Philadelphia muni analysts to explore rainy day funds
The importance of rainy day funds on state credit ratings will be explored at a Philadelphia Area Municipal Analysts Society meeting.
Dr. Jon Moody, a research fellow at Pew Charitable Trusts, will speak at the Sept. 21 meeting about recent studies his team has produced about how states are looking to bolster reserves to prepare for the next recession. A July report released by Pew found that while most states have enhanced their rainy day fund policies in the last decade, other improvements can be added that will bolster credit condition such as conducting a volatility study to determine optimal reserve levels.
Dr. Moody’s report will be followed by a panel discussion moderated by Brenna Erford, director of retirement policy at the Arnold Foundation. The panel will feature Dr. Moody, Erin Kelly, an investment analyst at Vanguard, and Baye Larsen, credit analyst at Moody’s Investors Service.
“The speaker and the panel will discuss several themes related to U.S. state rainy day funds,” said Tom Kozlik, president of PhAMAS. “For example, we are in the eighth year of an economic upswing but not all states have socked away money into a rainy day fund. A few have depleted their rainy day funds and only some have a healthy balance stashed away. How this impacts investor perception and ratings will be discussed.”
The Sept. 21 PhAMAS event is slated from 4 to 6 p.m. at PFM Financial Advisors on 1735 Market Street, 42nd floor, Philadelphia. Attendance is $20 for members, $75 for non-members and free for students. For further information, log onto the PhAMAS website.