Government Debt Has Been Relatively Low Especially When Compared to Corporate Debt Default Myth: There is no difference between the default rate...
Is Chapter 9 the Best Resolution Mechanism for Financially Distressed Schools or Are There Better Alternatives? – PART TWO
STATE MONITORING, OVERSIGHT, INTERVENTION, REFINANCING AND, IF NECESSARY, DISSOLUTION OF FINANCIALLY DISTRESSED SCHOOL DISTRICT by James E. Spiotto* This is Part Two of the two part series on the alternatives available to a financially distressed school...
Is Chapter 9 the Best Resolution Mechanism for Financially Distressed Schools or Are There Better Alternatives? – PART ONE
Why Financially Distressed School Districts Have Wisely Chosen Not to File Chapter 9 Bankruptcy by James E. Spiotto* This is Part One of a two part series on the alternatives available to a financially distressed school district. This series is taken from a...
Assessing the Credit Quality of America’s Cities – Part Five: The Bottom Line
Due to its lack of accounting for infrastructure assets and all long-term debt and liabilities, including pensions, general fund analysis has limited utility when analyzing municipal financial health. By Richard A. Ciccarone By incorporating the...
Assessing the Credit Quality of America’s Cities – Part Four: FY 2014 Financial Condition
The most basic sign that a government is living within its means is that it balances its books at the end of the year. Traditionally, most city officials, experts, and observers of state and local government focus primarily on the general fund, usually a government's...
Assessing the Credit Quality of America’s Cities – Part Three: Long-Term Liabilities beyond Pensions
By Richard A. Ciccarone City Financial Challenges Beyond Pensions When Assessing the Credit Quality of America's Cities, pensions aren't the only big long term liability facing America's cities. Add to the list bonded indebtedness, other post-employment benefits...
The History of Payment of State and Local Government Debt in the United States
Why is it important to pay state and local government debt? by James Spiotto Past economic downturns have taught us the importance of state and local governments to timely pay their public debts: Panics, recessions and depressions: Since...
The Myth That States Required a Bankruptcy Option – Debt Resolution Mechanism’s for States
By James Spiotto Myth: States need the ability to go bankrupt and have no standing debt resolution mechanisms. Reality: Since the late 1800’s, no state has defaulted on its general obligation bonds with the exception of Arkansas in 1933 which was refinanced. State...
The Myth That Bankruptcy Is the Only Option for Distressed States and Cities – Alternatives to Chapter 9
By James Spiotto Myth: State and local governments only recourse to financial distress is to file bankruptcy or to stop making debt payments to bondholders. Reality: States do not presently have a bankruptcy alternative and do not seem to desire one. State and local...