Bacon's Rebellion

Democracy Thrives in Sunlight

McDonnell to Defend AAA Rating

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by

James A. Bacon
in

The sleeper story of the season: Gov. Bob McDonnell, staff and senior legislators will be paying calls on rating agencies S&P, Fitch and Moody’s to defend Virginia’s AA rating.

According to Chelyen Davis with the Free-Lance Star, McDonnell says he has no reason to believe that the AAA is in jeopardy, but he’s never met with the rating analysts and he wants to make sure they “have confidence in what we’re doing.” In particular, he wants to explain how Virginia intends to honor its commitments to the Virginia Retirement System.

Good luck, governor. Make sure you have an explanation handy for that Senate Finance Committee report that says Virginia cannot borrow any more money if it wants to maintains its self-imposed debt capacity cap of 5% of revenue.

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13 responses to “McDonnell to Defend AAA Rating”

  1. Larry G Avatar
    Larry G

    Here's the really outrageous aspect to this.

    This man claims to be a fiscal conservative who says that we spend too much and lack the discipline to cut govt to live within our means….

    so what does he do?

    he sets in place a policy of borrowing and deferring payments on existing debts.

    And now he thinks he's going to go tell the rating agencies how to do their business?

    This guy is a joke.

    Even Groveton ought to admit this.

  2. Darrell Avatar
    Darrell

    What's the big deal? For a modest service fee, the ratings can be AAAA if McD wants.

    Besides, the state's rating isn't the one to be worried about. Unlike cities, the state won't go bankrupt.

  3. Larry G Avatar
    Larry G

    ha ha ha.. Darrell.. so we just allow for bribing the rating agencies when we do the budget?

    We'd EXPECT this kind of nefarious conduct from those unprincipled tax & spenders…

    but what should we expect from those guys who promise us fiscally conservative principles, less spending, no new taxes, and cutting waste and abuse?

    Is nothing sacred any more?

    I love it. Groveton voted for this guy because he had his act together better than Creigh Deeds who said that the only way to fix transportation was to increase taxes – and McDonnell said – nope.. we just needed to "fix" VDOT.

    So.. now the man is headed to New York to tell those whippersnappers up there that Va can borrow as much money as they want for roads and those rating agencies better sure as well understand that this is not only Virginia doing this but a fiscally conservative to boot.

    bahahahahahahahahahhah

    Being Republican these days means you never have to say you're sorry as long as you can lie your butt off…. first.

  4. Phil Rodokanakis Avatar
    Phil Rodokanakis

    McDonnell also said that VA's Supreme Court got it all wrong when they overturned HB3202 as unconstitutional, because it allowed unelected and unaccounted bureaucrats to raise taxes.

    The guy is a joke, who should be thanking Obama daily for getting him elected–otherwise he could have never become governor…

  5. Larry G Avatar
    Larry G

    speaking of 3202 – in the context of regional approaches to funding transportation needs….

    Three Questions:

    1. – do Regions like NoVa and Hampton Roads need a viable regional method of addressing their transportation needs ?

    2. – If such regions identify such needs – how do they obtain approval/concurrence from the voters in the region?

    3. – Suppose that a regional list of improvements is widely supported by people within the region – and there is a likely prospect that they are willing to provide funding – what are the legal alternatives for the region to achieve that?

    Is that something that McDonnell might address in his legislative agenda?

  6. Hydra Avatar
    Hydra

    Darrell is not far off. Influencing the rating Stevie's was one prime cause of the last fiasco.

  7. Darrell Avatar
    Darrell

    1. Down here in Tidewater the politicians appoint themselves to the various boards and committees and then work among themselves and the business elite to develop the transportation projects.

    We end up with things like:

    the multi-billion dollar Nansemond River farmland to subdivision development gateway port interstate not so third crossing (whew what a mouthful)

    an obsolete SE parkway that goes right through brand new McMansion subdivisions or protected watersheds and would create the second most congested interchange in the region

    the debacle Norfolk starter line light rail system which leads to

    a 25 year, 29 billion dollar regional mass transit 'vision' that will cost a billion bucks a year to operate.

    But no expansion of the HRBT.

    2. There is no voter approval process, which is why these projects are on the board for 20+ years without funding. If the citizen is lucky, they get to vote on a meaningless city non-binding referendum that was pushed on the ballot by a civic petition over the city's objections. Norfolk voters didn't even get that on LRT.

    3. Go back to step one.

  8. Larry G Avatar
    Larry G

    yeah.. I put question number 1 in there on purpose:

    1. – do Regions like NoVa and Hampton Roads need a viable regional method of addressing their transportation needs ?

    …. basically to find out if people think there is a need to look at roads regionally or not, i.e. do we need organizations like MPOs (or not)?

    Then the next two questions assumed a yes to 1.:

    2. – If such regions identify such needs – how do they obtain approval/concurrence from the voters in the region?

    how the MPOs decide to prioritize projects is a big problem with many MPOs but I do wonder if you did not have an MPO if you'd still have citizens not agreeing anyhow.

    3. – Suppose that a regional list of improvements is widely supported by people within the region – and there is a likely prospect that they are willing to provide funding – what are the legal alternatives for the region to achieve that?

    then finally – most MPOs have very little funding…usually CMAQ and RSTP funding that comes from VDOT and because MPOs have been "saving up" the money over years – it does not get obligated the way the Feds want it – in a timely way – so VDOT is now threatening to pull this money back also.

    But even if we got past 1. and 2. – it appears to me that most folks in most regions don't want to pay higher taxes for roads nor do they want to pay tolls but even if they did – what would be the process for raising taxes – on a regional scale?

    The only thing I can see is to submit a list of transportation improvements along with costs to regional referenda – done at each local level and if all voters approve – the plan goes forward and if even one jurisdiction votes against – it dies or should the referenda rules count a majority of the region? (this would require the General Assembly to make this legal).

    Even if McDonnell is successful at borrowing another 4 billion – it's not sustainable funding for the next 20, 30, 40 years which is what places like NoVa or Hampton Roads would need to move forward.

    But right now – Hampton Roads is not even at square one…

    and NoVa probably is at square two.

  9. Darrell Avatar
    Darrell

    Well the test case will be the new Jordan bridge. This private project was slipped around the MPO gauntlet, and will be a toll only deal.

  10. Hydra Avatar
    Hydra

    Who gets the toll revenue, and for how long? What is the process for raising tolls, and how does it differ from the process for raising taxes?

  11. Hydra Avatar
    Hydra

    Every revolution evaporates and leaves behind only the slime of a new beaurocracy.

    Franz Kafka

  12. Hydra Avatar
    Hydra

    There is a fundamental disconnect here. We have the right to go where we please, but we do not have the right to trespass on private property.

    If we refuse to pay the taxes to maintain the public property that allows us to travel, we give ourselves over to the tyranny of private interests.

  13. Hydra Avatar
    Hydra

    With its new regulations on the Bay, EPA is apparently attempting to repeal the law of gravity.

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