Max Smith, wtop.com
WASHINGTON – Local leaders are warning that you may not get all the services you rely on — all because a Wall Street ratings agency thinks our region’s economy may not be that solid.
Moody’s reaffirmed its negative outlook this week for Maryland, Virginia and a number of local governments in our area based on expected federal budget cuts.
Affected leaders in northern Virginia say the agency’s decision is “shortsighted” and is leading local governments to think about cutting back on building things like schools, fire stations and parks.
That’s because a negative outlook can mean it costs more to borrow money.
“The more expensive it is, the more money you don’t have for other things such as the operation of schools, the operation of fire stations, the operation of our libraries, the operations of our park system,” says Fairfax County Board of Supervisors Chairman Sharon Bulova.
“So the more you have to pay to build stuff, the less you have for other things that you have to make decisions about in your budget,” she adds.
A joint statement with several other Northern Virginia leaders points to the recent BRAC moves and infrastructure investments, along with diverse businesses and easy access to big airports, as evidence that jobs and tax revenue are here to stay.
In Maryland, Moody’s lists Montgomery, Prince George’s, Howard, Harford and Baltimore counties, along with Bowie, Rockville and the Washington Suburban Sanitary District as having negative outlooks due to ties to the federal government.
In Virginia, the agency lists Fairfax, Arlington, Loudoun and Prince William counties with a negative outlook, along with the cities and towns of Alexandria, Fairfax, Vienna and Virginia Beach. The Fairfax County Water Authority also has a negative outlook.
Moody’s has revised the outlook upward for Henrico, Hanover, Chesterfield and Albemarle counties and the city of Charlottesville. They’re now listed as stable.
See the full list of affected local governments here.
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