The Many Ways That Cities Cook Their Bond Books

Steve Malanga: The Many Ways That Cities Cook Their Bond Books - WSJ.com:
"The Harrisburg charges are part of a broader SEC effort to scrutinize state and local government issuers in the nation's $3 trillion municipal-bond market.
"Anyone who follows municipal finance knows that budgets can sometimes be a work of fiction," says Anthony Figliola, a vice president at Empire Government Strategies, a Long Island-based consulting firm to local governments.
"Harrisburg is the tip of the iceberg."
And a mighty iceberg it is.
The 2012 State of the States report, released in November by Harvard's Institute of Politics, the University of Pennsylvania's Fels Institute of Government and the American Education Foundation, found state and local governments are carrying more than $7 trillion in debt, an amount equal to nearly half the federal debt.
Often, the report said, "States do not account to citizens in ways that are transparent, timely or accessible."