Far West

SAN FRANCISCO — Moody's Investors Service's recent downgrade to junk of California redevelopment bonds has triggered complaints from state officials, but little evident stir in the market.

The gap between many states' pension and health care benefit commitments and the money set aside to meet them is growing wider, representing a continuing and growing threat to their financial stability and creditworthiness, according to a new report from the Pew Center on the States.

Additional regulation of money-market mutual funds could increase short-term borrowing costs for state and local governments, leading municipalities to raise taxes or cut spending on infrastructure and other critical projects, according to a paper released Monday by a Georgetown University professor.

SAN FRANCISCO — California lawmakers passed a budget bill last week, but left a lot of details to fill in before the new fiscal year starts July 1.

The California Department of Transportation and the San Francisco County Transportation Authority closed Thursday on financing for the $1.1 billion Presidio Parkway Public-Private Partnership.

The Internal Revenue Service has closed an audit without changing the tax-exempt status of $219.22 million of bonds that were issued by the curators of the University of Missouri in 2006.

The Financial Industry Regulatory Authority ordered five firms — Neuberger Berman, Lawson Financial, Edward D. Jones, Estrada Hinojosa and UVEST Financial — to pay a total of nearly $120,000 in fines and restitution for violations of municipal securities rules.

FINRA will soon begin examining underwriters of municipal bonds to see if they can show they have carried out disclosure due-diligence obligations like those in a risk alert the SEC issued in March, a senior official said.

As state and local governments grapple with the costs of their employees' retirements, elections in two big California cities may signal a sea change in the pension reform debate.