Question

Identify one policy and in a written response (approx. 350 words) outline the GFOA's response to the policy by first outlining the policy and issues relating to it (for example public pensions: funding pension systems and tax burdens to ensure pension plans solvency). The GFOA has specific agendas regarding public policies and how they as a lobby/non-government player deal with them. How does their opinions relate to the issue of the policy you chose?

Answer 1

GFOA recommends that all governments establish a comprehensive written investment policy, which should be adopted by the governing body. For e.g. Debt Management policies. GFOA recommends that state and local governments adopt comprehensive written debt management policies. These policies should reflect local, state, and federal laws and regulations. To assist with the development of these policies GFOA recommends that a governments Debt Management Policy (Policy) should be reviewed periodically (and updated if necessary) and should address at least the following:

1. Debt Limits

2. Debt structuring practices

3. Debt issuance practices

With the set of prescribed guidelines , GFOA ensures the management policies are religiously followed. This builds confidence in Investors to buy a Debt Management policy.