Wisconsin’s Financial Outlook Receives Historic Upgrade
"Since taking office in 2011, we focused on fiscal responsibility and our state’s finances have significantly improved as a result."
Madison – Today, for the first time since 1973, Moody’s Investors Service upgraded the state of Wisconsin’s General Obligation rating to Aa1, up from Aa2.
“Since taking office in 2011, we focused on fiscal responsibility and our state’s finances have significantly improved as a result,” Governor Walker said. “The upgrade in rating reflects our fiscal stability driven by bold reforms and accountable stewardship of the taxpayer’s dollar. Moody’s decision to upgrade our rating, for the first time since 1973, shows that Wisconsin is working.”
According to Moody’s report:
- Moody’s upgrade reflects the reserves and other balances that the State has maintained since 2011.
- Moody’s upgrade is continuation of their positive view of Wisconsin, which started with the positive rating outlook assigned in November 2014.
- Moody’s upgrade reflects the proven fiscal benefits of the state’s fully funded pensions when many other states are experiencing stress from rising costs and heavy liabilities associated with unfunded liabilities
With the upgrade, the State is expected to realize a reduction in its capital costs/interest rates on borrowings. The amount of such savings will depend on market conditions at the time of borrowing.
A copy of the full Moody’s report can be viewed here.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
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So…what about the roads, highways, PUBLIC education , and health care?
Congratulations to a team that has shown amazing results in strengthening our fiscal stability, and in bringing jobs to our great state!
Moody’s bases their review primarily on the fully funded pension system, which Walker inherited and had nothing to do with. The current proposal for borrowing and bonding by Walker to deal with the 4th worse highways in the nation was not considered by Moody’s. What about the Wisconsin Taxpayers Alliance study which shows Wisconsin has the second highest government indebtedness of all 50 states, and the third highest total indebtedness? Is this prudent conservative financial management? Moody’s did not consider the current 3 billion dollar direct payments Walker has promised to Foxconn over 15 years, when he is hedging on adequate educational funding.
Let’s not forget that Moody’s paid $864 million earlier this year for fraudulent ratings ahead of the Wall Street meltdown 10 years ago. Makes me wonder if they’re up to their old tricks- giving good ratings in exchange for increased business.
Between the borrowed payments, $1 billion structural deficits in both the General and DOT Funds, and the rising GAAP deficit, this analysis made zero sense outside of the 100%-funded WRS. One little economic downturn, and this all blows up. And the bags of cash going to Fox-con would accelerate that.
If we’re so fiscally stable in Wisconsin, why can’t we fix the roads or fund the schools? Doesn’t add up.
Moodys upgrade is good since we borrow more now for the public good and pay cash for corporate welfare since our free market legislature has been at the reins.