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 Sponsor: Siemens
SEPTEMBER 2008

Does the current housing meltdown have a silver lining for state pension funds? Girard Miller says yes. In his other columns this month, Miller warns about looming labor battles in the public sector, and he asks why bond raters aren't holding states and cities more accountable for their retiree benefits funding. And in his Market Watch column, Miller discusses some new strategies for long-term investing after last week's market meltdown.

In this month's B&G Report, Katherine Barrett and Richard Greene cover blue-jean wars, what's good about federal earmarks and a whole lot more.

One of the worst problems managers deal with is trying to dig out of a chronic backlog. Ken Miller looks at how agencies amass a backlog, and he finds hope in the management of McDonald's.
  Sponsor: NIC


Pension Fund Opportunity in
Housing Markets?

By GIRARD MILLER
Looking beyond the mortgage market bailout.

The Crazy Cycle
By KEN MILLER
The crushing effects of backlog, and how the Golden Arches can help you avoid them.

Girding for Benefits Battles
By GIRARD MILLER
Get ready for tougher labor negotiations ahead.

OPEB Deficits: Where Are the Rating Agencies?
By GIRARD MILLER
It's time for a carrot and a stick.

Girard Miller's Market Watch
New OPEB Strategies After the
Market Meltdown

Stocks: yes. OPEB bonds: eventually, but not yet.

MORE FROM GOVERNING:

• Can't make it to Governing's Managing Performance conference in Austin next week? We'll be posting lots of news and tidbits from the conference sessions on our 13th Floor blog.

How to Pull Off a Convention: Just how does a city prepare to host a political convention? Governing talked with Denver's deputy mayor to find out.

State Salary Growth Trails ’07: Public-employee wages once again fail to keep up with inflation.

Executioner’s Song: There is a lot of fanfare when a new program is signed into law. But then, it disappears from sight. Why is that?

• In MANAGEMENT INSIGHTS, some of America's top experts share their perspectives on getting the most out of government. The online-only column, a collaboration between Governing.com and Harvard University's Ash Institute for Democratic Governance and Innovation, is updated every Wednesday. Today's topic: innovation in urban policy.

Governing's just-updated STATE & LOCAL SOURCEBOOK is a powerful online tool providing a trove of frequently updated data on government, along with a comprehensive directory of contacts in state and local government: Sourcebook.governing.com

GRADING THE STATES is Governing's definitive resource rating states on how well they're managed. Read the full 2008 report for in-depth analysis of which states get it right -- and which ones are struggling to manage.



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Copyright 2008, Congressional Quarterly, Inc.

Katherine Barrett
&
Richard Greene

Help us, please. We're about to give a couple of speeches focusing on the question of whether today's tough fiscal times have led to better management in the states, counties and localities. What do you think? And do you have any concrete examples to make your point? KEEP READING

States and the federal government might be able to save a fair amount of money if they paid attention to some developments in Oregon, according to the Government Accountability Office. Only two states, California and Oregon, have requirements that paid tax preparers have some kind of formal accreditation in order to fill out tax forms. Oregon has the more stringent of the two: a two-tiered licensing system that includes education requirements, state-administered examinations and work-experience prerequisites. KEEP READING

When cities, counties and states talk about "wellness programs," they're often sold on faith that thinner, happier, smoke-free employees will be less costly. Now, along comes Columbus, Ohio, with a little solid evidence. "Medical costs for employees and their families rose only 3 percent in 2007," according to the Columbus Dispatch, "compared with the 6.7 percent nationwide jump estimated by the U.S. Department of Health and Human Services." KEEP READING

CONTINUED BELOW

Sponsor: ICMA-RC
ICMA-RC is an independent, not-for-profit corporation focused on providing retirement plans and related services for over 800,000 public employees in over 8,000 retirement plans. Consistent with its mission, ICMA-RC provides administrative, investment, education, and other retirement-related services exclusively to state and local government employees. For more information visit www.icmarc.org/

In these perilous economic times, there have been a bunch of articles in business magazines and newspapers suggesting that municipal bonds that are relatively close to maturing are a good way for folks to get good, comparitively safe returns on their money. Maybe this is true. But the number of articles pushing this advice present a good reason to be concerned about the fact that "more than half of the municipal bonds sold between 1996 and 2005 have been delinquent in filing financial disclosures, showing the secondary market disclosure system for the municipal market is flawed," according to a recent piece in the Bond Buyer. KEEP READING

Earmarking is a hot topic right now, both in the presidential race and among state and local officials. Every few days we hear a politician complaining about some kind of ridiculous-sounding project that's gotten government funding. This covers a lot of territory. Most of them seem to pertain either to infrastructure or to some kind of research project that sounds silly to the general public. KEEP READING

Some 21 states offer localities the option of joining their state health benefit systems. This sure sounds like a sensible idea. In theory, it should provide significant economies of scale. But here's an alarming fact, revealed by the Office of Legislative Research in Connecticut. Of those 21 states, only one — California — has studied the results. This absence of follow-through is, in our view, one of the single most serious shortcomings in state management. As for California, the state believes that "local government participation has reduced the state plan's annual premium costs by about $40 million a year." KEEP READING