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You Might Not Know Your City Is Going Broke

Jan. 16 (Bloomberg) -- The State Budget Crisis Task Force declared this week that U.S. local governments remain beset by “fiscal instability,” and called for reforms to eliminate budgeting “gimmicks and short-term measures that obscure actual financial conditions” of states and cities.

The group led by former Federal Reserve Chairman Paul Volcker and former New York Lieutenant Governor Richard Ravitch had made similar declarations in previous reports. This time, however, it added a provocative recommendation: Congress should revisit the 1975 Tower Amendment, which exempts municipal governments from Securities and Exchange Commission financial filing requirements, in many cases depriving investors of reliable financial data.