News and Information from Bond Buyer

Government

A push from California Republicans to reverse a proposal to cap budget reserves among school districts failed to gain the necessary support in the legislature last week.

Traders will be forced outside of their comfort zone this week and next as yield and supply become more sparse. Spread compression has created cheap borrowing environments for obligors like Robert Woods Johnson of New Jersey.

Detroit plans to sell $1.8 billion of water and sewer bonds Tuesday through the Michigan Finance Authority in a transaction that allows it to finance the purchase of $1.5 billion of tendered bonds and further its efforts to exit bankruptcy.

Detroit's voluntary tender program of its water and sewer revenue bonds may have provide an "optimal solution" for the market but it still represents a default, Municipal Market Advisors said Monday.

Moody's Investors Service said it has upgraded Randolph County, Ga.'s general obligation bonds to Baa1 from Baa3, affecting approximately $8.4 million in outstanding debt.

Nevada made a splash earlier this year with plans for its biggest P3 yet. Now the state has reversed course after finding it would be less expensive to manage and fund the project itself.

Non-dealer municipal advisors are concerned that the Municipal Securities Rulemaking Board's draft core MA rule contains an exemption for "inadvertent advice," while broker-dealers say certain aspects of the rule are too vague and too broad.

Oregon, which invented the gasoline tax in 1919, is on the road to be the first state to shift to a mileage-based user fee for highway funding.

Miami-Dade County commissioners will consider placing a $540 million bond issue on the November ballot to build a new courthouse.

Connecticut State Rep. Diana Urban wants to create a results-based accountability report card for nonprofits to prevent further Amistad-type fiascoes.

The Internal Revenue Service has issued guidance to provide temporary relief from some tax requirements for bond-financed qualified residential rental projects in the event of a presidentially-declared major disaster.

Investors famished for yield will turn to the $99.1 million Dallas-Fort Worth international airport joint revenue refunding bonds this week, traders said.

After winning strong support from voters in its last bond election, Houston Independent School District will issue $350 million of variable-rate debt that carries triple-A ratings on two levels.

Tender rates for the Treasury Department's latest 92-day and 182-day discount bills were unchanged, as the three-months incurred a 0.030% high rate, unchanged from 0.030% the prior week, and the six-months incurred a 0.050% high rate, unchanged from 0.050% the week before.

The Treasury Department said it will auction $15 billion 11-day cash management bills on Sept. 3.

The Treasury Department said Monday it will sell $50 billion of four-week discount bills Tuesday.

Texas factory activity, as measured by the production index, "increased again in August, albeit at a slower pace than in recent months," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.

Sales of new single-family homes fell 2.4% to a 412,000 seasonally adjusted annual rate in July, according to data released by the Commerce Department Monday.

The Chicago Fed National Activity Index for July gained to 0.39 from a revised 0.21 reading in June, while the three-month moving average (CFNAI-MA3) gained to 0.25 from a revised 0.21 in June, the Federal Reserve Bank of Chicago reported Monday.