The Muni Lowdown

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

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporter Simone Baribeau about the challenges facing continuing care retirement communities (CCRCs).

On this podcast, Simone delves into the basket of violated covenants seen in the CCRC space around debt service coverage, liquidity, and occupancy.

The discussion turns to the desire of CCRCs to attract “risk tolerant” residents and marketing strategies employed. She also explores the contagion risk faced when a CCRC within geographic proximity of another one that has filed for bankruptcy. Labor costs have become particularly expensive with nurses and food service workers.

Simone concludes by discussing the risks posed by weather events and factors involved in turning around a CCRC.

As a reporter for Debtwire Municipals, Simone Baribeau covers the Puerto Rico and healthcare beats.

#CCRCs #seniorliving #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporter Deb Pace about the cybersecurity risks for municipal issuers and borrowers.

On this podcast, Paul provides an overview of the hostile threat landscape that exists. Paul highlights the catalyzing effect on governmental entities of the May 2021 Federal Executive Order on Cybersecurity. Specifically, the overarching role of the five pillars of Zero Trust Architecture that municipal issuers and borrowers need to incorporate.

Deb discusses the unique threats, incidents, and risks in various sectors including municipalities, education, hospitals, and utilities. Deb also sheds light on those groups responsible for cyberattacks and their motivation. Finally, Deb provides an overview of the recovery costs associated with responding to a cybersecurity incident.

As a reporter for Debtwire Municipals, Deb Pace covers the transportation and education beats.

#cybersecurity #ransomware #muniland

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with reporters Deb Pace and Simone Baribeau about how wages and union organizing are driving labor disputes in the education and hospital sectors.

On this podcast, Deb discusses strike votes at various higher education institutions such as Rutgers University, Chicago State University, as well as the three-day strike at Los Angeles Unified School District. Deb also highlights the efforts of school principals to organize in Chicago. Simone discusses the sector challenge hospitals face grappling with appropriate staffing levels, as well as medical residents looking to unionize at Mass General Brigham.

As reporters for Debtwire Municipals, Deb Pace covers the transportation and education beats, while Simone is responsible for Puerto Rico and healthcare.

#muniland #healthcare #unions #highered