Far West

WASHINGTON — Build America Bond issuers that inadvertently violate tax law requirements and voluntarily seek to correct them would have their federal subsidy payments reduced, rather than eliminated, if the Internal Revenue Service adopts recommendations an advisory committee presented to it yesterday.

ALAMEDA, Calif. — California voters signed off on most of the local bond measures they faced Tuesday, while also approving a major shakeup to the state’s primary election process and rejecting a measure that would have made it harder to establish and expand municipal electric utilities.

ATLANTA — Municipal issuers are overreacting to recent developments surrounding the compliance program for Build America Bonds, a Treasury official said yesterday in an effort to tamp down ongoing concerns.

The Government Finance Officers Association approved policy statements Tuesday calling on the Governmental Accounting Standards Board not to move forward with its “fiscal sustainability” project and for the Securities and Exchange Commission to scrap plans to consider requiring floating net asset values for shares of money market funds.

Demand for federal high-speed rail funds has once again exceeded supply, as the Federal Railroad Administration confirmed this week that 23 states flooded it with a$137 million of applications for proposed projects.

ATLANTA — Government Finance Officers Association members are scheduled to vote this morning on a policy statement calling on the Securities and Exchange Commission to maintain a stable, $1.00 net asset value per share of money market funds and to scrap plans to consider a floating NAV.

ATLANTA — A Treasury Department official Monday said that federal regulators already have attempted to assuage muni market participants’ worries about how to determine issue price for Build America Bonds in guidance issued in April, even though issuers continue to air concerns about the lack of guidance.

The global airline industry is expected to post a large profit this year and see a significant increase in passenger traffic, an airline trade group announced yesterday.

WASHINGTON — State and local groups are bringing their concerns to the U.S. Department of Transportation’s upcoming TIGER II grants — $600 million to be distributed to highways, bridges, transit, freight and passenger rail, and ports — with ports requesting at least one-quarter of the money.

WASHINGTON — With lawmakers from both chambers of Congress set to begin hammering out a single financial regulatory reform bill on Wednesday, one of the most contentious municipal-market issues to be worked out centers on who will regulate non-dealer financial advisers, swap advisers and other market intermediaries.