MuniLand

The Bond Buyer is holding its 2nd Annual Symposium on Distressed Municipalities in Providence, Rhode Island on March 18-19. Though I am not there, some conference attendees have done a great job of tweeting the highlights. Here is a selection as the conference continues into its second day:

What Ravitch saw in Albany: unions asking for more benefits; underwriters offering more #debt. “Pols rub their hands w/ glee.” #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Ravitch: City control boards are sometimes necessary because mayors won’t act responsibly or are “cowards.” #bbdistress #muniland

— Andrea Riquier (@ARiquier) March 18, 2013

Ravitch: our democracy is going to say there’s no moral distinction btw promise to pay debt and promise to pay pension liability #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Richard Sigal of McKenna Long & Alridge – says NYC fiscal crisis of 70s was function of excessive borrowing, not like pension problems today

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Firemen protest RI Treasurer Gina Raimondo at #BBDistressed conference bit.ly/ZNIlZ1#muniland

— Cate Long (@cate_long) March 18, 2013

Chafee: “constant battle trying to convince state legislators of the magnitude of the problem at the local level.” #muniland #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Cranston Mayor Fung joins a surprisingly loud chorus praising public-employee unions for honest negotiations on legacy costs #BBDistressed

— Mike Stanton (@MikeStanton1891) March 18, 2013

Fung: we must fix not only legacy costs but also broken tax structure. Can’t keep doing like we’ve always done. #bbdistress #muniland

— Andrea Riquier (@ARiquier) March 18, 2013

Miner – 50% of land is not taxed- nonprofits. The “Eds and Meds” are thriving. Creates dichotomy. Orgs with good jobs, but no prop taxes

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Laskey: financial woes are like addiction, cities have to want to be helped #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

David Unkovic, former Harrisburg receiver – PA good on “emergency care” but preventative care isn’t there. Unions too strong, tax base weak

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Unkovic – working with State Senate on a bill if not up-to-date with continuing disclosure, can’t issue bonds

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Keys to Pittsburgh recovery: Stabilizing employee benefit costs, introducing PAYGO capital budgeting #BBDistressed

— Mike Stanton (@MikeStanton1891) March 18, 2013

Non-callable 7% bonds are a “drag” to Pittsburghs recovery. Scranton has 8.5% non-callables. #savingscranton

— Gary Lewis (@consolidatediza) March 18, 2013

Pittsburgh eliminated OPEB for new employees. Thats one way to address massive costs. #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

Karl Jacob of S&P -Key aspects of oversight: levels/degrees of control/power of state, levels of intervention vary, control/exit points vary

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

644 Chapter 9 filings in history #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

Sidley’s Neal on #SanBernardino: “that’s a plane that crashed into the side of a mountain” #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Neal and Frimmer – negotiated settlements seem unlikely in California instead of Chapter 9 #Stockton #SanBernardino #BBDistressed

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Spiotto – Generally most courts have not required #muniland to pay pension obligations. Ch. 9 that works is a rescue plan. #BBDistressed

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

more from @recusack, in RI distress doesn’t mean default; Ch. 9 doesn’t even mean default. #bbdistress #muniland

— Andrea Riquier (@ARiquier) March 18, 2013

Audience question: what can be done with #PuertoRico? receiver? federal takeover like DC? #bbdistress #muniland

— Andrea Riquier (@ARiquier) March 18, 2013

Sigal: in NY, and many other cases the state comes in with credit enhancement. In CA, the state gives nothing. #muniland #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

MI Treasurer Dillon says he makes localities that want to do deficit financing put proceeds in escrow to be released by him #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Dillon – 10yr plan being crafted in #Detroit. Firms got hired to work on, draft plan will be ready by 5/1, includes debt restructure

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

A #pension haiku from Van Wagner of Moody’s: Liabilities are large. Disclosure needs work. Analysts beware. #muniland #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Neal – Bankruptcy is the art of impairing contracts and impairing them fairly #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

Cute: S&P’s Karl Jacob puts teenage son on creditwatch bc he “has a spending prob.” Son says no, it’s a lack-of-revenue prob. #bbdistress

— Andrea Riquier (@ARiquier) March 18, 2013

Orson – chapter 9 can return even the most fiscally disasterous city to fiscal stability #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

Miner – Public safety unions have binding arbitration. Can’t control wages and benefits. No economic development in region as services erode

— Debtwire Municipals (@Debtwire_Munis) March 18, 2013

Cusack: credit, confidence & employment flourish where problems are fixed, not festering #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013

Only heard in #muniland: economic development is sexy #bbdistress

— Gary Lewis (@consolidatediza) March 18, 2013