The Muni Bond Situation in Indiana

An EPJ reader writes:

Hey Robert,
Wanted to pass along something that should catch your interest. Months ago you showed me financial analyst Meredith Whitney and her claims of state budgets in disaray. Thank you.

I had to take a long hard look at Indiana, my state, and really take the medicine that this state is in financial peril relating to spending/municiple bonds. She is clearly dead on in mentioning our state like she did awhile back. Townships are being examined for their financial dealings. Townships are mini-governments within a county and are basically unaudited and have no reporting mechanisms that get enforced. The Indianapolis Star did a two year study on them and found over $200 Million in taxpayer money still sitting in the banks controlled by trustees. Many of the books have been unaudited for years and family members/friends being paid once people getting elected.

Now the school systems are being looked at and a major story broke just last week. I am attaching the story so you can read. Pretty sick and makes you wonder how many more of these contracts are out there.

http://www.indystar.com/article/20110128/LOCAL1804/101280341/-1M-payout-ex-superintendent-upsets-Wayne-School-Board?odyssey=tab