Investments

Tax-exempt money market funds shed $3.91 billion in the week ending May 31, finishing with total net assets of $352.92 billion, according to the Money Fund Report, a service of iMoneyNet.com. That was a significantly steeper decline than the previous week, in which the funds saw $156.7 million of outflows and ended with $356.83 billion.

WASHINGTON — The North Carolina Senate yesterday passed a $451 million bond package for its state university and community college systems as some legislators emphasized the importance of education investment even in the face of a large budget deficit.

CALIFORNIAVentura CountyJun 2, 2010 . . . . . . $131,000,000

ALABAMAHouston County Cooperative DistrictMay 24, 2010 . . . . . . $7,000,000

WASHINGTON — Berkshire Hathaway Inc.’s Warren Buffett warned a panel investigating the causes of the financial crisis Wednesday that states and localities may face “terrible” financial distress in the next five to 10 years that in turn could lead some to look to the federal government for bailouts.

Municipal closed-end funds are fiddling while everyone else burns.

Table as of: 06/01/2010 16:47 PM Invisible Supply Issuer and purpose Amount* Approval

CALIFORNIASanta Clara Unified School DistrictJun 1, 2010 . . . . . . $15,000,000

NEW JERSEYMerchantville BoroughJun 1, 2010 . . . . . . $699,611

An ongoing student strike at the University of Puerto Rico has placed the school semester on hold, but the standoff does not affect its ability to repay its $569 million of outstanding bonds, according to a university official.

The Dormitory Authority of the State of New York’s upcoming $1.3 billion personal-income tax bond deal will be the state’s largest ever municipal issue with a minority firm serving as book-runner, DASNY announced yesterday.

Arbitration panels for the Financial Industry Regulatory Authority have ordered Citigroup to pay roughly $2.2 million to investors who lost money in one of the bank’s municipal bond arbitrage vehicles.

Kent State University’s board last week approved a five-year, $250 million capital plan to finance various improvements starting next year through 2016. Officials also said they would ask the state for $65 million in financing.

Moody’s Investors Service last week downgraded Northwest Missouri State University’s rating to A3 from A2 due to fiscal pressures on the school. The action affects $85.7 million of debt.

ARIZONAAvondale Elementary School District No. 44May 13, 2010 . . . . . . $5,115,000

On the heels of last week’s robust calendar, volume will be noticeably lighter this week as only a handful of sizable deals deliver an estimated $4 billion to the municipal market amid abbreviated trading due to the observance of yesterday’s Memorial Day holiday, according to Ipreo LLC and The Bond Buyer.

Municipal bond mutual funds commanded a moderate sum of new money last week as investors remained averse to risk.

CONNECTICUTBerlin (Town)May 27, 2010 . . . . . . $3,640,000

ALABAMAAndalusia Industrial Development BoardMay 24, 2010 . . . . . . $5,505,000

Tax-exempt money market funds saw outflows of $356.83 billion while the average, seven-day simple yield remained unchanged at 0.04% for the week ending May 24, according to the Money Fund Report, a service of iMoneyNet.com.