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, and see the GFOA Newsletter archive for back issues of our weekly electronic newsletter.
The GFOA unveiled a new federal advocacy resource center designed to engage members in our efforts to see that municipal securities are classified as high quality liquid assets. The need for this advocacy effort emerged last fall, when the Federal Deposit Insurance Corporation, the Federal Reserve System, and the Office of the Comptroller of the Currency approved a rule establishing minimum liquidity requirements for large banking organizations.
In a 6-3 decision, the Supreme Court ruled on Tuesday that health insurance tax credits are available on 34 federal exchanges. The court’s opinion in King v. Burwell focused largely on the consequences of ruling to the contrary – the destruction of health insurance markets. The technical legal question that was considered in this case was whether a federal exchange is “an exchange established by the state” that may offer tax credits.
Clark Burrus, GFOA past-president and former comptroller of the City of Chicago, died June 17, 2015, at the age of 86.
“Clark Burrus was a trailblazer in so many ways and mentor and friend to many, well-respected in both the public and private sectors,” Jeff Esser, GFOA CEO, said.
Burrus started working for the city in 1954 as a field auditor in the Department of Aviation. He was named comptroller in 1974, and during his tenure, Chicago received its first AA rating. He joined First National Bank in 1979 and retired 12 years later.
In 6-3 decision the Supreme Court ruled today that health insurance tax credits are available on the 34 Federal Exchanges. The Court’s opinion in King v. Burwell focused largely on the consequences of ruling to the contrary: the destruction of health insurance markets.
Maximize your training opportunities by signing up for a series of GFOA training seminars on August 31 – September 4 at the Hyatt Regency Sacramento, California. Save 10 percent on the registration fee when you sign up and pay in full by July 31. Participate in one or more of the following courses:
• Accounting for Capital Assets ─ August 31
• Economic Development ─ August 31
Last week, Congressman Jason Chaffetz (R-UT-3) introduced legislation (HR 2775) that would enable state and local governments to collect taxes from retailers on remote sales. The legislation, the Remote Transaction Parity Act (RTPA), is similar to the Marketplace Fairness Act (S 698) in that both bills would compel retailers to collect taxes on remote sales based on the location of the consumer rather than the location of
Applications to become a GFOA standing committee member are being accepted through July 22. Serving on a standing committee is an excellent opportunity for GFOA members to contribute their experience and knowledge to the entire membership. GFOA's seven standing committees meet twice each year and develop best practices, advisories, and policy statements for the approval of the Executive Board and membership. GFOA associate members from the private sector may also apply to be advisors to one of the committees.
On June 9, the full House passed H.R. 235, the Permanent Internet Tax Freedom Act (ITFA) – legislation that would permanently block state and local governments from collecting hundreds of millions of dollars in revenue. The legislation, sponsored by Bob Goodlatte (R-VA), would extend the 1998 Internet Tax Freedom Act’s moratorium on state and local governments’ ability to assess taxes on Internet access; that moratorium was set to end October 1, 2015.
A few notable Supreme Court cases entered into the conversation at GFOA’s Annual Conference in Philadelphia this year, particularly in discussions about retirement and benefits. One example is Tibble v Edison, which GFOA’s Committee on Retirement and Benefit Administration discussed in regard to the fiduciary responsibilities of public pension plan administrators. In this case, the full court recently found that in plans administered under the ERISA statute, trustees have the continuing fiduciary duty to monitor plan investments with prudence.
In late April the Governmental Accounting Standards Board (GASB) made two significant adjustments to its technical agenda. First, the Board removed from its current agenda a controversial project on financial projections. Second, Board members added new projects on going-concern and enhanced debt disclosure.
On June 2 the GFOA released the results of our survey to gauge the experience of municipal bond issuers with the SEC’s MCDC Initiative. The 2014 initiative provided issuers and underwriters the opportunity to self-report instances of material misstatements in bond offering documents regarding the issuer’s prior compliance with its continuing disclosure obligations. The initiative incentivized underwriters to self-report, which in turn caused many issuers to be questioned about and investigate their prior continuing disclosure compliance.
Philadelphia Mayor Michael Nutter addressed delegates attending the June 2 general session at GFOA’s annual conference in Philadelphia, speaking about leading the city through the Great Recession.
Philadelphia Mayor Michael Nutter, who is in the last year of his last term, shared some of what he learned from leading one of America’s great cities.
Philadelphia Mayor Michael Nutter addressed delegates attending the June 2 general session at GFOA’s annual conference in Philadelphia, providing excellent management advice for any leader, mayor or otherwise.
On June 2 the GFOA provided joint comments to members of the House Judiciary Committee, which is holding a hearing on the Digital Goods and Services Tax Fairness Act of 2015 (HR 1643) and the Business Activity Tax Simplification Act of 2015 (HR 2584). The GFOA, along with our colleagues at the National League of Cities, U.S. Conference of Mayors and National Association of Counties has significant concerns with each of these bills.
On June 2, Heather Johnston, City Manager of the City of Burnsville, Minnesota, took over as GFOA President from Bob Eichem, CFO of the City of Boulder. In her opening speech, she talked about the crucial importance of bringing seasoned and newer government finance officers together to bring about real and useful innovation.
GFOA President Bob Eichem Speaks about Resiliency at GFOA Annual Conference Opening Session, Monday, June 1
Can you think of someone in your life you would describe as resilient? This was the question GFOA President Bob Eichem posed to the Monday morning opening session audience at GFOA’s annual conference in Philadelphia. Chances are that the resilient people in your life have some common characteristics, like adaptability and the ability to learn from experience. Eichem observed that financially resilient governments also share many characteristics:
Vanguard Group Founder John Bogle Talks Public Investing at GFOA Annual Conference Keynote Address, Monday, June 1
John C. Bogle, the founder and former CEO of The Vanguard Group, Inc., participated in an interview with Joe Mysak, editor of the daily Bloomberg Brief. Taking questions from the delegates in attendance, Bogle covered a variety of public investing topics.
On May 27 the GFOA joined with the National League of Cities, National Association of Counties, U.S. Conference of Mayors, National Governors Association, National Association of State Treasurers, the National Association of State Auditors, Comptrollers and Treasurers and others to urge members of the U.S. House of Representatives to cosponsor legislation that would classify investment-grade municipal securities as High Quality Liquid Assets (HQLA). The joint letter is available below.
FOR IMMEDIATE RELEASE
Contact: Jeffrey Esser, Executive Director/CEO
E-mail: Jeffrey Esser
Keynote Speakers to Highlight
GFOA's 109th Annual Conference in Philadelphia
The Municipal Securities Rulemaking Board filed a proposed rule with the SEC that would “govern the core conduct of municipal advisors, including their fiduciary duty to put the interests of state and local government clients ahead of their own,” the Bond Buyer reports.
The SEC’s revised estimates of the compliance burden imposed by its main disclosure rule still contain “gross inaccuracies,” according to a March 27 letter the Securities Industry and Financial Markets Association sent to the SEC. The letter was a response to updated SEC estimates about the amount of time required for market participants to comply with Rule 15c2-12.