Not having to return $1.24 billion can do wonders for anyones credit rating.
Moodys Credit Outlook gave upbeat credit marks to Florida after the Florida Supreme Court upheld 2011 legislation that required state employees to contribute 3 percent of their pay to help cover their pensions in the Florida Retirement System defined benefit plan and to eliminate the retirement cost-of-living adjustment.
The ruling is credit positive for the state of Florida as well as for cities, counties, school districts, and other local governments whose employees are members of the plan, Moodys stated.
The analysis by Moodys, as well as another from Standard & Poor's, was highlighted Tuesday by the governors office.
The courts ruling supports our efforts to lower the cost of living for Florida families and we are doing the right things to pay down our states debt and reduce unemployment in Florida, Scott stated in a release.
Since I took office two years ago, we have cut state debt by $2 billion and our unemployment has declined to 8 percent -- the lowest rate in four years. We will keep working to ensure Florida maintains its AAA rating with the S&P, continue to reduce debt and make Florida the most business-friendly state in the nation so private-sector jobs can grow for Florida families.
As Moodys noted, the court ruling means $530 million wouldnt have to be returned to state employees that contributed to the plan in 2012, while local governments that are part of the state retirement plan wouldnt have to return $712 million.
A ruling against the state also would have caused a $2 billion budget shortfall for Florida in the coming fiscal year, as the state would also have to reinstate the COLA, adding about $473 million to the states actuarial liability for the past fiscal year.
Florida Democratic Party Executive Director Scott Arceneaux has expressed disappointment in the ruling that went against the state workers.
Rick Scott and this Republican-controlled Legislature are squeezing the middle class while giving tax breaks to the GOP special interests, Arceneaux stated in a release after the court ruled on Jan. 17. It's not fair, its not leadership and it's certainly no way to address our states fiscal problems.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
