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Analyses disclosure levels from annual reports and budgets from US municipalities, based on the expected incentives of municipal bond investors. Disclosure levels for both budgets and annual reports are variable, suggesting that the quality of disclosures may be based on key actor incentives. Results suggest that annual report disclosures(especially those found in the statistical section) are responsive to investor incentives, while little relation is found between investor needs and budget disclosure. This suggests that annual report information which is historically based is responsive primarily to investor needs.