After ruining Connecticut’s state bond rating, Failed Democrat Governor Dan Malloy and his Democrat Enablers are now working their way down to every municipality in the state. In the wake of Malloy’s latest executive order to drastically reduce municipal aid due to the Democrats’ disastrous budget crisis, Moody’s Investor Services called the move “credit negative for Connecticut local governments.” Moody’s downgraded the state’s overall bond rating earlier this year citing “eroding state income tax receipts, the impending depletion of the state budget reserve, and huge unfunded liabilities.”
Under Malloy and his top enablers Nancy Wyman and Kevin Lembo, Connecticut’s spiraling fiscal crisis continues to weaken the state’s economy with no end in sight. And now as Connecticut’s towns and municipalities bear increasing consequences for their failed leadership, it becomes clearer how desperate the state is for new leadership.
CT News Junkie reports:
“A Wall Street rating agency says Gov. Dannel P. Malloy’s revised executive order that would reduce municipal aid is ‘credit negative for Connecticut local governments.’
An analyst for Moody’s Investor Services said the revised order reduces municipal aid by $928 million from 2017 levels…
The revised executive order eliminates ECS funding for 85 Connecticut towns and reduces funding to an additional 54 communities. It restores to 2017 levels funding for Connecticut’s 30 lowest-performing school districts, including Hartford, Bridgeport, Waterbury, and New Haven.
The executive order also eliminates $182 million in PILOT funding and reduces smaller municipal revenue-sharing grants by approximately $131 million.
‘Barring passage of a state budget, the projected cuts will likely force municipalities to take emergency action through supplemental tax hikes or mid-year expenditure cuts,’ Moody’s analyst Joseph Manoleas wrote. ‘Use of reserves to address budgetary shortfalls is a challenge in Connecticut because the median fund balance in the state for towns and cities of 13 percent is already lower the national median of 31 percent of revenues.’”