I suppose that is what happens when you run a deficit.

Via the D&C

The county plans to borrow about $81 million for capital projects and pay back debt in a sale scheduled to close July 14. The downgrade’s cost to the county won’t be known until then, when the interest rate is set.

[snip]

The downgrade happened because the county has closed out the year with a negative fund balance in all but one of the last six years, because it has been unwilling to raise property taxes and because it must pay school districts $29 million, according to Fitch. The $29 million payment is a result of a plan to take away payments to schools, which was struck down by the courts.

The rating affects the upcoming bond sale and $414 million in outstanding bonds.

The Moody’s rating “reflects the county’s weak financial position characterized by narrow cash levels and persistent structural imbalance,” according to its most recent opinion, though the rating keeps the county at investment grade.

I suspect there will be a slight interest hit - certainly not a major one.  Nevertheless - the chickens are coming home to roost as Maggie’s inability to get her balance sheet under control will will continue to cast a long shadow that darkens Monroe County’s future.

Related posts:

1. When Monroe County credit ratings fall - taxpayers pick up the tab - a fact unknown to Monroe County Leadership
2. Enron county
3. On Borrowed time: Monroe County Budget unveiled
4. 1,300 Monroe County home loans facing default: Anatomy of a crisis
5. Monroe County Is In Great Shape Financially. Or Not.