Debtwire Municipals' Head of Research Greg Clark interviews Jeffrey J. Previdi, vice chair of the Governmental Accounting Standards Board (GASB), discussing organization efforts on monitoring projects and standard setting agenda items.

Jeff starts out the podcast by discussing “monitoring projects that GASB has undertaken that include: the Financial Data Transparency Act (FDTA), ESG [environmental, social, governance] and digital assets.

Jeff goes on to explain the complexity in implementing FDTA requirements as it relates to taxonomy and maintaining it over time. He also specifically dives into the challenges that will be faced in creating legal entity identifiers for municipal credits.

The conversation then turns to standard setting agenda items (going concern opinions, risk disclosures and infrastructure asset accounting).

Jeff highlights how going concern opinions have a different meaning in the public vs private sectors. He also discusses a recurring issue when governments cease to exist due to a merger and whether a going concern disclosure is necessary under those circumstances.

The podcast concludes with Jeff discussing the impetus behind risk disclosures and accounting for infrastructure assets becoming standard setting agenda items.

Jeff began serving as a GASB member on July 1, 2016, was appointed to serve as vice chair of GASB effective July 1, 2017, and was reappointed to a second term that concludes on June 30, 2026. Previously, Jeff served in a variety of roles for more than two decades at Standard & Poor’s Ratings Services (now S&P Global Ratings).

Greg Clark is a municipal analyst with more than four decades of experience at a rating agency, broker-dealers, commercial banks, bond insurers, and a hedge fund. He is also a former chairman of the National Federation of Municipal Analysts and of the Municipal Analysts Group of New York.

#GASB #FDTA #XBRL #muniland #accounting

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Javier Balmaceda of the Center on Budget and Policy Priorities (CBPP) discusses with our team his perspective on Puerto Rico’s ongoing eight-year restructuring effort.

To kick off the podcast, Javier provides his personal and professional background and its relevance to his current role at CBPP and in understanding Puerto Rico’s economic and financial situation.

The conversation turns to a discussion amongst the podcast participants (Paul Greaves, moderator and managing editor of Debtwire Municipals; Greg Clark, head of muni research; and Simone Baribeau, reporter on the team) about whether the debt restructuring, and debt reduction efforts has been sufficient to position the island for long-term success.

Javier responds that current efforts have been insufficient because the pre-restructuring assessment of the commonwealth’s economy was inadequate as it had always been weak and the safety net for island residents’ pales to what is provided to mainland states. He then adds the exogenous shocks of catastrophic weather events and COVID-19 exacerbated matters.

The dialogue turns to providing some bondholder perspective, as evidenced through their recent court filings.

Javier then moves the conversation to the developments he found the most surprising in the island’s restructuring.

Javier concludes with his recommendations for a sustainable fiscal and economic path.

Javier Balmaceda is a senior policy analyst with CBPP’s federal fiscal policy team. His main area of focus is Puerto Rico, with a particular eye on federal initiatives to resolve the commonwealth’s fiscal and economic challenges.

Paul Greaves, who serves as the moderator and is the managing editor for Debtwire Municipals; Greg Clark, the head of muni research who brings over 40 years of municipal analyst expertise; and Simone Baribeau, reporter on the team who covers the Puerto Rico, healthcare and project finance beats.

#PuertoRico #TitleIII #restructuring #municipalbankruptcy

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporters Sophia Clark and Simone Baribeau about the relatively new phenomenon of university-based retirement communities.

On this podcast, Simone discusses when university-based retirement communities became a viable option about 15 years ago and breaks down the leasing structure.

Sophia moves the discussion to operational considerations such as occupancy levels and the continuum of care provided. She then directs her comments towards the intersection of student housing and continuing care retirement communities (CCRCs).

Sophia provides context for the credit risks associated with student housing and Simone provides the same analysis for CCRCs.

Simone examines the potential rise of “on campus CCRCs” to create synergies.

Sophia and Simone close the podcast providing their views on whether university-based retirement communities will grow over time.

As reporters for Debtwire Municipals, Simone Baribeau covers Puerto Rico and healthcare beats, while Sophia Clark covers credits in the states of Connecticut, New Jersey, and New York.

#CCRCs #highered

On the latest episode of the Debtwire Municipals Muni Lowdown, Managing Editor Paul Greaves speaks with reporters Deb Pace and Kunal Kamal about the Long Island Power Authority's (LIPA) setbacks and diverging trends in school district enrollment.

Deb Pace kicks off the podcast providing an overview of the legislative efforts to turn LIPA into a public utility that started back in 2021. Deb then turns to updating the status of the draft report and the circumstances behind the four-month delay for a legislative hearing on the report and the termination of the consultant, GDS Associates. Deb concludes with a discussion of a couple of key items yet to be determined which are: the continuity of the workforce and the governance structure of the “new LIPA”.

Kunal comes to the podcast to detail some interesting and divergent trends in school district enrollment nationally between the fall of 2010 through the fall of 2021. Kunal discusses that states in the Midwest, Northeast and Western parts of the country have experienced significant enrollment declines. Meanwhile, the Southeast, Southwest and Great Plains regions have seen the opposite. He follows up with an overview of the impact of charter schools, private schools and homeschooling on enrollment. Kunal concludes the podcast by highlighting that states with the largest enrollment declines often have the highest per-pupil spending and the factors behind this.

As reporters for Debtwire Municipals, Kunal Kamal covers tax-backed credits in the Commonwealth of Pennsylvania, stadium finance, regulatory developments and relevant federal actions affecting the municipal market, while Deb Pace covers mass transit, toll roads, tax-backed credits in the State of Illinois and utilities.

#LIPA #municipalization #schooldistricts #enrollment

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporters Deb Pace and Kunal Kamal about infrastructure and regulatory issues in the water sector, as well as a debt ceiling update.

Deb Pace kicks off the podcast by highlighting the uptick in water infrastructure investments lately, with a focus on upgrades that can either help agencies stockpile water in preparation for drought situations or improve water and wastewater supply systems.

Deb continues with a discussion of how these projects are being financed.

Deb provides an overview of drought and water projects in the State of Texas, as well as highlighting a few bond measures passed early in May.

Deb switches to a discussion of recent regulatory developments in the water sector.

Kunal concludes the podcast by providing an update on the debt ceiling negotiations as the “drop dead date” of June 1 approaches.

As reporters for Debtwire Municipals, Kunal Kamal covers tax-backed credits in the Commonwealth of Pennsylvania, stadium finance, regulatory developments, and relevant federal actions affecting the municipal market, while Deb Pace covers transportation, tax-backed credits in the State of Illinois, and utilities.

#water #infrastructure #regulatory #debtceiling #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with Greg Clark, head of research, and reporter Simone Baribeau about NYC’s congestion pricing plan and Florida’s efforts for hurricane season.

Greg Clark kicks off the podcast highlighting the recent history of the Central Business District Tolling Program (“congestion pricing”) and how it’s been a goal of New York’s Metropolitan Transportation Authority (MTA) for many years.

Greg continues with the role of the federal government in the congestion pricing plan approval. The discussion moves to how this plan will raise money for the MTA and the anticipated use of revenues. He closes by offering his personal assessment of the plan and recounts his research on this topic over the last several years.

Simone provides an over of the readiness of Florida for hurricane season that begins on June 1. She proceeds to discuss the role of Citizens Property Insurance, the state-run insurer also known as the “insurer of last resort.” The conversation moves towards efforts by the state to reduce the number of policy holders with Citizens.

Simone concludes the podcast by discussing the state’s efforts to secure reinsurance coverage, as well as hurricane and flood risk mitigation efforts.

As the head of municipal research, Greg Clark provides analysis of various sectors within the municipal market. As reporter for Debtwire Municipals, Simone Baribeau covers Puerto Rico, Florida, and the healthcare sector.

#New York #MTA #congestionpricing #Florida #hurricanes #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporters Deb Pace and Kunal Kamal about fiscal challenges facing states and the debt ceiling, respectively.

Deb Pace kicks off the podcast highlighting those states suffering from precipitous income tax declines. The discussion turns towards those states faced with healthy reserves and debilitating deficits and trying to determine whether to tap a one-time revenue source or cut services to achieve budget balance.

Deb highlights the issues facing California around a concentration in the high-tech industry, vulnerability to stock market decline and options available to balance its budget. Deb concludes her segment by detailing how the State of New York struggles to corral overtime spending due to being short-staffed.

Kunal concludes the podcast by discussing the origins of the debt ceiling, the use of its authorization to create budget policy rather than going through “regular order’ in Congress, and the potential impact on the municipal market.

As reporters for Debtwire Municipals, Kunal Kamal covers stadium finance, regulatory developments and relevant federal actions affecting the municipal market, while Deb Pace covers transportation and tax-backed credits in the State of Illinois.

#states #finances #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with Paul Gunther, legal analyst for Debtwire and Greg Clark, head of municipal research, about the Chapter 9 filing of Chester, PA.

For decades, the City of Chester has experienced incremental credit deterioration that eventually led to a Chapter 9 filing in November 2022.

On this podcast, Greg Clark details the economic, fiscal, and political landscape that led to this bankruptcy filing including the city’s movement into state oversight (1995) and the eventual the naming of a receiver, Michael Doweary, in 2020.

Paul Gunther continues the conversation by highlighting the receivership process. Paul details the key issues facing the city in bankruptcy and the significant financial pressure placed due to its pension obligations. The discussion turns to how the city is attempting to address its bond obligations. Paul concludes the podcast by providing context to the city’s efforts to monetize its water system and the loan approved by the court in December 2022. Paul concludes with how the power struggle between the elected officials, the receiver, and bondholders has affected the bankruptcy filing.

Greg Clark is a municipal analyst with more than four decades of experience at a rating agency, broker-dealers, commercial banks, bond insurers, and a hedge fund. He is also a former chairman of the National Federation of Municipal Analysts and of the Municipal Analysts Group of New York.

Paul Gunther is a former practicing restructuring and litigation attorney. Prior to joining Debtwire as a Legal Analyst, Paul practiced in the New York offices of several law firms in New York City and has represented various constituencies in high-profile restructurings.

#Chapter9 #restructuring #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporters Kunal Kamal and Sophia Clark, about stadium financing in the US.

Public financing of sports facilities through tax-exempt municipal debt has been a common practice among government entities, despite little evidence suggesting that the benefits to the local economy match the costs borne by taxpayers.

On this podcast, Kunal and Stephanie discuss stadium financing that falls under three broad categories:

1) Existing stadiums where tenants are relocating or asking for substantial infrastructure upgrades.

2) Stagnated stadium projects and;

3) Stadiums in the early phase of development.

The podcast concludes with a discussion of “red flags” with stadium financing deals.

As reporters for Debtwire Municipals, Kunal Kamal covers stadium finance and regulatory developments, while Sophia Clark covers credits in the states of Connecticut, New Jersey, and New York.

#stadiumfinancing #economicbenefits #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporter Simone Baribeau and Greg Clark, head of research, about three situations involving forbearance agreements.

A forbearance agreement is basically an agreement that creditors will not pursue options that are legally available to them—such as bond acceleration—to give a borrower time to get its financial house in order.

On this podcast, Simone discusses the recent in the US District Court for the District of Puerto Rico by Judge Laura Taylor Swain that Puerto Rico Electric Power Authority (PREPA) bondholders do not have a secured claim on current and future net revenues. Simone explains that if this decision is upheld under appeal, that it could change the fundamental understanding of the revenue bond structure in a bankruptcy filing.

Simone moves on to detail the latest court ruling involving American Dream Meadowlands, a retail and entertainment complex that has been star-crossed since it opened in October 2019.

The podcast concludes with Greg discussing a large hospital system in western New York State, Catholic Health of Buffalo. Greg details how the declining number of surgeries precipitated a revenue shortfall which were further exacerbated by staffing shortages.

As a reporter for Debtwire Municipals, Simone Baribeau covers the Puerto Rico and healthcare beats. As the head of municipal research, Greg Clark provides analysis of credits in various sectors of the municipal market.

#forbearance #default #muniland