Wall Street Journal Refutes Bond Sale, Budget Repair Urgency

A problem, but not a crisis:

….However, there are other ways to address Wisconsin’s current fiscal year budget deficit of $137 million other than refinancing the debt, said Joshua Zeitz, municipal finance analyst for MF Global….

Tax-anticipation notes might be another solution, as would be delaying payments to vendors, Mr. Zeitz said.

The shortfall is about 0.5% of the state’s overall budget, a fairly inconsequential amount, he said.

And since unions have already agreed to proposed givebacks on compensation and benefits, “it’s becoming increasingly clear that this is a question more of politics than it is of a budget crisis,” Mr. Zeitz added.

Indeed, Wisconsin is considered a very creditworthy state, with a double-A credit rating, and compared with some lower-rated states like California and Illinois, its finances are more manageable.

Via Wall Street Journal.

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