News

News

GFOA is always on the lookout for news items that will be useful for finance professionals, research that might help you do your job better, and legal and regulatory updates you need to know about. Check the GFOA news page for the updates and any relevant GFOA announcements.

97 Documents

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GFOA Executive Board Approves 10 Best Practices and Policy Statement

January 28, 2015

The GFOA’s Executive Board approved six new best practices, one new advisory, and a policy statement at its January 2015 meeting. The board also approved updates to one other existing best practice and two existing advisories. These documents provide recommendations to government finance officers in the areas of budgeting, accounting, retirement benefits administration, debt issuance, and investment management. They are summarized below.

Congress Begins Work on Comprehensive Tax Reform

January 21, 2015

Last week Senate Finance Committee Chairman Orrin Hatch (R-UT) kicked off his committee’s work on organizing the Senate’s tax reform plan by announcing five bipartisan working groups to explore the existing federal tax code and identify areas that are ripe for reform. The working groups are: Individual Income Tax; Business Income Tax; Savings and Investment; International Tax; and Community Development and Infrastructure.

White House Announces New Infrastructure Investment Proposal

January 21, 2015

On January 15, 2015, the White House announced a new proposal aimed at increasing investment in national infrastructure projects covering surface transportation, water, and broadband. A key component of the program is the Qualified Public Infrastructure Bond program. The program would augment private activity bonds, expanding their scope to include financing for airports, ports, mass transit, solid waste disposal, sewer, and water, as well as for more surface transportation projects.

Marketplace and Internet Tax Fairness Act

December 17, 2014

Despite the best efforts of the state and local community, House Speaker John Boehner (R-OH) was unwilling to bring the Marketplace and Internet Tax Fairness Act to the floor for a vote by the full House of Representatives in the final days of the congressional session. The measure would have enabled state and local governments to compel online retailers to collect and remit taxes from remote sales, and extended the current moratorium on the taxation of Internet access for ten years.

Pension Plans Can Provide Retirement Income at Half the Cost of Individual Accounts

December 17, 2014

Defined benefit plans are inherently more cost-efficient than defined contribution plans, according to A Better Bang for the Buck, an updated study by the National Institute on Retirement Security. A typical DB plan provides equivalent retirement benefits at about half the cost of a DC plan, and 29% lower cost than an “ideal” DC plan modeled with generous assumptions, according to the study.

Pensions Help Recruit and Retain High-Quality Workers, Research Finds

October 30, 2014

Cutbacks in public pensions could hurt worker quality, as research shows that pensions help recruit and retain high-quality workers, according to a brief from the Center for Retirement Research at Boston College. One indicator of quality is the wage that a worker can earn in the private sector, and by this measure, states and localities consistently have a “quality gap” – the workers they lose have a higher private-sector wage than those they gain, the center’s research found.

Talking Points Address Accusations against Pension Plans

October 30, 2014

Citing an “urgent goal of saving public pensions amid persistent low funded levels and a burgeoning movement to disassemble them, Callan Investments Institute issued talking points “to move the discussion forward around the importance of DB plans.” The research paper cites seven points of discussion, and follows with research, data, and actuarial considerations to back each one.

Executive Board Nominating Committee Seeks Input

October 9, 2014

The GFOA Executive Board Nominating Committee is seeking recommendations for candidates to fill five at-large positions and the position of president-elect for the 2015-2016 GFOA Executive Board. All candidates must be active GFOA members. Please send nominations by December 31, 2014, to Timothy L. Firestine, Past President, c/o GFOA, 203 N. LaSalle St., Ste. 2700, Chicago, IL 60601-1210.

GFOA Files Supreme Court Amicus Brief in Railroad Tax Preemption Case

September 24, 2014

The GFOA joined its partner national associations on an amicus, or friend of the court, brief filed by the State and Local Legal Center before the Supreme Court in the case of Alabama Department of Revenue v. CSX Transportation. In this case, the Court is asked to decide whether Alabama’s requirement that railroads pay a 4% sales tax on diesel fuel, while trucks pay a 19% per gallon excise tax, and water carriers pay no tax, violates the Railroad Revitalization and Regulatory Reform Act (the 4-R Act), which prohibits states from taxing railroads in a discriminatory manner.

Federal Funding and Ban on Internet Access Taxes Extended; GFOA Urges Outreach to Congress

September 24, 2014

President Obama signed a short-term $1.012 trillion fiscal measure to keep the federal government running through December 11, 2014. The measure also includes an extension of the Internet Tax Freedom Act (ITFA) until that time. ITFA – the current law that prohibits state and local taxation of Internet access – would expire on November 1 without the language included in budget measure.

National Associations File Comments with FCC Supporting the Preemption of State Restrictions on Municipal Broadband

September 4, 2014

Several associations that represent the interests of local governments, including the National League of Cities, the National Association of Counties, the U.S. Conference of Mayors, and the National Association of Telecommunications Officers and Advisors, filed comments with the Federal Communications Commission (FCC) in support of municipal broadband networks and voiced concerns with state laws that prohibit or limit their deployment.

New Federal Banking Rules Could Increase Borrowing Costs for State and Local Governments

August 26, 2014

Federal regulators are set to approve new liquidity standards on banks that could increase borrowing costs for state and local governments, according to reports from Bloomberg and other news outlets. The Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of Currency are scheduled to vote on September 3, 2014, on the new rules, which would require banks with at least $250 billion in assets to meet new liquidity requirements.

Public Pension Investment Returns Increase by 16.9% for Year

August 22, 2014

In the year ended June 30, 2014, U.S. state and local-government pension investments earned the highest returns seen in three years, according to a report from Wilshire Associates, as reported by Bloomberg. Public pension returns increased by 16.9%, the best performance since fiscal 2011, when returns increased by 21.2%. Funds with more than $1 billion in assets performed best, with a median increase of 17.4%, attributed to larger alternative asset allocations.

GFOA Files Supreme Court Amicus Brief in Maryland Income Tax Case

August 12, 2014

The GFOA joined its partner national associations on an amicus, or friend of the court, brief filed by the State and Local Legal Center before the Supreme Court in the case of Comptroller v. Wynne. In this case, the Supreme Court will determine whether the U.S. Constitution requires states to give a credit for taxes paid on income earned out-of-state.
 

GFOA Members Urged to Advocate for Marketplace and Internet Tax Fairness Act during August Recess

August 6, 2014

On July 15, 2014, a group of bipartisan senators introduced the Marketplace and Internet Tax Fairness Act (MITFA, S. 2609), legislation that would combine the Marketplace Fairness Act that passed the Senate last year with a 10-year extension of the moratorium on Internet access taxes that is set to expire November 1, 2014.

Municipalities Ask the FCC to Consider Preemption of State Restrictions on Municipal Broadband

July 31, 2014

On July 24, 2014, the Electric Power Board of Chattanooga, Tennessee, and the City of Wilson, North Carolina, filed separate petitions asking the FCC to consider whether their states’ laws prohibit the deployment of high-speed broadband services in a reasonable and timely manner. FCC Chairman Tom Wheeler has spoken repeatedly about his desire to address state laws that prohibit or restrict municipal broadband networks. These petitions provide the chairman the opportunity to take action.

AICPA Whitepapers

July 29, 2014

The AICPA Governmental Audit Quality Center (GAQC) helps its members meet the challenges of performing quality audits. One significant industry the GAQC focuses resources on is audits of state and local entities. The AICPA’s State and Local Governments Expert Panel (SLGEP) serves the needs of AICPA members on financial and business reporting and audit and attest matters. The Expert Panel protects the public interest by bringing together knowledgeable parties in the state and local government industry to deliberate and come to agreement on key state and local government issues.


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