The Impact of the 2010 U.S. Census on Municipalities
The 2010 U.S. Census is critical in municipal bond credit analysis, as it can define either a positive or negative long-term credit trend. The Census impacts a municipality’s representation in Washington, D.C., the level of federal aid to be received, and future tax base revenues. A variety of demographic indicators, namely population, per capita income, full value per capita, median family income, unemployment, and percentage of individuals living below poverty, offer an indication of the ability of a locality to generate revenue to meet ongoing operational and debt service needs. Michael Pietronico from Miller Tabak Asset Management has authored an interesting article on what the Census means for the municipal bond market. Click here for Pietronico's analysis.