Far West

WASHINGTON — A federal cap on tax-exempt bonds could gradually wean investors and issuers off the muni market and toward a permanent, expanded Build America Bond market that has a flexible subsidy rate, a new report from the Center for American Progress argues.

WASHINGTON — With financial regulators combing through pension reporting by state and local governments, the National Association of Bond Lawyers unveiled guidance Monday to boost issuers’ disclosure practices.

SAN FRANCISCO — California Gov. Jerry Brown has scrapped a contentious $356 million bond-funded plan to build a new death row wing at the San Quentin prison.

WASHINGTON — A House Ways and Means Committee panel plans to hold a hearing next Thursday on a bill that would prohibit state and local governments from issuing tax-exempt bonds unless they meet certain pension disclosure requirements.

SAN FRANCISCO — The restructuring of $2 billion of San Joaquin Hills toll-road debt appears to have bondholders on board since the alternative is a likely default.

WASHINGTON — The Federal Reserve Wednesday lowered its forecast for economic growth in 2011, while also lowering its expectation for the unemployment rate this year, as chairman Ben Bernanke warned the U.S. budget deficit is the “most important economic problem” the country faces.

The Municipal Securities Rulemaking Board has filed a rule change with the Securities and Exchange Commission that increases the price of a one-year historical transaction-data report to $2,500 from $600.

The Department of Transportation is expected to launch TIGER III during the next few weeks, ultimately awarding grants for capital projects from $528 million that was provided for the program in the recently enacted fiscal 2011 budget compromise.

Under fire from congressional Republicans to slow down derivatives rulemaking, the Commodity Futures Trading Commission voted Wednesday to reopen and extend by 30 days the public comment period on proposed derivatives rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

WASHINGTON — This year will be the “toughest year so far” for state and local governments since the economic plunge began in 2008, with rating downgrades expected to outnumber upgrades, according to Moody’s Investors Service.