Maryland's cost to borrow money will soar after credit agency Moody's downgraded the state's credit rating from the coveted AAA to Aa1 today. Moody's ratings system charitably denotes Aa1 as being a "high quality" investment, as opposed to AAA's recognition of a "highest-quality" investment. In practice, however, the lower grade means you - the taxpayer - will pay a higher rate of interest when Maryland issues bonds to pay for infrastructure projects, for example.
The rating downgrade was first reported by Maryland Matters, which noted that today's change ends a remarkable streak of the state holding a AAA rating from Moody's since 1973. That success was sustained under Democratic and Republican governors alike. Maryland Governor Wes Moore (D) attempted to deflect blame to Donald Trump in a rant on X this afternoon, despite frittering away a $5.5 billion budget surplus left to him by previous governor Larry Hogan (R).
Maryland has been hamstrung by the fiscally-deadly combination of out-of-control spending, the flight of the rich and retirees to lower-tax states, and a failure to lure any major corporate headquarters to the state this century. Yet, Moore and the Maryland General Assembly have continued to support the controversial Blueprint for Education, a state teacher's union-driven boondoggle every rational budget expert warned could lead to fiscal disaster down the road.
Our state is now closer to that disastrous destination with today's credit downgrade. Maryland was already barely able to close a budget deficit this year. What will it do next year, now that borrowing money will cost significantly more, and its economy remains moribund?
22 comments:
Evidence of our deterioration which many of us saw coming but we just don't get the votes. Our "leadership' is horrible, at every level now.
I've read that the downgrade was due to all of the federal firings ordered by dear leader. I wonder if VA will experience a similar fate.
Where Cinco? Reputable?
4:28. Your "dear leader" comment exposed your prejudice. Show us the facts. Easy to say 'I read...'
Well, I don't need to read we are going down the drain as are many blue states, I can see it everyday.
I wonder if 4:28 will ever accept responsibility for their own actions, (referring to democrat tax & spend policies in MD over the past 30 years). Keep in mind that Hogan had the most legislative veto overrides of any past governor.
Just kidding, liberals never take responsibility for their policy failures. Like 4:28, it's never their fault when "good intentioned policy" blows up in their face.
BTW, I haven't heard much about the doomed stock market, egg prices or whatever flavor-of-the-day-democrats-won't-talk-about-when-the-predictions-fail-to-materialize. I never get tired of pointing out those crocodile tears.
Step away from the FauxNews and you'd know the truth really is Conald's fault. Even in your beloved VA the credit rating has become shaky. Don't believe it, do your own homework, look it up. Kudos to 4:28.
Some of the facts;
As Moody’s acknowledged, state actions ‘closed a budget gap although the need for further corrective steps may arise directly from federal funding cuts or the economic consequences of federal layoffs and other policy shifts, to which Maryland has a very high degree of exposure.’
Maryland still holds one of the highest possible credit ratings in the nation, and as we have for decades, we will always pay our debts. We have taken proactive steps to protect our people and fortify our state in the face of federal headwinds. And together, we will continue to answer crisis in Washington with courage in Maryland.”
@3:29 Don't think that Cinco would feel guilty about good intentions. The problem is that good intentions are not a substitute for actual results especially when done repeatedly expecting different outcomes.
7:18: The biggest factor cited by Moody's is overspending, on Blueprint in particular, which Moody's cites directly. Trump has zero to do with Blueprint, a state initiative.
Welcome to our great state of Maryland
A land of blue crabs and white oak trees
Where they downgraded the AAA rating
While our leaders go on a spending spree.
Maryland is hell bent on feeding public education without holding teachers remotely accountable. The reality is that even talented and competent teachers cannot perform well with disgruntled 'students' that not only do not want to be there, but make education and safety impossible for those that do want to attend. We need to stop chasing truants and find some other entertainment for them rather than trying to educate them. Dancing, sports, music, easily trainable tasks like the Post Office used to offer. We created that fake uneducated middle class back in LBJ's day, we just need to find another avenue other than the classroom.
For some reason the ruling class thinks that pouring funds into education is the panacea to all ills of our society.
3:28 - AI - Still can't face the facts and truth Trump did have significant impact on the rating, just as he has on DC and VA. No need in inject an initiative of the Gov. and fault it.
6:21: Wrong. Moody's literally cited the Blueprint in its analysis. Virginia has a AAA rating. We don't anymore. Trump is President in both states.
As expected, 6:21 confirms what we already know. Never admit guilt even if caught red-handed. So funny that everyone can connect the dots except chronic TDS patients with whom Trump lives in their mind rent free.
The US also lost its AAA rating.
This is a rare shot of the governor not smiling!
Must be the Democrats' fault.
Protest of losers in Rockville today, (5/17 on the Pike). Talk about no self awareness protesting Musk in a liberal area with others that are just as brain damaged as they are. Just don't drive your Tesla in Rockville today as these "non violent" protesters will set your car on fire.
You just aren't looking hard enough.
Two days after Maryland lost its long coveted AAA bond rating from Moody's, another firm maintained the state's top rating.
Fitch Ratings, one of three credit rating agencies, on Thursday assigned an AAA rating to specific general obligation bonds and securities, calling the state's rating outlook "stable."
Fitch stated that Maryland's "financial resilience is extremely strong, with well-funded budgetary reserves, consensus-oriented decision-making with a historical willingness to trim spending and increase revenues, and a disciplined multiyear forecasting and planning process."
The US has lost its last perfect credit rating, as influential ratings firm Moody's expressed concern over the government's ability to pay back its debt.
In lowering the US rating from 'AAA' to 'Aa1', Moody's noted that successive US administrations had failed to reverse ballooning deficits and interest costs. --BBC News
Post a Comment