Yesterday morning the House Financial Liabilities Reform Committee passed Senate Bill 922, a bill to extend the sunset for bonding for other post employment benefits (OPEB) and the costs of switching from defined benefit to defined contribution. This is an option for communities with a AA credit rating.
The sunset will be extended to December 31, 2015. The League has been pushing for an additional change to allow communities with an A rating or better to use this option if they purchase bond insurance. Thus far we have not been successful in getting this amendment.
The legislation now goes to the full House for consideration.
Samantha Harkins is the Director of State Affairs for the League handling municipal finance issues. She can be reached at [email protected] or 517-908-0306.