One of my clients does business with state and local government offices and has the opportunity to link to some of their sites. Are there and pros and cons to linking to government sites in terms of SEO and PageRank?

Yes, EDU and Gov rankings are high authority. Having your links either being exchanged, or posting on government or educational forums/blogs are VERY important to good SEO. Its not the be all, end all, but its a solid way to go about getting some high quality links. Often they have high PR value too.

For a medical information site I used to manage, the site included many high ranking governmental urls. It did not only help increase the site's PR but it also helped increase traffic. FYI - some of the governmental sites allow others to re-publicize their content, of course, as long as you give acknowledge the source. Thus, tactic also helped increase traffic.

I believe Matt Cutts once answered this question: .edu and .gov backlinks do not necessarily give a higher authority backlink; rather, they just generally have a higher PR, which makes them worth getting.

EDU and Gov websites are high authority, and I mean very high authority. It's probably easier to have your link in gov/edu forums/blogs than in other websites.

those links have high anthority and will be considered as quality links by googel
and generally peolple will give more credits to those sites.

Please send me the list where we can add our sites

I would also be interested to see the list as it could be beneficial to some of my clients.

Although many articles have been written on the web about the normal status of the EDU and GOV links but in effect we see such votes to be of high quality.

Especially the ones from older domains that have high PR.

One of my clients does business with state and local government offices and has the opportunity to link to some of their sites. Are there and pros and cons to linking to government sites in terms of SEO and PageRank?

Linking TO another site does not benefit your pagerank. A site linking to YOU helps your pagerank. But DO NOT focus on pagerank, as pagerank does not guarantee traffic or good SERPs. Focus on your SERPs and good inbound links.

Links FROM gov't sites = good! I'd be happy to take them :)

One of my clients does business with state and local government offices and has the opportunity to link to some of their sites. Are there and pros and cons to linking to government sites in terms of SEO and PageRank?

This applies equally to my business where we are often in touch with government bodies where we need conveyancing searches.

Any tips in this regard would be helpful.