"It will increase our cost of doing business," said Montgomery County Council President Roger Berliner of a potential AAA bond rating drop. "So we'll do less, or we'll ask people to do more."
The additional burden for the counties to meet Maintenance of Effort is going to increase pressure on the local governments - that have to balance their budgets by the end of May. The added pressure has Moody's Investors Service considering a downgrade for individual county credit ratings. Since the legislature failed to agree on a House/Senate budget resolution - it triggered a so-called "Doomsday Budget" that cuts state spending by $512 million.
For Wicomico County - it could spell financial disaster as it tries to fill a 14 million dollar budget hole to fund the BOE maintenance of effort. If that is the case - it could ultimately effect the ability for Wicomico to receive an acceptable bond rating.
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