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Girard Miller

Girard Miller

Contributor

Girard Miller retired in January 2026 as Governing’s finance columnist, having contribued some 200 biweekly columns after five years of monthly commentary for his “Benefits Beat” series. He expects to continue submitting occasional guest commentaries.

Miller was formerly an investment and public finance professional, and the author of numerous professional publications including the 2019 book “Enlightened Public Finance.” His professional career spanned 45 years of leadership in public finance and investments, which included the presidency of two national mutual funds. He has sponsored collegiate scholarships in his field for 25 years. Now residing in southern California, he can be contacted through LinkedIn.

To combat inflation, the central bank will be raising interest rates and shedding a big chunk of its $8 trillion bond portfolio. Its actions will ripple through the world of state and local finance.
Progressives dislike its regressivity, but states and localities depend heavily on the revenue. Some reformers’ eyes are on taxing luxuries and digital intangibles — NFTs, anyone? — but that presents its own problems.
Many years ago, public financiers woke up to the problem of funding “other post-retirement benefits,” but then some of them went back to sleep. Younger public employees should demand an actuarial wake-up call.
Barring unknowable virus mutation scenarios, state and local fiscal managers have the opportunity to navigate trends and crosscurrents already underway to make better decisions. One factor figures into almost everything: inflation.
This year taught us to humbly expect the unexpected, from hundreds of billions in federal “helicopter money” to $35,000 bonuses to lure back retired transit workers. And how is your public pension fund doing on something called ESG?
Populists are once again advocating the creation of state-owned banks to overcome private-sector lending market failures. But market innovations hold a lot of promise for accomplishing the same goal.
To accelerate the transition to electric vehicles, every burg along our “blue highways” is going to need a place for motorists to plug in. For states, that means tax credits, matching grants or similar incentives. But we’re not talking big money.
The COVID recession and its fiscal aftermath should remind politicians, advocates and labor that budget reserves are not piggybanks for new discretionary spending. Economic cycles have not been repealed.
Pending municipal finance provisions in the big spending bills before Congress could benefit issuers, investors and taxpayers. To get the best deal, state and local leaders must press their case immediately.
Going into next year, the Fed is likely to throttle back policies that have kept rates near zero. That presents opportunities — and risks. Nobody wants to repeat the local government fiscal disasters of not so long ago.