Forbes has just reminded us that North Carolina’s fiscal health is being verified by the bond rating agencies: “Last week, North Carolina Governor Pat McCrory delivered the banner news that his state upheld its AAA bond rating – the highest rating possible – from all three major bond-rating agencies.”
Forbes goes on say why: “Bond-rating giant Moody’s credits North Carolina’s AAA rating to ‘the state’s long history of conservative fiscal practices, an economy that continues to recover and expand, and declining debt levels.’ In a similarly glowing statement, Standard & Poor’s writes that North Carolina’s ‘favorable’ economic climate has ‘helped spurs strong domestic in-migration, which has been good for population and economic growth.’”
That’s what we have been saying for years. Prudent fiscal policy pays off big in the long run. Since conservative policies were implemented in 2013, the state’s finances have improved, and that has meant jobs and growth that benefit everyone.
We do have a couple of quibbles. The Forbes article focuses on McCrory. He certainly deserves his full share of credit, but much of the credit for reform should also go to key leaders in the General Assembly and the Republican majority.
Also, fiscal conservatives aren’t getting carried away just yet. Yes, the current successes are nice, but less obvious problems remain. The lesson might be to take heart from successes and press on to make further reforms in NC’s fiscal situation.