On Friday, September 10, 2021, the House Ways and Means Committee released the text of a bill – known as the “Build Back Better Act” – that would restore the ability of state and local governments to issue tax-exempt “advance refunding” bonds, i.e., bonds issued more than 90 days before the redemption date of the bonds to be refunded.
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The Pennsylvania School Board Director’s Quick-Guide to ARP ESSER/ESSER III Funding
On July 16, 2021, the Pennsylvania Department of Education (“PDE”) submitted its American Rescue Plan Act (“ARP”) Elementary and Secondary School Emergency Relief Fund (“ESSER”) Plan to the United States Department of Education (“USDE”). ARP ESSER is sometimes referred to as “ESSER III.” Pennsylvania’s 78-page plan can be found here: Pennsylvania ARP ESSER State Plan. Less than a month later, on August 5, 2021, USDE approved Pennsylvania’s ARP ESSER Plan.
That plan approved nearly $5 billion in federal funding to flow to public school districts, including charters (referred to as a Local Education Agency (“LEA”)) across the Commonwealth.[1] If you are curious as to what was allocated for your school district, that can be found at PDE’s website. Although there is not a specific deadline to apply for ARP ESSER funds, PDE strongly encouraged LEAs to apply by September 1, 2021.
Continue Reading The Pennsylvania School Board Director’s Quick-Guide to ARP ESSER/ESSER III Funding
Private College and University Construction Projects Financed by Bonds Are Subject to Prevailing Wage Act, Appeals Board Finds
A recent decision from the Pennsylvania Prevailing Wage Appeals Board (the “Board”), if affirmed, would have dramatic consequences for private, nonprofit colleges and universities that rely on bonds issued by public entities to finance their construction projects. The decision, In Re: Grievance filed by International Brotherhood of Electrical Workers, Local No. 98, Docket No. PWAB-1G-2018, was recently appealed to the Pennsylvania Commonwealth Court.
In the case, the Board determined that the Pennsylvania Prevailing Wage Act (the “Prevailing Wage Act”), applies to construction projects at Ursinus College (the “College”), a private, nonprofit college, because the projects were financed by bonds issued by the Montgomery County Higher Education and Health Authority (the “Authority”), a municipal authority and public instrumentality of the County of Montgomery organized under the Pennsylvania Municipality Authorities Act (the “Authorities Act”).
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McNees Adds Accomplished Public Finance Attorney to Devon Office
McNees Wallace & Nurick LLC is pleased to announce the addition of accomplished public finance attorney Frannie Reilly to its Devon office. Reilly, who most recently led her own practice in Swarthmore, adds extensive experience to the firm’s Public Finance & Government Services, Corporate & Tax, and Charitable and Non-Profit Groups.
Reilly has served as
Issues Arising in Secondary Market Disclosure for Municipal Bonds
McNees is hosting a Municipal Roundtable to discuss the issues of disclosure in the secondary market. This discussion will include an overview of SEC Rule 15c2-12 and cover everything from the simple things issuers do wrong to ESG disclosure and disclosure by distressed issuers. Participants will also have the ability to ask questions in this
Billions of Dollars Will Soon Start Flowing to State and Local Governments under the American Rescue Plan Act of 2021. Here’s What to Expect.
On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”), which provides for almost two trillion dollars of new federal spending to combat the ongoing impact of the COVID-19 Pandemic. Of particular interest for Pennsylvania is the approximate $350 Billion of new funding appropriated to tribal governments, states, territories, and local governments, $14 Billion of which is estimated to be received by Pennsylvania and its municipalities. With the United States Department of the Treasury (“Treasury”) mandated to pay out a substantial portion of the funds within 60 days of the enactment of ARPA, Pennsylvania and its municipalities might see initial funding from ARPA as early as May.
Continue Reading Billions of Dollars Will Soon Start Flowing to State and Local Governments under the American Rescue Plan Act of 2021. Here’s What to Expect.
With Great Funding Comes Great Responsibility: Assisting Municipalities with American Rescue Plan Compliance
Pennsylvania counties and municipalities could see a windfall from the nearly $14 billion in aid that will be delivered to the commonwealth through the recently passed American Rescue Plan Act.
While it will be welcome financial relief, counties and local governments should be aware of the rules and regulations regarding how those funds should be spent.
Continue Reading With Great Funding Comes Great Responsibility: Assisting Municipalities with American Rescue Plan Compliance
MSRB Releases 2020 Review of Municipal Bond Market
The Municipal Securities Rulemaking Board (MSRB), the regulatory body that oversees the municipal securities market in the United States, recently released its annual report on the status of the market. The report, which can be reviewed here, offers some fascinating insights into what was a tumultuous year for the market. Our highlights follow:
- Spring Market Dislocation: For about two weeks in March, the market simply stopped functioning. During this period, benchmark yields in 3-, 10- and 30-year bonds increased by 213, 193 and 182 basis points, respectively. However, the recovery was similarly swift, with yields substantially returning to their pre-pandemic levels by the end of March.
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Short-Term Borrowing for Local Governments, School Districts in COVID Uncertainty
Recent legislation passed by the Pennsylvania General Assembly offers a new short short-term borrowing option to local governments and school districts dealing with budget uncertainties related to the ongoing COVID-19 Pandemic. House Bill 2536 was signed into law by Governor Tom Wolf on November 23, 2020, as Act 114 of 2020. Among other things, Act 114 created a special, limited emergency tax and revenue anticipation note program for the 2021 calendar year. The new program will provide greater financial flexibility to local governments and school districts as they await the results of tax collections in the coming months.
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Budgeting for OPEB Liabilities with an OPEB Trust
Many Pennsylvania municipalities in recent years have struggled to rein in their Other Post Employment Benefits (OPEB) liabilities. OPEB benefits are retirement benefits a public employer has promised to provide its retired employees, other than pension payments. Benefits might include life insurance premiums, post-retirement healthcare, dental and vision benefits and other types of benefits.
OPEB benefits are typically funded using one of two methods: (i) the pay-as-you-go method, which is generally paid each year from the municipality’s general fund; or (2) or an OPEB trust. A trust is typically established through an initial and then subsequent transfers of funds. The trust funds are invested and the principal and interest are used to pay for the promised OPEB benefits.
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