Municipal Bond Reporting Bill Met with Support and Friction
Wall Street Journal Article: "Local Governments, Many on Wall Street Line Up Against Muni-Data Bill"
The bi-partisan Financial Data Transparency Act of 2022 (S.4295) was introduced this past summer to address how municipal bond disclosures are released. Sponsored by Senator Mark Warner of Virginia (D) and Senator Mike Crapo of Idaho (R), the bill would require municipalities to present their financials in a machine-readable format. Proponents of the bill suggest that a standardized process for reporting data would allow computers to easily access financial records and create enhanced transparency. While acknowledging its potential usefulness for investors, there are those that also question the ramifications the bill may have on the reporting and subsequent accounting practices across individual municipalities and data collection services. Among those raising concern is Richard A. Ciccarone of Merritt Research Services.
“A uniform accounting process could benefit investors, but it is a daunting task”
Richard A. Ciccarone | Merritt Research Group
President