It is going to be interesting today to note the impact of the S&P downgrade to AA+ of US debt. Moody's and Fitch have left their credit ratings unchanged.
According to Moody's there happen to be five states - Maryland, New Mexico, South Carolina, Tennessee and Virginia - that might be at risk of having their Aaa rating downgraded if the United States received a downgrade.
But there again - Moody's hasn't downgraded the US debt - only Standard and Poors.
Stay tuned.
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Thankfully, Wisconsin kept it's financial situation manageable due to the last budget. With regard to Wauwatosa, the aldercritters like to cite the city's AAA rating before they go borrow a bunch of money. They need to get away from the idea of "let's borrow money because we can!" because if that is done too often, then you won't be able to borrow money when you need it.
ReplyDeleteLast time I looked Tosa was staring down the barrel at $50 million of sewer work.
ReplyDeleteThey best hope they retain the AAA rating or their borrowing costs are going to rise significantly.
Yep, $50 million in absolutely necessary work and we will have to borrow it....so with that in mind they just spent a million on some teeter totters. A serious council does not make that decision.
ReplyDeleteTax Policy Blog just posted a map showing how much interest on their debt the states pay as a percentage of their direct spending.
ReplyDeleteWisconsin is in the top ten.
Here's the link:
http://www.taxfoundation.org/blog/show/27527.html