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Arizona, Nevada and California announced an agreement on Colorado River water use reductions, possibly averting a more stringent federal solution.

"Ultimately, the case for fixed income generally, and munis specifically, is much stronger today than it was a year ago," said Nick Vendetti, municipal bond fund portfolio manager with Allspring Global Investments.

Public sector employers are in a fierce competition with the private sector for workers and may be losing amid labor shortages and inflation.

"If the banking stresses start to bring inflation down for us, then maybe we're getting closer to being done. I just don't know right now," said Federal Reserve Bank of Minneapolis President Neel Kashkari.

When it comes to federal funds flowing to cities and states, top issues to watch are a potential claw back of stimulus aid, fresh infrastructure fund opportunities and guidance on first-of-its-kind tax credits.

The bank-qualified cap is a muni priority that could appeal to lawmakers from less populous areas, as it impacts exclusively small issuers.

The exemption, which has been recently enforced by the Securities and Exchange Commission for the first time, will likely force some underwriters to opt out of it for fear of enforcement.

As GFOA's new president, she intends to work to address staffing shortages and bring GFOA members together.

Puerto Rico must take additional steps to be able to regain market access, they said.

High inflation and high costs for construction and borrowing add to a strained labor market complicating some planned municipal issuances.