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.