[cogitator]

SOMEBODY needs to do a serious analysis of the effect on state finances of having the cherished AAA bond rating downgraded a notch. Is it that big a deal? After all, only 13 states have a AAA bond rating, and they rest of them (with the notable exception of California) still seem to be viable entities.

But when Idaho went through the same type of thing that Virginia is going through now, Idaho's AAA bond rating was also topic #1 of discussion.

I'd sure like to see what Grover Norquist has to say about bond ratings. He seems to think that taxes should be cut no matter what -- I've never seen an indication that he takes things like bond ratings into account. These Virginia moderates are taking a different view of that, aren't they?

[JohnnyZ]

He seems to think that taxes should be cut no matter what -- I've never seen an indication that he takes things like bond ratings into account.

His position is:

1. No tax increases.
2. Balanced budget is usually mandatory for a state.
3. Therefore there must be spending cuts.

As long as the budget is balanced (without a bunch of temporary gimmicks, or heavy long term debt service) the bond rating shouldn't be affected.