News Junkie: Moody’s says revised executive order is ‘credit negative’ for cities and towns

HARTFORD, Conn. — A Wall Street rating agency says Gov. Dannel P. Malloy’s revised executive order that would reduce municipal aid is “credit negative for Connecticut local governments.”

An analyst for Moody’s Investor Services said the revised order reduces municipal aid by $928 million from 2017 levels.

The new revised Aug. 18 executive order, which will go into effect on Oct. 1 if the General Assembly fails to pass a budget, reduces Education Cost Sharing grants by $557 million relative to the fiscal year 2017 disbursement. The largest reduction in Education Cost Sharing grants are to Stratford, Southington, and Enfield. Stratford would lose $21.5 million, Southington $20.3 million, and Enfield $20 million, according to Moody’s.

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