Governor Scott Walker will travel to New York tomorrow to meet with the three major bond ratings agencies--Moody's Investors Services, Fitch Ratings and Standard and Poor's.
"Reforming the budget process helped not only our state, but also local units of governments and school districts balance their budgets," said Governor Scott Walker. "Requiring modest employee health care and pension contributions, bidding out health insurance and a multitude of other measures combined for more than $1 billion in savings for Wisconsin taxpayers. I look forward to telling the bond rating agencies about the positive economic impacts of our budget and our plan to keep Wisconsin on sound financial ground."
The trip comes at a time when many states are struggling with budgets and some face credit downgrades. Recognizing the financial impact of a positive bond rating, the Governor will talk about his successful efforts to maintain fiscal responsibility in Wisconsin. Specifically, Governor Walker will talk about his first budget, which eliminated a $3.6 billion deficit without raising taxes. It caused property taxes on a median valued home in Wisconsin to decrease for the first time in twelve years. Beyond those items, a Pew study recently revealed Wisconsin is the only state with a fully-funded pension system. In addition, for the first time in Wisconsin's history, the state has set aside funds for the rainy day fund in back-to-back fiscal years.
Last year, Moody's rated Wisconsin's budget as "credit positive." Credit ratings affect interest rates when state or local governments borrow money through issuing bonds.