Bloomberg Cities & Debt Briefing
Bloomberg Cities & Debt Briefing: Defusing the Municipal Pension Bomb
The good news: the first half of 2010 saw a slowdown of municipal bankruptcies as state and local governments raise taxes and fees, while cutting spending to patch holes in their budget. The bad news: Muni market watchers say the worst is still to come as cities struggle to meet service and pension obligations. The reason: municipalities are challenged as they lack the variety of funding options available to states. In addition, ballooning State and Federal deficits have severely limited the funding available from those sources. The result: a ticking time bomb in municipal pension plans?
“Defusing the Municipal Pension Bomb” will bring together municipal market players with policy makers for a constructive conversation about the biggest crisis in public finance since the early 1990s. We’ll convene bond investors, pension managers, municipal debt issuers, asset managers and elected officials for a full day of discussions amongst the principals that get to the core of the issue and examine potential solutions.
The program will assess the current municipal finance environment; look at innovative ways that treasurers are addressing their pension obligations in the face of stiff political opposition; look at the hidden costs of restructuring; assess the fiscal viability of challenged municipalities; and explore value opportunities in the distressed muni marketplace.