From Harford County government:
County Executive David R. Craig is pleased to announce that Harford County has had its AAA bond ratings reaffirmed by rating agencies Moody’s Investors Service and Fitch Ratings. The two agencies upgraded the County in 2010, and the confirmation of the AAA ratings are the result of a review of the County’s fiscal management practices and economic outlook, as well as meetings with the County Executive and members of his administration.
Standard & Poor’s, which had previously assigned the County with an AA+ rating also reaffirmed their rating. The three rating agencies employ financial and business experts who seek to advise investors with regard to the safety of investing in a particular organization. By assigning these ratings, the experts are identifying Harford County as a safe place to invest and to do business.
According to Fitch Ratings, Harford County’s rating outlook is stable, and the County’s financial operations are “characterized by a conservative approach to budget development, timely revenue and spending adjustments, and steady compliance with a fiscal stabilization policy equal to 5% of spending.” Furthermore, Fitch adds, “Harford County continues to adhere to good debt management guidelines, which have allowed overall debt levels to remain low.”
Fitch also notes the county’s “historically low unemployment,” which they attribute to the quality of the local labor force, the County’s location, and the high concentration of federal government employees and contractors. The continued expansion of APG, the report states, “should prove beneficial over the intermediate- to long-term, particularly with respect to attracting higher-wage employment opportunities.”
Similarly, Moody’s Investors Service identifies Harford’s “conservative management that maintains comprehensive fiscal policies” as a strength, while noting that the county’s employment linkage with the federal government is a challenge going forward.
Commenting on the reports from the rating agencies, County Executive Craig remarked, “As I stated a year and a half ago when we were first upgraded, the efforts that my administration and the County Council have taken to diversify our economy, to reduce the tax burden of our citizens, and to invest in key infrastructure projects have positioned Harford County well for the future.”
“The reaffirmation of our AAA bond rating confirms that our conservative fiscal approach is working, and that despite facing significant headwinds in our national economy, Harford County is not only weathering the storm but thriving.” County Executive Craig added, “If only the federal government could get its house in order as we have done, Harford County and our citizens could look forward to an even brighter and more stable future.”
Hey, what happened to how crappy the outlook was and how we can’t afford to pay our employees…
Well, you certainly don’t achieve a AAA rating by incurring unsustainable obligations. The same conservative fiscal policies that generated last year’s surplus is what has secured the AAA rating. Kudos to the County and the administration.
Ryan you keep on making some rather confusing statements. In an earlier post you told everyone that you lost $12,000 in pay, meaning that had the County fully funded what you thought you should get you would have gotten a $12,000 pay raise. There is a significant difference. Now you point to the fact that the AAA rating should not be because the County refuses to commit to unsustainable indebtedness.
I know that yo have been part of the education industry, probably for most of your life, so some of these concepts may be difficult to grasp. The County derives most of its income from real estate taxes. The value of property is reported to be down by 10% across the board in Harford County. In Aberdeen we just got our new assessments and my home value went down by 15%. That equates to the County looking at a 10 to 15% reduction in income in the next few years. That is a real problem which has to met with reductions in expenditures. We are not going to be able to just keep on giving the nice comfortable pay raises based on the ability to fog a mirror. We who are actually working in wealth creating jobs have also seen real reductions in income. Not a lost raise, but actual reduction of hours, and/or cuts in salary and wages.
I fully understand the importance of teachers. I appreciate the dedication, hard work and long hours involved. I truly do. Do you understand that higher taxes force us to make difficult decisions?
Dave,
Did you know that Harford County revenues are at almost the same level pre-recession despite the lower tax rate? There is a much larger volume and the overall income of the county has gone up dramatically. We have lower unemployment than either of our neighbors. County Executive Craig is organizing a bond sale to fund projects but can’t pay his employees. The County’ finances are “unpredictable” but they get a triple AAA bond rating? “According to Fitch Ratings, Harford County’s rating outlook is stable, and the County’s financial operations.” Wouldn’t a true conservative approach be to pay your employees and not go into debt?
As to my lost wages, these were not raises. They were contractually agreed upon salary steps. There really is a difference. Similarly, the twelve thousand is a cumulative number. About $2,000 the 1st year. That means that I should have made $2,000 more the second year plus the initial $2,000, that’s $4,000, which equals $6,000 in total. The giant problem comes the third year where it is $8,000 + the previous $6,000, it actually equals over $14,000. Now, if the money really wasn’t there the first year, it would be understandable but the second and subsequent years are ridiculous. I feel sorry for those who have also lost money and jobs but this is a situation where our trust and contract have been fundamentally broken. There are those which will say I am politicizing this but I am not. What would you do if you were contracted to provide a service, you did so and then your employer said they had no money , but they did? It is an issue of pure fairness.
can’t pay “what” employees? Are their jobs necessary?
Are teachers necessary? Is that really a question?