According to the bond rating firm Fitch, Oregon General Obligation bond have been upgraded from A+ to AA-. Among the reasons given is the fact that the Strunk ruling on PERS, while potentially increasing the UAL by $2.1 billion, has given more "credit certainty" to the State. While this sounds like good news, the story also notes: "While state debt is still moderate, it has tripled over the past three years, principally as a result of the deficit and pension borrowings. Net tax-supported debt is now nearly $5 billion, equal to $1,452 per capita, or 4.7% of personal income. Debt is expected to continue to grow, as the state has embarked on a seven-year $1.9 billion transportation bonding program." I figure that despite the fact that an upgrading of creditworthiness will mean lower interest rates for GO bonds (and the cost-savings that go with them), the flip side will be used to continue the Legislative shakedown of any pocket that looks ripe for the picking.
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