April 13, 2006

• Massachusetts Passes First Law to Require Health Insurance
•Fishing Revenue Bond Proceeds to Build Hatcheries in Alaska
•Louisiana State Insurer Issues $1 Billion of Debt to Pay Hurricane Claims
•Year-to-Date Municipal Bond Issuance Down 29%

March 31, 2006

March 17, 2006

March 3, 2006

• New York City Budget Proposal Includes $2 Billion Reserve for Retiree Health Benefits
•January Municipal Issuance Fell 21% Year Over Year
•States Plan to Sue Federal Government Over Medicare’s New Prescription Plan
•Municipal Futures Contract to End in March

February 17, 2006

January 13, 2006

Preliminary Budget and Strategic Growth Plan for California

School Vouchers Ruled Unconstitutional in Florida

New Jersey Passes Indoor Cigarette Ban

Health Care Spending Continues to Grow Faster Than the Economy

January 6, 2006

Gulf Opportunity Zone Act Provides Incentives, Options for Rebuilding

Major Energy Company Agrees to California Energy Crisis Settlement

Record Municipal Bond Volume in 2005

Tax on Florida’s New Slot Machines to Support Education

December 30, 2005

New York City Transit Strike Ends After Three Days

Arkansas Supreme Court Rules Against New State Education Funding

State Revenues Continue to Rise, But So Do Expenditures

December 16, 2005

Moody’s Upgrades New York State to “Aa3”

Growing Economy and Strong Management Boost Florida’s Debt Capacity

Chicago O’Hare Issues $1.2 Billion to Reconfigure Runways

Illinois Court “Price” Ruling Positive for Tobacco Bonds

December 9, 2005

Denver Airport and United Strike a Deal

State of California Sells $1.3 Billion of Debt

Michigan Reports Tax Revenue Growth

Loudoun County, Virginia, Earns Third Triple-A Rating

December 2, 2005

Louisiana Downgraded After Legislature Ends Special Session

Fiscal Improvement Yields Upgrade for District of Columbia

Texas Education Funding Ruled Unconstitutional

Double Downgrades for Detroit

November 18, 2005

Strong Economy May Help California Close 2007 Budget Deficit

Judge Thwarts Objection to Municipal Utility’s Telecommunications Services

California Power Bonds Out of “BBB” Category

Port of Seattle Upgraded to “AAA”

November 11, 2005

New Orleans Downgraded to Junk

Another Airline Files for Bankruptcy

Voters Nationwide Approve $16.5 Billion of Bonds

California Voters Reject Propositions, Including State Spending Limit

November 4, 2005

After 13 Years, Colorado Voters Suspend Taxpayer Bill of Rights

Two Notch Downgrade for Memphis

S&P Upgrades Rhode Island to “AA”

Southern California Regional Airports Need $6 Billion Investment

October 28, 2005

Judge Orders Illinois Health System to Divest Hospital

Hurricanes Lead to Downgrade for Florida’s State-Run Insurer

Denver Airport Gets Ready for “Southwest Effect”

Maryland Reports $20 Billion Liability for Retiree Health Care

October 21, 2005

Federal Government Approves Florida’s Plan to Overhaul Medicaid

S&P Upgrades King County, Washington, to “AAA”

California Toll Roads Release Plan to Avoid Default

New York MTA Plans to Spend Surplus

October 14, 2005

Mississippi Legislature Ends Special Katrina-Relief Session

California City Receives Adverse Letter of Determination from IRS

Unexpected Tax Revenues May Help Offset California’s Budget Deficit

Taxpayers Respond to Indiana’s Amnesty

October 7, 2005

FAA Approved O’Hare Expansion Stalled in Court

Municipal Bond Issuance Continues at Near Record Pace

Fitch Downgrades Three Vulnerable New Orleans Municipal Issuers

New Orleans to Cut Workforce in Half

September 30, 2005

Discussion of Katrina Aid Packages Continues

Negative Outlook for Miami Airport

$1.2 Billion of Tax-Exempt Liberty Bonds Issued for New Goldman Sachs Headquarters

High Pump Prices Not Expected to Prompt Gas Tax Bond Downgrades

September 23, 2005

State Revenues Continue to Grow

S&P Upgrades North Dakota to “AA”

Industry Groups and Federal Government Propose Katrina Recovery Measures

Ports Receive $142 Million to Boost Security

• FAA Approved O’Hare Expansion Stalled in Court
• Municipal Bond Issuance Continues at Near Record Pace
• Fitch Downgrades Three Vulnerable New Orleans Municipal Issuers
• New Orleans to Cut Workforce in Half

September 16, 2005

Delta, Northwest Bankruptcies Will Pressure Hub Airports

Government Response - Hurricane Katrina Update

Court Rules for Public Utilities, Against California, on Energy Crisis Refunds

After Mixed Court Rulings, President Receives Base Closure Proposal

September 9, 2005

Hurricane Katrina Update

Federal Aid

Rating Agency Response

Proposed Legislation to Help Local Governments Pay Debt Service

Debt Service Payments

Louisiana (A1/A+/A+)

Mississippi (Aa3/AA/AA)

Alabama (Aa2/AA/AA)

September 2, 2005

Hurricane Katrina Devastates Gulf Coast States

Rolling Blackouts Return to Southern California

Moody’s Upgrades Alabama to “Aa2” Pre-Katrina

BRAC Panel Releases Final Military Recommendations for President’s Approval

August 26, 2005

States Report Improved Fiscal Position

Connecticut Sues Federal Government Over No Child Left Behind Funding

Florida’s State-Run Insurance Agency to Impose First Surcharge After Four-Hurricane Year

Three-Notch Downgrade to “A” for Macon, Georgia

August 19, 2005

Moody’s Upgrades Nevada to “Aa1”

Reliant Agrees to $460 Million Energy Crisis Settlement

Another Year of Federal Sewer Funding Cuts

North Dakota Issues First Garvees

August 12, 2005

Record Year-to-Date for Municipal Bond Issuance

Collection of Expired Tax Brings Lawsuit and Downgrade to Detroit School District

President Bush Signs Long-Awaited “SAFETEA-LU” Federal Transportation Bill

August 5, 2005

Alabama is First to Respond to Supreme Court Eminent Domain Ruling with New Law

Toll Road Privatization Revenues Prompt Upgrades for Chicago

Federal Energy Bill Includes New Tax Credit Bonds

Student Fees Support New Debt for University of New Mexico Academic Buildings

July 29, 2005

States Sue to Stop Proposed Military Base Realignment and Closures

California’s Redistricting Initiative Ruled Invalid

Texas Legislators Begin Third Special Session on Education Funding

TEA-21 Extensions Continue

July 22, 2005

S&P Upgrades New Jersey to “AA”

48 Hour Extension for Federal Transportation Funding

Kansas Averts Public School Closures

New York State Comptroller Rejects $2.9 Billion Thruway Authority Transaction

July 15, 2005

South Carolina Loses “AAA” Rating from S&P

Upgrades for California

Massachusetts School Building Authority Issues Inaugural $2 Billion of School Bonds

Minnesota Budget Deal Ends State Government Shutdown

July 8, 2005

New York Health System Files for Bankruptcy

United Airlines Plans to Exit Chapter 11 in the Fall

Eighth Federal Transportation Funding Extension to Last 19 Days

California’s Governor and Legislature Agree on 2006 Budget

July 1, 2005

West Virginia Voters Reject Planned Pension Obligation Bonds

Texas School District Closed Until Voters Approve Tax Increases and Bonds

Population Growth is Fastest in Southern and Western Cities

Bay Area Tolls Will Increase to $4 to Fund Bay Bridge Cost Overruns

June 24, 2005

Special Legislative Session on School Funding Begins in Texas

IRS Outlines Requirements for $2 Billion Tax-Exempt “Green Bond” Program

Fitch Upgrades District of Columbia Debt and Maintains Positive Outlook

New York Appoints Control Board for Erie County

June 17, 2005

Strong State Revenue Growth Continues for Sixth Straight Quarter

Governor Schwarzenegger Calls for November 8th Special Election

California Legislators Fail to Pass Spending Plan On Time for 19th Consecutive Year

Nevada Legislature Approves $300 Million in Tax Rebates

June 10, 2005

New York State Audit Prompts Erie County Downgrades

Two-Notch Upgrade for Nassau County

Northeastern States Respond to Proposed Military Base Closures and Realignments

Moody’s Upgrades Illinois Tollway Following First Toll Increase in Over 20 Years

June 3, 2005

Texas Issues First of $4 Billion of Texas Mobility Fund Bonds

Fitch Drops San Diego to “BBB+”

Seventh Extension of Federal Transportation Funding

Two More Downgrades for Maine

May 27, 2005

Puerto Rico Downgraded by S&P and Moody’s

America West, U.S. Air Hubs Expected to Weather Proposed Airline Merger

Winter Park Undertakes Florida’s First Electric System “Muncipalization” in 60 Years

Moody’s Downgrades Maine to “Aa3”

May 20, 2005

New York City Upgraded to “A+”

Two-Notch Downgrade and Negative Outlook for Detroit

Moody’s Upgrades Hawaii to “Aa2”

Philadelphia School District Issues Bonds to Finance Early Retirement Incentives

May 13, 2005

Virginia Issues $428 Million of Bonds in First Large Tobacco Transaction Since 2003

S&P Upgrades Kaiser Permanente to “A+”

Urban Gridlock Worsens with Traffic Demand Growing Faster than Capacity

College and University Endowments Improved in 2004

May 6, 2005

Municipal Bond Volume Hits Third Highest Level in April

Municipal Debt Issued for Permanent Dinosaur Exhibit

Passenger Demand Grows at Boston-Logan Airport

Moody’s Upgrades New York’s Triborough Bridge and Tunnel Authority Bonds

April 29, 2005

Washington Legislature’s Special Session Ends with Gas and “Sin” Tax Increases

San Jose Redevelopment Agency Downgraded to “A-”

New York State Thruway Tolls to Increase Up to 35%

April 22, 2005

Declining Enrollment Leads to Downgrade for San Jose School District

Project Delays and NHL Lockout Force Glendale, Arizona, to Tap Reserves for Arena Debt Service

Utah May Lose Federal Education Funding

Growth of Low-Fare Airlines Prompts Upgrade for Massachusetts Port Authority

April 15, 2005

States Still Struggle to Balance 2006 Budgets

Largest Military Housing Privatization Transaction Prices

Oregon Upgraded to “AA-”

New Property Tax Cap in Nevada

April 8, 2005

New York City Upgraded to “A1”

Connecticut to Sue Federal Government Over “No Child Left Behind” Costs

IRS Ruling Increases Credit Guarantee Options for Texas School Districts

California’s Tax Amnesty Yields Over $3 Billion

April 1, 2005

Las Vegas Monorail Falls to Junk

Oklahoma City Bond Proceeds to Revamp State Fair Park

S&P Downgrades Michigan to “AA”

Moody’s Upgrades Pittsburgh to Investment Grade

March 25, 2005

Detroit Downgraded to “BBB+”

IRS May Declare Louisiana Nuclear Solid Waste Bonds Taxable

Kentucky’s 2004-2006 Biennial Budget Finally Passed

S&P Upgrades Catholic Healthcare West to “A-”

March 18, 2005

S&P Upgrades Massachusetts to “AA”

Double Upgrade for Detroit Airport

2004 Ended with Another Strong Quarter for State Tax Revenue

California State University Upgraded to “A”

March 11, 2005

Pension Funding Prompts Fitch to Downgrade Houston

Civil Engineers’ Grade for Nation’s Infrastructure: “D”

Continued TEA-21 Extensions May Weaken Garvee Credit Quality

Illinois Junior College Project Default Demonstrates Risks of Off Balance Sheet Student Housing

March 4, 2005

Local Governments Securitize California’s Vehicle License Fee Repayment

Proposed Budget Would Decrease New Jersey’s Spending by 3%

Florida Earns “AAA” Rating from S&P

South Carolina’s “AAA” Rating May Be in Jeopardy

February 25, 2005

Judge Rules United Not Obligated to Repay JFK Airport Special Facilities Bonds

Virginia’s First Dulles Toll Increase to Fund Subway Extension to Airport

Massachusetts Governor Introduces “More Jobs” Plan

Bills Aim to Reduce Prison Population in Arkansas to Save Costs

February 18, 2005

Fitch Downgrades San Diego from “AA” to “A”

Illinois Governor Blagojevich Proposes Cigarette Tax to Help Eliminate $1.1 Billion Deficit

United’s Debt for O’Hare Facilities Cut by 75%

Montana Legislature Considers “Big-Box” Tax

February 11, 2005

Fiscal 2004 Marked Beginning of State Fiscal Recovery

S&P Downgrades Gardena, California, COPs to Junk

Fitch Upgrades California Power Bonds to “A”

Appeals Court Ruling Boosts Tobacco Bond Outlook

February 4, 2005

Moody’s Upgrades Long Island Power to “A3”

Judge Rules United Must Repay LAX Special Facilities Bonds

Fitch Returns Pittsburgh to Investment Grade

ATA Flight Reductions Won’t Stall Indianapolis Airport Expansion

January 28, 2005

Another Downgrade for Michigan

No Easy Fix for San Francisco’s Bay Bridge Cost Overruns

Pension Obligations Pressuring State Credit Quality

January 21, 2005

Tax Amnesty Collections May Boost California’s Revenues

Ascension Health Issues New Subordinate Debt to Fund Pension Plan

Outlook for Toll Roads Remains Stable

Texas Running Out of Room for Prisoners, Adding to Spending Pressures

January 14, 2005

Schwarzenegger’s 2006 Budget Includes $1.7 Billion of Economic Recovery Bonds

Richmond, California, Returns to Investment Grade

Hurricanes Don’t Deter Florida Upgrade

Tennessee Governor Revises, Rather than Dismantles, TennCare Health Program

December 17, 2004

Health Care Costs Stress Local Government Budgets

Double Upgrade for North Carolina Power Agency

Auto Industry Weakness Contributes to Downgrade for Michigan

Arizona Blood Bank Sells Record $55 Million of Revenue Bonds

December 10, 2004

States Expect Budget Challenges Next Year

Nevada’s First Continuing Care Retirement Community Issues Revenue Bonds

S&P Returns Pittsburgh to Investment Grade

December 3, 2004

Delta’s Withdrawal to Cost Dallas - Fort Worth Economy $782 Million Per Year

Treasury Reopens SLGS Window After Federal Debt Limit Increase

Price of Credit Guarantee to Rise Substantially for Texas School Districts

Fewer State Tax Changes Expected in 2005

November 19, 2004

Despite Economic Growth, California’s Budget Deficit Widens

Indianapolis and Indiana Loan $15.5 Million to Keep ATA Jobs During Airline’s Bankruptcy

S&P Upgrades District of Columbia

Alabama Overhauls Health Insurance for State Workers

November 12, 2004

Moody's Upgrades New York State and Assigns Positive Outlook

Lancaster, California, Redevelopment Agency Falls to Junk

State Tax Revenue Grows for 9th Straight Quarter

Double Upgrade for Fast-Growing Henderson, Nevada

November 5, 2004

Voters Nationwide Approve $26.2 Billion of Bond Issues

Special Legislative Session in Alabama to Focus on Health Insurance

Sky High Jet Fuel Prices May Threaten Stable Airport Credit Quality

Mixed Results for California’s Healthcare Propositions

October 29, 2004

Indianapolis Airport Doubles Debt After Largest Airline Files Bankruptcy

FERC Approves $281 Million California Energy Crisis Settlement

New York City Refunds $2.5 Billion of MAC Debt

American Samoa Bonds Now Exempt from State and Local Taxes

October 22, 2004

First Toll Road Privatization in U.S. to Yield $1.8 Billion for Chicago

Downgrades for Two Local Governments in Pennsylvania

L.A. City Council Approves $11 Billion Airport Modernization

Treasury Department Suspends State and Local Government Securities Program

October 15, 2004

Fort Worth-Based Medical Center with $82 Million of Debt Ceases Operations

Medicaid Growth Continues to Outpace Other State Expenditure Growth

Lack of Financial Recovery Plan Leads to Another Downgrade for Pittsburgh

IRS Will Open 90 Audits of Municipal Issuers

October 8, 2004

New Jersey Sells $1.5 Billion of Cigarette Tax Revenue Bonds

Florida’s Credit Remains Stable Amidst $22 Billion of Hurricane Damages

Comptroller Reports New York State Debt Increased 19% in 2004

Federal Transportation Funding Extended for the Sixth Time

October 1, 2004

Failure to Appropriate Funds for Juvenile Facility Brings “BBB-” Rating for Kerr County, Texas

Dallas Love Field Airport Downgraded to “BBB”

San Diego Begins to Implement Reforms as Negative Ratings Actions Continue

Transportation Authorities Must Plan for Capital and Operational Spending Gaps

September 24, 2004

NHL Lock-Out May Threaten Arena Debt Service Payments

Cities Report Deteriorating Financial Positions

S&P Suspends City of San Diego’s Ratings

September 17, 2004

Atlanta Sells $848 Million of Water and Sewer Revenue Bonds for System Overhaul

Court Rules FERC Must Consider Additional $2.8 Billion of Refunds for California

Mixed Decisions in “Freedom Holdings” Case

State Tax Revenue Recovery Continues

September 10, 2004

Fitch Upgrades California to “A-”

Hamilton, Missouri, Defaults on Natural Gas Line Certificates of Participation

Delta to Close Hub at Dallas / Forth Worth Airport

Long-Term Credit Quality of Municipal Issuers Remains Stable After Hurricane Frances

September 3, 2004

First Federal Impact Aid Revenue Bonds for Arizona’s Page Unified School District

Tax Increase To Be Used in Oklahoma City For Horse Facility Upgrades

Moody’s Upgrades University of Arkansas to “Aa3”

High August Municipal Issuance Volume But Year to Date Down 9 Percent

August 27, 2004

S&P Upgrades State of California Three Notches to “A”

Fifth Tobacco Manufacturer Joins the Master Settlement Agreement

Moody’s Upgrades Florida’s Hurricane Catastrophe Fund

August 20, 2004

Hurricane Charley Unlikely to Affect Florida Issuers’ Long-Term Credit Quality

S&P Downgrades Charlotte, North Carolina, Airport Revenue Bonds to “A-”

Moody’s Returns Puerto Rico Ports Authority Bonds to Investment Grade

California Sues Mirant Over Market Rigging During Energy Crisis

August 13, 2004

New Jersey’s New Unsafe Driving Fee Secures $808 Million of Deficit Bonds

States’ Tax Revenues Increase 6.7% to Close Fiscal Year 2004

Moody’s Downgrades City of San Diego to “Aa3”

Grand Rapids Bonds Upgraded as Separation of Sewer System Nears Completion

August 6, 2004

Schwarzenegger Signs Budget and Promises to Reorganize State Government

Springfield, Missouri, Voters Reject Bonds for New Power Plant

Bay Area Bridges Project Cost Overrun May Require Another $1 Toll Increase

Austin, Texas, to Sell Property Tax-Backed Bonds to Pay Legal Settlement

July 30, 2004

California Sells Workers Compensation Bonds

Standard & Poor's, Moody’s And Fitch Lower Ratings on State of New Jersey Debt

House and Senate Pass Extensions of Federal Transportation Funding Authorization

Moody's Upgrades California's $11 Billion Power Bonds Issued in 2002

Deal Made on California's $103 Billion 2005 Budget

July 16, 2004

Continued Operating Stress Leads to Downgrade for Childrens Hospital Los Angeles

Duke Energy Settles Energy Crisis Claims

Miami-Dade Authority to Reduce Free Toll Rides

Power Agency Restructures Debt to Match Extended Useful Life of Nuclear Plant

July 9, 2004

L.A. Unified School District’s Financial Position Continues to Weaken

California’s Lawsuits Against Energy Companies Dismissed

Slot Machine Fees Will be Used to Reduce Costs at Pittsburgh Airport

Medicaid Costs Will Continue to Add to State Budget Imbalances

July 2, 2004

A Number of States Miss Budget Deadlines

Boulder Housing Authority Issues Bonds with New Moral Obligation Pledge

Profits Increase over 50% at Denver Airport

City of Springfield, Massachusetts, to Receive State Bailout

June 25, 2004

Connecticut Governor Rowland Resigns

Governor Schwarzenegger Reaches Gambling Deal with Native American Tribes

New Jersey Tax Changes Benefit Homeowners and Restrict Local Government Spending

UCLA Anderson Forecast Predicts Moderate Growth for California through 2006

June 18, 2004

State Tax Revenue Continues to Improve

California Senators Ask Federal Officials to Support Energy Crisis Refund

Littlefield, Texas, Bonds Downgraded to Junk

DePauw University Downgrade Indicative of Challenges in Higher Education

June 11, 2004

New York City’s Economy is Improving, but Fiscal Condition is Not

San Francisco Airport Will Be Home to Virgin’s New Domestic Airline

High Oil Prices Boost Revenues for Energy-Rich States

Governor Schwarzenneger and Taxpayer Association Come to Agreement on California Pension Bonds

June 4, 2004

Three Downgrades for Memphis Sewer Revenue Bonds

Maine’s Weakened Financial Position Leads to Downgrade

Susanville, California, Water System Downgraded to Junk

Atlanta Airport Issues $516 Million of Bonds to Support $6.7 Billion Capital Plan

May 28, 2004

Moody’s Upgrades California to “A3”

Illinois Prepares for Possible Government Shutdown

Pennsylvania Turnpike Tolls Increasing 42%

Moody’s Downgrades San Joaquin Hills, California, Toll Road to Junk

May 21, 2004

Fitch Downgrades San Francisco One-Notch to “AA-”

Kansas Supreme Court Puts Judge’s Order to Stop Education Funding on Hold

New York Supreme Court Rules New York City Can Refinance $2.5 Billion of Municipal Assistance Corp. Debt

FERC Terminates Investigation of Los Angeles Department of Water and Power

May 14, 2004

Fitch Downgrades ACA to “BBB”

Portland Schools Downgraded by S&P

State Tax Revenues Continue to Increase

New York City Sells $785 Million of General Obligation Bonds

May 7, 2004

S&P Downgrades Pittsburgh International Airport

S&P Downgrades Jacksonville Electric Authority

Moody’s Upgrades Sacramento Municipal Utility District

States’ Fiscal Recovery Is Fragile

April 30, 2004

California’s Economic Recovery Bonds Rated / Structure of First Tranche Outlined

New Mexico Finance Authority Sells $1.1 Billion of Transportation Revenue Bonds

State Budgets May Improve in 2004 But 2005 Still Remains a Challenge

California’s Governor Calls for State Energy Reform

April 23, 2004

Moody’s Downgrades Tobacco Bonds

Metropolitan Washington Airport Authority Sells $250 Million of Revenue Bonds

California Sells $1.75 Billion of General Obligation Bonds and Prepares to Sell Economic Recovery Bonds

Ratings Developments for Cleveland School District are Mixed

April 16, 2004

S&P Downgrades Philadelphia Gas Works to "BBB-"

Reliant Charged in California Energy Crisis

United Affirms Leases at San Francisco Airport

City of San Diego on Watchlist for Possible Downgrade

April 9, 2004

Moody’s Upgrades the District of Columbia to “A2”

Puerto Rico Sells $621 Million of Revenue Bonds and Garvees

Pennsylvania’s $1.1 Billion Stimulus Plan Includes $750 Million of Taxable Bonds

San Diego County Plans $400 Million of Pension Bonds

April 2, 2004

Judge Issues Mixed Ruling on United’s Special Facilities Debt

New York State Begins Fiscal Year Without a Budget

Miami International Airport Sells $400 Million of Revenue Bonds

California Appeals Court Upholds Property Tax Recapture

March 26, 2004

Moody’s Downgrades $1.71 Billion of New York City Tobacco Bonds

Kaiser Permanente to Sell $1.6 Billion of Revenue Bonds

Standard and Poor’s Downgrades Vallejo City, California, School District Debt

UCLA Anderson Forecast Predicts Limited Job Growth for U.S. and California

March 12, 2004

California Voters Approve $15 Billion Deficit Bond Measure

Three Dozen California Cities File Lawsuit To Try to Prevent $15 Billion Bond Sale

State of New Jersey’ s Bonds Placed on Negative Watch By Moody’s

IRS is Cracking Down on Municipal Derivatives

February 27, 2004

Some California Cities Prepare Lawsuit Against State if Deficit Bonds Are Issued

S&P Lowers Rating on City of San Diego’s Bonds; City Remains on Credit Watch

State of California Comes to Market With Its First Garvee Bond

State of Virginia Tries to Hold On To Its AAA Rating

February 13, 2004

State of Washington Downgraded One Notch by S&P

Denver Airport Outlook Changed from Negative to Stable Despite United Presence

Oregon Voters Reject $800 Million Tax Increase and Opt For Large Spending Cuts

President Bush’s $2.4 Trillion Proposed 2005 Federal Budget Cuts Aid To States and Local Governments But Boosts Transportation Funding

Treasury Raised Low-Income Housing Price Limits For First Time in 10 Years

January 30, 2004

New York Governor Pataki Proposes $99.8 Billion Budget

Federal Government Tries to Stop Tax-Advantaged Leaseback Transactions Used By Local Governments

Transportation Secretary Mineta Wants to Triple Capacity of National Aviation System

February Referendum Will Ask Oregon Voters (Again) to Chose Between Tax Hikes and Budget Cuts

Tobacco Bonds Still Under Cloud of Uncertainty

January 16, 2004

School District Not Legally Required to Make Debt Service Payment on COPs

California’s Governor Schwarzenegger Releases Preliminary 2005 Budget Plan

Continued Down-side Risk Expected for States and Local Governments in 2004

Kansas Faces Court Order to Rewrite Funding Formula for Public Schools

Standard & Poor’s Drops City of Richmond Rating to Speculative

January 2, 2004

Revenues are Above Forecasts in 21 States

California Cities and Counties To Be Made Whole From Car Tax Repeal

Pennsylvania: Last State To Reach Budget Agreement

Law Authorizing Federal Transportation Funding Postponed to February

December 12, 2003

California Energy Update

Other Municipal Bond News:

• First Legislative Defeat for New California Governor
• World’s Busiest Airport, Atlanta-Hartsfield Sold $124 Million in Bonds At Strong Levels
• Moody’s Downgrades State of California to Baa1; Negative Outlook Remains
• New York Counties Price Tobacco Bonds Without Enhancement From Counties

November 21, 2003

California Energy Update

Other Municipal Bond News:

• Arnold Schwarzenegger Takes Office as Governor of California
• Michigan Loses Its “AAA” Status; Rating Downgraded by Moody’s
• Memphis Light, Gas & Water Issues Bonds To Prepay Electricity From TVA
• New York State Sells $2.2 Billion Double-Barreled Tobacco Bonds Again

November 14, 2003

California Energy Update

Other Municipal Bond News:

• Fitch Joins S&P and Lowers City of Pittsburgh Rating to Junk
• State of Mississippi Will Assist Nissan by Refinancing Notes Issued to Finance Plant
• California Endowment, A New “AAA” California Entity, Comes to Market Next Week
• Opponents of Oregon Income Tax Hike Try To Force Referendum To Overturn Surcharge
• Mechanics Union Will Vote on Los Angeles MTA’s Contract Friday

November 7, 2003

California Energy Update

Other Municipal Bond News:

• State of Washington Upholds Initiative to Cut Vehicle License Fee
• California’s Teachers Propose An Increased Tax on Business Property
• S&P Lowers Rating on University of Missouri Bonds
• Tuesday’s Ballot Asked Voters to Approve $10 Billion in Bonds
• Mechanics Union Will Vote on Los Angeles MTA’s Contract Friday

October 31, 2003

California Energy Update

Other Municipal Bond News:

• United Airlines Asks Judge to Recharacterize Debt To Avoid Payment During Bankruptcy
• R.J. Reynolds Tobacco and British American Tobacco Combine Operations
• LA MTA Plans to Bypass Union Leadership and Take Contract Offer Directly to Workers
• Fitch Assigns Negative Outlook to Port of San Francisco

October 24, 2003

California Energy Update

Other Municipal Bond News:

• The State of California Sold $3.0 Billion Revenue Anticipation Notes
• 2,000 Workers Strike at University of Minnesota
• Municipal Bond Financed Convention Center Unable to Generate Expected Business
• California Treasurer Warns 2005 State Budget Gap Could Grow to $25 Billion

October 17, 2003

California Energy Update

Other Municipal Bond News:

• California Recall Passed - Arnold Schwarzenegger To Be State’s New Governor
• Standard & Poor’s Downgrades Oregon to “AA-”
• Southern California Water Deal Approved
• Local Governments in Florida Buy Water and Sewer Systems for $356 Million
• California Health Care Coverage Bill Signed

October 10, 2003

California Energy Update

Other Municipal Bond News:

• California Recall Passed - Arnold Schwarzenegger To Be State’s New Governor
• Standard & Poor’s Downgrades Oregon to “AA-”
• Southern California Water Deal Approved
• Local Governments in Florida Buy Water and Sewer Systems for $356 Million
• California Health Care Coverage Bill Signed

October 3, 2003

California Energy Update

Other Municipal Bond News:

• Minnesota State Workers Authorize Strike Over Pay and Insurance Costs
• Alabama Budget Cut Spending by 18%
• California Governor Election Back On For October 7
• Arizona Governor Calls Special Session of Legislature for More Prison Funding
• California Officials Will Appeal Pension Obligation Bond Ruling

September 26, 2003

California Energy Update

Other Municipal Bond News:

• Growth Rate For State Spending on Medicaid Slows For the First Time in Seven Years
• Judge Issued Preliminary Opinion to Block Issuance of California Pension Bonds
• California Governor Election Back On For October 7
• State of California Successfully Sold Double-Barreled Tobacco Bonds
• House of Representatives Voted to Permanently Ban State Taxes on Internet Access

September 19, 2003

California Energy Update

Other Municipal Bond News:

• Texas Democrats Return to the State; Governor Calls Special Session
• California Governor Recall Election Postponed
• New York City Plans to Restructure $1.3 Billion of Tobacco Debt to Improve Credit
• Triple-A South Carolina Put on Negative Outlook by Moody’s
• Illinois Supreme Court Reversed Decision; Ordered Modified Appeal for Phillip Morris

September 12, 2003

California Energy Update

Other Municipal Bond News:

• Texas Issuing $1.4 Billion for Unemployment Trust
• Moody’s Places Virginia’s Aaa Rating on Watch for Possible Downgrade
• Las Vegas Airport to Receive Federal Security Funding

September 5, 2003

California Energy Update

Other Municipal Bond News:

• Oregon Budget Passes With Accompanying Tax Increases
• Los Angeles Airports To Receive Federal Funds For Baggage Screening Systems
• California Voters To Decide On Infrastructure Funding With Proposition 53

August 29, 2003

California Energy Update

Other Municipal Bond News:

• S&P Lowers Ratings on Tobacco Bonds
• Nevada Governor Faces Recall Effort
• Dallas Airport System Downgraded by S&P
• S&P Places City of Pittsburgh on Credit Watch with Negative Implications
• New York State Appellate Court Delays New York City Municipal Assistance Corp. Deal

August 22, 2003

California Energy Update

Other Municipal Bond News:

• Power Outage Could Cost Economy $6 Billion
• Judge Reinstates Order for Phillip Morris to Post $12 Billion Bond During Appeal
• Port of Los Angeles Upgraded to Become Highest Rated Port in the Country
• New York Judge Approves New York City Municipal Assistance Corp. Deal

August 15, 2003

California Energy Update

Other Municipal Bond News:

• California Governor Recall To Cost State $66 Million
• Orlando Airport Will Be New Home to Jet Blue Airlines
• New York State Court Places Temporary Restraining Order on City Bond Sale
• Officials at St. Louis/Lambert International Airport Seeking Additional Federal Aid

August 8, 2003

California Energy Update

Other Municipal Bond News:

• University of California and California State University Downgraded by S&P
• Indictment Against Water District’s Board Member For Alleged Extortion Over Swap
• State of California Passes $99.1 Billion Budget
• Moody’s Downgrades State of California General Obligation Bonds to A3
• Puerto Rico’s Electric Power Authority’s Bonds Upgraded From Baa1 to A3

August 1, 2003

California Energy Update

Other Municipal Bond News:

• California State Senate and Assembly Pass Budget Plan
• Connecticut Is In Its Fifth Week Without a Budget
• Texas Democratic Legislators Flee the State Again - This Time to New Mexico
• Iowa Republican Leaders File Lawsuit Against Governor For Vetoing Tax Cuts

July 25, 2003

California Energy Update

Other Municipal Bond News:

• Lambert St. Louis Airport Downgraded After American Scales Back Operations
• Governor Davis’ Recall Election Scheduled for October 7
• Moody’s Upgrades State of Louisiana From A2 to A1
• Nevada Governor Adopted Budget with Largest Tax Increase in State’s History

July 18, 2003

California Energy Update

Other Municipal Bond News:

• Anti-Recall Effort Strengthens But May Be Too Late For California’s Governor
• California Will Halt Payments To Contractors For Transportation Projects
• Lower Court May Not Have Had Authority to Cut Philip Morris Bond in Price Case
• State Supreme Court in Nevada Authorizes Tax Hike For Education
• Denver Airport Officials Seek Court Intervention On United Leases
  

July 11, 2003

California Energy Update

Other Municipal Bond News:

• The Department of Homeland Security Gives Three Airports Additional Funding
• Allegany County Airport Authority Downgraded By Moody’s to Baa2
• Los Angeles Considering $9.6 Billion Airport Renovation
  

July 4, 2003

California Energy Update

Other Municipal Bond News:

• State of New Jersey Averts a Shutdown After Late Night Legislative Session
  
• California Car Tax Increase Will Be Challenged in Court
  
• Nevada’s Governor Asks Supreme Court to Intervene in Tax Hike Battle
• California Ratings in Jeopardy of Downgrade by S&P and Moody’s
• Moody’s Downgraded the State of Connecticut
  

June 27, 2003

California Energy Update

Other Municipal Bond News:

• State Comptroller Initially Rejects Texas’ $118 Billion Budget
  
• California’s Vehicle License Fee Increases; Court Challenge Expected
  
• District of Columbia Upgraded by S&P and Fitch to A-
• Moody’s Revises Outlook on the State of Kansas to Negative
• California’s Controller May Have to Issue Promissory Notes Instead of Cash
  

June 20, 2003

California Energy Update

Other Municipal Bond News:

• Pennsylvania Offers US Airways $264 Million To Maintain Hubs In Pittsburgh and Philadelphia
  
• Moody’s Revised Outlook on California to "Negative"; Rating Remains A2
  
• The State of Minnesota Was Downgraded from AAA to Aa1
• The City of Dallas Fell Out of the Triple-A League
  

June 13, 2003

California Energy Update

Other Municipal Bond News:

• California Sold $11 Billion of Revenue Anticipation Warrants
  
• House Approves $15 Billion Airport Improvement Program Funding
  
• Tennessee Will Implement Its First State Lottery to Restore Financial Stability
• Missouri Governor Vetoes Budget Presented by Legislature
  

June 6, 2003

California Energy Update

Other Municipal Bond News:

• New York State To Sell $2.4 Billion Tobacco Bonds Next Week With State Backing
  
• Moody's Downgrades $19 Billion of Securitized Tobacco Bonds
  
• Governor Davis Signed Legislation Authorizing $100 Million Loan to Oakland USD
  
• Illinois' 2004 Budget Eliminates $5 Billion Deficit With Cuts, Taxes and Bonds

May 30, 2003

California Energy Update

Other Municipal Bond News:

• According to Tax Package, U.S. States Will Receive $20 Billion in Aid
  
• Fitch Cuts Rating on State of Illinois Bonds
  
• Los Angeles Unified School District Will Salvage Belmont Site
  
• New York Officials Proposed Creating Financial Oversight Board for Buffalo

May 15, 2003

California Energy Update

Other Municipal Bond News:

• Governor Davis Unveils California's Revised Budget With $38 Billion Gap Through 2004
  
• State of Illinois Downgraded by Moody's and Given Negative Outlook by S&P and Fitch
  
• Phillip Morris Asked Illinois Supreme Court to Expedite Hearing To Overturn Verdict