DiNapoli Statement on Moody's Negative Outlook for Local Governments
Moody’s Investors Service’s decision to keep its outlook for local governments across the country as negative is not surprising. Our research shows that the problems that New York’s local governments are facing are both systemic and a product of our slow economy. This is particularly true for our cities, which are on the front-line of fiscal stress, as our recent profiles show.
That is why my office is implementing an ‘early-warning’ fiscal monitoring system that can publicly identify municipalities experiencing signs of budgetary strain and spur corrective actions before a full financial crisis develops.
Moody’s correctly notes that continuing constraints on state aid and property taxes, coupled with years of spending reductions, will make budgeting increasingly difficult.
I will continue my efforts to help local governments identify and meet these significant challenges in the years ahead.