The financial screws have suddenly tightened by a couple of turns at Fresno City Hall. Moody's Investors Service has lowered by one notch its rating on most of the city's high-profile bond deals of the past 15 years. These deals include the pension obligation bonds, the Convention Center bonds and the No Neighborhood Left Behind bonds. In the world of credit-worthiness, the downgrade knocks Fresno's bonds from average (Baa2) to below average (Ba1 and Ba2, depending on the bond deal). Wall Street, skeptical for months that Fresno can get its financial act together, is turning pessimistic. The Moody's downgrade comes as Fresno County Clerk Brandi Orth predicts her review of residential trash petitions almost certainly will go into March. If so, City Manager Mark Scott may have no choice but to begin substantial layoffs and service cuts. Read more here: http://www.fresnobee.com/2013/01/29/3151660/fresno-budget-woes-mount.html#storylink=cpyI am not worried, the professors at UC tell me multipliers are always greater than one, so this must be fiction. Here is the problem:
But the gloom overwhelms everything: A huge general fund deficit, a general fund consumed by high fixed costs such as salaries, no reserves and a weak Valley economy made worse by the limited skills of much of the population. Read more here: http://www.fresnobee.com/2013/01/29/3151660/fresno-budget-woes-mount.html#storylink=cpyAll my fault, my limited skill set.