The Future of Finance
Rising interest rates have triggered substantial market losses from Golden State treasurers’ untimely investments of idle cash. It’s time for reforms wherever similar portfolios are now bleeding red ink.
The Florida governor has been a vocal critic of President Joe Biden’s big government spending and yet millions of dollars in federal funding have uplifted the state’s budget, reserves and a variety of job and infrastructure projects.
Despite some uncertainty as to the exact amount state agencies will receive from the IIJA funding, offices are hiring staff to identify financial need for projects such as roads, bridges, broadband and public transit.
The mayor announced that he will focus on affordable housing, violence prevention, broadband expansion, lead removal and City Hall upgrades in spending American Recovery Plan Act funds.
Worried that the budget would not have enough votes to pass directly to the governor, the House of Representatives has delayed action. But, if the budget remains unchanged, the $5,500 checks to residents could drain the state’s savings.
Gov. Charlie Baker has filed a $3.5 billion funding package that includes nearly $970 million for revitalizing downtowns, $1.2 billion on developing climate resiliency and $325 million on workforce initiatives.
If autocracy is moving the world toward deglobalization, geopolitical investment principles should complement environmental, social and governance factors. There’s a lot for pension boards and investment managers to keep in mind.
The estimated cost of attendance at a University of California is $38,504; California State Universities are expected to cost $30,676. Only 33 percent of Californians said a four-year degree was needed for a successful and profitable career.
Last month, the national jobless rate fell to the lowest it has been since the 1960s, but the intense labor demand could spark even faster wage growth. Currently, inflation is at its highest in four decades.
County Manager Bonnie Hammersley has proposed raising the property tax by 1.25 cents to 83.12 cents per $100 in assessed property value to fund the $312.3 million proposed budget and to help pay the county’s debt.
A statewide ballot measure, headed by a startup investor and former Google executive, would tax California’s richest residents to pay for public health initiatives to prevent future pandemics.
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Three Wall Street firms will commit $3 million each for the next 10 years for the “Investing in Black Futures” initiative, which will recruit, train and mentor students from four historically Black colleges and universities for finance careers.
In distributing rental assistance funds to prevent evictions, Indianapolis found a creative alternative model, working across departments to get the money out to vulnerable families.
The agency will create a “Fareness” panel which will analyze and recommend ways to discourage fare evasion through education, equity and enforcement to mitigate revenue loss, which is expected to reach $500 million in 2022.
With the Federal Reserve raising interest rates, the yields on money market funds, state investment pools and bank accounts lag the payouts on safe securities. Staff needs to do its upside/downside homework.
The tax was imposed in 1994 to raise revenue for the Bay Area city’s library services. If the measure doesn’t pass in the June primary, the library system will have to cut 40 percent of its expenditures.
Rising costs are starting to put pressure on budgets and may increase pension risk. Still, government balance sheets are in good shape and the economy remains in growth mode.
State lawmakers discussed the possibility of curbing property taxes by using surplus state funds and restricting the annual growth of a home’s taxable value. But some worry it would shift the burden onto taxpayers.
The bottom half of Americans saw their wealth grow by 301 percent in 2020, in part boosted by unemployment benefits and stimulus payments. Despite that growth, the wealth gap also increased.
The American Rescue Plan Act funds were intended to help local governments and small businesses confront the financial impact of COVID-19, but many officials view the money as an opportunity to invest in future generations.
It includes investments that will raise health-care workers’ pay, improve their workplace infrastructure and provide incentives that will attract more people to the workforce, according to Gov. Kathy Hochul.
Government workers are going to press for wage increases that — at a minimum — catch them up to rising prices. Budgeters and labor negotiators need to be careful not to lock in terms that put them in a fiscal squeeze in the future.
The ballot initiative would tax residents making more than $2 million a year and use the funds to help the state curb wildfire, smoke and other air pollution. But some say the measure is overkill, given the state’s ambitious climate plans.
A revised version of a $50 million spending bill has once again received approval from the state’s Legislature and will move to the governor’s desk for approval. The bill includes funding for police vehicles, courtroom upgrades and more.
The median net worth of white households in the U.S. is almost eight times greater than that of Black households. Most mayors agree this is a problem but differ on what solutions are best.
The city will make available prepaid gas and transit cards, worth $150 each, for as many as 50,000 drivers and $50 for up to 100,000 transit riders. The announcement follows a possible mayoral candidate’s free gas giveaways.
In some states, Uber and Lyft don’t have to pay if passengers are hurt by a hit-and-run. There are moves in a number of states to increase protections for riders and drivers in the case of accidents with uninsured motorists.
As a reprieve from high inflation and gas prices, and to hopefully spur ridership back toward pre-pandemic levels, Connecticut will use $8.1 million of ARPA funds to cover public bus fares for the next three months.
The state will direct federal funds to investments such as state and local parks, improving drinking water and water infrastructure, roads and bridges, mortgage assistance and expanding broadband access.
The White House has taken the first step. It’s time for our governments at every level to underwrite a public-private “solidarity bridge” to host many more: up to a million refugees and wartime orphans.
