Fitch, Moody’s, and S&P Global Ratings recently reaffirmed Maryland’s triple-A credit rating. However, Moody’s downgraded the state’s outlook from stable to “negative,” citing concerns about looming structural deficits due to excessive education spending. Despite rising education expenditures, test scores are declining.
“The negative outlook reflects the challenges Maryland will face in maintaining balanced financial operations without sacrificing service delivery goals or increasing the burden on taxpayers,” Moody’s stated in last month’s report. This is the first negative outlook for Maryland since 2011, following the GFC meltdown.
The primary driver of this fiscal cliff is education programs, including the Blueprint for Maryland’s Future reforms. When the reform was passed, lawmakers did not establish a funding mechanism.
“It’s a self-created hole,” Republican State Senator Justin Ready told investigative journalist Chris Papst of Fox45 News’ Project Baltimore last month, adding, “I’m disappointed but not surprised that we were downgraded to negative.”
Senator Ready’s district, covering Carroll and Frederick Counties west of Baltimore, has faced fiscal challenges due to rising education spending. Several years ago, Ready warned leftist lawmakers in Annapolis about potential fiscal turmoil, but his READ HERE MORE
BY TYLER DURDEN
Disclaimer: This article may contain statements that reflect the opinion of the author. The contents of this article are of sole responsibility of the author(s). AC.News will not be responsible for any inaccurate or incorrect statement in this article www.ac.news websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner. Reprinting this article: Non-commercial use OK. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.