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Reforming government finance

The status quo complications are set into law in the name of ethical regulation by various local bureaucrats and the "Gang of 535" (Congress). USA needs major reform in Federal and State Government law to become the market beacon of Earth.

John Lambrechts

15 Sep 2026 • 4 min read

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An example of a good actor in the tax levied debt market is Bernardi Securities. Bernardi works by underwriting bonds issued through local units in an attempt to validate the bond potential and project assigned to the bond.

Sadly, the local government and their contractors fail in a lot of regards to accomplish the bond objectives in a durable and cost effective fashion. Bernardi works justify the municipal bonds (~5TUSD Aggregate tracked on EMMA). These economic underwriting justifications are based on endless economic factors in a rational attempt to advise the bureaucratic outfits and bond market if the issued debt will perform as expected.

Currently USA has government units meeting in authoritarian buildings to figure out how to stop losing money.

In this article I will argue that status quo law governing tax levied debt and bureaucrats are the main causes economic harm.

United States government units current account deficit (August FY2026)

$2.14 Trillionin

Bureaucrats governing RTA/NITA

Transit_Leadership_Directory__FTA,_RTA_&_Regional_Service_Boards

Transit_Leadership_Directory__FTA,_RTA_&_Regional_Service_Boards.pdf

120 KB

Hierarchy of laws which govern RTA/NITA, finance, and debt issuance

Federal Transit Law CHAPTER 53 - Title 49 US CODE, Infrastructure Invesment and Jobs Act, Section 6609 Defense Authorization Act and Amendments

Federal Transit Law CHAPTER 53 - Title 49 US CODE, Infrastructure Invesment and Jobs Act, Section 6609 Defense Authorization Act and Amendments.pdf

2 MB

Securities Act of 1933

Securities Act of 1933.pdf

HR 4173 Dodd-Frank Wall Street Reform and Consumer Protection Act

HR 4173 Dodd-Frank Wall Street Reform and Consumer Protection Act.pdf

2 MB

70 ILCS 3615_ Regional Transportation Authority Act

70 ILCS 3615_ Regional Transportation Authority Act.html

47 KB

70 ILCS 3615 Northern Illinois Transit Authority Act

70 ILCS 3615 Northern Illinois Transit Authority Act.html

354 KB

30 ILCS 105 State Finance Act

30 ILCS 105 State Finance Act.html

2 MB

30 ILCS 330 General Obligation Bond Act

30 ILCS 330 General Obligation Bond Act.html

175 KB

30 ILCS 335 General Obligation Bond Investment Act

30 ILCS 335 General Obligation Bond Investment Act.html

16 KB

70 ILCS 425 Build Illinois Bond Act

70 ILCS 425 Build Illinois Bond Act.html

103 KB

RTA/NITA financing

The RTA, now NITA, earns funds in two ways: rider payments and taxes. Both funding sources go toward operational costs and debt financing.

RTA/NITA debt

The Electronic Municipal Market Access (EMMA) system, operated by the Municipal Securities Rulemaking Board (MSRB), tracks municipal bonds using 6-digit CUSIP Issuer Bases

RTA CUSIP IDs: For the Regional Transportation Authority of Illinois, the primary CUSIP base for its General Obligation Bonds is 759142 (with some series utilizing 759143).
NITA Transition (2026): Currently NITA is using the RTA CUSIP Issuer Page

Currently EMMA has no listed entity, for Northern Illinois Transit Authority,.

Bond underwriting PDF for CUSIP 795142 by Barnes & Thornburg LLP is an example of the extent underwriters such as Bernardi Securities have to go to validate these bureaucrat arrangements based on the status quo compliance.

Official Statement - FINAL OFFICIAL STATEMENT (3.3 MB)

Bond underwriting PDF for CUSIP 795142

Official Statement - FINAL OFFICIAL STATEMENT (3.3 MB).pdf

3 MB

Audits of NITA operation

Conclusion

The status quo complications are set into law in the name of ethical regulation by various local bureaucrats and the "Gang of 535" (Congress).

USA needs major reform in Federal and State Government law to become the market beacon of Earth.