Interest costs could eat into city, state budgets if tax exemption is axed – The Bond Buyer

Cities like Chicago, Atlanta and Houston, which already spend a substantial chunk of revenue to cover interest on their bond debt, could face more budget strains if Congress moves to strip the tax exemption from municipal bonds. New York, Illinois, Colorado, and Connecticut had the largest share of combined state and local interest. Connecticut by far had the largest share of interest on state debt, at more than 6% of its total expenditures, followed by Massachusetts, New York and Illinois.