“How many of you all use tax-free municipal bonds?” Savannah, Georgia, Mayor and NLC Second Vice President Van Johnson asked the audience during the conference’s closing general session on March 11. Nearly every city official in attendance raised their hand. “All of us, right? But as Congress debates its priorities for the next tax bill, the future of our beloved and heavily used tax-exempt municipal bonds remains unclear.” Tax-exempt municipal bonds are on “the chopping block” this year, moderator and Cleveland, Ohio, Council President Blaine Griffin said. And “Unlike for other tax changes being discussed this year, cities don’t have die-hard municipal bond defenders in Congress,” he said. “We need a handful of Republicans, just a handful of Republicans, to come forward and say they will not vote for a tax bill that includes the elimination of the tax-exempt status of municipal bonds.” Hattiesburg is a city of about 50,000 in southern Mississippi, and having access to tax-exempt bonds has been essential for projects like the public safety complex, municipal court building, new police and fire stations, the city’s mayor Toby Barker said. “Like many of you, we have a very squeezed general fund budget every year,” he said. “If we didn’t have tax-exempt municipal bonds, a lot of the projects that we need wouldn’t happen.”
(L-R: Cleveland, Ohio, Council President Blaine Griffin moderated a panel discussion on tax-free municipal bonds with Hattiesburg, Mississippi, Mayor Toby Barker, Government Finance Officers Association Federal Liaison Emily Brock, and Oklahoma City CFO Brent Bryant.)