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From GoLocalProv by Michael G. Riley, GoLocalProv MINDSETTER™:
Chicago, Illinois and Providence, Rhode Island are in a neck and neck battle for the worst funded city in America. Last week, Moody’s Credit Rating Agency, using new metrics that should surprise no one, unceremoniously dropped Chicago three notches to BAA1. This is three levels above junk and affects $8 billion in GO (General Obligation Bond) debt. Similarly, Providence is also rated BAA1 but that was done in September 2013 prior to Moody’s change in methodology and after Providence’s mild reform effort. The difference between Mayor Taveras of Providence and Rahm Emanuel as individuals is obvious. One mayor is aggressively seeks a solution to an impending calamity and the other Mayor tinkered, caved to union demands and is done, thereby dooming Providence to receivership. Mayor Emanuel thinks the city of Chicago is in dire straits, is pushing the unions, and is looking for solutions. Mayor Taveras has fooled around with the accounting; made the laughably courageous call to end 6% COLAs (Cost of Living Adjustments) and now now everything is fine.
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