Coping with uncertainty

References

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• The political crosscurrents were at work shifting the emphasis on both the revenue and expenditure sides. The “campaign against Washington” came into vogue with President Carter and to full maturity with the election of Ronald Reagan, spilling over andaffecting state and local governments as well. The anti-government theme started at the local government level early in the period with the tax resistance movements, but despite encouragement from a conservative national administration, abated. Rediscovered enthusiasm for infrastructure projects by local governments as well as the “new” emphasis on strategic planning and economic development grew with the swelling state budget surpluses and at least momentary respite in strain on local budgets.
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• The period roughly circumscribed the the decade from 1975 to 1985 has a breathtaking volatility when viewed from its end. Merely reciting the financial condition of New York City at the beginning and the end of the period -- near default in 1975, embarking on major service increases and capital improvements with large surpluses in 1985 -- pehaps portrays the bust to boom character of many, if not all, state and local governments during this period. The rest cover all bases: still booming (Phoenix), still busted (Detroit), and boom to bust (Houston).
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• The post-crisis period generally describes an era in which economic growth and the relative absence of the scarcities have affected resource allocation in a marked manner. Thus, in this period, the City of New York finds its credit strengthened and its budget in surplus. The WPPSS, or Washington Public Power Supply System, bonds now are objects of intense speculation.
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• Ibid.
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• Ibid.
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• The Bond Buyer Municipal Bond Index was designed by the Chicago Board of Trade to serve as the basisfor trading Long-Term Municipal Bond futurescontracts, The In ex is based on a list of 40 bonds.The bonds priced are the most recent term issuesmeeting the foilowing criteria: The principal amountmust equal $50 million or more, except for housingbonds for which a minimum of $75 million applies. Theissue must be raded A or better by eithe Moody's Investors Service or Standard & Poor's, Each bond call in na less than seven and no nmre than 16 years, and be callable at par, A bon b slntial reoffering must be between 95 and 105 Only two bonds from 1s issuor are pesmltted, Data supplied by the Nation Securities Clearing Csmrnission are used to drop Less actively traded bonds. The Index pricing list now comprises the most current issues along with the more active rssues that have come to market in the last 18 months.
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• Power and Vogel . op. cit. , 132 See formulas
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• The Bond Buyer Municipal Bond Index was designed by the Chicago Board of Trade to serve as the basis for trading Long-Term Municipal Bond futures contracts. The Index is based on a list of 40 bonds. The bonds priced are the most recent term issues meeting the following criteria: The principal amount must equal $50 million or more, except for housing bonds for which a minimum of $75 million applies. The issue must be raded A or better by eithe Moody's Investors Service or Standard & Poor's. Each bond loss than 19 years, have a first call in no less than seven and no more than 16 years, and be callable at par. A bond's initial reoffering price must be between 95 and 105. Only two bonds from a single issuer are permitted. Data supplied by the National Securities Clearing Commission are used to drop less actively traded bonds. The Index pricing list now comprises the most current issues along with the more active issues that have come to market in the last 18 months
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• Petersen and Hough . op.cit ,
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• Ibid.
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