Following Mayor Bronin’s announcement that the City’s budget gap had ballooned to $22 million, Standard & Poor’s cut the City’s bond rating to BBB from A+.
The City’s plans do use reserves and labor concessions to close its budget imbalance have not materialized according to the article. S&P is quoted as saying, “In our opinion, the rating reflects the city’s structural imbalance without a credible plan in place to return to balanced operation,”.