It’s hot down in Alabama
It sounds like we have a deal in Jefferson County, Alabama. This has been a long festering problem where the county is unable to afford the debt payments on $3 billion of bonds for a sewer system built several years ago. Excellent local reporting by KDAF-TV and Birmingham News. It sounds as if Jefferson County wants creditors to reduce the debt owed by $1.3 billion.
Meanwhile the SEC has announced a July 29 field hearing in Alabama on the “State of the Municipal Securities Market”. Reuters reports here.
Detroit: Bike City?
Governors want some federal unity
The New York Times nails the elephant in the room with this headline: “One Thing Certain in Debt Debate: More Cuts for States”. As the federal government gets its budget under control there will be less flowing through to the states. Buckle up, everyone.