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Merritt.com
American Recovery & Reinvestment
More American Recovery And Reinvestment Act Articles

The Great Puerto Rico Debt Machine Gears Up, Again

The French have a saying: “The more things change, the more they stay the same.” That seems quite applicable to Puerto Rico’s current fiscal situation. We are now more than two years into a full-blown debt crisis ... And yet, so far, the formula has remained the same: “more taxes and more debt.” After all the market commotion of the past two years, the fact remains that PR’s crippling debt burden has continued to increase ... while the island’s economy continues to contract.… Continue

Financially Distressed Cities: Should Unfunded Pension Obligations Impair Funding of Essential Services?

public safety
Chapter 9 municipal bankruptcy
unfunded pension obligation

The financial health of some municipalities across the nation that are in financial distress is being threatened by unfunded public employee pension obligations that are not affordable and sustainable. When the cost of meeting public pension obligations crowds out the government’s ability to deliver essential public services such as police, fire and water, priorities need to be established and creative solutions are required.… Continue

Lessons Learned from Detroit’s Bankruptcy

Detroit bankruptcy
Chapter 9
municipal bankruptcy

In July of 2013, Detroit was the first city that was the largest city in the state to seek protection under Chapter 9 of the Bankruptcy Code for municipal debt adjustment ... The fact that Detroit has confirmed a Plan of Debt Adjustment is one important step in a longer process of recovery. While we hope that Detroit will make a full economic recovery, its experience has been constructive in offering a number of important lessons… Continue

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