2013-K206
LEGISLATIVE RESOLUTION memorializing Congress to encourage the Preserva-
tion of Tax-exempt Municipal Bonds
WHEREAS, The first record of municipal bond financing was by the City of
New York for a canal in 1812; and
WHEREAS, Municipal bond financing has been instrumental in shaping our
nation's culture by providing low cost financing for critical public
assets such as education, transportation including highways, ports,
tunnels and air, infrastructure to include mass transit, water and
sewer, power generation, housing and health care; and
WHEREAS, There is over $3.7 trillion in municipal bond debt currently
outstanding in the nation, and the tax-exempt features of municipal
bonds have saved States and local communities hundreds of millions of
dollars in reduced financing costs; and
WHEREAS, Without the tax-exempt features of municipal bonds the cost
of financing critical State, local and municipal projects would be cost
prohibitive thus delaying their development and/or greatly adding to
their costs; and
WHEREAS, Proposals to limit the value of the tax exemption, or elimi-
nate tax-exempt municipal bonds outright, would effectively increase the
cost to states, counties, cities and townships throughout the United
States, thus delaying or canceling critical needed public assets and job
creating features; and
WHEREAS, The United States and its micro economies are engaged in a
"world is flat" economy with increased competition on a global scale;
and
WHEREAS, Pressure from the competition for US goods and services
underscores the need for efficiency and cost control in developing,
financing and managing critical public assets such as education, trans-
portation including highways, ports, tunnels and air, infrastructure to
include mass transit, water and sewer, power generation, housing and
health care; and
WHEREAS, The United States economy is slowly emerging from the "Great
Recession" and the need for low cost tax-exempt financing has never been
greater to reinvent and reinvest in said critical assets; now, there-
fore, be it
RESOLVED, That the Congress of the United States be and hereby is
respectfully memorialized by this Legislative Body to endorse the
continuation of tax-exempt municipal bond financing and encourage
members of the Joint Economic Committee, the New York State Congression-
al Delegation and others engaged in addressing the "fiscal cliff" to
retain the tax-exempt status of municipal bonds due to their outstanding
cost efficiency at the State and local level, and the importance in
creating jobs; and be it further
RESOLVED, That copies of this Resolution, suitably engrossed, be tran-
smitted to the President of the Senate of the United States, the Speaker
of the House of Representatives, and to each member of the Congress of
the United States from the State of New York.