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TextNorthern VA Mayors and Chairs Protest Moody’s Action and the Federal Government’s Inaction
July 29, 2011
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Statement from:
- Alexandria Mayor William D. Euille
- Arlington County Board Chairman Christopher Zimmerman
- Fairfax City Mayor Robert F. Lederer
- Fairfax County Board of Supervisors Chairman Sharon Bulova
- Herndon Mayor Stephen J. DeBenedittis
- Loudoun County Board of Supervisors Chairman Scott K. York
- Prince William Board of County Supervisors Chairman Corey A. Stewart
- Vienna Mayor M. Jane Seeman
Northern Virginia does not have a debt problem, the federal government
does.
The continued inaction and partisan bickering over the very high amount
of debt the federal government is carrying and how to deal with it is
putting at risk the credit ratings of our Northern Virginia
localities.
For the first time, our local governments are facing the possibility of
losing our Aaa credit rating from Moody’s Investor Service because of the
federal government’s failure to deal with the ongoing debt crisis. This
has reached crisis level and is impacting everyone in Northern Virginia,
and we say enough is enough!
Moody’s decision to place our bond ratings on review for possible
downgrade was made because of federal inaction, and in no way reflects
the continuing strength and good fiscal management of our local
communities. Yet any rating downgrade will increase the cost of borrowing
for us all, forcing governments across Northern Virginia to reevaluate
and perhaps curtail, capital spending. The ripple effect of this
situation on our local budgets could threaten basic services, just as we
are slowly emerging from the multi-year, cyclical economic downturn.
Nothing has changed in terms of our local financial and debt management practices and our continued strong fiscal management and low overall debt burdens bring stability to the region. Northern Virginia is a major component of the region’s economic success story, according to a recent study by George Mason University's Center for Regional Analysis.
But the impact of this ongoing stalemate could be huge. As our
transportation challenges grow and the facilities that house our
firefighters, police and schoolchildren deteriorate, our plans to address
these needs could be jeopardized. This crisis atmosphere raises serious
concerns.
We fully understand the challenges involved in balancing revenue levels
and funding essential services, since we accomplish this task every year
in our localities. Our strong financial management practices have helped
us manage through strong periods of growth as well as economic slowdowns
while maintaining strong and stable financial profiles.
The time to act is now and we urge our leaders on Capitol Hill to set
aside partisan differences, solve this ongoing crisis and come to a
resolution of this problem for the good of us all.
Contact:
Communications/Public Affairs Directors:
- Alexandria: Tony Castrilli, 703-746-3958
- Arlington County: Diana Sun, 703-228-3247
- Fairfax City: Chris Fow Cohen, 703-293-7120
- Fairfax County: Merni Fitzgerald, 703-324-3189
- Herndon: Anne Curtis, 703-435-6800, ext. 2010
- Loudoun County: Robin Geiger, 703-771-0113
- Prince William: Jason D. Grant, 703-792-5509
- Vienna: Kirstyn Barr, 703-255-6330
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Contact: Merni Fitzgerald, Director, Office of Public Affairs
703-324-3189, TTY 711, Media Pager: 703-324-NEWS (6397)
publicaffairs@fairfaxcounty.gov
To request this information in an alternate format, call 703-324-3187, TTY 711
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