Public Money Pod: Recent Episodes
University of Chicago's Center for Municipal Finance
Each year state and local governments spend $4 trillion dollars. Where does that money come from? Where does it go? Who manages it? And what do citizens and taxpayers have to show for it? In this podcast we explore the budgets, bonds, and bureaucrats at the heart of state and local public finance.
The Public Money Pod is a production of the University of Chicago's Center for Municipal Finance. It is co-hosted by Liz Farmer and Justin Marlowe
This week, we're joined by Casey Lozar, Vice President at the Federal Reserve Bank of Minneapolis and Director of the Center for Indian Country Development. He tells us about the policy work he has done to ensure that Tribal Nations are not overlooked in public finance, and how the Survey of Native Nations addresses some of the challenges inherent in meaningful data collection. In Ripped from the Headlines, we discuss the impact of recent federal funding to address energy needs among Tribal Nations.
We've heard before about rethinking the 40-hour work week, but what effects could a redesigned work week have on productivity, morale, and public safety? Join us this week in our conversation with Scott Vargo, City Manager of Golden, Colorado, as he tells us about how his city piloted a compressed work week for its police department and the outcomes they observed. In Ripped from the Headlines, we look at how the Manatee County (Florida) Sheriff's Office addressed a sharp staffing shortage by auditing their departmental employee evaluation and engagement practices.
This week we're joined by Joel Black, chair of the Governmental Accounting Standards Board (GASB). He talks to us about the GASB and the important work it does for state and local governments. We also discuss recent research at the GASB, areas for improvement in financial reporting, and what we can expect from the GASB in the future. In Ripped from the Headlines, we examine why a high percentage of large government IT projects aren't successfully implemented, and the landscape of "intangible assets" in modern government.
Local government may not be synonymous with "blockchain technology," but our guest this week, Eric Mason, CFO of Quincy, Mass., shows us just how useful Distributed Ledger Technology (DLT) can be for local municipal finance. He shares with us the benefits he has seen in his city from this technology, and why this proactive government innovation has fostered greater efficiency and equity, allowing people to invest in their own community. In Ripped from the Headlines, we look at some more examples of how state and local governments have used blockchain technology to build trust and create more positive experiences for their constituents.
We're joined this week by Victoria Yarbrough, who serves as Assistant City Manager for Sierra Vista, AZ. She talks to us about how her city has leveraged tax credits from the Inflation Reduction Act to invest in economic development, including capitalizing on Sierra Vista's unique "high desert" climate to nurture a thriving sports tourism industry. In Ripped from the Headlines, we discuss a piece that explains why equity evaluation is key to new municipal clean energy programs.
In the latest installment of our state treasurer series, we speak with Utah Treasurer Marlo Oaks. He talks to us about why he made the jump from investment banker to the state treasurer's office, financial education programs for Utah students, and of course, some fascinating unclaimed property stories! In Ripped from the Headlines, we break down a story about the Climate Revolution Action Network in New Jersey protesting ties between the state's public pension fund and the fossil fuel industry.
By the 2050s, one in five U.S. counties will face compound material exposure to two or more acute climate hazards such as drought, extreme heat, wildfires, and flooding. This week, we're joined by Steve Bullock, who leads the Research and Methodology Team at S&P Global Sustainable1. He helps us break down the data and analytics being used to provide better transparency and help investors integrate climate risk into their decision-making, along with ensuring state and local governments are prepared to handle climate hazards. In Ripped from the Headlines, we discuss new rules at FEMA, including how the agency now defines a floodplain, and how this impacts the decision of where to rebuild after a flood.
We weren't able to fit everything from our conversation with Jon Mondillo (abrdn) into one episode, but we still wanted to share the rest of it! Enjoy this bonus episode, where Jon talks to us about affordable housing, charter schools, and trends in hospital systems and Continuing Care Retirement Communities.
This week, we talk to Jon Mondillo, Head of North American Fixed Income at abrdn. He tells us about taking advantage of strong demand in the marketplace, relative value and perceptions of the interest rate cycle, and the implications that the extension (or lack of extension) of the Tax Cuts and Jobs Act will have on municipalities and municipal issuers. In Ripped from the Headlines, we dig deeper into the multitude of scenarios that municipal bond issuers are preparing for based on the outcome of the election and its implications on the TCJA.
State and local governments are struggling to hire public finance professionals. Is this due to a shortage of qualified individuals, or something else? We talk with Heidi Voorhees, co-founder of GovHR USA and GovTempsUSA about recruiting strategies and how government agencies can incentivize professionals - from recent college grads to those working in the private sector - to work in public finance. In Ripped from the Headlines, we discuss what college graduates look for in potential employers, and how employers can make themselves competitive for applicants.
From small municipalities to large urban centers, how do we define "politics" in local government budgeting? How do elected officials and finance professionals build trust and credibility with the public? And what does politics mean as we "reinvent" local budgeting. Join us for a master class on these and other questions in our third and final interview from the 2024 GFOA conference, where we sat down with Rick Cole, Chief Deputy Comptroller for the City of Los Angeles; Mike Bailey, Director of Internal Audit for Northshore School District in Washington; Amelia Powers Gardner, Commissioner of Utah County, UT; Daniel Ramos, OMB Director for Harris County, TX; and Andrew Scott, Deputy COO of Portland Metro.
How has Detroit turned around their finances to receive a major credit upgrade? What challenges still linger, especially when it comes to using federal money and tax credits effectively to invest in the community? Learn the answers to these questions and more in our second installment of interviews from the 2024 GFOA conference, where we spoke with Kevin Bain, Director of Strategy for the City of Detroit.
Our state treasurer series continues with Illinois Treasurer Michael Frerichs. We discuss responsible financial stewardship; the state of ESG; Illinois' investment strategies; and hear about some unique and fascinating unclaimed property stories! In Ripped from the Headlines, we discuss the effects of out-migration on Illinois' economy and the challenges of creating policy to reverse this trend.
Housing affordability, the boom-and-bust cycle of the tech industry, and fiscal policymaking at the ballot box. How does a credit analyst view California's unique state and local public finance? Join us as we sit down with Jennifer Johnston, Senior Vice President and Director of Municipal Bond Research at Franklin Templeton to hear her perspective. In Ripped from the Headlines, we discuss the latest budget deal reached in California to address its deficit, and what $16 billion in budget cuts means for the state.
In our season 3 premiere, we caught up with speakers from the panel on "Rethinking Financial Reporting" at the 2024 GFOA Conference in Orlando. We dive into themes from the panel like technology in finance, the future of financial reporting, and careers in government finance with our guests, David Guo, Regents Distinguished Professor of Public Finance at the Hugo Wall School of Public Affairs at Wichita State University; Jennifer Becker, Financial Services Director for the City of Burbank, California; and Sharon Edmundson, Director of Municipal Finance Programs for the NC League of Municipalities in Raleigh, North Carolina.
We wrap up Season 2 with California Treasurer Fiona Ma. We cover California’s deficit; the challenge and opportunity of ESG investing; why housing affordability is California's number one policy challenge; how she advocates for Calfornia's agriculture; why she's a card carrying SAG member; and how Kristi Yamaguchi helped her save San Francisco's Cow Palace, among many other topics. In Ripped from the Headlines, we look deeper into California's plan to put multiple bond proposals on the ballot to address some of its ongoing challenges.
As we wrap up season 2, we look back at some of the themes that dominated the season. These key themes include state revenue challenges, the emergence of AI in public finance, cybersecurity, the impact of e-sports on public finance, the economies of "industry" cities, and how municipalities are thinking about building back better.
We talk to Zach Mohr, Professor at the University of Kansas, about all things elections (not campaign!) finance. He unpacks the many types election administration costs; why states are banning private investment in elections administration; how elections administration competes with other core state/local services; and why, given all these challenges, elections administration is "a miracle." In Ripped from the Headlines, we discuss an article that explains how the looming threat of federal government shutdowns interferes with predictable funding for state/local elections.
We welcome Genesis Gavino, Chief of Staff and Resilience Officer for the City of Dallas, TX. She explains why resilience is an environmental, financial, and equity issue; the challenges of climate adaptation for a "Blue City in a Red State"; why Dallas has prioritized climate adaptation; how the city measures progress and holds itself accountable for resilience goals and plans; and how membership in voluntary climate organizations helps create urban resiliency, among many other topics. In Ripped from the Headlines, we discuss a story from The Atlantic about how "climate migrants" might remake the Great Lakes region.
We converse on California's state budget with Gabe Petek, Legislative Analyst for the State of California. He explains California's dueling state budget deficit figures; why the current revenue shortfall is different than the 2008 recession; how much of California's budget woes are "structural" vs. "cyclical"; how he and Governor Newsom propose to address the budget deficit; why economic mobility matters to state budgeting; and how Gabe's prior life in Muniland shapes his views the Legislative Analyst's role, among many other topics. In Ripped from the Headlines, we discuss a story about how a new education program in Maryland is leading to large projected budget deficits over the next few years.
Professor Don Moynihan from Georgetown University's McCourt School of Public Policy shares his views on "administrative burden." He tells us how he defines administrative burden and why it's important for state and local public money, the opportunities and trade offs involved in reducing administrative burden, and what the pandemic taught us about how we might redesign the social safety net. In Ripped from the Headlines, we discuss an article about Maine's move to offer free lunch to all public school students, and what that move has meant for data about poverty.
We talk to Casey Kopcho, principal auditor in the Oregon Secretary of State's office. He shares his thoughts on the risks, opportunities and outlook for artificial intelligence in state government, with emphasis on AI and election integrity, how we might regulate AI; and why Furbees are the original AI, among many other topics. In Ripped from the Headlines, we talk about a piece that covers Nebraska's AI and Democracy Summit.
We talk to Michael Gaughan, Executive Director of Vermont Bond Bank (and rumored long-time Public Money Pod fan). He tells us why bond banks are well-equipped to meet the unique capital markets challenges of small and rural communities, how the Bank is focused on climate adaptation investments, and how they are leveraging federal dollars from the IRA and IRJA, among many other topics. In Ripped from the Headlines, we discuss a report on the nation's crumbling drinking water systems, and how breakdowns in those systems impact local communities and economies.
We visit with Matt Wachter and Drew Whiting, co-founder and current Executive Director, respectively, of the Erie (PA) Downtown Development Corporation. They share Erie's experience with Opportunity Zones (OZs), including a remarkably fast launch; building community around OZs; the challenge of sustaining progress; what OZs mean for local public finance; and how they define success. In Ripped from the Headlines, we review a story covering the proposed changes in the renewal of the federal OZ legislation.
We talk to Dag Detter, author of The Public Wealth of Cities and advisor to governments around the world. We consider how state/local governments account for long-term assets, why he thinks current accounting rules are not up to the task, and his vision to fix it. He also lays out his argument for public wealth funds in the United States. In Ripped from the Headlines, we continue the conversation about public finance and real estate with a story about Meriden, Connecticut's plan to sell vacant public land.
We welcome Laura Allen, budget analyst with the Maryland Department of Budget and Management AND current President of the Government Finance Officers Association (GFOA). We discuss GFOA's priorities for the year, with special emphasis on Diversity, Equity, and Inclusion in public finance; GFOA's research agenda; and why public money is a great career for women, among many other topics. In Ripped from the Headlines, we discuss a story about the future of government jobs with the emergence of artificial intelligence.
We continue our state treasurer series with Kansas Treasurer Steven Johnson. We discuss his office's role in distributing federal funding; his take on the Kansas "Income Tax Experiment"; the state’s philosophy on ESG investing, why Modern Portfolio Theory is alive and well in the Sunflower State; and adventures in unclaimed property. In Ripped from the Headlines, we discuss the National Association of State Budget Officers' latest edition of the Fiscal Survey of the States.
We continue our state treasurer series with Washington State Treasurer Mike Pellicciotti. We discuss how his office has led the legislative effort on savings at birth (Baby Bonds) and for retirement (auto IRAs), and why savings is a rural economic development tool; his advocacy for the federal SAFE Banking Act for financial services for recreational marijuana businesses; and why he sees the anti-ESG movement as dangerous. In Ripped from the Headlines, we discuss Citi's exit from the municipal bond business.
We talk to Dawn Lang (CFO) and Riann Balch (Community Resources Manager) from the City of Chandler, AZ. They walk us through the causes and consequences of their city's rise in homelessness, the success of their Community Navigators program, how homelessness touches both the revenue and the spending side of the Activity Statement, and how they're planning for the coming fiscal cliff, among other topics. In Ripped from the Headlines, we look at an article about how Colorado has worked to create a better user experience to improve participation in their family leave program.
We talk to Louisiana Treasurer John Schroder about Louisiana's finances. He shares his views on ESG investing, how pension investing can drive economic development, and why integrity is everything in public finance. In Ripped from the Headlines, we continue the discussion about Louisiana with a story about how changes in property insurance coverage in the state is affecting public school districts finances.
We visit with Megan Kilgore, City Auditor for the City of Columbus, Ohio. She explains the challenges and opportunities of an income tax-driven municipality; the keys to timely financial reporting; transparency and timeliness in the wake of the Financial Data Transparency Act (FDTA); and the future of municipal finance, among many other topics. In Ripped from the Headlines, we discuss S&P’s warning to Santa Fe, NM following that city's chronic lateness in financial reporting.
We visit with Washoe County, Nevada CFO Abbe Yacoben. She describes the County's unique financial challenges and opportunities; its efforts to address housing affordability; why it's investing in election infrastructure; and how to build a career in financial leadership, among many other topics.. In Ripped from the Headlines, we talk about some analysis of the San Francisco-to-Seattle exodus.
We talk to Morgan Wright, a renowned expert on government tech, AI, and cybersecurity. He shares his view on tech talent in the public sector, how cities and states should think about tech infrastructure investment, and where he thinks AI can help or hurt governments. In Ripped from the Headlines, we talk about a story giving more details about a growing interest in the public sector in hiring private sector tech talent, and what that might mean for the future of tech in the public sector.
We visit with Travis Ahern, Town Administrator of Holliston, Massachusetts. He explains the challenges and opportunities of other post-employment benefit (OPEB) liabilities, Holliston's approach to funding OPEB, how OPEB and pensions are both alike and unlike, and why "soft liabilities" matter to credit ratings, among many other topics. In Ripped from the Headlines, we talk about the State of Connecticut’s progress on pension funding and ongoing challenges with OPEB funding.
We talk to Pamela Frederick, CFO of the Battery Park City Authority in New York City. She describes Battery Park City's unique sustainability challenges, the opportunities for investing in the infrastructure of sustainability, the broad skillset required of today's state/local CFO, and some thoughts on further research in the climate and resiliency finance arena. In Ripped From the Headlines, we recap one of Liz’s recent Route Fifty articles about the challenging property/casualty insurance markets in California and Florida.
We have a family meeting with Alan Greenblatt, reporter from Governing, to recap what the 2023 election results mean for state and local public money. We talk about tax cuts in Texas and Colorado, why voters are more likely to pass sin taxes, and what this election tells us about 2024 and the potential public money landscape.
We talk to Bobby Bruning from Kaufman Hall about the financial health of non-profit healthcare. He talks about the financial challenges facing some non-profits; why non-profit hospitals are not a "credit stressed" sector; the many ways that non-profit hospitals provide community benefits; and the sector's unique exposure to the 2024 election. In the Ripped from the Headlines, we look at trends in employment in the healthcare sector with a story from Healthcare Dive.
We visit with James Pruskowski, Chief Investment Officer at 16Rock Asset Management. He explains the remarkable growth in municipal SMAs (Separately Managed Accounts), what advice he has for issuers of municipal bonds to take advantage of the increase in SMA investment, and his view on the trends in the municipal bond market going forward. In Ripped from the Headlines, we talk about three Chicago governments' recent bond issuance with a story from Bloomberg.
We cover the state of play in interactive entertainment (i.e. video games) with Professor Joost van Dreunen from NYU's Stern School of Business. He tells us how video gaming is different from entertainment and music; what video gaming means for state/local fiscal policy and economic development; how we might regulate the industry; and why we need more video gamers in government. In Ripped from the Headlines, we discuss how the Wayfair ruling has allowed state and local governments to adapt state/local tax policy to the digital world generally, and video gaming in particular.
We talk to Michael Jacobson, Deputy Director of Performance Strategy in the King County (WA) Office of Performance, Strategy, and Budget. He shares insights about all things performance management; why performance management belongs in the budget office; how to make accountability less daunting; and what Spock and the Karate Kid have to do with performance management. In Ripped from the Headlines, we discuss how Henderson, Nevada is using data to confront their biggest challenge: the water shortage.
We talk school finance with Tamara Mitchell, Assistant Superintendent for Business & Financial Services for the Joliet, IL School District 86. She talks where public money for schools comes from and where it goes; the good and the bad of being state funded versus property tax funded; how Joliet School District 86 won 70% approval for a referendum on last year’s ballot; and how they were impacted by the influx of federal funding during COVID. In Ripped from the Headlines, we continue the discussion about COVID funding talking about the incoming fiscal cliff for school districts.
On this "emergency family meeting" episode we talk federal government shutdown with the Government Finance Officers Association's federal government guru Emily Brock. She shares what we've learned from past shutdowns, how the forthcoming shutdown will affect state and local finances, and how state and local finance officials can respond, among many other topics.
We talk to Matthew Gerstenfeld, CEO and Founder of Munichain. He talks about the evolution of the municipal market, why the muni market is slow to adopt new technology, and what AI could offer to the market in the future, among many other topics. In Ripped from the Headlines, we talk about an article from CityLab titled "What it Looks like when AI Designs a City" that brings to life the many ways AI might transform city planning, economic development and finance.
We talk to Caroline Whistler of Third Sector Capital Partners, who reflects on her decade plus in the Pay for Results space with state and local governments. She explains how that space has evolved, the importance of data in outcomes oriented government, and how civil servants are crucial to ensure public money has the biggest impact possible. In Ripped from the Headlines, we talk about the impact of the child tax credit, as highlighted in a new comprehensive Urban Institute report.
We continue our conversations with state treasurers, this time with Delaware Treasurer Colleen Davis. She tells us about her work in expanding the state’s 529 program, how she’s addressing banking deserts, and the highs and lows of being a AAA credit state, among many other topics. In Ripped from the Headlines, we look into some surprising trends in higher education enrollments and investments with an article from the Pittsburgh Post Gazette.
We talk to Omid Rahmani from Fitch Ratings about the intersection of cybersecurity and public finance. He describes the many types of cyber risks governments face, how to budget for digital infrastructure, why cyber risk is a national security concern, and why Sly Stallone is a cybersecurity expert. We continue to the discussion about the impact of cyber attacks in Ripped from the Headlines with a report from Blackberry's Cyber Security Report.
Liz talks to Max Behkle, Deputy Executive Director for the Institute for State Policy Leaders, about South Dakota v. Wayfair, the Supreme Court that allowed states to collect sales taxes on remote sales. Max worked for the National Conference of State Legislatures at the time and was instrumental in the case as well as remote sales tax policy across the country. Max also shares what he's currently working on at the Institute for State Policy Leaders. There is no Ripped from the Headlines segment, and Justin is on vacation.
We visit with Josh Weimer from the Turlock (CA) Irrigation District about the challenges and opportunities of water infrastructure. We focus the discussion on Project Nexus, a plan to cover canals with solar panels. He shares how this is a project with many co-benefits and the potential for other water and irrigation districts across the country and the world. In Ripped from the Headlines, we discuss a Route 50 article about the federal government's investment in the new Arizona-California-Nevada deal to conserve Colorado River water.
We talk to Jennifer Becker, Director of Financial Services for the City of Burbank, about how the actors and writers strike is affecting finances in Burbank, the highs and lows of being an industry town, Southern California's economic challenges, and how she'd fix California's Proposition 13. In Ripped from the Headlines, we take a deeper dive into the economic impact of the strike.
We visit with Yale law professor David Schleicher about his new book, In a Bad State: Responding to State and Local Fiscal Crises. We talk about why the tradeoffs when cities address fiscal distress, how the Chapter 9 process could be improved, and why Arkansas is the American Argentina. In Ripped from the Headlines, Liz talks about her reporting on Chester, Pennsylvania's receivership and the political fallout of a municipality declaring bankruptcy.
We talk to state budgeting expert (and Public Money Pod fan!) Lucy Dadayan from the Urban-Brookings Tax Policy Center about all things state revenues. She explains the wide variation in revenue trends across sources and states; the many challenges of inflation; and her best predictions for FY24 and beyond, among many other topics. In the Ripped from the Headlines segment, we take a closer look at how states are managing their debt.
We talk to Mitchell Smith, Director of Government and External Affairs for the Council of Development Finance Agencies. We cover the history and development of Community Development Finance Institutions; how CDFIs finance everything from tractors to solar panels; how new finance tools are a lot like old finance tools; and exciting pending legislation that would expand opportunities for CDFIs. In Ripped from the Headlines, we talk about new studies showing inequalities in urban heat stress and its impact.
We kick off season 2 with Glen Lee, the CFO of Washington D.C. We talk about the federal government’s role in D.C’s finances, the challenge of reviving D.C’s downtown and transit system, and why D.C is similar and different to other cities we’ve heard about. We again revisit the transit discussion in Ripped from the Headlines to learn more about the Washington Metropolitan Area Transit Authority (WAMATA's) future.
In our second episode recorded live at the Government Finance Officers Association 2023 annual conference in Portland, OR - and our final episode of Season 1 - we visit with Katie Johnston, Budget Manager for the City of Tacoma, WA and Professor Matthew Stitt, Director and National Lead for Equitable Recovery and Strategic Financial Initiatives at PFM. We discuss why financial sustainability is an equity issue, how Covid changed citizen expectations for community engagement in budgeting, and the challenges of measuring how resource allocation affects equitable outcomes, among many other topics.
We caught up with Ben McAdams, Senior Fellow at the Sorenson Impact Center at the David Eccles School of Business at the University of Utah, at the Government Finance Officers' Association 2023 annual conference in Portland, OR. We discuss how states and localities can evaluate the value and opportunity costs for capital assets, how to retrofit downtowns in the post-Covid, and why real estate assets are like public pensions, among other topics.
We continue our conversations with state/local CFOs, this time with City of Houston Controller Chris Brown. He explains Houston's remarkable $6 billion pension reform, why other post-employment benefit (OPEB) liabilities are the next big fiscal challenge, what other CFOs can learn from Houston's experience, and why "Structurally-Balanced Budget" is a hot new drinking game, among other topics. In Ripped from the Headlines we discuss the "fiscal cliff" for local transit systems.
The White House just released a progress report on its plan for more than a trillion dollars of new infrastructure spending (Spoiler Alert: A lot of work remains!). That report reminded us of one of our favorite episodes - Eric Horvath from the City of South Bend, Indiana. In that episode, Eric described how South Bend reinvented its wastewater/stormwater management infrastructure using lots of data, a bit of money and plenty of innovation. We thought it appropriate to share that episode once again.
We examine the ever-evolving relationship between state/local procurement and finance. Mariel Reed of Pavilion joins us to explore the interface of state/local procurement, technology and public finance. She explains how procurement can be a strategic resource and change agent, when procurement can make money, and what state/local government and tech companies can learn from each other, among many other topics. In Ripped from the Headlines we discuss how New York State - and other states and localities - use procurement processes to connect with historically underserved communities.
We take a deep dive on all things Medicaid, starting with its outsized impact on state budgets. Richard Auxier from the Urban-Brookings Tax Policy Center walks us through the state-federal Medicaid funding partnership, why "redetermination" matters, the Medicaid policy trade-offs states will face in the near future, and why FMAP rates should be part of everyone's dinner conversation, among many other topics. In Ripped from the Headlines we look at how Medicaid redetermination might affect children.
We continue our conversations with state treasurers, this time with Nevada's Zach Conine. He explains fiscal policy for financial booms and busts, the promise of baby bonds, how the Treasurer can build bridges within state government, why anti-ESG legislation complicates his fiduciary duty, and why COBOL programming is still sexy. In Ripped from the Headlines we discuss Indiana's emerging anti-ESG legislation.
We mull over the past, present and future of blockchain technology in public finance. Steve Winterstein from Alphaledger breaks down what it is, what it means for public finance professionals and taxpayers, why state and local governments are slow to adopt new technology, and why "complete provenance" and "genesis record" are coming to a municipal bond transaction near you. In Ripped from the Headlines we contemplate states' and localities' efforts to tax, or not tax, blockchain hosts.
Link to the article referenced in Ripped from the Headlines: https://cointelegraph.com/news/arizona-governor-vetoes-bill-targeting-taxes-on-blockchain-node-hosts.
We look back on our first 25 episodes and focus on lessons learned and surprising moments. Key themes include: the expanding definition of infrastructure, the expanding role of big data in state/local finance, the ongoing effects of economic uncertainty, and the human side of financial leadership.
We continue our conversations with state Treasurers, this time with Michigan Treasurer Rachael Eubanks. She explains how appointed treasurers are different, how her office is helping to "Fix the Damn Roads," forecasting revenues in an uncertain economy, and why spiffing up your vacation cottage is good tax policy, among lots of other topics. In Ripped from the Headlines we discuss South Carolina's $3.5 billion cash mishap.
We reflect on the "plus ça change" of state and local tax incentives. Professor Nathan Jensen of the University of Texas-Austin (and Justin's fellow Wisconsinite/Green Bay Packers shareholder) explains why tax incentives are "bad policy but good politics," with focus on why elected officials can't seem to get enough of them, why less is more for incentive transparency, and how the federal government may have accidentally set off the next generation of incentive wars, among many other topics. In Ripped from the Headlines we revisit the promises made and promises kept on Amazon's "HQ2" sweepstakes.
Link to the article referenced in Ripped from the Headlines: https://www.bloomberg.com/news/articles/2023-03-21/amid-stalled-construction-in-national-landing-amazon-gets-no-hq2-incentives
We discuss the challenges of engaging elected officials in their community's financial story. Legendary City Manager Mark Scott explains how the Los Angeles Riots transformed Beverly Hills, how municipal bankruptcy transformed San Bernardino, how to engage elected officials in financial decisions, and the public finance of Coachella, among many other topics. In Ripped from the Headlines we enumerate the challenges and opportunities of the Financial Data Transparency Act.
We take a walk down Memory Lane, reminiscing on how the Great Recession shaped today's municipal credit analysis and financial disclosure. Suzanne Finnegan from Build America Mutual (BAM) explains the renaissance in municipal bond insurance, how bond insurance benefits issuers of all sorts, insuring and investing for sustainability, and why she's watching emerging trends in the housing market, among many other topics. In Ripped from the Headlines we ponder why investors are exiting the residential real estate market, and what that means for local public finance.
We take apart the "three-legged" stool of public pension funding, and explain why taxpayers should care about wonky details like discount rates and private equity fees. Natalie Cohen from National Municipal Research, Inc. walks us through the current public pension landscape, including into who decides where pension money goes, pension investing in the face of market volatility and normalizing interest rates, pensions and ESG, and why pension contributions relative to annual spending is "a thing," among other topics. In Ripped from the Headlines we follow up on Liz's recent work on pension governance.
We unpack the many hats worn by our state/local treasurers and comptrollers. Pennsylvania Treasurer Stacy Garrity joins us - accompanied by Dr. Kyle Kopko from the Center for Rural Pennsylvania - for a careful look at the urban/rural savings divide in 529 college savings plans, building trust in financial institutions, and George Clooney's starring role in unclaimed property. In Ripped from the Headlines we discuss the challenges of financing access to critical health care in rural areas.
Stateline's article: pewtrusts.org/en/research-and-analysis/blogs/stateline/2023/02/17/texas-town-tries-a-new-model-for-saving-rural-health-care
We give special treatment to special district finances, motivated by Disney's special district kerfuffle in Florida. Professor Chris Goodman from Northern Illinois University walks us through the history and development of special districts, where their money comes from and where it goes, whether they're effective and accountable, and why Mickey and Donald might appear at a special district board meeting soon. In Ripped from the Headlines we discuss the indirect but powerful public finance connections between insurance premiums and gentrification.
We continue our ongoing deep dive on the public finance of post-pandemic downtowns, including insights from Liz on neighborhood-downtown relations, and research findings from Justin on local lodging taxes. Sam Hecker from the Seattle Convention Center explains how SCC managed through a pandemic with no conventions, why natural amenities are the key to healthy post-pandemic downtowns, and the future of lodging taxes, among many other topics. In "Ripped from the Headlines" we explore the politics and economics of taxing non-profits.
We explore the surprising disconnect between accounting and accountability, especially for federal money now flowing into local governments. LaShon Ross from the City of Plano, TX describes the human capital challenges and opportunities in local government today, and explains why coaching, hard conversations and "multi-directional" accountability are essential to effective local government budgeting. In "Ripped from the Headlines" we discuss recent developments in state taxation of digital advertising.
Link to the article referenced in the episode: //news.bloombergtax.com/daily-tax-report-state/states-float-new-taxes-on-digital-ads-social-media-data-mining
We continue our discussion of what the work from home revolution means for state and local public finance. Scott Pattison from the Multistate Tax Commission - "the most important public organization you've never heard of" - walks us through MTC's mission and work, and explains how technology, digital commerce, and sweetened cranberries are reshaping state tax policy. In our new "Ripped from the Headlines" segment we explore the public finance implications of the local incorporation (and de-incorporation) movement.
We describe the confluence of fiscal stress and high technology that's reinventing aging infrastructure in post-industrial cities. Liz highlights her recent work on chronic fiscal stress, and makes clear that getting to bankruptcy is a group effort. Eric Horvath from the City of South Bend, IN tells the story of how South Bend used artificial intelligence and big data to tackle an $800 million stormwater management problem, all for a fraction of the estimated cost. Tyler from Chicago asks: "What are Social Bonds, and why is Chicago selling them?"
We devote all our bandwidth to broadband as an infrastructure investment. Pari Sabety and Krista Canellakis from US Digital Response walk us through USDR's work on broadband expansion and access, including how local government can access billions of new federal money, the FCC challenge process, and broadband as an education finance policy issue, among many other topics. Elliot from Florida asks: "What exactly does 'public-private partnerships' mean?"
We discuss the monumental recent shifts in police budgeting. Beth Goldberg from the City of Kirkland, WA explains how five communities in greater Seattle, against the backdrop of Defund the Police, collaborated to fund and launch a community crisis response service. Emily from Columbus asks: "Are Taylor Swift ticket flippers the same as municipal bond flippers?"
We explore how natural disasters are disrupting state and local finance, including the "known knowns" and the "known unknowns." Colin Foard from the Pew Charitable Trusts shares key takeaways from a new report - "Wildfires: Burning through State Budgets" - on how states can adapt their budgeting processes and techniques to better prepare for wildfires and other natural disasters. Theodore asks: "Do ratings agencies consider climate risk when evaluating the creditworthiness for state and local governments?"
We continue our examination of how "work from home" is reshaping local public finance, including what municipal bond investors are thinking today, and how downtowns might look in a remote future. Berke Attila from the City of Baltimore lays out the challenges of making telework work for local government, and explains how cutting edge thinking about capital budgeting, asset management and information technology systems can help to seize on telework's many opportunities. Alex from Chicago asks: Why don't more states and localities offer free public transit?
We recap what Election 2022 means for state and local public finance. Bill Glasgall from the Volcker Alliance joins us to discuss how a divided Congress will shape the IRA, how states are making fiscal policy at the ballot box, and some local fiscal trouble looming ahead, among many other topics. Sarah from Hinsdale asks: "How about sin taxes on ammo?"
We look ahead on local property taxes, including what might happen in a world of stagnant house prices, high inflation, and political pressure on local budgets. Professor Chris Berry from the University of Chicago shares the key insights from his path-breaking research on equity in property tax assessment, and shares a sneak peak of his most recent and encouraging findings. Scott from Chicago asks: "What is California's Proposition 13, and is it unique to California?"
We discuss the public finance of climate adaptation, with focus on flood insurance, catastrophe funds, and the complicated role of tax-exempt bond income. Rudy Salo of Nixon Peabody offers his bond lawyer take on building back better after natural disasters, the politics of climate risk disclosure, and a future of "sexy infrastructure." Nancy from Asheville, NC asks: "Why are fiscal year starts and ends so different across states, localities, and the federal government?"
We go to school on what makes public school finance unique, with a focus on state shared revenues, horizontal equity, and teacher pay. Harpreet Hora from Atlanta Public Schools explains how Covid, inflation, federal money, a tight labor market, equity concerns, a focus on outcomes, and other factors are shaping APS' current and future budgets. Extra Credit: Shelly from Minneapolis asks, "What are lease revenue bonds, and how are they different from other types of bonds?"
We discuss the good, the bad, and the uncertain with transit agency finances. Dwight Burns from the Dallas Area Rapid Transit (DART) shares his optimism on DART's financial future, economic development in the Metroplex, and the Texas Longhorns. Johanna from Louisville, KY asks: "How are US Territory finances different from states and localities?"
We discuss new data on emerging trends in work from home, and what those trends mean for state and local revenues, budget-making, and fiscal policy. Catherine Tuck Parrish from Raftelis explains that today's most successful local financial leaders are good on spreadsheets, but great on compassion, empathy, and collaboration. Extra Credit: Beth from South Carolina asks, "Why do some local governments have income taxes, but most others don't?"
We discuss the shifting landscape for state and local retirement benefits, and what that new landscape means for budgets, employee satisfaction, and the future of the state and local workforce. Keith Brainard from the National Association of State Retirement Administrators explains how state and local public pensions are responding to inflation, rising interest rates, market gyrations, and economic uncertainty. Julius from Oak Park asks: "What are land banks, and what do they mean for state and local budgets?"
We discuss how local government finance managers are responding for the first time in a long time to two big challenges: inflation and the massive influx of federal government money. Jeff White from Columbia Capital Management joins us for a deep dive on how these challenges are reshaping local government borrowing. Extra Credit: Cindy asks "How much money should a local government keep in its rainy day fund?"
We look at who's leaving the local government workforce, and how municipalities are using federal dollars to stem the tide. Joshua Franzel from the Mission Square Research Institute shares some recent findings on the local government workforce of the future, how we'll pay for it, and why everyone should study budgeting and finance. Extra Credit: Almendra asks, “Why do state and local budgets not talk about return on investment?"
We discuss what the "Big 3" recent federal laws mean for state and local finance. Emily Brock from the Government Finance Officers Association helps us unpack the Inflation Reduction Act (i.e. the Climate Bill), including the next big trending topic – #NOFO_FOMO. Extra Credit: Mary from Wisconsin asks, “Why do state and local governments take so long to produce their financial statements?”
We discuss the many ways small and rural local governments are investing their influx of federal cash in climate adaptation, economic development, and infrastructure projects. Mark Funkhouser from Funkhouser & Associates opines on economic development and local government finance in Appalachia, and makes a bold statement on the Backyard Brawl. Extra Credit: Allison asks, “What’s a TIF District, and why are they so controversial?”