If applied, cities like New York, Chicago and San Francisco would be penalized to the tune of billions of dollars in Federal funding for domiciling, educating and providing healthcare to illegal immigrants without reporting it to the Federal government. Hence, the term ‘sanctuary cities.’
In all, the Federal government provides funding to cities across the country in the magnitude of $27b per annum, through a spiderweb of programs which embodies the very essence of bureaucratic corruption.
“These jurisdictions have caused immeasurable harm to the American people and to the very fabric of our Republic,” Trump’s executive order said, signed on January 25th, 2017.
As such, municipalities have been forced to disclose this new risk to their liquidity during recent bond sales.
This was affixed to a recent New York general obligation bond issuance, led by Citi.
“If implementation of the executive order results in the reduction of federal aid to the city, the city expects that it would mount a vigorous legal challenge,” the disclosure said. “However, there can be no guarantee that implementation of the executive order will not result in a significant reduction or delay in receiving such aid.”
Other states, such as Oregon and California, are disclosing risks associated with the repeal of Obamacare and Dodd Frank, citing ‘material adverse effects on the financial condition of the state’, should it be implemented.
Since the year is young and bond issuance has only just begun, expect to hear more about these sort of disclosures as time presses on.
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So you think this could affect $MUB?
It might.
Gov Brown in CA already warned 2017 could be a budget shortfall. Amazing given the number of people in the state. Does that mean we have more takers than givers? Apparently.
There was also a recent unfavorable accounting error that was disclosed recently. Not sure how this will impact the budget going forward.
It won’t. There will be favorable accounting adjustment to cover up the previous unfavorable accounting error. Ad nauseam.
Every study I’ve seen shows that “Red” states more dependant than “Blue” on Federal spending and on average get more receipts from Fed than they pay in taxes.
As one example see:
mises.org/blog/which-states-rely-most-federal-spending
Of course I live in a fully cucked libtard bubble and mybhead us way up my ass. What’s your data say?
If there is any “surprise” out there this is the big one. California is so corrupt the only way to fix it is to shatter it into a thousand pieces. Unfortunately.
What a shame for such a beautiful state, geologically speaking. I always enjoy my trips out there.
For all the environmentalism efforts in this state, all the highways here look like we dump our trash out on the way to work.
Los Angeles is the worst city in the world. Drive by shootings, mountain lions, forest fires; shitty public transportation, no cabs; thank god for uber because before uber came around everyone drove drunk. Hippie crap and new age nonsense everywhere. Broken dreams on every street corner. Horrible restaurants serving pretentious crap. Improv comedy, celebrity hairstylists, David Spade, Scientology…..California secede already, please.
Whoa. Los Angeles never gets cold ever. That has to mean something. Granted the red pill is broke down stranded at the edge of the Salton Sea. Talk about a fraud. Fountain of Youth con for the ages. There is always a chance.
Cold builds character. Warmth is overrated.
Yes, there is a mathematical statistical reality to what you say.
Additionally, the US tax code is up for review and one of the things being looked at is the elimination of tax free municipal bonds.
It’s about time. Cities should not enjoy special tax breaks unavailable to the rest of us.