Clean Water Current

NACWA joined fellow public sector organizations in sending a letter on Sept. 29 to Senate Leaders Chuck Schumer (D-NY) and Mitch McConnell (R-KY) and the respective Chair and Ranking Member for the Senate Committee on Armed Services, Jack Reed (D-RI) and Jim Inhofe (R-OK), voicing opposition to including S. 4295, the Financial Data Transparency Act (FDTA), as an amendment to the annual National Defense Authorization Act.

The measure, if included and signed into law, would direct the Municipal Securities Rulemaking Board (MSRB) to develop a rule requiring governmental and nonprofit organizations to utilize a standardized financial reporting format that is also machine readable. While signers of the letter appreciate and value the free and transparent flow of information to the public about the financial position of public institutions, simply designating a one-size-fits-all singular reporting requirement could have a major impact on how information is collected and tracked across the public sector and lead to an undue accounting burden across municipal organizations.

The issue has gained interest in recent months due to the inclusion of a similar provision in the U.S. House passed version of the National Defense Authorization Act (NDAA) that would seek to implement this standard nationwide. It is unclear if there is enough interest in the Senate to include all or pieces of this bill in what will ultimately be considered when the final NDAA is placed before the full Congress for consideration later this year.

As Congress continues consideration of the NDAA, NACWA will keep a close eye on how these provisions are debated. Please contact Tony Frye, NACWA Director of Legislative Affairs, with any questions or to discuss further.