Wisconsin Taps Kevin Taylor to Manage Debt

CHICAGO – Indiana-based fiscal consultant Kevin D. Taylor will fill the position of Wisconsin capital finance director left vacant by Frank Hoadley’s recent retirement, the Wisconsin Department of Administration announced Wednesday.

Taylor, a former banker and executive director of the Indianapolis Local Public Improvement Bond Bank, will take the reins of the office that handles disclosure, manages all state debt issuance, and recommends debt policy and legislation to the State Building Commission and Gov. Scott Walker. The office also administers finances for the clean water revolving loan fund program.

Indianapolis Mayor Greg Ballard hired Taylor to lead the local bond bank in 2008. He returned to his hometown from New York City to take the job after six years at AIG Global Investment Group where he was a manager of the insurer’s municipal bond portfolio. He began his municipal career as an analyst at Standard & Poor’s where he worked for eight years. He also worked for three years as a trading desk credit analyst for Prudential Securities.

Taylor left the local bond bank in early 2010 to manage Indianapolis-based City Securities Corp.’s public finance team. Taylor currently operates a consulting business providing fiscal and credit-related advice to public clients including the bond bank.

The capital finance officer reports to the state budget director and both offices fall under the purview of the DOA.

Taylor replaces Hoadley, who retired after 25 years at the end of February. Taylor will start April 22.

“Wisconsin’s debt issuance programs have very strong credit histories, and the state’s current general creditworthiness is particularly strong -- and, in fact, showing very positive trends fiscally and economically,” Taylor said in the state’s announcement. “I am looking forward to the capital finance office’s role in building on this strong history and telling the story to investors and the rating agencies.”

The state launched a search to fill the civil servant position last July after Hoadley announced his plan to retire.

The office is currently staffed by assistant capital finance director David Erdman who has been there since 1994; Brad Elmer who was hired in 2011 for the position of capital finance officer; and Michael Wolff who joined the office in 1989 as finance programs administrator.

The state sold 55 GO issues valued at $9.6 billion over the last decade and 44 revenue-backed issues totaling $7.8 billion, according to data compiled last summer by Thomson Reuters.

Walker has proposed a $1.4 billion two-year capital budget and a $68 billion two-year operating budget for the next biennium.

Ahead of a GO sale last fall, all three rating agencies affirmed the state’s mid-double-A level ratings and stable outlooks.

The rating is driven by moderate debt levels, fully funded pensions, and a broad and diverse economy.

The state’s challenges remain an ongoing structural imbalance and minimally funded reserves. The state expects to close out the current fiscal year June 30 with a balance of $484 million and $125 million in reserves. Walker’s proposed budget would close out both years with a positive ending balance but the state will carry a structural imbalance of about $200 million.

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