Federal Recovery Zone Bond Program for infrastructure financing?

[sharon reichlyn]

Has the Federal Recovery Zone Bond Program been part of the discussion? I been doing some research on how states are handling the county and municipal bonding allocations that are part of the ARRA (The American Recovery and Reinvestment Act) Federal Recovery Zone Bond Program for infrastructure financing? Am especially interested in cases where counties do not have the capacity to handle this.themselves. Section 1400U-1(a)(3)(A) allows a county or large municipality to waive any or all of their Recovery Zone Bonds and authorizes the State to reallocate it in any reasonable manner as it shall determine in good faith in its discretion. According the person I spoke with at the Treasury Dept/IRS several states are considering or have already either enacted a State law that counties are deemed to have waived their allocation,allowing the State to reallocate county bond allocations; OR enacted a State law that counties with populations of less than 100,000 are deemed to have waived their allocation, allowing the State to reallocate these bond allocations.I also understand that some states have sent a letter to county commissioners and county executives indicating how the State would like to see the bond allocations used

Is anyone aware of this happening in their state?