Barney Allison Comments on New GASB Guidance for Availability Payments
Barney Allison was quoted in the Inframation article, “Analysis: New GASB Guidance Could Deter Future Availability Payments.” The article looks at the new Government Accounting Standards Board (GASB) guidance, which was released in June 2020, and the effect it may have on how availability payment-based projects are accounted for by states and local agencies. Grantors would now classify availability payments as debt, which could impact how they plan for future projects. The rule becomes effective in two years.
Commenting on the development, Barney said, “Public agencies may want to consider the rule as guidance depending on how they’ve booked their availability payments deals so far. Whatever the impact of the rule, it probably won’t change the way ratings agencies view these deals, and the restrictions, if any, under state law.”