Bankruptcy

Westchester County Executive Robert Astorino wants to join a lawsuit challenging the legality of a tax enacted last year to help fund mass transit capital projects in the New York City area, he announced Wednesday.

WASHINGTON — The Governmental Accounting Standards Board is set to kick off a series of public hearings next week on its preliminary draft pension-fund accounting and financial reporting standards that are designed to boost the disclosure of public pension liabilities but are proving to be controversial.

WASHINGTON — Municipal market participants should not expect the Treasury Department to simply rubber-stamp the existing tax-exempt bond rules for issue price when it comes to Build America Bonds, a Treasury official told bond lawyers at a recent meeting.

SAN FRANCISCO — Industry experts echoed concerns Wednesday about regulatory changes in the municipal bond industry and the possible impact the changes may have in the coming weeks and months.

Despite recent warnings from some financial experts that the ongoing financial troubles of state and local governments will lead to municipal bond defaults, state credits remain much more stable than corporate credits, Moody’s Investors Service said Wednesday.

CHICAGO — Indiana auditors warned that the long-struggling city of Gary could face insolvency as it tries to overcome massive drops in property tax revenue tied to the state’s two-year-old tax cap legislation.

A former state representative has filed suit against the use of $198 million from Louisiana’s budget stabilization fund to balance the fiscal 2010 budget. The money was taken out of the fund after a dispute between House and Senate leaders over when the money would be repaid.

With just a month before the general election, federal indictments were unsealed Monday charging four Alabama state senators, an employee of the Legislature, and six other individuals in a bribery conspiracy involving electronic gambling legislation.

New Jersey and Atlantic City officials worked out a plan Tuesday to allow the state’s gambling center to spread out a $9.5 million budget deficit over five years as it prepares to issue nearly $36 million of refunding and new-money debt in the near term.

WASHINGTON — Market participants are sharply divided on the Municipal Securities ­Rulemaking Board’s draft proposal to prohibit dealers from underwriting new negotiated or competitive bond issues if they served as the issuer’s financial adviser on the transaction.

Rhode Island Superior Court will hold a hearing Tuesday regarding the constitutionality of the state’s appointment of a receiver to oversee Central Falls’ finances. Motions were filed Monday.

SAN FRANCISCO — National Public Finance Guarantee Corp. withdrew a motion Monday asking a federal bankruptcy court to allow California state payments to the bankrupt city of Vallejo to flow to bondholders instead.

ALAMEDA, Calif. — The California Supreme Court upheld Gov. Arnold Schwarzenegger’s employee furlough policy Monday.

Moody’s Investors Service placed under review for possible downgrade Monday a combined $86.4 million of Harrisburg Authority water bonds and Harrisburg Parking Authority revenue bonds because the city could enter Pennsylvania’s distressed communities program.

The Arkansas Board of Finance last week approved a new plan for investing the state’s allocation of tobacco settlement funds that could bring in an additional $1 million a year in interest.

WASHINGTON — The Municipal Securities Rulemaking Board announced the members of its new, majority-public board Friday, hours after it proposed a series of large fee increases to defray the technology costs for its EMMA site as well as expenses tied to the regulation of municipal advisers under the Dodd-Frank Act.

As Harrisburg looks for assistance through Pennsylvania’s distressed communities program, the city also will seek a $7 million short-term loan to help meet payroll and other immediate costs.

The appointment of a receiver by Rhode Island for Central Falls has landed in court. A hearing is scheduled for Monday in state superior court.

BRADENTON, Fla. — A north Florida grand jury decided Wednesday not to pursue an investigation into the construction and furnishing of a $48 million appeals court building that was financed with $33.5 million of bonds.

WASHINGTON — The Securities and Exchange Commission plans to launch its new office of municipal securities by the end of October, chairman Mary Schapiro said in prepared testimony presented to the Senate Banking Committee Thursday.