FOR IMMEDIATE RELEASE
Treasurer Cowell Opposes Constitutional Amendment Tax Legislation
Raleigh, N.C. - State Treasurer Janet Cowell announced opposition today to a measure in the North Carolina Senate that would limit the state’s financial and budgetary flexibility. In a letter sent to all legislators on Friday, Cowell advised against the passage of Senate Bill 607 due to the potential risk to North Carolina’s “AAA” bond rating.
“North Carolina has a long history of responsible fiscal management as evidenced by our status as one of only ten states in the nation with a ‘AAA’ rating from all three rating agencies,” Cowell wrote. “The passage of the Constitutional Amendment Tax Legislation poses real danger to our finances and reputation.”
Historically, credit rating agencies that make these determinations view the financial limitations imposed by this legislation as ‘credit negative’. North Carolina was reaffirmed in March as a “AAA rated” state by all three rating agencies – Standard & Poor's, Moody's Investors Service and Fitch Ratings. North Carolina is one of only 10 states to earn the “AAA” bond rating by all three rating agencies.
The Department of State Treasurer’s State and Local Government Finance Division handles the sale and delivery of all State and local debt and monitors the repayment of State and local government debt. More information can be found at http://www.nctreasurer.com/slg