Local Government Law and Finance - Essay Example

Local Government Law and Finance It has been d that more and more s in the United s are getting strapped for cash. Some of these states or even their municipalities are considering making a chapter nine filing. The chapter nine filing is a part of the United States bankruptcy law that is hardly ever used. It is meant to give the municipalities protection from the people that they are in debt to as creditors. One of the largest court filings for the chapter nine bankruptcy laws was the one filed in the year 1994.

This court case was filed by the orange county of the California state during the period when it was unfortunate to lose 1.6 billion US dollars on interests that accrued from interest rate derivatives. The recent economic realities have resulted in the decline of tax revenues. This has made many counties, municipalities, and cities to find it difficult to payments that are required on the municipal bonds. The sad thing is that many of the people that live in these unfortunate states still believe that these municipal bonds are low risk, safe and can act as an alternative to paying cash.

Their belief has been accelerated by the past experiences in history where they experienced low interest rates on default (Sevic 12). The old standards that used to apply are no longer reliable as they used to be as a result of the increasing strain that has been felt on cities in recent times. It is always expected that interest rates will rise when the economy falls (this is because economic status are never stable), and this will cause an erosion of the price stated on all fixed income instruments, which in this case is the Triborough Bridge.

The local state and municipal governments found that the answer to this kind of economic crisis can be found in increased investments within the public infrastructures and services offered to the public. This can be done by making use of active labor market policies, green jobs, improved innovation techniques, research and development, as well as, in the people that dwell in these locations. A relatively new economic policy is required for the people of America based on a different role employed on the central bank of America, which will be a revision of growth and stability accord used in the United States.

A policy should be created within the borders of the United States that is capable of organizing the economic policies. Critics say that it may be a considerable thing to ask the citizens of America to bear the pain of the economic and financial crisis as they continue to pay off the debts owed by the states for years to come, which in this case is the state of New York (Kersting 24). The local devices have opted to resort to these kinds of devices in order to counter the growing concern on issues resulting from crisis that continually affects the public finance sector.

The current generation is much more concerned with the workings of the country compared to what was experienced by previous generations. Analysts have gone through the current situations that face the different states in America and have noted that by indulging the public into the working of the nation is the only way in which they will be able to counter these problems. These devices have made a considerably positive effect on the effort to counter the crisis faced in public finance. The authority that was once held by a select few individuals in the United States has been diffused by the introduction of the public into these investments.

The pressures that were once felt by the most affected municipalities have considerably eased because of the public’s initiative to sole their own municipal problems. The implementation of these devices has led to a noticeable effect on the real estate industry. This real estate industry is composed of two different entities. These are the private sector and the public sector. The Triborough Bridge was under the authority of the individual known as Robert Moses who was previously influential in directing and construction of a majority of the public works that were worked on in New York City within the middle decades in the twentieth century.

The public sector has increased the amount of investments that it has on the real estate industry. This public sector previously held a smaller percentage of the real estate market because of the little knowledge it had on the workings of the real estate industry. This has changed thanks to the public education of the elements involved in the real estate industry. Alternatively, the private sector has been negatively influenced by the devices that have been employed into the solving of the public finance crisis (Nelson 23).

The ethical issues involved in this scenario are tricky to even contemplate. On one hand the law clearly states that a legal agreement cannot be broken, but, on the other hand, the public should not be made to suffer because of the greed of a single individual. The most noticeable ethical issues involve justice and the principle of least harm. If it is about justice, then Robert Moses deserves the justice that is stated in the law, but when it comes to the principle of least harm, the public wins the case because they are the people that are most affected by this situation (Odgers 42).

References Kersting Norbert. Local governance reform in global perspective. VS Verlag. 2009 Nelson, R. H.. Private neighborhoods and the transformation of local government. The Urban Institute. 2004 Odgers, W. B. Local Government. Wellhausen Press. 2008 Sevic Zeljko. Local public finance in Central and Eastern Europe. Edward Elgar Publishing. 2008