Moody’s Warns that a “Yes” Vote for Charters May perhaps Harm Credit Ratings of Boston and various Massachusetts Cities

Moody’s Investors Support launched a warning earlier this week warning that if Massachusetts voters pass Question two to expand the amount of charter colleges during the state, it could possess a unfavorable impact on the credit score ratings of Boston and 3 other cities within the state.

The story appeared while in the Boston Globe, which earlier urged voters to pass the controversial referendum, although it can drain numerous bucks through the state’s public schools and possible harm the nation’s most productive state technique of public colleges.

The credit-rating agency Moody’s Investors Support is warning Boston and three other Massachusetts cities that passage of the ballot measure to increase charter schools could weaken the municipalities’ economic standing and in the end threaten their bond ratings.

In e-mails sent Monday, Nicholas Lehman, an assistant vice president at Moody’s, warned that passage with the referendum could be “credit negative” for the cities.

“Depending on the Nov. eight vote, the standard credit see would be the following: A vote of ‘No’ is credit score positive for urban cities. A vote of ‘Yes’ is credit damaging for urban cities,” Lehman wrote.

Lehman informed the cities he would offer a draft evaluation with the referendum’s impact on Wednesday and solicit their comment, publishing a total report after the election.

The other three cities in Massachusetts are Lawrence, Fall River, and Springfield. A spokesman to the Boston Municipal Analysis Bureau stated a “yes” vote may possibly induce fiscal hardship, but would likely be offset by closing public colleges with empty seats (as new charters open) and concessions from teachers.

So a “yes” vote would suggest closing much more public colleges and reducing salaries or pensions or other rewards from teachers. Why does the corporate reform market wish to destabilize the most profitable state college process while in the nation?

Why are a great number of inside the fiscal sector pouring hundreds of thousands right into a campaign that can naturally undermine the fiscal stability of urban districts from the state? If Moody’s understands it, why don’t the equity traders and hedge fund managers? Maybe it really is for the reason that so couple of with the donors to Query two live in Massachusetts or have ever set foot in the public school. They've got no skin in the game. For them, it really is a hobby, not a financial determination.