WASHINGTON — Maryland has become the first state to disclose that a portion of its Build America Bond subsidy payment was reduced so that it could pay the federal government outstanding payroll taxes, state officials said this week. The offset could affect BAB issuance in the future, they said.

Meanwhile, Ben Watkins, director of Florida’s Division of Bond Finance, said the state has stopped issuing BABs after reviewing the potential liabilities of such offsets.

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