Another bright spot in an otherwise gloomy 2020 was announced this week.
State Treasurer Dale Folwell announced Monday that all three national bond rating agencies had given North Carolina the top AAA rating for sound fiscal management, “noting the state’s strong economic growth and diversification, conservative fiscal management, rainy day fund and other reserves, as well as low liabilities.”
In spite of the economic calamity caused by the Chinese COVID-19 virus, in the form of business shutdowns, unemployment and shifting business models, the track record of the Reform Majority in the NC General Assembly for the past 10 years provided a firm foundation to weather this storm.
The money saved in the Rainy Day Fund alone, despite criticism from the Left, deserves a tremendous applause.
North Carolina is one of 13 states to have the AAA rating among the major national bond rating agencies, according to Treasurer Folwell.
“Having the rating agencies affirm our ‘AAA’ bond ratings during these volatile economic times is a credit to the taxpayers of North Carolina and the North Carolina General Assembly for their strong fiscal management,” Mr. Folwell said. “Maintaining our “AAA’ rating will help us finance debt at the lowest possible rates, making more money available for public education, public roads and the other core functions of government.”
Keeping taxes low, watching wasteful spending, and building a sizable Rainy Day Fund for economic downturns has paid off. Keeping our state bond rating sound and at the top of the pack has been a linchpin of North Carolina’s generally consistent fiscal health, going back most notably to the days of State Treasurer Harlan Boyle who preached constantly of the need to maintain that precious AAA rating.
Thanks to the Reform Majority for having the strength and discipline for the past 10 years to make another AAA rating possible now as we try to revive our state economy.