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New York State voters have approved a ballot measure to raise the debt limit for schools in smaller cities, aligning it with the cap for larger school districts. The amendment to the state constitution removes a special debt limit for school districts in cities with under 125,000 people. This change will allow smaller school districts to coordinate capital projects more easily and economically. The measure was supported by education advocates, union officials, and elected officials, and it passed with a wide margin of approval. [Extracted from the article]

Byline: Chip Barnett, Aaron Weitzman Top-rated municipal bonds ended unchanged on Friday, traders said, as the market looked ahead to a larger new issue slate in the week ahead. Ipreo [...]

Byline: Chip Barnett Siebert Cisneros Shank & Co. held a ribbon-cutting ceremony on Friday to officially open its expanded offices at 100 Wall Street in New York. The largest minority- [...]

Byline: Chip Barnett, Aaron Weitzman Municipal bond traders on Friday were looking ahead to next week's new issue slate after the release of a mixed employment report for January. The [...]

Florida recently downsized and restructured a $1 billion taxable bond deal for the Hurricane Catastrophe Fund to meet market demand in the current higher interest-rate environment. Originally planned as a $1.5 billion deal with five-, seven-, and 10-year maturities, the deal was eventually restructured into only five- and 10-year maturities before settling on a single $1 billion maturity. The sale was successful, with over $1.9 billion in orders, and the bonds were priced at par to yield 5.526%. The proceeds will go towards reimbursing insurers for future covered losses and replacing bonds from a previous sale. The Cat Fund's ability to levy assessments on property and casualty insurance policies statewide contributed to its strong credit rating. Despite recent hurricanes, legislative changes have made the insurance market in Florida more stable. There are no plans to sell more Cat fund debt this year. [Extracted from the article]

The city of Quincy, Massachusetts, has issued $10 million of tax-exempt bonds using blockchain technology, marking the first blockchain-based bond deal in the United States. The transaction was facilitated by J.P. Morgan's Digital Debt Service, an application built on their private blockchain platform. The use of blockchain technology in the municipal bond market is expected to bring benefits such as lower transaction costs, enhanced liquidity, increased access to capital markets, and reduced settlement times. Quincy's decision to leverage blockchain technology aligns with their efforts to utilize emerging technologies for greater financial participation and better economic outcomes. [Extracted from the article]

New York State Governor Kathy Hochul has announced a conceptual agreement with state lawmakers on the $237 billion fiscal 2025 budget. The budget does not raise income or statewide business taxes and maintains state reserves at 15%. Some highlights of the budget include investments in distressed hospitals, healthcare infrastructure, mass transit systems, and infrastructure programs. However, the lack of details and substantial new spending have raised concerns about future budget gaps. The budget also includes increases in the minimum wage and funding for affordable housing and migrant support. [Extracted from the article]

States and municipalities across the United States have been investing in Israel bonds as the conflict between Israel and Hamas continues. Over $1.639 billion of Israel bonds have been sold to more than 35 U.S. states, counties, cities, and municipalities since the war began in October. Investments have come from various states and counties, including Florida, New York, Texas, and Ohio. Officials from these states emphasize that their investments are based on financial considerations and not political motivations. [Extracted from the article]

The Kentucky Legislature has passed a bill that allows local school districts to issue general obligation bonds directly, in order to address rising inflation and building costs. The bill also simplifies the bond issuance process and extends language to speed up the state's bond approval process. Currently, school districts in Kentucky have to work through separate non-profit entities to issue bonds for capital improvements. The bill aims to lower borrowing costs and improve administrative efficiencies for school districts. [Extracted from the article]

Byline: Chip Barnett and Aaron Weitzman Top shelf municipal bonds rallied on Friday, traders said, with yields on some maturities falling by as much as 19 basis points to record [...]

The Public Finance Authority has issued a $246.7 million tax-exempt revenue bond deal for the Miami Worldcenter project, which is one of the largest urban development projects in the United States. The deal offers attractive yields for high-yield investors and is attracting institutional municipal bond buyers. The bonds are secured by pledged revenue and will be used to finance the costs of private improvements in the development. The Miami Worldcenter project includes retail, entertainment, restaurants, hotels, public spaces, and residential towers. The project has received support from the Southeast Overtown/Park West Community Reinvestment Agency and is expected to contribute to the economic growth of the Miami metropolitan area. [Extracted from the article]

S&P Global Ratings has upgraded New Hampshire's general obligation bonds to AA- plus from AA, citing the state's improved economic and demographic growth trends. The rating also takes into account the state's commitment to controlling expenditure growth and building higher reserve balances. Additionally, S&P assigned an AA-plus rating to the state's Series 2024A GO capital improvement bonds. Moody's Ratings maintained an Aa1 rating on the state's outstanding GOs, reflecting New Hampshire's strong economic fundamentals and manageable debt. Fitch Ratings assigned an AA-plus rating to the Series 2024A GOs, noting the state's low liabilities and strong budgetary controls. [Extracted from the article]

New York City's proposal to increase its borrowing capacity by $12 billion has been deemed reasonable and sufficient to meet the city's future capital needs, according to an analysis by the office of city Comptroller Brad Lander. The increase in debt capacity would allow the city to invest in infrastructure without harming its economic recovery. The city's debt service is projected to remain below 15% of tax revenues, which is considered a relatively high threshold. The proposal also includes a mechanism to ensure that debt service remains affordable and prioritizes essential projects. [Extracted from the article]

The Kentucky State Property and Buildings Commission is planning to issue $649 million in bonds next month to refund its outstanding Build America bonds and fund new capital projects. The bonds will be issued in three series, with Series A bonds providing permanent financing for authorized capital projects, and Series B bonds refunding the state's outstanding BABs. The deal is being managed by BofA Securities, with several other firms serving as co-managers. Moody's Ratings has given the deal an A1 rating with a positive outlook. Kentucky has experienced record economic growth in recent years and has received rating upgrades from S&P Global Ratings and Fitch Ratings. The Kentucky Housing Corp. and the Kentucky Infrastructure Authority are also seeking firms to provide municipal bond services. [Extracted from the article]

The Florida state legislative session has ended with lawmakers approving a $117.46 billion budget for fiscal year 2024-2025, which includes $500 million towards accelerating debt pay-down. The budget also includes $1.5 billion of tax relief, including toll savings, and a $300 million transfer to the budget stabilization fund. Florida has paid down $5.3 billion of state debt since 2019, and the state is rated triple-A by Moody's, S&P Global Ratings, and Fitch Ratings. The budget now awaits approval from Governor Ron DeSantis. [Extracted from the article]

West Virginia State Treasurer Riley Moore has warned six financial institutions that they may be added to the state's "Restricted Financial Institution List" if they are found to be boycotting the fossil fuels industry. The blacklist is authorized by a state law that allows the State Treasury to restrict financial institutions that refuse to do business with coal, oil, or natural gas companies without a reasonable business purpose. The Treasurer's Office has made an initial determination that the six institutions appear to be engaged in boycotts of fossil fuel companies. The institutions now have 30 days to respond before being officially placed on the list. [Extracted from the article]

Municipal bond issuers in the Northeast sold $89.3 billion of debt in 2023, a 14% decrease from the previous year. This decline was larger than the national average, which saw a 1.7% decrease in municipal bond issuance. The Southeast was the only other region to experience a decrease in volume, with a 6.8% drop. The decline in the Northeast was primarily driven by a 15.4% decrease in debt sales in New York state. However, there were increases in municipal bond issuance in three smaller Northeast states: Vermont, Rhode Island, and Delaware. Despite the overall decrease in issuance, the fourth quarter of 2023 saw a 29% increase compared to the previous year, indicating a potential turnaround in the region. BofA Securities was the top senior manager in the Northeast, followed by Citi, which announced its exit from municipal bond underwriting. [Extracted from the article]

Municipal bond issuance in the Southeast region of the United States decreased in 2023 compared to the previous year, largely due to uncertainty about interest rates. The total volume of bonds sold in the region dropped by 6.8% to $65.8 billion. Florida was the most active state in terms of bond sales, followed by Georgia and Alabama. The utilities sector had the highest bond issuance, while the housing sector saw the largest increase. The use of insurance for bond offerings increased in the region. BofA Securities, RBC Capital Markets, and Morgan Stanley were the top senior managers, while Orrick Herrington & Sutcliffe was the top bond counsel, and PFM Financial Advisors was the top financial advisor. [Extracted from the article]

The North Carolina Local Government Commission has approved a $2.5 billion bond package for Mecklenburg County and Charlotte-Mecklenburg Schools, the largest amount of tax-exempt financing ever approved by the commission. The bond package was approved after Charlotte-Mecklenburg School voters gave their approval in November. The funds will be used for 30 projects to alleviate overcrowding in the school district, including constructing new school buildings and renovating existing facilities. State Treasurer Dale Folwell expressed reservations about the size of the bond issue but ultimately voted to approve it. [Extracted from the article]

A new report by state comptroller Thomas Di-Napoli estimates that the New York Metropolitan Transportation Authority (MTA) will need at least $43 billion for repairs over the next few years. The report criticizes the MTA for not including projected repair costs in its previous assessments, making it difficult to determine the necessary investment. The report also highlights issues with signal problems and the poor condition of subway cars, maintenance buildings, and platforms. Despite these challenges, the MTA has received positive ratings from credit agencies and recently introduced new subway cars as part of its modernization efforts. [Extracted from the article]

The Florida State Board of Administration Finance Corp. has been given permission to sell up to $3.8 billion in taxable revenue bonds to support the state's Hurricane Catastrophe Fund. The bonds will be sold with Morgan Stanley leading the underwriting group. The funds raised from the bond sale will be used to replenish the Cat Fund, which provides insurance coverage for property and casualty insurance policyholders in Florida. This will help protect against future damage caused by hurricanes, which have been a significant issue in the state in recent years. The article also briefly mentions a table comparing the credit ratings and interest rates of Virginia and West Virginia. [Extracted from the article]

New Jersey has used defeasance as a cost-saving tool and to improve their credit, retiring almost $500 million of outstanding debt for about $160 million in savings. The state has allocated over $9.25 billion towards debt defeasance in the past three budget cycles, resulting in the defeasement of $3.686 billion of bond principal and saving $1.358 billion in interest expense. Defeasance involves using cash to buy U.S. Treasury bonds or agency securities to retire outstanding bonds. Other states, such as Florida and Wisconsin, have also implemented debt reduction programs. [Extracted from the article]

Georgia Governor Brian P. Kemp's proposed amended fiscal 2024 and fiscal 2025 budget aims to spend surplus revenue on capital projects instead of issuing new bonds. The state has an estimated $11 billion surplus, and Kemp plans to allocate over $1.8 billion for capital construction programs and maintenance. This investment will be made without incurring additional debt and will save taxpayers millions in future debt service costs. The budget also includes tax cuts, funding for infrastructure, economic development grants, and improvements to retirement and healthcare benefits. [Extracted from the article]

North Carolina State Treasurer Dale Folwell has criticized the state legislature for allowing UNC Health Care and East Carolina University Health to create their own pension and health care plans without public debate. UNC Health Care has already implemented a separate defined benefit plan for new employees, while East Carolina has chosen to maintain the existing system. Folwell argues that this move could lead to billions of dollars in unfunded liabilities and taxes for state employees and taxpayers. He also expresses concern that other state agencies may follow suit, undermining the financial health of the pension system. [Extracted from the article]

Connecticut State Treasurer Erick Russell released the annual report highlighting the progress made in the state in 2023. The report emphasizes the strong investment returns in the state's pension funds, with returns of 8.5% and an estimated $1.1 billion in plan assets added. Connecticut had the highest outperformance of its investment benchmark among 68 public pension funds. The state also achieved a historic high cash position and made supplemental contributions of $1.9 billion to its pension funds. The report also mentions the successful implementation of the "CT Baby Bonds" program, which aims to fight poverty and generate economic opportunity. The state's bond sale in December was well-received, with ratings agencies assigning stable outlooks to the state. The report concludes by highlighting the state's commitment to responsible spending and improving its financial position. [Extracted from the article]

This document provides information on general obligation yield curves and visible supply by state as of January 2, 2024. The yield curves display the interest rates for various maturities of state bonds, with ratings from Moody's Investors Service, Standard & Poor's, and Fitch Ratings. The visible supply section presents the number of bond issues and the funds raised by each state. The data is sourced from Municipal Market Data, Ipreo, and The Bond Buyer. [Extracted from the article]

Natural gas prepayment deals helped drive the utilities sector to top the Southeast in an overall down year for municipal bond sales across the region. [ABSTRACT FROM AUTHOR]

As anti-Israel protests grow at universities across the United States amid a rising tide of anti-Semitic incidents, state and local governments are buying Israel bonds in a show of financial and moral support. [ABSTRACT FROM AUTHOR]

Collin Teague has joined Siebert Williams Shank & Co. as a managing director in the public finance group in New York. Teague brings 19 years of municipal banking experience, having previously worked at Morgan Stanley, BofA Securities, and Goldman Sachs. In his new role, Teague will primarily work with surface transportation issuers across the country, providing investment banking services and structuring deal transactions for toll roads, highways, and transit systems. Siebert Williams Shank is the largest minority- and women-owned investment bank in the United States. [Extracted from the article]

Teague, most recently an executive director of the municipal securities department at Morgan Stanley, will focus on surface transportation. [ABSTRACT FROM AUTHOR]

Fitch Ratings said the negative outlook on the BB-plus rating reflects Miami Jewish's thin operating profile. [ABSTRACT FROM AUTHOR]

"Just like the ATM became an additional transaction channel in the banking industry, I believe distributed ledger technology will provide municipal issuers with a similarly valued tool to sell their bonds," said Rick Coscia, Quincy's Strategic Asset Manager. [ABSTRACT FROM AUTHOR]

"The rating action reflects our view of MIA's substantial demand, which surpasses pre-pandemic activity, and its leadership in enplanement growth for large hub airports since the fiscal 2019 peak," said S&P's Nora Wittstruck. [ABSTRACT FROM AUTHOR]

Miami International Airport has received an upgrade in its ratings from S&P Global Ratings. The long-term and underlying ratings on the airport revenue bonds issued by Miami-Dade County have been raised to A-plus from A. This upgrade reflects the airport's strong demand, surpassing pre-pandemic levels, and its leadership in enplanement growth for large hub airports. The stable outlook reflects the airport's robust activity and demand, which is outpacing pre-pandemic trends. Miami International Airport has been recognized as the fastest-growing airport in the United States, serving over 30 million passengers since 2019. [Extracted from the article]

"The upgrade is supported by strengthened debt service coverage ratios due to better than expected recovery from the pandemic," Fitch said. [ABSTRACT FROM AUTHOR]

"Numbers are hard to come by in a comprehensive way, but we do learn the state's budget is targeted at $237 billion," said John Hallacy. "This budget is clearly not a 'caretaker' budget, but one that adds significant spending. The question is how that spending will affect the out-years." [ABSTRACT FROM AUTHOR]

Fitch Ratings has upgraded the Kentucky Public Transportation Infrastructure Authority's first tier toll revenue bonds and Transportation Infrastructure Finance and Innovation Act loan to BBB-plus from BBB. The upgrade is due to improved debt service coverage ratios resulting from a stronger recovery from the pandemic. The rating reflects the project's historical demand profile and its role in relieving congestion on the Ohio River between Kentucky and Indiana. The Louisville-Southern Indiana Ohio River Bridges system, which consists of two tolled crossings, plays an important role in relieving congestion, especially during peak hours. Traffic has recovered from the pandemic, and toll revenue has increased. Future capital needs include bridge repairs and general maintenance. The project has the flexibility to adjust toll rates to generate sufficient revenue. [Extracted from the article]

John Fleming is pushing back against a proposal in the state Legislature to change the way the state Bond Commission oversees the issuance of debt by cities, counties and local governments and entities. [ABSTRACT FROM AUTHOR]

Louisiana State Treasurer John Fleming is opposing a proposed bill in the state Legislature that would change the role of the state Bond Commission in overseeing the issuance of municipal bonds. Fleming argues that the current system has been successful, citing recent bond upgrades and successful sales. He expresses concerns that the proposed bill could lead to predatory lending practices and impose fees on taxpayers without their approval. Fleming emphasizes that the final authority on this matter is the Louisiana constitution, which requires approval from the Bond Commission for issuing bonds or other obligations. He warns that passing the bill would circumvent these requirements. [Extracted from the article]

"We were originally thinking that we would offer five-, seven- and 10-year maturities, with $500 million in each tranche. But we decided today to just offer 5s and 10s — $500 million of five-year bonds and $1 billion of 10-year bonds," said Ben Watkins, Director of Florida's Bond Division. [ABSTRACT FROM AUTHOR]

"We withdrew the rating because we have determined we do not have sufficient information to maintain a forward-looking credit opinion on the city," S&P said. [ABSTRACT FROM AUTHOR]

The city gave no reason for the cancellation of its redemption plans or bond issuance, but reserved the right to call the 2010B BABs for redemption in the future. [ABSTRACT FROM AUTHOR]

Capital outlay investments in the governor's "common ground budget" provide over $1.4 billion in general fund cash and tax-supported debt for projects, including $100 million of bonds for improvements to wastewater treatment plants. [ABSTRACT FROM AUTHOR]

"DASNY's financing, construction and grants management on behalf of science, health and educational not-for-profits [are] the foundation for stronger, inclusive and more sustainable communities across the state of New York," said Robert J. Rodriguez. [ABSTRACT FROM AUTHOR]

Since war broke out on Oct. 7 between Israel and Hamas, over $1.64 billion of Israel bonds have been sold to more than 35 U.S. states, counties, cities and municipalities. [ABSTRACT FROM AUTHOR]

"HB 727, if signed into law, should lower borrowing costs for Kentucky school districts and will serve as a critical tool in dealing with cost overruns and other inflationary pressures," said Compass Municipal Advisors. [ABSTRACT FROM AUTHOR]

Miami-Dade County, Florida, Mayor Daniella Levine Cava has decided to drop plans for a $2.5 billion municipal bond referendum in November that would have funded infrastructure projects. Instead, she plans to propose an even larger bonding plan that includes money for transit projects. The original proposal, called "305 Future Ready" bonds, would have funded affordable housing, septic to sewer conversions, flood prevention, and resilient parks, but did not include transportation initiatives. The new proposal will be developed over the next 18 months with input from residents and stakeholders and will be ready for a vote in November 2026. Mayor Levine Cava is running for a second term in the upcoming mayoral election. [Extracted from the article]