Tom Conroy for State Representative

State Representative Tom Conroy, a candidate for U.S. Senate, reacted today to the news that Moody’s Investment Services has assigned a negative outlook to the credit ratings of several Massachusetts municipal governments, including the Town of Wayland and Lincoln-Sudbury Regional School District, both of which he represents on Beacon Hill. 

“I have known the Town of Wayland and the Lincoln-Sudbury Regional School District to practice responsible, prudent, and forward-thinking financial management,” Conroy said in response to the news.  “While I understand the technical reasons behind Moody’s decision, it is unreasonable to penalize municipal governments for the shortcomings of the parent organization, in this case, the United States government.” 

“The municipalities that I am privileged to represent have show the kind of leadership, cooperation, and long-term fiscal management that Washington should be exercising in order to address our nation’s long-term debt crisis.  These municipalities have resolved constituent differences and have managed their budgets well during the financial crisis. I have worked with town officials and my colleagues in the legislature to pass legislation on Beacon Hill that further enables towns such as Wayland to responsibly manage their financial obligations.”

“What is becoming known as the ‘Tea Party Downgrade’ should not have happened. Ideological stubbornness is impeding Congress’s ability to tackle tough economic problems, pursue prudent financial policies, and is ultimately hurting our local governments’ financial well-being and imperiling the future of our country.”

Last year, Conroy filed and helped pass legislation to allow the Town of Wayland to set up an Other Post Employment Benefits (OPEB) trust fund so that the town can effectively manage the costs of retiree benefits.  The majority of towns that received the negative outlook designation from Moody’s have OPEB trust funds, while statewide less than 10% of municipalities in Massachusetts have set up a structure for addressing their retiree benefit liabilities.  Last month, Conroy introduced legislation that was passed as a provision in the FY 12 budget that would help municipalities throughout the Commonwealth reduce their financial liabilities and improve their return on investment, thus making them more financially secure and creditworthy in the future. 

Downgrading the credit ratings of these municipalities would increase interest payments on bonds, thereby further straining their already stretched budgets, and impinge on their ability to cover necessary costs such as education, public works, and public safety.  A downgrade in Wayland’s credit rating would cause the town to face more expensive borrowing costs for the $71 million high school building project which is currently underway. 

“I am confident that the Town of Wayland and the Lincoln-Sudbury Regional School District have done, and will continue to do, everything possible to ensure their financial integrity. They should not be penalized for the intransigence of truly radical Members of Congress who refuse to compromise for the greater good. I will remain in contact with municipal leaders to try to mitigate any negative effects on the budgets of either municipal entity,” Conroy said.   

When asked about what he would do differently as a United States Senator, Conroy replied, “I have worked for two United States Senators.  I have seen what thoughtful collaboration with respectful colleagues can produce for the good of the country.  If I were elected the next U.S. Senator from Massachusetts, I would lead the collaborative process to tackle these complex matters of fiscal policy – issues that I am uniquely qualified to address given my background and experience. And I would work tirelessly to revive the bipartisan spirit that is needed to solve the nation’s economic problems.” 

Conroy, who has championed fiscal responsibility on Beacon Hill, is currently engaged in his Town-to-Town Walk around the Commonwealth as a part of his U.S. Senate campaign.  He has already walked over 400 miles of his 2-month, 600-mile journey, and has met with citizens from all walks of life to hear their concerns, ideas and aspirations for their communities, the Commonwealth, and the country.