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	<title>Watchdog News &#187; Transparency</title>
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		<title>Want to see possible legislative districts in MT? Check them out online</title>
		<link>http://watchdog.org/13333/want-to-see-possible-legislative-districts-in-mt-check-them-out-online/</link>
		<comments>http://watchdog.org/13333/want-to-see-possible-legislative-districts-in-mt-check-them-out-online/#comments</comments>
		<pubDate>Tue, 07 Feb 2012 18:45:33 +0000</pubDate>
		<dc:creator>John Connors</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Open Records]]></category>
		<category><![CDATA[Montana]]></category>
		<category><![CDATA[Montana Watchdog]]></category>
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		<guid isPermaLink="false">http://watchdog.org/?p=13333</guid>
		<description><![CDATA[By Phil Drake &#124; Montana Watchdog

HELENA – Draft plans for possible ways to redraw Montana’s legislative districts are now posted online atwww.leg.mt.gov/districting.
The Montana Districting and Apportionment Commission is required to redraw legislative district lines after each decennial Census. Historically, districting has been used as a tool to give a party a political advantage.
The plans, drafted by commission staff, reflect one [...]]]></description>
			<content:encoded><![CDATA[<p>By Phil Drake | Montana Watchdog</p>
<div>
<p><strong>HELENA</strong> – Draft plans for possible ways to redraw Montana’s legislative districts are now posted online at<a href="http://www.leg.mt.gov/districting">www.leg.mt.gov/districting</a>.</p>
<p>The <strong>Montana Districting and Apportionment Commission</strong> is required to redraw legislative district lines after each decennial Census. Historically, districting has been used as a tool to give a party a political advantage.</p>
<p>The plans, drafted by commission staff, reflect one of four themes outlined by the five citizen commissioners at their July meeting. The commission will hear more about the plans at its Feb. 17 meeting in Helena. The meeting is 9:30 a.m. in room 102 of the state Capitol.</p>
<p>The changes to the state’s 100 House and 50 Senate districts are to be brought before the state Legislature in 2013 and will not be in place until the 2014 elections. There will be more public meetings in 2011 and 2012, when the commission proposes legislative maps<br />
The commission has the final say and after adjustments are made, the plan is filed with the Secretary of State’s office. The plan should be finalized by late 2012.<br />
Also posted online are the <a href="http://leg.mt.gov/content/Committees/Interim/2011-2012/Districting/Agenda/2024RWXA-2-17-12.pdf">agenda</a> for the meeting and <a href="http://leg.mt.gov/css/Committees/interim/2011-2012/districting/Meeting-Documents/meetings.asp#meeting12">additional materials</a>, including a one-page document on how to provide public comment on maps to the commissioners; and the draft public hearing schedule for 2012.</p>
<p>The dates, times, and locations are tentative and subject to the approval of the commission at the February meeting.</p>
<p>In addition to reviewing the draft plans, the commission will hear from members of the public and any individual commissioners who have complete plans (100 house districts) that they wish the commission to use at its spring public hearings.</p>
<p><strong><a href="http://montana.watchdog.org/2012/02/07/want-to-see-possible-legislative-districts-check-it-out-online/" target="_blank">Read more&#8230;</a></strong></p>
</div>
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		<title>Montana judge rules state must release employee salary information</title>
		<link>http://watchdog.org/13180/montana-judge-rules-state-must-release-employee-salary-information/</link>
		<comments>http://watchdog.org/13180/montana-judge-rules-state-must-release-employee-salary-information/#comments</comments>
		<pubDate>Tue, 31 Jan 2012 16:47:56 +0000</pubDate>
		<dc:creator>John Connors</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Open Records]]></category>
		<category><![CDATA[Montana]]></category>
		<category><![CDATA[Montana Policy Institute]]></category>
		<category><![CDATA[Montana Watchdog]]></category>
		<category><![CDATA[MT]]></category>
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		<guid isPermaLink="false">http://watchdog.org/?p=13180</guid>
		<description><![CDATA[By Phil Drake &#124; Montana Watchdog
HELENA – A judge has ruled that the state must make available specific information on the employee salaries requested by a Bozeman-based think tank, despite claims it was not required to provide such information.
On Dec. 14, the Montana Policy Institute (MPI) asked state 1st Judicial District Court Judge Dorothy McCarterthrough a writ [...]]]></description>
			<content:encoded><![CDATA[<p>By Phil Drake | Montana Watchdog</p>
<p><strong>HELENA</strong> – A judge has ruled that the state must make available specific information on the employee salaries requested by a Bozeman-based think tank, despite claims it was not required to provide such information.</p>
<p><span id="more-13180"></span>On Dec. 14, the <a href="http://www.montanapolicy.org/main/page.php?page_id=5">Montana Policy Institute </a>(MPI) asked state 1st Judicial District Court Judge <strong>Dorothy McCarter</strong>through a writ of mandamus to order the state, the <a href="http://doa.mt.gov/">Department of Administration (</a>DOA) and DOA<strong> Director Janet Kelly</strong> to grant its public records request.</p>
<p>MPI made multiple requests to DOA officials dating back to August 2010 for “state employee actual compensation data,” according to an affidavit by<strong> Carl Graham</strong>, president of MPI, which publishes <strong>Montana Watchdog.</strong></p>
<p>MPI was also granted attorneys’ fees and costs by McCarter in her Jan. 27 decision.</p>
<p>“The court concludes that the most liberal application of the public’s right to know applies to the state of Montana and requires the Department to provide the information requested by Policy Institute,” McCarter wrote.</p>
<p>She said Montana has a strong commitment to access to public records.</p>
<p>“These laws should therefore be liberally construed to effect that commitment,” she wrote.</p>
<p>“Moreover, it makes little sense to maintain computer systems that have large capacities for storage of information and the capability to produce that information quickly, while quibbling about the physical format of the information requested rather than the intent of the right to know laws,” she wrote.</p>
<p>“That’s a good win for us,” MPI attorney <strong>Art Wittich</strong> said Monday. “I think it was the right decision. She was correct that the state was quibbling over what we saw was clearly public information. We’re looking forward to receiving the information, analyzing it” and informing the public. He said he would be working with state to get information transferred.<br />
<strong></strong></p>
<p><strong>Mike Manion</strong>, the DOA’s chief legal counsel, said Monday he was reviewing the decision and could not offer comment.</p>
<p>Manion said at the Dec. 14 hearing the MPI request would involve 14,000 state employees including salary, hourly wage and overtime. Manion said even though the information was available and MPI was willing to pay the estimated $700-$800 to gather the data, right-to-know laws did not require the state to program the data to satisfy such requests.</p>
<p><strong><a href="http://montana.watchdog.org/2012/01/30/judge-rules-state-must-release-specific-employee-salary-information/" target="_blank">Read more&#8230;</a></strong></p>
]]></content:encoded>
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		<item>
		<title>COMMENTARY: Privacy should not trump transparency</title>
		<link>http://watchdog.org/13171/commentary-privacy-should-not-trump-transparency/</link>
		<comments>http://watchdog.org/13171/commentary-privacy-should-not-trump-transparency/#comments</comments>
		<pubDate>Tue, 31 Jan 2012 14:22:17 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Commenatry]]></category>
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		<category><![CDATA[stalking]]></category>
		<category><![CDATA[Transparency]]></category>
		<category><![CDATA[victims]]></category>
		<category><![CDATA[Walker]]></category>

		<guid isPermaLink="false">http://watchdog.org/13171/commentary-privacy-should-not-trump-transparency/</guid>
		<description><![CDATA[
	By M.D. Kittle &#124; Wisconsin Reporter

	Democracy isn&#8217;t always pretty.

	Look no further than the nasty business surrounding Wisconsin&#8217;s recall campaigns for daily proof.


	The Kenosha teacher harassed and ostracized simply because she supports a governor that many of her peers don&#8217;t. Or the West Bend man charged with election fraud after allegedly trying to scribble out the [...]]]></description>
			<content:encoded><![CDATA[<p>
	By M.D. Kittle | Wisconsin Reporter</p>
<p>
	Democracy isn&rsquo;t always pretty.</p>
<p>
	Look no further than the nasty business surrounding Wisconsin&rsquo;s recall campaigns for daily proof.</p>
<p><span id="more-13171"></span>
<p>
	The <a href="http://www.wisconsinreporter.com/pro-walker-teacher-threatened-amid-atmosphere-of-political-aggression" target="_blank">Kenosha teacher harassed and ostracized</a> simply because she supports a governor that many of her peers don&rsquo;t. Or the West Bend man charged with election fraud after allegedly trying to scribble out the names of recall petition signers in a reported burst of anger.</p>
<p>
	Then there is, to many observers, the general childish behavior of lawmakers so swept up in partisan politics that they&rsquo;ve forgotten that they&rsquo;re in Madison to do the people&rsquo;s business.</p>
<p>
	There are a lot of people in Wisconsin who will tell you the state&rsquo;s longstanding recall laws represent the best in democracy, putting the power to change the face of government in the hands of the people.</p>
<p>
	Plenty of others see an ugly, endless season of recalls, subverting the will of the people, aimed at killing the continuity of governance in the name of party.</p>
<p>
	These days, Wisconsin recall democracy, like beauty, is in the eyes of the beholder.</p>
<p>
	But there&rsquo;s a point that many liberals and conservatives, <strong>Democrats </strong>and <strong>Republicans</strong>, agree on: Wisconsin&rsquo;s recall process should be fair and transparent.</p>
<p>
	While voters on both sides of the aisle may debate the fairness of Wisconsin&rsquo;s system of recall and the current taste for removing government officials, they had, up until Monday evening, been able to count on an open showing of that system &mdash; at least when it came to recall petitions.</p>
<p>
	The <a href="http://gab.wi.gov/" target="_blank"><strong>Government Accountability Board</strong></a>, the state election board better known as GAB, decided it would postpone posting the reported 1 million signatures in the recall against <a href="http://ballotpedia.com/wiki/index.php/Scott_Walker" target="_blank"><strong>Gov. Scott Walker</strong></a> after hearing concerns that making the names public could compromise victims of domestic abuse and stalking, and others.</p>
<p>
	Earlier Monday, GAB spokesman <a href="http://www.wisconsinreporter.com/privacy-concerns-stall-release-of-wi-recall-signatures" target="_blank"><strong>Reid Magney</strong> assured <strong>Wisconsin Reporter</strong></a> the signatures would be posted on the board&#39;s website by the end of the day, just as the accountability office promised on Friday when it released a scanned copy of the petitions to Walker&rsquo;s campaign.</p>
<p>
	The sudden change of heart comes after the <a href="http://www.aclu-wi.org/" target="_blank"><strong>American Civil Liberties Union of Wisconsin</strong></a> in December asked the board to hide the names of domestic abuse victims who request their names be kept out of the public eye.</p>
<p>
	&ldquo;The GAB is under no obligation to make it easier for stalkers to find their victims by having a searchable database online,&rdquo; <a href="http://www.aclu.org/affiliate/wisconsin" target="_blank"><strong>Chris Ahmuty</strong></a>, of the Milwaukee ACLU, told <a href="http://www.wisn.com/index.html" target="_blank"><strong>WISN-TV</strong></a>.</p>
<p>	The concern is understandable.</p>
<p>
	No one but perhaps the stalker or the abuser wants to compromise the safety of a victim.</p>
<p>
	But recalls are different political animals than the standard election system, demanding petition signers stand up and be counted, as GAB Director <strong>Kevin Kennedy</strong> rightly pointed out in the same WISN story.</p>
<p>
	&ldquo;When you&rsquo;re petitioning, there&rsquo;s a strong public interest in allowing the public to see who&rsquo;s on those petitions because it gives them confidence that the petitions meet the thresholds,&rdquo; Kennedy told the TV station.</p>
<p>
	And confidence, for some, is sorely lacking in what they see as a politically driven system that sacrifices election integrity for political advantage.</p>
<p>
	And some, fair or not, have cast GAB as partly complicit. Kennedy, for instance, late last year said it was not the board&rsquo;s responsibility to scour petitions for false names and duplicate signatures. A judge later demanded it must.</p>
<p>
	State election laws provide checks and balances, affording incumbents and their supporters the ability to review and challenge signatures, but GAB critics have said the independent board&rsquo;s failure to thoroughly review petitions would put too much vetting onus on the shoulders of politicians under attack.</p>
<p>
	Transparency is what ultimately levels the playing field&nbsp; &mdash;&nbsp;&nbsp;not just for incumbents and challengers, but for the average citizen interested in or concerned about the recall system.</p>
<p>
	Let&rsquo;s be real here. Your average Cheddarhead isn&rsquo;t going to delve into hundreds of thousands of signatures in search of similar handwriting or phony names.</p>
<p>
	But some will, and it&rsquo;s nice to know it&rsquo;s there.</p>
<p>
	It certainly has been there before.</p>
<p>
	Last summer, confronting a spate of Senate recall campaigns, the GAB posted all recall signatures online.</p>
<p>
	&ldquo;In Wisconsin, election petitions have always been public records, and the Government Accountability Board previously published the 2011 State Senate recall petitions online in the interest of transparency,&rdquo; the GAB&rsquo;s website states.</p>
<p>
	Search there today and you will find the recall signatures in the campaigns targeting Republican state senators&nbsp; &mdash;&nbsp;&nbsp;<a href="http://ballotpedia.com/wiki/index.php/Pam_Galloway" target="_blank"><strong>Pam Galloway</strong></a> of Wausau, <a href="http://ballotpedia.com/wiki/index.php/Terry_Moulton" target="_blank"><strong>Terry Moulton</strong></a> of Chippewa Falls, <a href="http://ballotpedia.com/wiki/index.php/Van_Wanggaard" target="_blank"><strong>Van Wanggaard</strong></a> of Racine, and Senate Majority Leader <a href="http://ballotpedia.com/wiki/index.php/Scott_Fitzgerald" target="_blank"><strong>Scott Fitzgerald</strong></a> of Juneau.</p>
<p>
	Magney on Monday told Wisconsin Reporter that the reported 845,000 signatures in the recall campaign against Lt. Gov. <a href="http://ballotpedia.com/wiki/index.php/Rebecca_Kleefisch" target="_blank"><strong>Rebecca Kleefisch</strong></a> were expected to be online later this week.</p>
<p>
	So why the line in the sand now?</p>
<p>
	The issue has brought together some interesting allies in the battle for transparency. Conservative news organization the <a href="http://maciverinstitute.com/" target="_blank"><strong>MacIver Institute</strong></a> and<strong> Bill Lueders</strong>, president of the<a href="http://www.wisfoic.org/"><strong> Wisconsin Freedom of Information Council </strong></a>and <span class="st">Money and Politics Project director </span>at the liberal <a href="http://www.wisconsinwatch.org/" target="_blank"><strong>Wisconsin Center for Investigative Journalism</strong></a>,&nbsp; have criticized the GAB&rsquo;s postponement. </p>
<p>
	The Center for Investigative Journalism, a nonpartisan, nonprofit organization like MacIver, has not taken a position on the matter.</p>
<p>
	For those with serious, legitimate safety concerns, there should be some way of individually keeping names from the public while protecting the integrity of the process.</p>
<p>
	Wisconsin Reporter believes transparency in government and public life is the best antidote to the diseases of corruption and incompetence, and we stand by all who ask the GAB to quickly reinstate its decision to post online the recall petition signatures.</p>
<p>
	Wisconsin Reporter, like other media outlets have advised, will seek the documents through open records requests if need be.</p>
<p>
	Transparency isn&rsquo;t always easy, and it isn&rsquo;t always pretty &mdash; much like democracy.</p>
<p>
	But there can be a manageable balance between the public&rsquo;s right to know and the protection of victims.</p>
<p>
	Let&rsquo;s find that balance and protect democracy.</p>
]]></content:encoded>
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		<title>MT Secretary of State website to ease reporting of election law violations</title>
		<link>http://watchdog.org/12810/mt-secretary-of-state-website-to-ease-reporting-of-election-law-violations/</link>
		<comments>http://watchdog.org/12810/mt-secretary-of-state-website-to-ease-reporting-of-election-law-violations/#comments</comments>
		<pubDate>Tue, 10 Jan 2012 18:44:40 +0000</pubDate>
		<dc:creator>John Connors</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Open Records]]></category>
		<category><![CDATA[Montana]]></category>
		<category><![CDATA[Montana Watchdog]]></category>
		<category><![CDATA[MT]]></category>
		<category><![CDATA[MT Watchdog]]></category>
		<category><![CDATA[Open Records Law]]></category>
		<category><![CDATA[sunshine laws]]></category>
		<category><![CDATA[Transparency]]></category>

		<guid isPermaLink="false">http://watchdog.org/?p=12810</guid>
		<description><![CDATA[By Phil Drake &#124; Montana Watchdog
HELENA – If you spot what you think are shenanigans during the upcoming elections, just remember, help is a mouse click away.
On Friday, Montana Secretary of State and Chief Elections Officer Linda McCulloch launched www.montanafairelections.com, a new website that she said will make it easier for citizens to report potential state election law [...]]]></description>
			<content:encoded><![CDATA[<p>By Phil Drake | Montana Watchdog</p>
<p><strong>HELENA</strong> – If you spot what you think are shenanigans during the upcoming elections, just remember, help is a mouse click away.</p>
<p>On Friday, Montana Secretary of State and Chief Elections Officer <a href="http://sos.mt.gov/">Linda McCulloch</a> launched <a href="http://www.montanafairelections.com/">www.montanafairelections.com</a>, a new website that she said will make it easier for citizens to report potential state election law violations.</p>
<p><a href="http://www.montanafairelections.com/" target="_blank"><img class="alignright" src="http://montana.watchdog.org/files/2012/01/Fair-Elections-Banner-160-X-160-A.png" alt="" width="160" height="160" /></a><br />
The “Fair Elections Center’ provides an online submission form for people to report potential election law violations for state and feral violations. And it provides five ways to report potential violations: phone, online, fax, mail or email.</p>
<p>McCulloch said the new website will complement efforts to enhance the security of elections and streamline the successful reporting procedures she put into place in 2010.</p>
<p>She said about 50 reports were received by her office in 2010 and expected that number to increase in this next round of elections, which includes several ballot issues,  high-profile state seats and the federal elections. But of those 50 reports, with several about signature gathering, none resulted in any actual illegal activity. Her office, by statute, is not allowed to prosecute. Those findings are turned over to the proper authorities.</p>
<p>The state’s 56 county election administrators have the option to add a direct link to the site on county webpages, state officials said.</p>
<p>McCulloch said the site, paid for through the use of staff time and the use of an existing survey tool, was not to be used for “political attacks or partisan agendas.” She also said people suspecting improper election activity can still go to other sources such as local election boards and county attorneys.</p>
<p><strong><a href="http://montana.watchdog.org/2012/01/05/secretary-of-state-website-to-ease-reporting-of-election-law-violations/" target="_blank">Read more&#8230;</a></strong></p>
]]></content:encoded>
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		<item>
		<title>Lincoln building commission accused of violating NE open meetings law</title>
		<link>http://watchdog.org/12555/lincoln-building-commission-accused-of-violating-ne-open-meetings-law/</link>
		<comments>http://watchdog.org/12555/lincoln-building-commission-accused-of-violating-ne-open-meetings-law/#comments</comments>
		<pubDate>Wed, 21 Dec 2011 14:23:14 +0000</pubDate>
		<dc:creator>John Connors</dc:creator>
				<category><![CDATA[Accountability]]></category>
		<category><![CDATA[Ethics]]></category>
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		<category><![CDATA[open meetings]]></category>
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		<category><![CDATA[Transparency]]></category>

		<guid isPermaLink="false">http://watchdog.org/?p=12555</guid>
		<description><![CDATA[By Deena Winter &#124; Nebraska Watchdog

LINCOLN &#8212; A free-market advocacy group has filed a complaint with the state attorney general against the Lincoln-Lancaster County Public Building Commission, alleging the body violated the state’s open meetings laws earlier this month.
This flier was the only public notice given before a meeting of the building commission.

Americans for Prosperity-Nebraska announced [...]]]></description>
			<content:encoded><![CDATA[<p>By Deena Winter | Nebraska Watchdog</p>
<div>
<p><strong>LINCOLN</strong> &#8212; A free-market advocacy group has filed a complaint with the state attorney general against the <strong>Lincoln-Lancaster County Public Building Commission</strong>, alleging the body violated the state’s open meetings laws earlier this month.</p>
<div id="attachment_18715"><a href="http://nebraska.watchdog.org/files/2011/12/378651_311029238916363_100000278689488_1238576_1646003493_n.jpg"><img class="alignright" title="378651_311029238916363_100000278689488_1238576_1646003493_n" src="http://nebraska.watchdog.org/files/2011/12/378651_311029238916363_100000278689488_1238576_1646003493_n-300x168.jpg" alt="" width="300" height="168" /></a>This flier was the only public notice given before a meeting of the building commission.</p>
</div>
<p><strong>Americans for Prosperity-Nebraska </strong>announced today that it filed the complaint over the way the PBC advertised – or failed to advertise – a hastily called Dec. 1 meeting to buy a building near city hall. The only public notice of the emergency meeting was a flier posted on a bulletin board inside the City-County Building, and a notice on a website the morning of the meeting.</p>
<p>The director of the Nebraska chapter of Americans for Prosperity, <strong>Brad Stevens</strong>, said in a press release, “Hanging a flier inside the City/County building announcing this irregular meeting of the PBC is an insult to taxpayers.”</p>
<p>During the meeting, the PBC voted to buy the office for $1.77 million. The purchase still must be approved by the City Council and County Commission.</p>
<p>“Citizens should not have to swing by city hall to learn how their tax dollars are being spent,” Stevens continued. “State law ensures government must adequately inform the public before moving forward with spending millions on purchasing new property. We intend to ensure the law is followed in this case.”</p>
<p><strong>Don Killeen</strong>, building administrator for the PBC, said the city attorney said the flier met the state law’s requirements for public notice of an emergency meeting. Normally, the PBC’s regular meetings are advertised in the newspaper.</p>
<p>The building is owned by <strong>Alfred Benesch &amp; Co</strong>., which acquired the building last year after merging with <strong>HWS Consulting Group</strong>. But Benesch has a corporate policy of not owning its buildings, Killeen said Tuesday, and so had been in talks with the PBC since spring about possibly selling. Under the proposed deal, the PBC will lease the building back to the company for about $200,000 a year for five years.</p>
<p>Killeen told Nebraska Watchdog the emergency meeting was called to get the word out to Benesch employees quickly, rather than drag things out. Benesch officials were concerned that if they sold the building to someone that wanted to use the property, that would “force them to do something else,” such as move.</p>
<p>The PBC is a little-noticed and rarely-covered commission comprised of three Lincoln City Council members and three county commissioners who oversee the building and management of buildings for the city and county. It is funded by a countywide property tax.</p>
<p>However, the commission has long operated out of the spotlight – its meetings aren’t televised, its agendas aren’t easy to find, and the commission’s website isn’t easy to find.</p>
<p><strong><a href="http://nebraska.watchdog.org/18711/lincoln-building-commission-accused-of-violating-open-meetings-law/" target="_blank">Read more&#8230;</a></strong></p>
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		<title>City of Wichita spends $2 million, rebuffs citizen’s transparency request</title>
		<link>http://watchdog.org/12422/city-of-wichita-spends-2-million-rebuffs-citizen%e2%80%99s-transparency-request/</link>
		<comments>http://watchdog.org/12422/city-of-wichita-spends-2-million-rebuffs-citizen%e2%80%99s-transparency-request/#comments</comments>
		<pubDate>Thu, 15 Dec 2011 15:03:43 +0000</pubDate>
		<dc:creator>John Connors</dc:creator>
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		<guid isPermaLink="false">http://watchdog.org/?p=12422</guid>
		<description><![CDATA[By Paul Soutar &#124; Kansas Watchdog

WICHITA — The Wichita City Council approved a $2 million payment to the city’s convention and visitors’ bureau,GO Wichita, despite objections to the lack of transparency in how GO Wichita handles taxpayer money.
The Kansas Open Records Act requires that entities receiving public money be subject to the law’s transparency provisions, but one [...]]]></description>
			<content:encoded><![CDATA[<p>By Paul Soutar | Kansas Watchdog</p>
<div>
<p><strong>WICHITA</strong> — The <a href="http://www.wichita.gov/Government/CityCouncil/">Wichita City Council</a> approved a $2 million payment to the city’s convention and visitors’ bureau,<a href="http://www.gowichita.com/">GO Wichita</a>, despite objections to the lack of transparency in how GO Wichita handles taxpayer money.<span id="more-12422"></span></p>
<p><a href="http://kansas.watchdog.org/files/2011/12/Go-Wichita-transparency.png" target="_blank"><img class="alignright" title="Go Wichita transparency" src="http://kansas.watchdog.org/files/2011/12/Go-Wichita-transparency-300x173.png" alt="" width="300" height="173" /></a>The <a href="http://kansasstatutes.lesterama.org/Chapter_45/Article_2/">Kansas Open Records Act</a> requires that entities receiving public money be subject to the law’s transparency provisions, but one of these provisions states that if such an organization files an annual financial statement, it has complied with the law.</p>
<p>At issue is whether a one- or two-page financial report listing total revenues and expenditures can substitute for public access to more detailed records regarding specific expenditures of public funds.</p>
<p>The subject came to a head at the City Council meeting Tuesday as Wichita activist Bob Weeks, who blogs at <a href="http://kansas.watchdog.org/8233/city-of-wichita-spends-2-million-rebuffs-citizen%E2%80%99s-transparency-request/WichitaLiberty.org">WichitaLiberty.org</a>, asked that the Council require greater transparency in exchange for approving the payment to GO Wichita.</p>
<p>“In the past, I’ve asked for records from Go Wichita. It refused to comply,” Weeks told the City Council. Go Wichita said they were not subject the KORA law because it believes it is not a “public agency” as defined in the KORA.</p>
<p>According to its 2009 IRS Form 990 filing, Go Wichita received $2.3 million of its total $2.6 million revenue as fees from various government agencies. When earned interest income is subtracted, GO Wichita is 92 percent funded by government.</p>
<p>The Sedgwick County District Attorney’s office found that the law allows Go Wichita to file an annual financial statement and escape KORA’s intended full transparency.</p>
<p>Weeks called the DA’s finding, “contorted legal reasoning that few believed would survive judicial scrutiny.” Weeks said pursuing a judicial ruling could cost thousands of dollars he does not have.</p>
<p>Weeks told the City Council that the city’s action in continuing to fund GO Wichita without requiring greater transparency is hypocritical in light of other statements by the city about its desire for transparency.</p>
<p><a href="http://www.wichita.gov/CityOffices/CityManager/">City Manager Robert Layton</a>’s said, “We have established a reporting requirement for the agencies Mr. Weeks is talking about and that is submission of annual financial reports.”</p>
<p><strong><a href="http://kansas.watchdog.org/8233/city-of-wichita-spends-2-million-rebuffs-citizen’s-transparency-request/" target="_blank">Read more&#8230;.</a></strong></p>
</div>
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		<title>West Virginia launches new transparency website</title>
		<link>http://watchdog.org/11212/west-virginia-launches-new-transparency-website/</link>
		<comments>http://watchdog.org/11212/west-virginia-launches-new-transparency-website/#comments</comments>
		<pubDate>Wed, 07 Sep 2011 17:30:36 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://watchdog.org/11212/west-virginia-launches-new-transparency-website/</guid>
		<description><![CDATA[
	By Steven Allen Adams &#124; West Virginia Watchdog

	CHARLESTON &#8212; West Virginia is opening the doors of state government to more sunshine.

	Senate President Earl Ray Tomblin, acting as governor, and State Auditor Glen Gainer III announced a new transparency website at a press conference Wednesday.

	The website, http://transparencywv.org, will put budget and spending information in one place. [...]]]></description>
			<content:encoded><![CDATA[<p>
	By <a href="mailto:steven@westvirginiawatchdog.org">Steven Allen Adams</a> | West Virginia Watchdog</p>
<p>
	<b>CHARLESTON</b> &#8212; West Virginia is opening the doors of state government to more sunshine.</p>
<p>
	Senate President <a class="zem_slink" href="http://en.wikipedia.org/wiki/Earl_Ray_Tomblin" rel="wikipedia" title="Earl Ray Tomblin">Earl Ray Tomblin</a>, acting as governor, and State Auditor <a href="http://www.wvsao.gov/">Glen Gainer III</a> announced a new transparency website at a press conference Wednesday.</p>
<p>
	The website, <a href="http://transparencywv.org/">http://transparencywv.org</a>, will put budget and spending information in one place. State agency budgets will all be online and readily available &#8211; a first for many state agencies.</p>
<p>
	In March, the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Public_Interest_Research_Group" rel="wikipedia" title="Public Interest Research Group">Public Interest Research Group</a> criticized the state&#39;s lack of transparency regarding spending. In response, three months ago the Auditor&#39;s office approached the Acting Governor&#39;s office about creating the website.</p>
<p>
	&quot;When the Auditor came to me about creating the website, I knew it was an excellent idea,&quot; Tomblin said. &quot;Like any company or business, when you receive a critique, there is always a positive to find out what can be done better. A transparent government is a responsible government, and it&#39;s what the people of our great state deserve.&quot;</p>
<p>
	&quot;In less than three months we went from a concept to a finished product,&quot; Gainer said. &quot;That only comes from strong leadership and a willingness to work and make ourselves transparent.&quot;</p>
<p>
	The focuses on three areas: revenue, budgets, and spending. The revenue section allows people to see a 10-year history of revenue collections. Charts will be generated at the top of the page to help people visualize the data. The budget page shows data in a stacked bar chart showing the general revenue budget, the special revenue budget, and federal funds. The spending page allows people to look at state spending down to the agency level and into specific unclassified spending, with data updated every evening. The website also links to vending and contract data.</p>
<p>
	&quot;What we tried to do is make this very simple and a very navigable site&#8230;and one that will allow the user to quickly see how their tax dollars are being spent,&quot; Gainer said. &quot;We believe it&#39;s probably one of the finest transparency sites in the country.&quot;</p>
<p>
	<a href="http://westvirginia.watchdog.org/3369/west-virginia-launches-new-transparency-website/">Read More<br />
	</a></p>
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		<title>Bond lawyers not waiting for new public pension GASB rules</title>
		<link>http://watchdog.org/10388/bond-lawyers-not-waiting-for-new-public-pension-gasb-rules/</link>
		<comments>http://watchdog.org/10388/bond-lawyers-not-waiting-for-new-public-pension-gasb-rules/#comments</comments>
		<pubDate>Fri, 08 Jul 2011 16:55:16 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://watchdog.org/10388/bond-lawyers-not-waiting-for-new-public-pension-gasb-rules/</guid>
		<description><![CDATA[
By Frank Keegan – By the time the Government Accounting Standards Board nudges state and local governments into being honest about what taxpayers really owe on pensions, it will be too late. So bond lawyers are gearing up to force transparency sooner.

Why? Because their clients are at risk and have no way of knowing how big [...]]]></description>
			<content:encoded><![CDATA[<p><a href="https://www.surveymonkey.com/s/Watchdogorg"><img class="alignright size-medium wp-image-9729" title="Survey_watchdog_amazon" src="http://watchdog.org/files/2011/06/Survey3_vertical_watchdog2.jpg" alt="" width="90" height="256" /></a></p>
<div>By Frank Keegan – <em>By the time the <a href="http://www.gasb.org/home">Government Accounting Standards Board</a> nudges state and local governments into being honest about what taxpayers really owe on pensions, it will be too late. So <a href="http://nabl.org/uploads/cms/documents/draft_provided_to_sec.pdf">bond lawyers</a> are gearing up to force transparency sooner.</em></div>
<p><span id="more-10388"></span></p>
<div>Why? Because their clients are at risk and have no way of knowing how big that risk actually is. The only thing they know is somebody — public workers, taxpayers, bondholders, the poor, the young, the old, the sick — has to take a huge hit. Soon.</div>
<div>State and municipal governments simply cannot pay the debts politicians racked up during at least two decades of profligacy and accounting lies.</div>
<div><strong> </strong></div>
<div>The biggest debt is for retirement benefits promised but not paid for and hidden off balance sheets with at least three layers of false bookkeeping that would land any person or private business executive in prison.</div>
<div>That unavoidable debt is at least $1.26 trillion as of 2009, according to a <a href="http://www.pewcenteronthestates.org/initiatives_detail.aspx?initiativeID=328880">Pew Center on the States</a> study released earlier this year, but probably more than $3 trillion and growing every day because politicians refuse to fix it.</div>
<div>That is more than the total official debt state and local governments are paying off now.</div>
<div>A <a href="http://cbo.gov/doc.cfm?index=12084">Congressional Budget Office</a> study released in May explicitly states that as of 2009, “By any measure, nearly all state and local pension plans are underfunded, which means that the value of the plan’s assets is less than their accrued pension liabilities for current workers and retirees.” And that’s using the bogus numbers.</div>
<div>Proposed GASB rules released Friday would begin to show the real numbers, but would not take effect until Fiscal Year 2014. For the lawyers who do municipal bond deals, that is not fast enough.</div>
<div>According to a recent <a href="http://watchdog.org/10378/state-local-pension-accounting-takes-a-gasb-step-toward-transparency/">National Association of Bond Lawyers</a> draft report, they will be ready with new, tougher transparency standards by the end of this year.</div>
<div>These lawyers worry not only about the honesty of retirement benefits reporting by governments, but the “time lag.”</div>
<div>So they want “cautionary language” and honest numbers along with official dishonest numbers projected ahead 10 years as well as from the past decade.</div>
<div>Those are the ugly numbers politicians keep off the books so they can claim balanced budgets even as they dig us ever deeper into an abyss of debt.</div>
<div>They use pensions and promised retiree health benefits as a secret line of credit, then blow the trillions of dollars they borrow and leave future taxpayers, workers and bond investors holding a big nasty bag. Somebody has to pick up the tab.</div>
<div>Bond lawyers want to make sure it is not their clients. Unions want to make sure it’s not their members. As for taxpayers? They are supposed to just pay up and shut up.</div>
<div>What about the children, the old, the poor, sick, halt and lame whom politicians always are wringing their hands about? What about the sociopaths politicians threaten to release to prey upon society even as police and courts are cut back?</div>
<div>All are supposed to serve their traditional role as hostages politicians use to extort even more money from taxpayers.</div>
<div>Public officials who fought the new GASB rules for years now are stalling for as long as they can. They want to put off the day of reckoning until after they flee.</div>
<div>Pension fund managers, meanwhile, take on more and more <a href="http://www.franklincenterhq.org/2492/commentary-public-pension-investments-fall-short-increase-risk-impose-taxes-without-consent/">risk</a> in a desperate effort to meet impossible earnings goals, setting workers and taxpayers up for a bigger fall in the next downturn.</div>
<div>Those who try to claim the Great Recession caused pension fund problems that are merely temporary ignore two facts: Funds, which must grow about 8 percent a year, lost <a href="http://www.franklincenterhq.org/1449/state-local-pension-plans-dropped-179-billion-even-before-markets-crashed/">$179 billion</a> before markets crashed, and they literally never can earn enough during the next 30 years to catch up.</div>
<div>Sluggish GASB efforts, quicker NABL guidelines, the <a href="http://www.franklincenterhq.org/1982/politicians-union-leaders-to-public-workers-die-early-die-often/">Public Employee Pension Transparency Act</a> and proposed <a href="http://www.franklincenterhq.org/2215/bill-gates-should-demand-truth-in-accounting/">Truth in Accounting</a> laws are efforts to force state and local governments to be honest with taxpayers, workers and investors about how catastrophic this reality is.</div>
<div>Instead of fighting and delaying honesty, our leaders should implement it. Now.</div>
<div>Nothing prevents any government from immediately adopting any or all of the rules and practices recommended in those proposed regulations and laws. Why wait?</div>
<div>Taxpayers, public workers and investors must demand it.</div>
<div><em>Frank Keegan is a national editor for <a href="http://www.franklincenterhq.org/?s=keegan">The Franklin Center for Government and Public Integrity</a>, <a href="http://watchdog.org/">watchdog.org</a> and <a href="http://statehousenewsonline.com/">statehousenewsonline.com</a> . Any disgusted public employee, journalist, activist organization or citizen watchdog who wants help exposing government waste, fraud and abuse may contact him at: <a href="mailto:frank.keegan@franklincenterhq.org">frank.keegan@franklincenterhq.org</a></em></div>
<div>For a comprehensive primer on state and municipal government pensions, check <a href="http://sunshinereview.org/index.php/Public_pensions">sunshinereview.org</a> .</div>
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		<title>Uncertainty is what makes muni bond buyers bonkers</title>
		<link>http://watchdog.org/8978/uncertainty-is-what-makes-muni-bond-buyers-bonkers/</link>
		<comments>http://watchdog.org/8978/uncertainty-is-what-makes-muni-bond-buyers-bonkers/#comments</comments>
		<pubDate>Fri, 08 Apr 2011 20:50:29 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Blog]]></category>
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		<guid isPermaLink="false">http://watchdog.org/8978/uncertainty-is-what-makes-muni-bond-buyers-bonkers/</guid>
		<description><![CDATA[
	By Frank Keegan &#8212; It&#8217;s not how many. It&#8217;s which. That is the great unknown chilling municipal bond markets. Felonious accounting practices by state and local governments make it impossible for investors to determine the one factor that makes munis attractive: Bonds are supposed to be a sure thing.


	A sure thing they are not anymore. [...]]]></description>
			<content:encoded><![CDATA[<div>
	<em>By Frank Keegan </em>&mdash; <em>It&rsquo;s not how many. It&rsquo;s which. That is the great unknown chilling municipal bond markets. Felonious accounting practices by state and local governments make it impossible for investors to determine the one factor that makes munis attractive: Bonds are supposed to be a sure thing.</em></div>
<p><span id="more-8978"></span>
<div>
	A sure thing they are not anymore. They are not because for more than a decade politicians have hidden true costs of government off the books and deferred them to the future.</div>
<div>
	&nbsp;</div>
<div>
	The future is now. Truth is finding its inexorable way out, and this truth is ugly with no hope of beauty for at least 50 years, according to the <a href="http://www.franklincenterhq.org/1914/state-local-governments-must-cut-hard-now/"><span>Government Accountability Office</span></a>.</div>
<div>
	&nbsp;</div>
<div>
	Fifty years is a long time for municipal bond investors.</div>
<div>
	&nbsp;</div>
<div>
	<a href="http://www.bdamerica.org/?news_info=bda-releases-statement-on-the-health-of-the-municipal-bond-market"><span>Bond Dealers of America</span></a> wrapped up a three-day huddle at the Fountainebleau Hotel in Miami last week figuring out how to &ldquo;set the record straight&rdquo; on &ldquo;Municipal Market Health&rdquo; after almost three years and increasing billions of outflows from bonds and bond funds.</div>
<div>
	&nbsp;</div>
<div>
	They issued a statement: &ldquo;The historical default rate for governmental debt is negligible. The average 10-year cumulative default rate from 1970 to 2009 for investment-grade municipal debt was only 0.09 percent with only 54 defaults on rated credits &mdash; and just three general obligation defaults. In the past four years and during the height of the recession, only seven municipal governments filed for bankruptcy, yet all bondholders were paid in full. By comparison, AAA corporate credits were three times more likely to default than BBB municipal credits. Further, municipal debt service is only about 3 percent to 5 percent of state and local budgets.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	True enough, but past performance is no guarantee of future results.</div>
<div>
	&nbsp;</div>
<div>
	One big problem is state and local budgets represent only a fraction of true government costs because they employ accounting techniques that would be felonies if citizens or businesses used them.</div>
<div>
	&nbsp;</div>
<div>
	For example, BDA claims: &ldquo;Pension liabilities will be a challenge, but these are long-term liabilities upon which state and local governments are focused. Stock market declines of recent years have reduced pension assets, on average, to 75 percent of what is required. But that shortfall can be prudently addressed over a number of years. Accordingly, the current budget impacts of pension contributions are manageable.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Actually, governments lie about how big their actual pension debt is, and then hide the lies off the books. Double deception.</div>
<div>
	&nbsp;</div>
<div>
	Other <a href="http://kelloggfinance.wordpress.com/2010/03/22/the-day-of-reckoning-for-state-pension-plans/"><span>calculations</span></a> put assets, on average, at about 50 percent of what is required, and show some states having to increase taxes and cut programs equivalent to about a third to three-quarters of 2008 operating revenues just to write those guaranteed pension checks. Pensioners get paid before bondholders. That is why bondholders worry.</div>
<div>
	&nbsp;</div>
<div>
	If unfunded pension obligations were the only hidden debt states and municipalities racked up, they might be able to dance past a fiscal event horizon beyond which there is no return.</div>
<div>
	&nbsp;</div>
<div>
	But politicians use a wide array of deceptions ranging from borrowing&nbsp;for stock market&nbsp;gambles to deferring essential capital projects and shorting catastrophe funds to hide how deep in the hole they really are.</div>
<div>
	&nbsp;</div>
<div>
	The <a href="http://gasb.org/"><span>Government Accounting Standards Board</span></a>, the <a href="http://sec.gov/">Securities and Exchange</a> Commission and <a href="http://msrb.org/">Municipal Securities Rulemaking Board</a> are working on ways to force governments to be honest with investors, taxpayers and employees.</div>
<div>
	&nbsp;</div>
<div>
	Efforts at openness include a proposed <a href="http://nunes.house.gov/_files/Legislation112thFINALPublicEmployeePensionTransparencyAct.pdf"><span>public employee pension transparency act</span></a> that would deny federal tax exemption for interest on municipal bonds issued by governments that hide pension liabilities.</div>
<div>
	&nbsp;</div>
<div>
	Until then, nobody can sort the overwhelming majority of solid bond issues from the few that are rotten.</div>
<div>
	&nbsp;</div>
<div>
	The first, best answer of course is complete openness and fiscal transparency whether GASB, the SEC, MSRB and Congress require it or not.</div>
<div>
	&nbsp;</div>
<div>
	As Carmen Reinhart and Kenneth Rogoff wrote in <i><a href="http://press.princeton.edu/titles/8973.html"><span>This Time is Different: Eight Centuries of Financial Folly</span></a></i>, &ldquo;We view the difficulties one experiences in finding data on government debt as just one facet of the general low level of transparency with which most governments maintain their books.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	They point out ominously, &ldquo;&hellip; a highly leveraged economy can unwittingly be sitting with its back at the edge of a financial cliff for many years before chance and circumstance provoke a crisis of confidence that pushes it off.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	All bond investors want is honest answers from public officials about which state and local governments are how close to the edge of that cliff, and how deep the chasm really is. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Right now nothing forbids governments from&nbsp;being honest. Politicians just choose not to be for their own comfort and personal gain at taxpayer expense.</div>
<div>
	&nbsp;</div>
<div>
	One thing our leaders can do immediately without any mandate is pass <a href="http://truthinaccounting.org/national_reports/listings.asp?section=439&amp;section2=458&amp;page=458&amp;CatID=7"><span>Truth in Accounting laws</span></a> that consistently reveal to themselves, citizens, bond buyers and public workers the ugly reality of state and local government finances. That would free us all from the fear of uncertainty undermining municipal bond markets.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;Yes the truth shall set us free, but nobody ever said truth would be cheap. Only the huge future cost of continued lies makes it a bargain now.</div>
<div>
	&nbsp;&nbsp;</div>
<div>
	<i>Frank Keegan is a national editor for </i><a href="http://www.franklincenterhq.org/?s=keegan"><span>The Franklin Center for Government and Public Integrity</span></a>, <a href="http://watchdog.org/">watchdog.org</a> and <a href="http://statehousenewsonline.com/">statehousenewsonline.com</a> . Any disgusted public employee, journalist, activist organization or citizen watchdog who wants help exposing government waste, fraud and abuse may contact him at: <a href="mailto:frank.keegan@franklincenterhq.org">frank.keegan@franklincenterhq.org</a></div>
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		<title>State, municipal associations rally against pension transparency proposal</title>
		<link>http://watchdog.org/7589/state-municipal-associations-rally-against-pension-transparency-proposal/</link>
		<comments>http://watchdog.org/7589/state-municipal-associations-rally-against-pension-transparency-proposal/#comments</comments>
		<pubDate>Sat, 11 Dec 2010 12:25:44 +0000</pubDate>
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		<guid isPermaLink="false">http://watchdog.org/7589/state-municipal-associations-rally-against-pension-transparency-proposal/</guid>
		<description><![CDATA[By Jon Miltimore Watchdog.org
Nine groups representing state and local government employees slammed a House bill Wednesday that would penalize state and local governments that failed to meet disclosure and accounting requirements for public pension systems.

“This legislation represents a fundamental lack of understanding regarding the strong accounting rules and strict legal constraints already in place that [...]]]></description>
			<content:encoded><![CDATA[<p>By Jon Miltimore<span> </span>Watchdog.org</p>
<p>Nine groups representing state and local government employees slammed a House bill Wednesday that would penalize state and local governments that failed to meet disclosure and accounting requirements for public pension systems.</p>
<p><span id="more-7589"></span></p>
<p>“This legislation represents a fundamental lack of understanding regarding the strong accounting rules and strict legal constraints already in place that require open and transparent governmental financial reporting and processes,” reads a <a href="http://www.nasra.org/federal/PressStatement%20HR%206484.pdf" target="_blank">release </a>endorsed by the National Association of Counties, United States Conference of Mayors, National League of Cities, International City/County Management Association, National Association of State Auditors Comptrollers and Treasurers, Government Finance Officers Association, International Personnel Management Association for Human Resources, National Council on Teacher Retirement and the National Association of State Retirement Administrators.</p>
<p>The Public Employee Pension Transparency Act would require pension administrators to report pension funding status and contributions to the government, and forbid federal aid to distressed systems.</p>
<p>The legislation comes on the heels of <a href="http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf" target="_blank">recent scholarship</a> by Joshuah Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester that claims state and local governments face unfunded pension obligations of $574 billion.</p>
<p>The study also claims six major cities and several states are set to run out of assets to cover costs in the next decade.</p>
<p>The proposal, sponsored by <span>Rep. Devin Nunes (R-CA), Rep. Paul Ryan (R-WI), and Rep. Darrell Issa (R-CA), would rescind federal tax breaks on municipal bonds for state and local governments that fail to comply with disclosure requirements. </span></p>
<p>“Unfortunately, the true level of unfunded liabilities associated with these plans … is being hidden thanks to unrealistic accounting standards,” Nunes said.</p>
<p>Keith Brainard, research director for the <a href="http://www.nasra.org/" target="_blank">National Association of State Retirement Administrators</a>, said the findings of Rauh and Novy-Marx rely on pessimistic asset assumptions at a time when interest rates are historically low.</p>
<p>“We differ with their underlying methods and conclusions they use to arrive at that,” he said. “No one questions there has been some abuse (in pension systems) — and those abuses should be rectified — but federal oversight is not the answer.”</p>
<p>Brainard was critical of the federal government’s track record on worker retirement plans, citing current shortfalls in Social Security and bureaucratic regulations that forced many corporations to abandon defined benefits plans in favor of defined contributions plans like 401Ks, which<span> </span>he says provides workers a less stable retirement.</p>
<p>“And the solution is to take a reporting requirement to Washington?” he said. “The fact is there are core parts of public plans that work.&#8221;</p>
<p>Capitol Hill insiders said the legislation is unlikely to be debated this year, but lawmakers hope the bill will set the stage for deliberations in the 112th Congress, adding that the bill may get a boost from a non-partisan <a href="http://www.gao.gov/new.items/d10899.pdf" target="_blank">Government Accountability Office study</a> published earlier this year outlining the fiscal condition of state and local governments.</p>
<p>The found state and local governments face a $10 trillion fiscal gap over the next several decades and steady erosion of government services absent policy changes.</p>
<p>Finance experts said the red ink has led to growing concerns among investors who have long regarded municipal bonds as nearly risk free investments.<span> </span></p>
<p>“The people I talk to are moving away from them,” said Fred Sheehan, a former Director of Asset Allocation Services at John Hancock Financial Services in Boston. “Some of them have been investing in munis for 30 or 40 years.”</p>
<p>Sheehan said he sees investors shifting from general obligation bonds to revenue bonds, and the pace of the transition could quicken if distressed state and local governments fail to address rising debt.</p>
<p>“From what I’m seeing they are doing very little to help themselves,” Sheehan said. “It’s almost as if it’s a fight among 3rd grade boys. They can’t solve it themselves, an adult has to come in and break them apart.”</p>
<p>The fiscal challenges facing state and local governments has resulted in a <a href="http://watchdog.org/6937/public-pensions-threaten-muni-bond-market-study-claims/" target="_blank">growing warning </a>from financial investment firms of a possible collapse in the $2.8 trillion municipal bond market, considered lifeline to state and local governments that have increasingly relied on debt to sustain government function in recent years.</p>
<p>Regardless of the outcome of the bill, a federal crackdown on state and local government accounting practices could be on the way.</p>
<p>In August, New Jersey was charged with securities fraud by the Securities and Exchange Commission for concealing from investors financial information about the funding status of two public pensions.</p>
<p>Brainard said he hopes to see abuses in states like New Jersey rectified, but he doesn’t believe they demonstrate a widespread problem. He said the fact that municipal bonds are still being purchased by investors shows the alleged crisis has been exaggerated.</p>
<p>“I think muni-bond investors are pretty smart people. They can read an annual finance report,” he said. “Bond rating agencies have known all along what New Jersey and other states were doing.”</p>
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