CONGRESS CONSIDERS IMPORTANT
BOND RATING BILL
The U.S. House Financial Services Committee is considering an important bill, H.R. 6308, that would require bond rating agencies to use the same standards for rating municipal bonds as they do for other bonds. The current system of separate municipal bond ratings unfairly penalizes safe municipal bonds relative to more risky corporate bonds.
Between 1970 and 2000, cities issued 14,800 general obligation bonds without a default. Yet many cities receive bond ratings that would inaccurately indicate a greater failure rate than similarly rated corporate bonds. These misleading ratings cost cities--and taxpayers--billions in increased borrowing costs.
City officials may wish to contact their Texas representatives on the House Financial Services Committee to indicate their support for fair and equal municipal bond ratings.
| Rep. Ruben Hinojosa 2864 West Trenton Road Edinburg, TX 78539 Phone: (956) 682-5545 Fax: (956) 682-0141 |
|
| Rep. Al Green 3003 South Loop West, Suite 460 Houston, TX 77054 Phone: (713) 383-9234 Fax: (713) 383-9202 |
|
| Rep. Ron Paul 122 West Way, Suite 301 Lake Jackson, Texas 77566 Phone: (979) 285-0231 |
601 25th Street, Suite 216 Galveston, Texas 77550 Phone: (409) 766-7013 |
| Rep. Jeb Hensarling 6510 Abrams Road, Suite 243 Dallas, Texas 75231 Phone: (214) 349-9996 Fax: (214) 349-0738 |
703 East Corsicana Street Athens, Texas 75751 Phone: (903) 675-8288 Fax: (903) 675-8351 |
| Rep. Randy Neugebauer 611 University Ave., Suite #220 Lubbock, Texas 79401 Phone: (806) 763-1611 Fax: (806) 767-9168 |
500 Chestnut St., Suite #819 Abilene, Texas 79602 Phone: (325) 675-9779 Fax: (325) 675-5038 |
| Rep. Kenny Marchant 9901 East Valley Ranch Parkway, Suite 3035 Irving, TX 75063 Phone: (972) 556-0162 Fax: (972) 409-9704 |