So, when an upgrade is earned, it s a worthy accomplishment. Here s what Moody s now says about Vermont s governmental finances. In addition, the state retirement system is well funded compared to others in the region. The state s credit outlook is stable, reflecting Moody s view that the state s well-balanced economy, together with its conservative financial policies, healthy reserve levels, and proven ability to adjust spending patterns when necessary, produce a strong ability to maintain financial balance in the event of a national or regional economic downturn. In addition to lower interest rates on state borrowings, the higher credit rating reflects the fact that Vermont is better prepared for the next recession.
Recessions are always difficult.
People lose jobs or take pay cuts and must more often look to governmental programs to make ends meet. Vermont s higher credit rating says that funds will be available in good times as well as bad to support these important programs serving the basic needs of Vermonters. While there are minor increases and decreases in other areas, most of the increase is attributable to higher costs in health care, Corrections and special education. More detail regarding each of these budget adjustment proposals can be found on pages 8 and 9. Savings from the delayed openings of new bed space in Newport and Waterbury were available to off-set a portion of these cost increases.